Upper Volta - Rural Roads Project : Credit 0579 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 579 UV Development Credit Agreement (Rural Roads Project) BETWEEN 0 REPUBLIC OF UPPER VOLTA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED AUGUST 13, 1975 0 CONFORMED COPY CREDIT NUMBER 579 UV Development Credit Agreement (Rural Roads Project) BETWEEN REPUBLIC OF UPPER VOLTA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED AUGUST 13, 1975 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated August 13, 1975, between REPUBLIC OF UPPER VOLTA (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 March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "DPW" means "Directorate of Public Works (Direction des Travaux Publics)" a directorate established and operating within the Borrower's Ministry of Public Works, Transport and Urban Development pursuant to the Borrower's Decree No. 71034 PRES/PL,TP, dated February 21, 1971, as amended by the Borrower's Decree No. 75031 PRES/MTP.T. URB, dated January 24, 1975; and (b) "SERS" means "Service d'Entretien des Routes Secondaires" a subdivision within DPW established and operating pursuant to the Borrower's Decree No. 75031 PRES/MTP.T. URB, dated January 24, 1975. 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 seven million five hundred thousand dollars ($7,500,000). 4 Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time, for expenditures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 described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, the goods, works and services (other than consultants' services) for the Project to be financed out of the proceeds of the Credit, shall be procured in accordance with the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1979 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. 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 April 15 and October 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each April 15 and October 15 commencing October 15, 1985, and ending April 15, 2025, each installment to and including the installment payable on April 15, 1995 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 Republic of France 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 the Project through its DPW and SERS with due diligence and efficiency and in conformity with appropriate engineering, administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. 5 (b) Without limitation or restrictions on the generality of the provisions of the foregoing paragraph (a) of this Section, the Borrower shall take all such actions as may be required to provide SERS with qualified and competent personnel in adequate numbers in order to enable SERS to carry out its responsibilities with respect to the execution of the Project. (c) Without limitation or restriction on the provisions of the foregoing paragraph (b) of this Section, the Borrower shall, in order to assist SERS to carry out its responsibilities with respect to the execution of the Project, employ no later than January 1, 1976 or such other date as the Association may agree: (i) two road engineers and one accountant for equipment management to be employed with qualifications, experience and terms and conditions of employment, to be acceptable to the Association; (ii) suitably qualified counterpart personnel, in adequate numbers to second the said engineers and accountant; and (iii) four highway technicians and four administrative assistants with suitable qualifications and experience. Section 3.02. The Borrower shall, no latcr than June 30, 1976, or such other date as the Association may agree, establish and thereafter maintain within DPW a Bureau of Plaining and Programming which shall be responsible inter alia for: (i) the country's entire road network with respect to collecting and evaluating traffic and road inventory data on a permanent basis, formulating and coordinating with the Borrower's departments, agencies and instrumentalities priorities for road improvements, for analyzing road sector issues, and for developing transport policy recommendations and road investment plans; and (ii) liaison with the Borrower's Ministry of Public Works, Transport and Urban Development, and the Borrower's Ministry of Planning, Rural Development, Environment and Tourism, with respect to its responsibilities defined in sub-paragraph (i) of this Section. Section 3.03. In order to assist the Borrower (i) in the carrying out of Part C of the Project, the Borrower shall employ no later than September 1, 1976, or such other date as the Association may agree, consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Section 3.04. (a) In order to ensure adequate overall coordination of Part A of the Project, the Borrower shall establish no later than July 1, 1976, or such other date as the Association may agree, and thereafter maintain, an Interdepartmental Technical Committee, whose composition shall be satisfactory to the Association and which shall consist of, inter alia, high ranking representatives of its ministries, and agencies, interested in the execution of the Project. Such 6 Interdepartmental Technical Committee shall inter alia be responsible for review and approval in accordance with criteria satisfactory to the Association and upon recommendation of the Borrower's Bureau of Planning and Programming referred to in Section 3.02 of this Agreement of the Borrower's annual rural roads improvement program. (b) The Borrower shall starting April 1, 1977 or such other date as the Association may agree, cause SERS to submit annually to the Association for its approval, its annual rural roads improvement program after such program has been approved by the Interdepartmental Technical Committee as provided in paragraph (a) of -is Section, but no later than four months before the scheduled start of the works to be undertaken under its annual rural road improvement program. Section 3.05. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Association shall otherwise agree, all goods and services financed out of the proceeds of the Credit shall be used exclusively for the Project until its completion. Section 3.06. (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 visit the facilities and construction sites included in the Project and to examine 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 reasonabiy request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. 7 Section 3.07. 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. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. The Borrower shall take all actions as may be required to adequately maintain its roads network, to make promptly all necessary repairs thereof in accordance with sound engineering practices, and to maintain and renew. as and when needed, the roads network maintenance equipment required for the purpose and shall make adequate arrangements for the timely provision of funds, facilities, services and other resources required for that purpose. Section 4.03. The Borrower shall promptly take all such measures as may be required to classify, no later than July 1, 1976, or such other date as the Association may agree, under its regulations the rural roads to be constructed or maintained under the Project. Section 4.04. Unless the Association shall otherwise agree, the Borrower shall make: (i) at the end of the year during which the Project has been completed, an allocation in its national annual budget of not less than CFAF200 million to meet the maintenance requirements of its rural road network during the year immediately succeeding such year; and (ii) thereafter for each succeeding year an allocation in its budget for maintenance of its rural road network, the amount of which shall be (A) increased, as compared with the amount allocated for maintenance of its rural roads network in its budget of the year immediately preceding such succeeding year, to take into account cost increases occurring during such preceding year, and (B) adjusted, from time to time, to reflect changes in the maintenance requirements of the Borrower's rural road network. ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof 8 namely that (i) Decree No. 71034 PRES/PL.TP. dated February 21, 1971, or (ii) Decree No. 75031 PRES/MTP.T. URB dated January 24, 1975 have been amended, suspended, abrogated, repealed or waived without the prior approval of the Association. 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 any of the events specified in Section 5.01 of this Agreement shall occur. ARTICLE VI Effectiveness; termination Section 6.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01(b) of the General Conditions, namely, that the Borrower has furnished evidence, satisfactory to the Association that it has received from the United Nations Development Program or such other source of technical assistance as shall be acceptable to the Association, a firm commitment to provide to the Borrower such technical assistance as shall be needed by the Borrower to establish and maintain the Bureau of Planning and Programming referred to in Section 3.02 of this Agreement. Section 6.02. The date November 1, 1975 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Sections 4.03 and 4.04 of this Agreement and the provisions of Section 5.02 of this Agreement shall cease and determine on the date on which the Development 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 the Borrower responsible for finances 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 11.0 1 of the General Conditions: For the Borrower: Minist6re des Finances Ouagadougou Upper Volta 9 Cable address: MINIFINANCE Ouagadougou 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 in the District of Columbia, United States of America, * as of the day and year first above written. REPUBLIC OF UPPER VOLTA By /s / Telesphore Yaguibou Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / Roger Chaufournier Regional Vice President Western Africa 10 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 such proceeds to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Equipment, Spare 4,100,000 100% of foreign Parts, Materials expenditures and Supplies (2) Consulting 500,000 100% of foreign services and expenditures technical assistanre (3) Operating expendi- 250,000 50% tures for better- ment and maintenance work under the Pro- ject (4) Civil works 550,000 64% (5) Unallocated 2,100,000 TOTAL 7,500,000 2. For the purposes of this Schedule the term "foreign expenditures" means expenditures in the currency of a country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; 11 provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures". 3. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the 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, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association 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 Association. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of expenditures: (a) prior to the date of this Agreement; (b) in respect of the Project unless the Borrower's request for authorization to make withdrawals from the Credit Account shall be supported by contract, shipping and other appropriate documents satisfactory to the Association, provided that, in the case of small items, for which presentation to the Association of such documentation shall not be practical, requests for authorization to make withdrawals from the Credit Account on account of expenditures in respect of the Project shall be supported by statements certified by DPW that such amounts to be withdrawn from the Credit Account have been paid in connection with the Project. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph I above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 12 6. 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 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 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. 13 SCHEDULE 2 Description of the Project The Project is part of the Borrower's program to preserve recent investments in its rural road sector and to develop rural roads in regions with significant agricultural and rurai development programs. The Project consists of the following parts: Part A: Improving and maintaining about 1,200 km of rural roads and tracks and maintaining about 2,100 km of additional rural roads; Part B: Strengthening SERS by: (i) the utilization of technical assistance for the implementation of Part A of the Project; and (ii) procurement of highway improvement and maintenance equipment. Part C: An evaluation of the impact and effectiveness of the road components included in the agricultural and rural development projects financed by the Association over the last five years. The Project is expected to be completed by June 30, 1979. 14 SCHEDULE 3 Procurement A. General Procedures 1. Except as provided in Part A2 hereof, contracts shall be let under procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in April 1972, as revised in October 1972 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. (a) Civil works may be carried out under force account or contracts for civil works may be awarded in accordance with local competitive bidding prou dures, acceptable to the Association, based on local advertising. (b) Contracts for items estimated to cost the equivalent of less than $40,000 may be awarded in accordance with local competitive bidding procedures, acceptable to the Association, based on local advertising; provided, however, that the aggregate amount of contracts to be so awarded shall not exceed the equivalent of $250,000. 3. Identical or similar items of material and equipment shall, to the extent possible, be consolidated in a single invitation for the purposes of bidding. B. Evaluation and Comparison of Bids for Goods; Preference for Domestic Manufacturers 1. For the purpose of evaluation and comparison of bids for the supply of goods: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for imported goods, or the ex-factory price for domestically-manufactured goods; (ii) customs duties and other import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Upper Volta may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. 15 (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Upper Volta if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Upper Volta equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Upper Volta. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid, or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 1 5% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. C. Review of Procurement Decisions by Association 1. Review of invitation to bid and of proposed awards and final contracts. With respect to all contracts for equipment, spare parts and materials estimated to cost the equivalent of $40,000 or more: (a) 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 16 to be followed for the bidding, and shall make such modifications in the said documents or procedures 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. (b) 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 which it intends to award the contract and the reasons for the intended award and shall furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the recommendation for award and such other information as the Association shall reasonably request. The Association 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. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the 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 such contract. 2. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding paragraph, 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 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 was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination.