Zambia - Fourth Education Project : Loan 1356 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1356 - ZA LOAN AGREEMENT (Fourth Education Project) between REPUBLIC OF ZAMBIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated January 17, 1977 LOAN AGREEMENT AGREEMENT, dated January 17, 1977', between REPUBLIC OF ZAMBIA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECON- STRUCTION AND DEVELOPMENT (hereinafter called the Bank). -2- ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank 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 Gen- eral Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Minister" means the member of the Cabinet charged with the functions of the "Minister responsible for finance" under the General Loans (International Bank) Act, Chapter 595 of the Laws of Zambia, or, if the President assumes such functions, the President; (b) "First Loan Agreement" means the loan agreement dated April 11, 1969 between the Borrower and the Bank (Loan No. 592 ZA), as the same may be amended from time to time, and such term in- cludes all Schedules to the First Loan Agreement; (c) "Second Loan Agreement" means the loan agreement dated November 20, 1969 between the Borrower and the Bank (Loan No. 645 ZA), as the same may be amended from time to time, and such term includes all Schedules to the Second Loan Agreement; ) -3 - (d) "Third Loan Agreement" means the loan agreement dated June 6, 1973 beuween the Borrower and the Bank (Loan No. 900 ZA), as the same may be amended from time to time, and such term in- cludes all Schedules to the Third Loan Agreement; (e) "Third Project" means the project described in Schedule 2 to the Third Loan Agreement; (f) "Prior Loan Agreements" means the First Loan Agreement, the Second Loan Agreement, and the Third Loan Agreement; (g) "Project Unit" means the Third Project Unit established pursuant to Section 3.02 (d) of the Third Loan Agreement; (h) "MOE" means the Borrower's Ministry of Education; (i) "MRD" means the Borrower's Ministry of Rural Development; Cj) "DAMRD" means the Department of Agriculture in MRD; (k) "DTEVT" means the Department of Technical Education and Vocational Training in MOE; (1) "EHC" means the Evelyn Hone College of Applied Arts and Commerce in Lusaka; (m) "Educational Services Center" and "ESC" mean the Center by that name established by the Borrower in accordance with a phased program to consolidate in a combined headquarters complex at Lusaka various educational services administered by MOE. Phase I of such program is being carried out under Part A (3) (a) of the Third Project and includes the following services: curriculum de- velopment; audio-visual aids; correspondence courses; library ser- vices; printing and documentation; and administrative services. Phase II of such program is intended to be carried out as Part A of the Project described in Schedule 2 to this Agreement, and in- cludes the addition to the Center of facilities for examination and certification, research, evaluation and guidance services, and expansion of facilities for printing and documentation, all as described under Part A of the Project; (n) "Trade Training Institutes" and "TTI" mean any one of five of the eight existing trades training institutes of the Bor- rower operated by DTEVT; (o) "Farmer Training Center" and "FTC" mean any one of 27 existing Farmer Training Centers of the Borrower, operated by DAMRD and established to provide residential farmer training; (p) "Farm Institute" and "FI" mean any one of the 8 Farm Institutes of the Borrower, operated by DAMRD for in-service training of the technical staff of the DAMRD; (q) "Project Institutions" means the institutions of the Borrower included in the Project, as further described in Parts A, B and C of Schedule 2 to this Agreement; and * - 5- (r) "Local Authority" means, with respect to the Borrower, a city council, a municipal council, a rural council, or any other governmental authority of the Borrower (other than its central government) which has power to raise revenues by taxation and to charge such revenues or any of its assets as security for external debt. 0 ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or re- ferred to, an amount in various currencies equivalent to thirteen million three hundred thousand dollars ($13,300,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan 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 Bank, for expendi- tures made (or, if the Bank 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 fi- nanced out of the proceeds of the Loan. Section 2.03. Except as the Bank shall otherwise agree, con- tracts for the purchase of goods or for civil works required for the Project and to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be March 31, 1983 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) -7 - 12-30-76 per annum on the principal amounkt of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of eight and seventy-hundredths per cent (8.70%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semi-annually on January 1 and July 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. -8- ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project or cause the Project to be carried out with due diligence and effi- ciency and in conformity with appropriate administrative, financial, educational, technical and architectural practices, and shall pro- vide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in the preparation of designs for and in the supervision of construction of the Project Institutions, the Borrower shall, within six months from the date of this Agreement or such later date as the Bank shall agree, employ consultant architects/engineers whose qualifi- cations, experience and terms and conditions of employment shall be satisfactory to the Bank. (b) For the purpose of carrying out the Project, the Borrower shall, except as the Bank shall otherwise agree, maintain the existence of the Project Unit, with such responsibilities, powers and staff as are specified in Schedule 5 to this Agreement. (c) The Borrower at all times shall, until the completion of the Third Project and the Project, provide suitable premises and adequately qualified supporting staff for the Project Unit. () -9- Section 3.03. (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 Loan 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 rn- place or repair such goods. (b) Except as the Bank shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. Section 3.04. (a) The Borrower shall furnish to the Bank, 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 Bank 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 pro- ceeds of the Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank'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 Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. 01 - 10 - 12-30-76 Section 3.05. The Borrower shall make available or cause to be made available as and when needed all such land and rights in respect of land as shall be required for the construction and operation of the educational institutions and facilities included in the Project and shall furnish to the Bank, upon request, evi- dence satisfactory to the Bank that such land and rights in re- spect of land are available for purposes related to the Project. Section 3.06. For the carrying out of Parts B and D (1) of the Project, the Borrower shall, (i) within six months of the date of this Agreement or such later date as the Bank shall agree, update and furnish to the Bank the staff development plan prepared by DTEVT for the business and secretarial studies depart- ment of EHC, and (ii) thereafter exchange views with the Bank regarding the plan as so updated and its implementation. Section 3.07. For purposes of Part D.2 of the Project, the Borrower shall, within nine months of the date of this Agreement or such later date as the Bank shall agree, employ an agricultural educator, an agricultural extension specialist, a rural home economics educator, and an audio-visual and teaching aids specialist. Section 3.08. For the carrying out of Parts C and D (2) of the Project, the Borrower shall, (i) within 18 months after the date of this Agreement or such later date as the Bank shall agree, prepare with the assistance of the specialists employed in accor- dance with the provisions of Section 3.07 above, and furnish to * - 11- - the Bank, a detailed plan, satisfactory to the Bank, for the in- service training of the agricultural teaching and extension staff and the improvement of the instructional and extension programs of DAMRD. Section 3.09. The Borrower shall (i) within three months after the completion of the Project (other than Part E (ii)) or such later date as the Bank shall agree, furnish to the Bank the evaluation studies included under Part E (ii) of the Project, and (ii) thereafter consult with the Bank regarding the findings and recommendations thereof. Section 3.10. The Borrower shall process in an expedi.-ious manner all documentation including import licenses and aut ori- zations to remit foreign exchange as may be required to enable the timely carrying out of the Project. Section 3.11. The Borrower shall operate the educational institutions included in the Project in accordance with sound educational practices. Section 3.12. The Borrower shall adequately maintain the buildings and equipment of the educational institutions included in the Project and make all necessary renewals and repairs thereof in accordance with sound technical and administrative practices. - 12 - ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of for- eign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or per- mitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its Local Authorities, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; -13- and (ii) any lien arising in the ordinary course of banking trans- actions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower or of any Local Authority and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such Local Authority, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section 4.02. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with con- sistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carry- ing out the Project or any part thereof. (b) Without limitation or restriction upon the provisions of Subsection (a) hereof, the Borrower shall cause to be maintained accurate accounts of the expenditures incurred by the Project Unit, in accordance with consistently maintained appropriate accounting practices, which accounts shall, inter alia, show separately ex- penditures incurred for purposes of the Third Project and expendi- tures incurred for purposes of the Project. (c) The Borrower shall (i) have the accounts referred to in Subsection (b) hereof for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by the Auditor General of the Borrower; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of such ac- counts for such year as so audited and (B) the report of such audit by said Auditor, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning the accounts of the Project Unit and the audit thereof as the Bank shall from time to time reasonably request. -15 - ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional event is specified pursuant to paragraph (k) thereof, namely, that the Borrower shall have failed to perform any obligation (other than an obligation to pay monies) under any Prior Loan Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (h) thereof, namely, that the event specified in Sec- tion 5.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Bank to the Borrower. -16- ARTICLE VI Termination Section 6.01. The date April 18, 1977, is hereby specified for the purposes of Section 12.04 of the General Conditions. -17- ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister 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: Ministry of Finance P. 0. Box R. W. 62 Ridgeway Lusaka, Zambia Cable address: Telex: FINANCE ZA 42221 Ridgeway Lusaka For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (wUI) - 18 -0 IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment 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 ZAMBIA By /s/ F. F. Bwalya Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s / W. A. Wapenhans Regional Vice President Eastern Africa -19 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of ex- penditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed 1. Civil Works 3,450,000 45% * 2. Construction Materials 1,800,000 100% of foreign expenditures 3. Furniture, Equip- 2,220,000 ment and Vehicles (including trans- portation to site) (a) Directly 100% of foreign imported expenditures (c.i.f. cost) (b) Locally manu- 100% of local factured (ex- expenditures factory cost) (c) Locally pro- 70% cured but previously imported (d) Locally pro- 70% cured trans- portation services - 20- Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalant) to be Financed 4. Technical Assis- 2,,400,000 100% of foreign tance and Fellow- expenditures ships under Part D of the Project 5. Architectural and 730,000 35% Engineering Services, Studies included under Part E of the Project, and expen- ditures not covered under Category (4) for preparation of plan for training re- ferred to in Section 3.07 of the Loan Agree- ment, and Project Administration 6. Unallocated 2,700,000 TOTAL 13,300,000 -21 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in compli- ance with the policy of the Bank that no proceeds of the Loan 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 Loan decreases or increases, the Bank 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 Bank. 4. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made: (i) in respect of payments made for expenditures prior to the date of this Agreement, except that with- drawals, in an aggregate amount not exceeding the equivalent of $100,000, may be made in respect of - 22 - expenditures for architectural and engineering services under Parts A, B and C of the Project and for the survey of the construction industry included under Part E of the Project and under Category (5) on account of payments made for such expenditures before that date but after December 1, 1976; or (ii) in respect of expenditures eligible for financing under the Third Loan. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then appli- cable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Bank shall have reasonably determined that the pro- curement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of -23- . the Loan and the Bank may, without in any way restricting or lim- iting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. - 24 - SCHEDULE 2 Description of the Project The Project consists of the following Parts: Part A: Educational Services Center Phase II of the Borrower's program for establish- ment of the Educational Services Center, including construction, equipping and furnishing of facilities for examination and certification, research, evaluation and guidance services, and expansion of facilities for printing and documentation. Part B: Business Education A program of expansion and improvement of business education through (i) expansion of the boarding capacity of the Evelyn Hone College of Applied Arts and Commerce by about 250 boarding places; and (ii) provision of instructional equipment and furniture for the College's Business and Secretarial Studies Department and for five Trades Training Institutes. Part C: Agricultural Education A program of improvement of staff and farmer training through provision and/or replacement as re- quired of teaching facilities and boarding facilities - 25 - 12-30-76 (the latter mainly for women), utility services, staff housing, instructional equipment, and transport for participants and staff, for about eight Farm Insti- tutes and about twenty Farmer Training Centers. Part D: Technical Assistance and Fellowships Employment of technical assistance specialists, under terms of reference prepared by the Borrower and satisfactory to the Bank, and a program of fellowships for training abroad, satisfactory to the Bank, as follows: 1. For the Evelyn Hone College of Applied Arts and Commerce, about 25 man-years of specialist services and about 40 man-years of fellowships; 2. For MRD, about 13 man-years of specialist services, and about 8 man-years of fellow- ships, to assist in stzff development and in planning and organization of more effec- tive training and extension programs; 3. For the Project Unit, about 36 man-years of specialist services, to assist in the carrying out of Parts A, B and C of the Project. Part E: Studies Studies, under terms of reference satisfactory to the Borrower and the Bank, consisting of: -26- (i) a survey of the Zambian construction industry; and (ii) evaluation studies to gauge the impact of the Project (other than this Part E (ii)). * * * The Project is expected to be completed by September 30, 1982. ) -27 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each January 1 and July 1 Beginning January 1, 1981 through July 1, 1993 495,000 On January 1, 1994 430,000 * To the ext nt that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. 01 - 28 0 Premiums on Prepayment The following percentages are specified as the premiums pay- able on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.55% More than three years but not more than six years before maturity 3.05% More than six years but not more than eleven years before maturity 5.65% More than eleven years but not more than fifteen years before maturity T.70% More than fifteen years before maturity 8.70% -29 - SCHEDULE 4 Procurement A. International Competitive Bidding Except as provided in Part B hereof, contracts for the purchase of goods or for civil works shall be procured in accordance with procedures consistent with those set forth in Part A of the "Guide- lines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guide- lines), on the basis of international competitive bidding. B. Other Procurement Procedures Notwithstanding the provisions of Part A hereof, the following contracts may be awarded on the basis of competitive bidding with local advertising only and in accordance with the Borrower's normal procurement procedures: (i) civil works contracts estimated to cost less than the equivalent of $250,000; (ii) any contracts for furniture, equipment and vehicles estimated to cost less than the equivalent of $50,000; and (iii) locally procured transportation services for furniture and equipment. - 30 - 0 Tender notices for such contracts shall be widely advertised in Zambia. C. Grouping and Phasing of Contracts 1. Civil works contracts shall be grouped to form economic bid packages whenever practicable, and will be phased in such a way that a continuous flow of work throughout the implementation period is assured in each geographical region included in the Project. 2. Furniture and equipment contracts and contracts for vehicles shall be arranged and phased in accordance with sound procurement practices, to encourage competitive bidding and to permit bulk purchases wherever possible. D. 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 except those to be procured in accordance with local procedures: (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 sim- ilar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expen- ditures incidental to the delivery of goods to the place of their use or installation shall be included. -31 - 2. Goods manufactured in Zambia may be granted a margin of preference in accordance with, and subject to, the following pro- visions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the infor- mation required to establish the eligibility of a bid for such preference and the following methods and stages that will be fol- lowed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Zambia if the bidder shall have established to the satis- faction of the Borrower and the Bank that the manu- facturing cost of such goods includes a value added in Zambia equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Zambia. (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 evalu- ated bid of each group. Such lowest evaluated bids shall then be - 32- 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 fur- ther comparison only, an amount equal to (i) the amount of cus- toms 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 (c) is the lowest evaluated bid shall be selected. E. Review of Procurement Decisions by the Bank 1. Prior to inviting bids, the Borrower shall obtain the Bank's approval: (a) with respect to civil works contracts: (i) for a complete list of such contracts, including the estimated value of each, an indication of their grouping, and a timetable for their award; - 33 - (ii) for a list of prequalified contractors, including the prequalification documents, a description of prequalification procedures and recommendations for prequalification; (b) with respect to the furniture, equipment and vehicles contracts: (i) for lists of all items of furniture, equipment and vehicles required for the Project, including the specifications and estimated unit and total prices of each item (c.i.f. Lusaka), each item to be coded and numbered for identification of the facility and type of space for which the item is * required; (ii) for a schedule showing the approximate time of procurement of major groups of items; (c) of the bid invitation documents, with descriptions of the tendering procedures (including the advertising coverage); and (d) of the proposed contract documents. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for civil works estimated to cost the equivalent of $250,000 or more and contracts for equip- ment, furniture and vehicles estimated to cost the equivalent of t50,000 or more: - 34 - 0 (a) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the in- tended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (b) The terms and conditions of the contract shall not, with- out the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited. (c) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submis- sion to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. With respect to each contract to be financed out of the pro- ceeds of the Loan and not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execu- tion and prior to the submission to the Bank of the first applica- tion for withdrawal of funds from the Loan 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 information as the Bank shall reasonably re- quest. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, -35 - promptly inform the Borrower and state the reasons for such de- termination. - 36 - 0 SCHEDULE 5 The Project Unit 1. The Project Unit shall be responsible, under the overall direction of the Permanent Secretary of the Ministry responsible for Public Works, in addition to its responsibilities for execution of the Project under the Third Loan Agreement, for the execution of the Project, and shall have, inter alia, the following functions, powers and responsibilities in relation thereto: (a) selection, briefing, coordination and supervision of consultants referred to in Section 3.02 (a) of this Agreement; (b) approval of civil works designs for the Project Institutions; (c) preparation of detailed lists including estimated costs of the furniture, equipment and vehicles required for the Project; (d) procurement of civil works, furniture, equipment and vehicles, including preparation of bidding documents, analysis of bids and making of recommendations regarding the award of contracts; (e) regular inspection of all construction work and accept- arce of consultants' certification of completion of work; and -37 - (f) keeping of records, including financial records, of the execution of the Project, and preparation of regular reports to the Bank. 2. The Project Unit shall consist of: (a) a Project Director, who is to be the Unit's authorized representative and have overall responsibility for the direction and coordination of its work; (b) a full-time Assistant Project Director; (c) a full-time Project Architect; (d) a specialist in equipment procurement; (e) an accountant; (f) about 6 construction supervisors; and (g) administrative and secretarial staff as required for the carrying out of the Unit's responsibilities. 3. The Project Director, Assistant Project Director, Project Architect, Equipment Procurement Specialist, and the Project Accountant, shall be appointed only after consultation with the Bank. 4. The qualifications and terms and conditions of employment of the construction supervisors shall be satisfactory to the Bank. 0I