Malawi - Second Karonga Rural Development Project : Loan 1286 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1286 T-MAI LOAN AGREEMENT (Second Karonga Rural Development Project) between REPUBLIC OF MALAWI and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated June 24, 1976 LOAN AGREEMENT AGREEMENT, dated June 24, 1976, between REPUBLIC OF MALAWI (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPNENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; (B) the Bank has determined that the Borrower is eligible to receive this Loan as an intermediate term loan, as that term is defined in Resolution No. 75-111 of the Executive Directors of the Bank establishing an Interest Subsidy Fund for the Third Window (hereinafter called the Fnd) and upon the terms and con- ditions set forth in such Resolution; (C) the Administrator of the Fund (hereinafter called the Administrator), subject to the terms and conditions set forth in the Resolution referred to in (B) above, is obligated to pay to the Bank semi-annually from the resources of the Fund an amount equal to four per cent (4%) per annum of the outstanding amounts of principal on intermediate term loans, of which this Loan is one; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: -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 General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "MANR" means the Borrower's Ministry of Agriculture and Natural Resources; (b) "ADMARC" means the Agricultural Development and Marketing Corporation of the Borrower, established under the Farmers Marketing Act, as amended by the Farmers Marketing (Amendment) Act, 1971; (c) "First Project Agreement" means the Development Credit Agreement (Karonga Rural Development Project) dated January 26, 1972 between the Borrower and the International Development Association; (d) "KRDP" means the Karonga Rural Development Project being implemented under the First Project Agreement; -3- (e) "NRDP" means the Borrower 's National Rural Development Program; and (f) "NRDP sub-projects" means NRDP's preliminary investment phase in the three development areas of North West Mzimba, Thivi- Lifidzi and Kawinga. -4- ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in this Agreement set forth or referred to, an amount in various currencies equivalent to nine million two hundred thousand dollars ($9,200,000). 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 Proj- ect and to be financed 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 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, 1981 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 coTm-itment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. -5- Section 2.06. The Borrower shall pay interest at the rate of four and eighty-five hundredths per cent (4.85%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time; provided, however, that if the Administrator shall at any time determine that the resources of* the Fund shall not be suffi- cient to pay to the Bank at the next succeeding semi-annual in- terest payment date of the Loan the amount scheduled to be paid by the Administrator at that interest payment date as specified in paragraph (C) of the Preambic to this Agreement, the Borrower shall, upon notification by the Administrator of such determina- tion and the amount of the resulting shortfall, pay additional interest on such principal amount of the Loan equal to such short- fall. Section 2.07. Interest and other charges shall be payable semi-annually on January 15 and July 15 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. -6- ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out or cause the Project to be carried out with due diligence and efficiency and in con- formity with appropriate agricultural, administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants whose qualifi- cations, experience and terms and conditions of employment shall be satisfactory to the Bank. 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 re- 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, 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 proccads of the Loan and the goods and services financed out of such proceeds. Section 3.05. The Borrower shall ensure that the design stan- dards for the construction of houses under the Project shall be satisfactory to the Bank. Section 3.06. The Borrower shall: (i) complete or cause to be completed the land resource and agro-economic survey for NRDP sub- projects; and (ii) submit to the Bank, not later than September 30, 1977, or such other date as shall be agreed with the Bank, detailed development plans for said sub-projects. -8- Section 3.07. The Borrower shall submit, not later than June 30, 1977 or such other date as shall be agreed with the Bank, to the Bank for review, proposals for the Borrower's future agricultural credit arrangements. Section 3.08. The Borrower shall ensure that no new appoint- ments to the post of KRDP Project Manager established pursuant to the provisions of Section 3.02 (c) of the First Project Agreement shall be made without prior consultation with the Bank. Section 3.09. (a) The Borrower shall: (i) employ such addi- tional staff at NRDP as are referred to in Schedule 5 of this Agreement; and (ii) ensure that no significant changes in the said level of staffing shall be made without prior consultation with the Bank. (b) For the purposes of proper coordination of the various NRDP activities, the Borrower shall: (i) employ, in consultation with the Bank, an NRDP coordinator within MANR; and (ii) establish an NRDP liaison committee under the chairmanship of MANR's Permanent Secretary, or his representative, with senior officials representing the Office of the President, ADMARC, the Borrower's Ministries of Works and Supplies, Health and Community Development and the Trea- sury and Department heads of MANR. -9- Section 3.10. In order to determine a feasible rate of future expansion of the Borrover's agricultural development activities, the Borrower shall: (i) cause MANR to review MANR's manpower situ- ation for the following ten years; and (ii) discuss with the Bank the results of such review not later than June 30, 1977, or such other date as shall be agreed with the Bank. Section 3.11. The Borrower shall take all reasonable steps to ensure that the levels of agricuitural staff in the Karonga and Chitipa Districts shall be maintained substantially as set forth in Schedule 6 to this Agreement. - 10 - 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 political or admini- strative subdivisions, 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 equival'nt lien on other public assets satisfac- tory 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; - 11 - 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 'he Borrower, of any political or administrative subdi- vision thereof and of any entity owned or controlled by, or oper- ating for the account or benefit of, the Borrower or any such subdivision, 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, including separate accounts, adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations and financial condition in respect of the Project, of the departments or agencies of the Borrower, including MANR, the Ministry of Health, Malawi Railways Limited and ADMARC, responsible for carrying out the Project or any part thereof. (b) The Borrower shall cause MANR, ADMARC, Malawi Railways Limited and the Ministry of Health to: (i) have their accounts and financial statements in respect of the Project for each fis- cal year audited, in accordance with appropriate auditing prin- ciples consistently applied, by independent auditors acceptable to the Bank; (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 their financial statements for such - 12 - year as so audited and (B) the report of such audit by said audi- tors in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning the accounts and financial statements of MANR, ADMARC, Malawi Railways Limited and the Ministry of Health and the audit thereof as the Bank shall from time to time reasonably request. Section 4.03. The Borrower shall undertake a study of the long-term budgetary implications to the Borrower of all agricul- tural development projects, and shall, not later than September 30, 1977, or such other date as shall be agreed with the Bank, sub- mit the results of such study for review by the Bank. Section 4.04. The Borrower shall establish or cause to be established such tariffs as shall be necessary to cause the Malawi Lake Service to generate sufficient revenue to cover op- erating costs and depreciation or debt service, whichever is greater. - 13 - ARTICLE V Effective Date; Termination Section 5.01. The date September 24, 1976 is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. 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 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Secretary to the Treasury Ministry of Finance P.O. Box 30049 Capital City Lilongwe 3, Malawi Cable address: FINANCE Lilongwe For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INTBAFRAD Washington, D.C. - 15 - 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 MALAWI By /s/ George Banda Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Stanley Please Acting Regional Vice President Eastern Africa - 16 - 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 e-h Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed 1. KRDP (a) Vehicles, 600,000 100% of foreign machinery and expenditures or equipment 75% of local expenditures (b) Civil Works other 1,000,000 75% than market fac- ilities to be con- structed by ADMARC (c) Personnel 1,000,000 100% of foreign expenditures or 75% of local expenditures (d) Other operating 1,000,000 100% of foreign costs including expenditures or credit operation 75% of local and drugs for expenditures health component - 17 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed 2. NRDP (a) 7ehicles, ma- 4oo,0o 100% of foreign chinery and expenditures or equipment 75% of local expenditures (b) Civil Works other 900,000 75% than market fac- ilities to be con-. structed by ADMARC (c) Personnel 400,000 100% of foreign expenditures or 75% of local expenditures (d) Other operating 300,000 100% of foreign costs including expenditures or credit operations 75% of local and drugs for expenditures health component (e) Consultants 130,000 100% of foreign expenditures or 75% of local expenditures 3. Lake Transport (a) Civil Works 19500,000 75% (b) Cargo handling 150,000 100% of foreign equipment expenditures or 75% of local expenditures - 18 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (c) Refitting of 20,000 100% of foreign the motor expenditures or vessel Mpasa 75% of local expenditures . Unallocated 1,800,000 TOTAL 9,200,000 - 19 - 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 Ahe 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 uf 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 in respect of payments made for expenditures prior to the date of this Agreement. 5. Notwithstanding the provisions of paragraph 1 above, no with- dravals shall be made in respect of payments made for expenditures in respect of Category 2 (C) prior to the establishment of post positions for the NRDP additional staff referred to in Schedule 5 to this Agreement. - 20 - 6. 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. 7. 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 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. - 21 - SCHEDULE 2 Description of the Project The Project consists of: Part A: Karonga and Chitipa Districts (1) Continuation and expansion of field extension services to farmers. (2) Continuation and expansion of animal and land husbandry services. (3) Continuation and expansion of seasonal and medium-term credits for farm inputs. (4) Continuation of agricultural and hydrological research. (5) Construction of about 6 market complexes in Karonga and about 3 market complexes in Chitipa. Each such complex will consist of about 280 ton input store, a market building and staff housing and the construc- tion of about 8 small input sheds in Chitipa. (6) Expansion of health facilities including the construc- tion of 3 maternity wards in Karonga, 2 maternity wards and 7 health posts in Chitipa. (7) Construction of about 20 staff houses in Karonga and about 75 staff houses in Chitipa. - 22 - (8) Construction of office accommodation. (9) Construction of one training center and upgrading of two training centers in Chitipa District. (10) Construction or upgrading of about 90 miles of feeder roads and improvement of other access roads, construc- tion of about 85 boreholes, about TO minor bridges and about 20 culverts and 2 drifts. (11) Continued Project evaluation. Part B: National Rural Development Program (1) Expansion of MANR's central services to increase its capacity to prepare and implement future investment phases of NRDP through: (a) strengthening of the (i) land husbandry section; (ii) agro-economic survey section; and (iii) ac- counting services, by provision of additional staff, offices and the necessary supporting fa- cilities; (b) provision of agricultural research staff to con- duct crop experiments in six future NRDP sulb- projects; (c) construction of about 35 staff houses; - 23 - (d) establishment of an evaluation unit comprising of 15 staff with supporting facilities at MANR's Regional headquarters at Mzuzu; (e) establishment of a road construction unit within MANR; and (f) provision of consultants to undertake special studies on various subjects related to the imple- mentation of the Project. (2) Preliminary investments in NRDP sub-projects as follows: (a) construction of about 20 houses in North West Mzimba, about 30 houses in Thivi-Lifidzi and about 30 houses in Kawinga; (b) construction of one training center in North West Mzimba, 2 training centers each in Thivi-Lifidzi and Kawinga; (c) construction of about 20 boreholes in North West Mzimba, about 16 boreholes in Thivi-Lifidzi and about 10 boreholes in Kawinga; (d) construction of about 3 bush markets input stores in North West Mzimba, about 3 input stores in Thivi-Lifidzi and 2 input stores and one market in Kawinga; -24- (e) expansion of the extension and land husbandry services staff; (f) construction of the necessary office accommodation in North West Mzimba, Thivi-Lifidzi and Kawinga; (g) construction of 2 bridges in North West Mzimba; (h) construction of about 50 miles of rural roads in Thivi-Lifidzi; and (i) construction of additional health facilities in North West Mzimba. Part C: Lake Transport (1) Expansion and improvement of berthing and related facilities at Chipoka Lake terminal. (2) Provision of cargo handling equipment at Chipoka Lake terminal. (3) Refitting of the motor vessel Mpasa to increase its bulk fuel carrying capacity. * * * * The Project is expected to be completed by September 30, 1980. - 25 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars) January 15, 1983 155,000 July 15, 1983 160,000 January 15, 1984 165,000 July 15, 1984 165,000 January 15, 1985 175,000 July 15, 1985 175,000 January 15, 1986 180,000 July 15, 1986 185,000 January 15, 1987 190,000 July 15, 1987 195,000 January 15, 1988 195,000 July 15, 1988 205,000 January 15, 1989 210,000 July 15, 1989 210,000 January 15, 1990 220,000 July 15, 1990 225,000 January 15, 1991 230,000 July 15, 1991 235,000 January 15, 1992 240,000 July 15, 1992 245,000 January 15, 1993 255,000 July 15, 1993 255,000 January 15, 1994 265,000 July 15, 1994 275,000 January 15, 1995 275,000 July 15, 1995 285,000 January 15, 1996 290,000 July 15, 1996 300,000 January 15, 1997 305,000 July 15, 1997 315,000 - 26 - Payment of Principal Date Payment Due (expressed in dollars) January 15, 1998 320,000 July 15, 1998 330,000 January 15, 1999 335,000 July 15, 1999 345,000 January 15, 2000 355,000 July 15, 2000 360,000 January 15, 2001 375,000 - 27 - 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 1.05% More than three years but not more than six years before maturity 2.10% More than six years but not more than eleven years before maturity 3.90% More than eleven years but not more than sixteen years before maturity 5.65% More than sixteen years but not more than twenty-one years before maturity 7.45% More than twenty-one years but not more than twenty-three years before maturity 8.15% More than twenty-three years before maturity 8.85% - 28 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Parts A (3) and B hereof, contracts for civil works for the Chipoka Lake terminal referred to in Part C of the Project and contracts for vehicles, machinery and equipment estimated to cost the equivalent of $50,000 or more shall be let in accordance with procedures consistent with those set forth in Part A of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. (a) Bidders for the works included in Part C (1) of the Proj- ect shall be prequalified as described in paragraph 1.3 of Part A of the Guidelines. (b) Contracts for vehicles, machinery and equipment shall be so. grouped as to encourage international competition. 3. Procurement of farm inputs, drugs and other recurrent sup- plies shall be in accordance with competitive bidding advertised locally. B. Procurement without Contracting 1. Staff houses, offices, roads, bridges, health facilities and training centers referred to in Parts A (6) through (10) shall be - 29 - constructed by KRDP's construction unit and the Borrower's Ministry of Works by force account or by contractors in accordance with competitive bidding advertised locally. 2. The boreholes referred to in Parts A (10) and B (2) (c) of the Project shall be constructed by the Geological Survey Depart- ment of MANR by force account. 3. Civil works under Parts B (1) and (2) (a), (b), (f), (g) and (i) of the Project shall be constructed by the Borrower's Ministry of Works by force account or by contractors in accordance with competitive bidding advertised locally. 4. Civil works under Parts A (5) and B (2) (d) of the Project shall be constructed by ADMARC by force account. 5. The construction and upgrading of rural roads under Part B (2) (h) of the Project shall be carried out by MANR by force ac- count. C. Evaluation and Comparison of Bids for Civil Works; Preference for Domestic Contractors With respect to any contract for civil works included under Part C (1) of the Project and to be procured in accordance with the procedures described in Part A.1 of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: - 30 - (a) Contractors shall be required to prequalify as provided in Part A of this Schedule and applicants for qualification applying also 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 Bank, a p .rticular firm or group of firms qualifies for a domestic preference. (b) The bidding documents shall clearly indicate the prefer- ence and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. (c) After bids have been received and reviewed by the Bor- rower, 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. D. Review of Procurement Decisions by the Bank 1. Review of invitations to bid and of proposed awards and fi- nal contracts: - 31 - With respect to all contracts for civil works under Part C (1) of the Project and all contracts for vehicles, machinery and equip- ment estimated to cost the equivalent of $50,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Bank, 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 docu- ments or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) 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. (c) The terms and conditions of the contract shall not, with- out the Bank's concurrence, materially differ from those on which bids were asked. - 32 - (d) 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. 2. 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, promptly inform the Borrower and state the reasons for such de- termination. - 33 - SCHEDULE 5 Additional Staffing for NRDP The following additional staffing will be provided for NRDP: Part of the When Project Personnel Number Assigned B(l)(a)(i) Professional Officer 1 ) During Year 1 B(l)(a)(i) Technical Assistant 2 ) of Project B(l)(a)(ii) Senior Technical Officer 1 ) B(l)(a)(ii) Senior Technical Assistant 1 ) During Year 1 B(l)(a)(ii) Senior Statistical Clerk 1 ) of Project B(l)(a)(iii) Systems Analyst 1 ) During Year 1 of Project B(l)(b) Senior Technical Assistant 1 ) During Year 1 Technical Assistant 5 ) 2 in Year 1 and ) 3 in Year 2 of ) Project B(l)(c) Professional Officer 1 ) Technical Officer 1 ) During Year 1 Technical Assistant 3 ) of Project Development Assistant 9 ) Clerical Typist 1 ) B(l)(a)(iii) Chief Accountant 1 ) B(l)(a)(iii) Senior Accountant 1 ) B(l)(a)(iii) Accountant 5 ) During Year 1 B(l)(a)(iii) Senior Accounts Assistant 1 ) of Project B(l)(a)(iii) Accounts Assistant 6 ) B(l)(a)(iii) Field Officer - Credit 1 ) B(l)(e) Construction and Conser- 1 ) During Year 1 vation Officer ) of Project Part of the When Project Personnel Number Assigned B(2)(e): (i) North Senior Technical Officer 1 ) During Year 1 West of Project Mzimba Technical Officer - Ex- tension and Training I ) Technical Officer - Credit 1 ) Technical Officer - Land Husbandry 1 ) Technical Officer - Re- search 1 ) During Year 2 Technical Assistant - of Project Research and Training 7 ) Technical Assistant - Credit 2 ) Technical Assistant - Land Husbandry 4 ) Technical Assistant - Research 1 ) (ii) Thivi- Senior Technical Officer - Lifidzi: Extension and Training 1 ) During Year 1 Clerical Officer 1 ) of Project Technical Officer - Ex- tension and Training 2 ) Technical Officer - Credit 1 ) Technical Officer - Land Husbandry 1 ) Technical Officer - Tobacco Specialist 1 ) Technical Assistant - Extension and Training 20 ) During Year 2 Technical Assistant - ) of Project Research 1 ) Technical Assistant - Farm Home Instructress 2 ) Technical Assistant - Forest Ranger 1 ) Typist 1 ) - 35 - Part of the When Project Personnel Number Assigned (iii) Kavinga: Chief Technical Officer 1 ) Technical Officer - Re- 1 ) During Year 2 search of Project 프