India - Assam Agricultural Development Project : Credit 0728 - Project Agreement - Conformed

- PROJECT AGREEMENT --- TU " C- i AGREEMENT, dated 1977 between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and THE STATE OF ASSAM, acting by its Governor (hereinafter called Assam). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to eight million dollars ($8,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Assam agree to undertake such obligations toward the Association as hereinafter set forth; and WHEREAS Assam, in consideration cf the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undert'ake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: -2- ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. i' -3- ARTICLE II Execution of the Project Section 2.01. Assam shall and shall cause AAU to carry out the Project described in Schedule 2 to the Development Credit Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, agricultural and 660 engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 2.02. In order to assist AAU in carrying out Part E of the Project, Assam shall cause AAU to employ agricultural consultants whose qualifications, experience and terms and conditions of employment shall be mutually agreed upon between Assam and the Association. Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods or for civil works to be financed out of the proceeds of the Credit, shall be procured in accordance with the provisions of the Schedule to this Agreement. Section 2.04. (a) Assam undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or .',4 -4- installation, and for such insurance any indemnity shall be paya'le in a currency freely usable by Assam to replace or repair such goods. (b) Except as the Association may otherwise agree, Assam shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the Project. Section 2.05. (a) Assam shall and shall cause AAU to 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) Assam shall and shall cause AAU to: (i) 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 made available to them by the Borrower, and to disclose the use thereof in the Project; (ii) enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of such proceeds and any relevant records and documents; and (iii) furnish to the Association all such -5- information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit so made available to them and the goods and services financed out of such proceeds. Section 2.06. (a) Assam shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) Assam shall promptly inform the Association of any condition which interferes or threatens to interfere with, the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by Assam of its obligations under this Agreement. Section 2.07. (a) Assam shall ensure that village level extension workers, agricultural extension officers and subdivi- sional staff engaged in extension service will live in the area assigned for their operations and for this purpose Assam shall provide such low-cost housing and other buildings as may be necessary. Such housing and other buildings shall be constructed in accordance with the design standards established by Assam for such workers and officers. The aforementioned design standards shall be satisfactory to the Association. (b) Except as the Association may otherwise agree, Assam shall, by March 31, 1978 or such later date as may be agreed by the Association, complete a survey to determine the location of the housing and buildings to be financed from the proceeds of the Credit. Section 2.08. In order to ensure the mobility of staff engaged in extension service under the Project, Assam undertakes to make available: (a) to all such staff who are in need of credit for the purchase of suitable means of transport, such credit, on terms and conditions which will create an incentive for the purchase of such means of transport; and (b) such financial incentive as is required to ensure the optimum use of such means of transport. Section 2.09. In order to carry out the Project, Assam shall and shall cause AAU to appoint qualified staff in accordance with a schedule to be agreed between the Association and Assam. Section 2.10. By December 31, 1977 or such later date as may be agreed by the Association, Assam shall cause AAU to appoint an experienced senior research scientist to assist in the formulation of research proposals and in the organization and management of research programs under Parts B and E of the Project. -7- Section 2.11. (a) For the purposes of coordinating the activities of various departments and agencies of Assam and AAU, or any other agency concerned with the execution of the Project or any part thereof, Assam shall establish, by November 30, 1977 or such later date as may be agreed by the Association, a Project Coordinating Committee. This Committee shall be chaired by the A Chief Secretary of Assam or the Agricultural Production Commis- sioner and shall meet at least twice a year. (b) Assam shall establish a State Level Technical Committee and District Level Technical Committees to formulate and review seasonal extension and adaptive trial programs. These Committees shall meet at least twice a year. (c) By November 30, 1977 or such later date as may be agreed by the Association, Assam shall establish a Groundwater Coordinating Committee to formulate overall policies, set annual targets, and ensure coordination of groundwater development work. This Committee shall meet at least four times a year. Section 2.12. Assam shall carry out continuous monitoring and evaluation of the Project in such form as shall be mutually agreed between Assam and the Association by December 31, 1977 or such later date as may be agreed by the Association. The results of such monitoring and evaluation shall be sent to the Association at least once a year. -8- Section 2.13. In order to ensure the efficient implementation of the building component under Parts A and B of the Project, Assam shall establish a Special Project Implementation Unit under a qualified engineer within its Public Works Department by Novem- ber 30, 1977 or such later date as may be agreed by the Associa- tion. Section 2.14. Assam shall review, in consultation with the Reserve Bank of India (RBI), RBI's past studies for strengthening the cooperative credit structure in Assam, in particular, measures to improve the collection of overdue debts and shall draw up by March 31, 1978 or such later date as may be agreed by the Associa- tion, a time schedule for the implementation of the recommenda- tions arising from such review. Thereafter, Assam shall implement such recommendations accordingly. Section 2.15. In order to carry out Part B of the Project, Assam shall appoint one full-time Joint Director of Agriculture (Adaptive Trials) by December 31, 1977 or such later date as may be agreed by the Association. ARTICLE III Financial Covenants Section 3.01. Assam shall and shall cause AAU to maintain separate records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices their opera- tions and financial condition related to the Project. Section 3.02. Assam shall and shall cause AAU to: (i) have an annual audit satisfactory to the Association made of their accounts and financial statements for each fiscal year, in accordance with sound auditing principles consistently applied, by independent and qualified auditors; (ii) furnish to the Association as soon as available, but in any case not later than nine months after the end of each such year, (A) certified copies of their financial statements for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning the accounts and financial statements and the audit thereof as the Assocation shall from time to time reasonably request. -10 - ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of Assam thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) a date twenty years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify Assam of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. - 11 - ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by the Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address here- inafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For Assam: Agricultural Production Commissioner Government of Assam Gauhati 781006 Assam, India Cable address: AGRIASSAM Gauhati (India) -12 - Section 5.02. Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Agreement on behalf of Assam may be taken or executed by Assam or such other person or persons as Assam shall designate in writing. Section 5.03. Assam shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of the person or persons who will, on behalf of Assam, take any action or execute any documents required or permitted to be taken or executed by Assam pursuant to any of the provisions of this Agreement. Section 5.04. This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument. -13- 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 State of America, as of the da and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President South Asia THE STATE OF ASSAM By Authorized Representative -14- SCHEDULE 1 Procurement A. General Procedures 1. Contracts for civil works and vehicles shall be let on the basis of competitive bidding advertised locally under proce- dures satisfactory to the Association. To the extent it may be practicable to do so, civil works shall be grouped and tenders shall be invited for every group and each work separately, at the bidders' option. If no qualified contractor presents a bid for any such work, it shall be carried out by departmental construction (force account). 2. Contracts for purchase of equipment and furniture shall be bulked wherever possible and (i) if the value of such equipment and furniture is estimated to cost $50,000 equivalent or more, it shall be let on the basis of competitive bidding advertized locally and in accordance with procedures of Assam satisfactory to the Association; and (ii) if the value of such equipment and furniture is estimated to cost less than $50,000 equivalent it may be procured by prudent shopping through normal commercial chan- nels. B. Review of Procurement Decisions by the Association 1. With respect to all contracts for civil works, equipment and motor vehicles estimated to cost the equivalent of $100,000 or more: -15- (a) Before bids are invited, Assam 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 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, Assam 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 shall furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with this Schedule, promptly inform Assam 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. -16- (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, Assam 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 the respective 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 this Schedule, promptly inform Assam and state the reasons for such determination. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the 3 C day of 197 7. FOR SECRETARY