India - Madhya Pradesh Agricultural Extension And Research Project : Credit 0712 - Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 712 IN Project Agreement (Madhya Pradesh Agricultural Extension and Research Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and THE STATE OF MADHYA PRADESH Dated June 1, 1977 PROJECT AGREEMENT AGREEMENT, dated June 1, 1977, between INTERNATIONAL DEVELOP- MENT ASSOCIATION (hereinafter called the Association) and THE STATE OF MADHYA PRADESH, acting by its Governor (hereinafter called Madhya Pradesh). WHEREAS by the Development Credit Agreement of even date herein 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 ten million dollars ($10,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Madhya Pradesh agrees to undertake such obligations toward the Association as hereinafter set forth; and WHEREAS Madhya Pradesh, in consideration of the Association's entering into the Development Credit Agreements with the Borrower, has agreed to undertake 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 and the following additional terms have the following meanings: (a) "Project Coordinating Committee" means a committee comprising the Agricultural Production Commissioner of Madhya Pradesh (Chairman), the Project Director (Secretary), the Vice Chancellor of JNAU, the D.rector of Research of JNAU, the Special Secretaries of Agriculture and Finance, the Secretary of the Irrigation Department, the Registrar of Cooperative Societies, the Director of Agriculture and representatives of the Apex Marketing Federation, State Cooperative Bank, State Land Development Bank, Agro-Industries Development Corporation, and such other persons as may be necessary; (b) "Central Planning Committee" means a committee comprising the Director of Agriculture of Madhya Pradesh (Chairman), the Director of Research, the Project Director, divisional and district extension officers, the Associate Directors of Research, the head of the evaluation unit, and such other persons as may be necessary; and -3- (c) "Regional Planning Committees" means committees having the Senior Divisional Joint Directors of Agriculture as Chairmen and comprising Associate Directors of Research, District Deputy Directors of Agriculture, Subject Matter Specialists, and such other persons as may be necessary. -4- ARTICLE II Execution of the Project Section 2.01. Madhya Pradesh shall and shall cause JNAU 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 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. (a) For the purposes of coordinating the activities of various departments and agencies of Madhya Pradesh, the Borrower and JNAU concerned with the execution of the Project or any part thereof, Madhya Pradesh shall establish, by October 31, 1977, or such later date as may be agreed by the Association, a Project Coordinating Committee. This Committee shall meet at least once a year. (b) Madhya Pradesh shall establish the Central Planning Committee by October 31, 1977, or such later date as may be agreed by the Association. This Committee shall meet at least twice a year, inter alia, to review seasonal extension and research results of the Project and review and approve future research and extension programs prepared by Regional Planning Committees which -5- shall be established by Madhya Pradesh at each regional research station by October 31, 1977, or such later date as may be agreed by 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) Madhya Pradesh 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 installation, and for such insurance any indemnity shall be payable in a currency freely usable by Madhya Pradesh to replace or repair such goods. (b) Except as the Association may otherwise agree, Madhya Pradesh 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. -6- Section 2.05. (a) Madhya Pradesh shall and shall cause JNAU to furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contracts 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) Madhya Pradesh shall and shall cause JNAU 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 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) Madhya Pradesh 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. -7- (b) Madhya Pradesh 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 Madhya Pradesh of its obligations under this Agreement. Section 2.07. (a) Madhya Pradesh shall ensure that village extension workers, agricultural extension officers and sub-district extension officers engaged in extension service will live in the area assigned for their operations and for this purpose Madhya Pradesh 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 Madhya Pradesh for such workers and officers. The afore-mentioned design standards shall be satisfactory to the Association. (b) Except as the Association may otherwise agree, in respect of the above housing and offices to be financed from the proceeds of the Credit, Madhya Pradesh shall, by December 31, 1978, or such later date as may be agreed by the Association, complete a survey to determine the number and locations of such housing and other buildings. -8- Section 2.08. Madhya Pradesh shall and shall cause JNAU to appoint adequate incremental extension and research staff in accordance with the schedule agreed by the Association. Section 2.09. Madhya Pradesh shall and shall cause JNAU to furnish to the Association, promptly upon their preparation, semi-annual progress reports of the Project and annual programs of research for those research stations and sub-stations developed under the Project in forms satisfactory to the Association for its review and comments. Section 2.10. Madhya Pradesh shall carry out continuous monitoring and evaluation of the Project in such form as shall be mutually agreed between Madhya Pradesh 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. Section 2.11. In order to ensure the mobility of staff engaged in extension work under the Project, Madhya Pradesh undertakes to make available: (a) to all such staff who are in need of credit for the purchase of suitable means of transport, such credits, on terms and conditions which shall be sufficient to 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. -9- ARTICLE III Financial Covenants Section 3.01. Madhya Pradesh shall and shall cause JNAU to maintain separate records adequate to reflect in accordance with consistently maintained appropriate accounting practices their operations and financial condition related to the Project. Section 3.02. Madhya Pradesh shall and shall cause JNAU to: (i) have their accounts and financial statements for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Associatiw, 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 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 r and financial statements and the audit thereof as the Association 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 Madhya Pradesh 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 Madhya Pradesh 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 this 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 hereinafter 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 Madhya Pradesh: Secretary to the Government of Madhya Pradesh Agriculture Department Vallabh Bhawan Bhopal, Madhya Pradesh, India Cable address: AGRISEC Bhopal - 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 Madhya Pradesh may be taken or executed by a Secretary to the Government of Madhya Pradesh or such other person or persons as Madhya Pradesh shall designate in writing. Section 5.03. Madhya Pradesh 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 Madhya Pradesh, take any action or execute any documents required or permitted to be taken or executed by Madhya Pradesh 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 States of America, as of the day and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Ernest Stern Regional Vice President South Asia THE STATE OF MADHYA PRADESH By Is/ Kewal Singh Authorized Representative - 14 - SCHEDULE Procurement A. General Procedures 1. Contracts for civil works and vehicles shall be let on the basis of competitive bidding advertised locally under procedures 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 or the State Housing Board of Madhya Pradesh (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 advertised locally and in accordance with procedures of Madhya Pradesh 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 channels. - 15 - B. Review of Procurement Decisions by the Association 1. With respect to all contracts for vehicles, equipment and civil work estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, Madhya Pradesh 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, Madhya Pradesh 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 Madhya Pradesh and state the reasons for such determination. - 16 - (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. (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 withdrawals 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, Madhya Pradesh 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 Madhya Pradesh and state the reasons for such determination.