Tanzania - Tabora Rural Development Project : Credit 0703 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 703 TA Development Credit Agreement (Tabora Rural Development Project) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated May 11, 1977 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated May 11, 1977, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) the Borrower has requested the Government of the United Kingdom and Northern Ireland to assist in financing Parts C and E of the Project by providing funds from the United Kingdom- Tanzania Grant No. 1, 1975, and from technical cooperation funds (hereinafter collectively referred to as the UK grant); and (C) by agreement of even date herewith between the Borrower and the Association as Administrator on behalf of the Government of Canada (hereinafter called the Canadian Credit Agreement), the Government of Canada has agreed to make available a credit (hereinafter called the Canadian Credit) to the Borrower in an aggregate principal amount of five million Canadian dollars (Canadian $5,000,000) to assist in financing the Project on the terms and conditions therein set forth; -2- WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: - 3 - ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth. -4- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to seven million two hundred thousand dollars ($7,200,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods or for civil works for the Project to be financed out of the proceeds of the Credit, shall be procured in accordance with the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1983 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. -5- Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on March 15 and September 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 15 and September 15 commencing September 15, 1987, and ending March 15, 2027, each installment to and including the installment payable on March 15, 1997, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount, Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. - 6 - ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, agricultural, engineering, financial and technical 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 (a) in Tabora Region the tollowing experts, each of whose qualifications, experience and terms and conditions of employment shall have been discussed and agreed with the Association prior to appointment of said experts: (i) a Project Coordinator to coordinate the activities of functional managers and prepare in cooperation with the Regional authorities annual budgets for the Project; (ii) a Financial Controller to manage and control in cooperation with the Regional authorities Project funds and to be responsible for procurement activities; and (iii) an Evaluation Officer to be responsible in cooperation with the Regional authorities for coordinating, collecting and analyzing relevant data and for monitoring progress of the Project; (b) in Dar es Salaam in consultation with the Association, a Project Expeditor to provide, with respect to this Project and the Kigoma Rural Development Project (Development - 7 - Credit Agreement No. 508-TA (Kigoma Rural Development Project) between the Borrower and the Association dated August 21, 1974), liaison between Project staff and Ministries and parastatals in Dar es Salaam and to assist in procurement and dispatch of Project equipment and materials; and (c) a team of consultants, whose qualifications, experience and terms and conditions of employment are acceptable to the Association, to prepare, in cooperation with the Regional authorities, a Water Master Plan for Tabora Region. Section 3.03. In order to assist the Borrower in carrying out the Project, the Borrower shall have recruited, on or before March 1, 1978 or such later date as the Association may agree, the following experts, a planner/agronomist, an extension training officer, a livestock development specialist, a tsetse ecologist, two drilling foremen, two sanicary engineers and a construction engineer. Section 3.04. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. - 8 - (b) Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.05. (a) The Borrower shall furnish, or cause to be furnished to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. - 9 - Section 3.06. The Borrower shall (a) select the villages to be included -;n Part B of the Project on the basis, inter alia, of least cost, production impact, need and the villages willingness to contribute, in cash or kind, to the construction and maintenance of the water supply facilities included in Part B of the Project, (b) consult with the Association before commitment or construction of any major water supply scheme estimated to cost in excess of $125,000 equivalent, and (c) from time to time, review and consult with the Association on the selection process and the selection criteria being used. Section 3107. The Borrower (i) shall cause to be audited, by auditors acceptable to the Association, for each fiscal year the accounts of each village receiving assistance under, or participating in, the Project, and (ii) shall furnish to the Association, upon its request, the reports of such audits by said auditors as well as such other information relating thereto as the Association shall reasonably request. Section 3.08. With respect to Part D of the Project, the Borrower shall ensure that no transport subsidies on fuelwood for tobacco curing shall be given effect after June 30, 1982. - 10 - ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall cause the Tabora Region administration to keep separate accounts relating to the Project, and with respect to each fiscal year ending with the fiscal year in which the Closing Date shall occur, the Borrower shall cause the Tabora Region administration to: (i) have said Project accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of its accounts 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 Project accounts and the audit thereof as the Association shall from time to time reasonably request. -11 - Section 4.02. The Borrower shall cause all plant, equipment, vehicles, properties and facilities included in the Project to be operated and maintained in accordance with appropriate financial, engineering and agricultural practices. Section 4.03. The Borrower shall provide promptly as needed the funds required to ensure the continued and efficient operation and maintenance of the goods and works supplied or constructed under the Project. Section 4.04. Within six months of the Closing Date, the Borrower shall prepare, in consultation with the Association, and submit to the Association, a report evaluating the Project. - 12 - ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) the Villages and Ujamaa Villages (Registration, Designation and Administration) Act, 1975, No. 21 of 1975 shall have been amended, suspended, waived or repealed so as materially and adversely to affect the carrying out of the Project; and (b) the right of the Borrower to withdraw the proceeds of the UK grant shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement providing therefor, provided that the provisions of this subsection shall not apply if the Borrower establishes to the satisfaction of the Association that: (i) such suspension, cancellation or termination is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. - 13 - ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Borrower has obtained the UK grant, and all conditions for the initial disbursement thereof, if any, (except for the effectiveness of this Agreement) have been fulfilled; (b) all conditions to the effectiveness of the Canadian Credit Agreement (except for the effectiveness of this Agreement) have been fulfilled; and (c) the Project Coordinator, Financial Controller, Evaluation Officer and Project Expeditor referred to in Section 3.02 shall each have been appointed. Section 6.02. The date September 8, 1977 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Sections 4.01, 4.02 and 4.03 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty-five years after the date of this Agrec-ment, whichever shall be the earlier. - 14 - ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower at the time responsible for Finance 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 and Planning P.O. Box 9111 Dar es Salaam United Republic of Tanzania Cable address: TREASURY Dar es Salaam 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) - 15 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signel in their respective names in the city of Dar es Salaam, United Republic of Tanzania, as of the day and year first above written. UNITED REPUBLIC OF TANZANIA By /s/ E. Mtei Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ W. A. Wapenhans Regional Vice President Eastern Africa - 16 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit and the Canadian Credit 1. The table below sets forth with respect to Parts A, B, D and F only of the Project the Categories of items to be financed out of the proceeds of the Credit and the Canadian Credit, the allocation of the amount of the Credit and the Canadian Credit, to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of Amount of the Canadian the Credit Credit Allocated Allocated (Expressed (Expressed % of in Dollar in Canadian Expenditures Category Equivalent) Dollars) to be Financed (1) Civil Works 400,000 200,000 50% (2) Vehicles, 2,600,000 1,900,000 100% of foreign equipment, expenditures and materials 85% of local ex- and spare penditures parts (3) Incremental 800,000 600,000 100% of foreign cost of sea- expenditures and sonal inputs 85% of local ex- including penditures fertilizers, insecticides and sprayers (4) Technical 2,000,000 1,500,000 100% of foreign assistance expenditures and and consul- 75% of local ex- ting ser- expenditures vices - 17 - Amount of Amount of the Canadian the Credit Credit Allocated Allocated (Expressed (Expressed % of in Dollar in Canadian Expenditures Category Equivalent) Dollars) to be Financed (5) Unallocated 1,400,000 800,000 TOTAL 7,200,000 5,000,000 - 18 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means .xpenditures 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; (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; and (c) "incremental cost of seasonal inputs" means the cost of purchasing and delivering, to the villages included in Part A of the Project, in any of the crop production years beginning in 1977/8, such additional quantities and types of seasonal agricultural inputs, such as fertilizers, insecticides and sprayers, as shall exceed the quantities of such inputs purchased and delivered to such villages in the previous year, such additional quantities to be determined in consultation with the Tabora Regional Development Director and with the Project Coordinator referred to in Section 3.02 (a) (i) of this Agreement. 3. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement - 19 - or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals with respect to Categories (1), (2) and (4), in an aggregate amount not exceeding the equivalent of $200,000, may be made on account of payments made for such expenditures before that date but after January 1, 1977. 5. Each request for withdrawal from the Credit Account shall be accompanied by a certificate issued by the Borrower, in such form as shall be agreed between the Borrower and the Association, by which the Borrower certifies that the withdrawal is requested on account of an expenditure required for Part A, B, D or F of the Project, and the Borrower shall furnish to the Association such documents and other evidence in support of said request as the Association shall reasonably request, whether before or after the Association shall have permitted any withdrawal so requested. - 20 - 6. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category except, unless the Association shall otherwise agree, proceeds which are allocated to Category (4) and which in the opinion of the Association are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 7. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the - 21 - Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 22 - SCHEDULE 2 Description of the Project The Project is part of the Borrower's program to support development in its Tabora Region by encouraging agricultural production, by improving infrastructure, by establishing farm support services and by strengthening the implementing and planning capacity of the Region. The Project consists of the following Parts: Part A: Crop and Livestock Development 1. A program in approximately 30 villages in Nzega and Igunga Districts for developing and applying techniques designed to increase production of crops, including principally, cotton, paddy, sorghum and groundnuts, by using inputs, improving agricultural extension and related services and conducting crop demonstrations and trials. 2. Provision of equipment for the tobacco research station at Tumbi. 3. A program in approximately 12 villages, for developing and applying techniques designed to improve livestock production. This program would finance (a) the introduction of controlled grazing management in some of these villages, and (b) the - 23 - production of livestock in the other villages which face light tsetse challenge. It would include provision of necessary transport, some veterinary centers, dips and other capital expenditures, a limited tsetse survey and establishment of a tsetse control program. In addition, stall fattening would be introduced, as appropriate, in about 6 villages included in either this component or in the crop component, described in Part A.1 hereof. Part B: Water Supply 1. Construction for approximately 75-100 villages of low-cost water supply systems and simple water supply installations. 2. Preparation of a Regional Water Master Plan for Tabora Region. Part C: Road Maintenance and Reconstruction Maintain and reconstruct as appropriate access and network roads in Tabora Region including the provision of technical assistance, equipment and workshops. This would provide, inter alia, support for the directly productive parts of the Project and strengthen the planning and implementation capacity of the Region. - 24 - Part D: Forestry Establishment and management of plantations in selected villages to supply fuelwood for tobacco processing and domestic use, including establishment and expansion of nurseries and nursery staff; and establishment of a village training program. Part E: Land-Use Planning Preparation of a land-use and land-capability master plan for Tabora Region, and enlarging and strengthening the Regional Village Planning Unit. Part F: Project Implementation and Evaluation Provision of specialist personnel, housing, equipment and supplies 'o strengthen the Region's capacity to implement the Project, monitor and evaluate its effect, and assist in the formulation of further developments in the Region. The Project is expected to be completed by September 30, 1982. - 25 - SCHEDULE 3 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 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 as described in Part A of the Guidelines. B. Other Procurement Procedures 1. Contracts estimated to cost less than the equivalent of $100,000 may be awarded in accordance with the Borrower's applicable procurement procedures. 2. Design and construction of water supply systems may be carried out by force account. C. 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 pursuant to paragraph A hereof: (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 - 26 - import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Tanzania may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Tanzania if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Tanzania equal to at least 20% of the ex-factory bid price of such goods. - 27 - (2) Group B: all other bids offering goods manufactured in Tanzania. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bids from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to: (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid; or (ii) 15% of the c.i.f. bid price of such goods if such 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 - 28 - group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. D. Evaluation and Comparison of Bids for Civil Works; Preference for Domestic Contractors With respect to any contract for civil works to be procured in accordance with the procedures described in Part A 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: (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 Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. (b) After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: - 29 - (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. E. Review of Procurement Decisions by the Association 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Association in detail of the procedure to be followed, and shall introduce such modifications in said procedure as the Association shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and, where applicable, of their eligibility for domestic preference under Part D above and of the reasons for the exclusion of any applicant for prequalification and for such eligibility shall be furnished by the Borrower to the Association for its comments before the applicants Pre notified of the Borrower's'decision, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Association shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: - 30 - With respect to all contracts estimated to cost the equivalent of $100,000 or more:, (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and 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 the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. - 31 - (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 3. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the praceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of 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 the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination.