India - Composite Agricultural Extension Project : Credit 0862 - Project Agreement - 1 - Conformed

CONFORMED COPY CREDIT NUMBER 862 IN Project Agreement (Composite Agricultural Extension Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF HARYANA Dated February 16, 1979 CREDIT NUMBER 862 IN PROJECT AGREEMENT AGREEMENT, dated February 16, 1979, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and STATE OF HARYANA, acting by its Governor (hereinafter called Haryana). 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 twenty-fiv4 million dollars ($25,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Haryana agree to undertake such obligations toward the Association as are hereinafter set forth; and WHEREAS Haryana, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: 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. ARTICLE II Execution of the Project Section 2.01. Haryana shall carry out Part B of the Project described in Schedule 2 to the Development Credit Agreement as said Part applies to Haryana with due diligence and efficiency and in conformity with appropriate agricultural, administrative, financial 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. Except as the Association shall otherwise agree, procurement of the goods and civil works to be financed out - 2 - of the proceeds of the Credit, shall be governel by the provisions of Schedule 3 to the Development Credit Agreement. Section 2.03. (a) Haryana 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 instal- lation, and for such insurance any indemnity shall be payable in a currency freely usable by Haryana to replace or repair such goods. (b) Except as the Association may otherwise agree, Haryana 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 2.04. (a) Haryana shall furnish to the Association through DAE, promptly upon their preparation, the plans, specifi- cations, reports, contract documents and work and procurement schedules for its Part of the Project, and any material modi- fications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) Haryana: (i) shall maintain records and procedures adequate to record and monitor the progress of its Part of the Project (including its cost and, where appropriate, the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in said Part of the Project; (ii) shall enable the Associa- tion's accredited representatives to visit the facilities and construction sites included in said Part of the Project and to examine the goods and services financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association through DAE, at regular intervals all such information as the Association shall reasonably request concerning the said Part of the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditures of such proceeds and the goods and services financed out of such proceeds, and all such other information as the Borrower, through DAE, shall reasonably request in order to enable the Borrower to carry out its obligations under Section 3.04 of the Development Credit Agreement. (c) Promptly after completion of its Part of the Project, but in any event not later than six months after the Closing Date -3- or such later date as may be agreed for this purpose between the Association and Haryana, Haryana shall prepare and furnish to the Association, through DAE, a report, of such scope and in such detail as the Association shall reasonably request, on the execu- tion and initial operation of the said Part of the Project, its cost and the benefits derived and to be derived from it, the performance by the Association and Haryana of their respective obligations under this Agreement and the accomplishment of the purposes of the Credit. Section 2.05. (a) Haryana shall at the request of the Asso- ciation, exchange views with the Association with regard to the progress of its Part of the Project, the performance of its obligations under this Agreement, and other matters relating to the purposes of the Credit. (b) Haryana shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of its Part of the Project, the accomplishment of the purposes of the Credit, or the performance by Haryana of its obligations under this Agreement. Section 2.06. Haryana shall: (a) establish procedures, satisfactory to the Association, for carrying out effective monitoring and evaluation of its Part of the Project, and carry out such monitoring and evaluation in accordance with said procedures; and (b) prepare and furnish to the Association, through DAE, annual summaries of the results of such monitoring and evaluation. Section 2.07. Haryana shall ensure that: (a) all extension positions at the village level transferred to DOA and the incre- mental staff positions assigned to DOA under the Project shall be used exclusively for agricultural extension and retained by DOA during project execution; and (b) staff assigned to carry out extension work under the Project shall not be adversely affected, in respect of their entitlement to emoluments, benefits and promotional prospects, by reason alone of such assignment. Section 2.08. Haryana shall ensure that village extension workers and agricultural extension officers will live and have their offices in or near the areas assigned for their operations and, to this end, shall (i) provide said workers and officers with such low cost housing or rental allowances as may be necessary for -4- the above purpose, and (ii) authorize payments of office allow- ances to said workers and officers only when such offices are in or adjacent to their houses. Section 2.09. Haryana shall: (a) furnish to the Association, through DAE, at regular intervals all such information as the Association shall reasonably request concerning the progress in locating sites for the houses and offices to be financed out of the proceeds of the Credit; and (b) by June 30, 1979, or such later date as the Association may determine, establish the location, training objectives, course outlines and syllabus, acceptable to DAE and the Associa- tion, for the Extension Training Institute. Section 2.10. In order to ensure the mobility of staff engaged in extension work under the Project, Haryana undertakes to make available: (a) to all eligible staff who are in need of credit for the purchase of motorcycles or bicycles, such credit on terms and conditions designed to provide incentive for the purchase of said motorcycles or bicycles; and (b) such financial incentive, including appropriate travel- ling allowances, as required to encourage optimum use of the motorcycles and bicycles purchased pursuant to paragraph (a) above. Section 2.11. For the purpose of facilitating more effective coordination between agricultural research and extension, Haryana shall: (i) by November 30, 1979, review and, where appropriate, strengthen arrangements for close cooperation between DOA and SAU; and (ii) thereafter, from time to time as the Association shall reasonably request, discuss with the Association the adequacy of said arrangements. ARTICLE III Financial Covenants Section 3.01. Haryana undertakes that DOA will maintain separate records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures of DOA in respect of the Project. - 5 - Section 3.02. Haryana undertakes that DOA will: (i) have its accounts and financial statements in respect of the Project 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, through DAE, as soon as available, but in any case not later than nine months after the end of each such year, (A) certified copies of its 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, through DAE, such other information concerning said accounts and financial statements and the audit thereof as the Association shall from time to time reasonably request. 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 Haryana 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 20 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 Haryana 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. 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 beLween -6- 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 herein- after 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: INDEVAS Washington, D.C. For Haryana: Secretary to the Government of Haryana Agriculture Department Civil Secretariat Chandigarh India Cable address: AGRISEC-HARYANA Chandigarh, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of Haryana may be taken or executed by the Secretary to the Government of Haryana, Agriculture Department or such other person or persons as Haryana shall designate in writing, and Haryana shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collec- tively but one instrument. -7- 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/ W. David Hopper Regional Vice President South Asia STATE OF HARYANA By Is/ N.A. Palkhivala Authorized Representative