Cameroon - Second Semry Rice Project : Credit 0763 - Development Credit Agreement - Conformed

 CONFORMED COPY CREDIT NUMBER 763 CM Development Credit Agreement (Second SEMRY Rice Project) between UNITED REPUBLIC OF CAMEROON and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated February 1, 1978  CREDIT NUMBER 763 CM DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated February 1, 1978, between UNITED REPUBLIC OF CAMEROON (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 also requested the International Bank for Reconstruction and Development (hereinafter called the Bank) to provide additional assistance towards the financing of the Project and by an agreement of even date herewith between the Borrower and the Bank (hereinafter called the Loan Agreement), the Bank is agreeing to provide such assistance in an aggregate principal amount equivalent to fourteen million five hundred thousand dollars ($14,500,000); (C) the Borrower and the Association intend, to the extent practicable, that the proceeds of the Credit provided for in this Agreement be disbursed on account of expenditures on the Project before disbursements of the proceeds of the loan provided for in the Loan Agreement are made; (D) the Borrower intends to contract from the Caisse Centrale de Coopfration Economique, an agency of the Republic of France (hereinafter called Caisse Centrale), a loan (here- inafter called the Caisse Centrale Loan) in an amount of forty million French francs (FF40,000,000) to assist in financing the Project on the terms and conditions set forth in an agreement (hereinafter called the Caisse Centrale Loan Agreement) to be entered into between the Borrower and Caisse Centrale; (E) the Borrower further intends to contract from the Republic of France, acting through the Fonds d'Aide et de Coopfration (FAC), annual grants (hereinafter called the FAC Grants) in an aggregate amount of nineteen million five hundred thousand French francs (FF19,500,000) to assist in financing technical assistance and engineering services for the Project, on the terms and conditions set forth in agreements (herein- after called the FAC Agreements) to be entered into between the Republic of France and the Borrower, the first such FAC Grant,  -2- provided under the first of these FAC Agreements dated November 28, 1977 (hereinafter called the First FAC Agreement), covering the period until June 30, 1978; (F) Parts A through E (ii) and F of the Project will be carried out by the Soci&tf d'Expansion et de Modernisation de la Riziculture de Yagoua (hereinafter called SEMRY) and Part E (iii) of the Project will be carried out jointly by SEMRY and the Fonds National de Dfveloppement Rural (hereinafter called FONADER), all with the Borrower's assistance and, as part of such assistance, the Borrower will make available to SEMRY and FONADER the proceeds of the Credit and of the loan made under the Loan Agreement as provided hereinafter and in the Loan Agreement, respectively, as well as the proceeds of the Caisse Centrale Loan and of the FAC Grants; (G) pursuant to a development credit agreement dated April 26, 1972, the Association has made available to the Bor- rower a development credit (No. 302 CM) for the purpose of assisting SEMRY in carrying out a prior rice development project; and 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 and in the Project Agreement of even date herewith between the Association and SEMRY; NOW THEREFORE the parties hereto hereby agree as follows: 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, it being understood that the Project Agreement (as defined hereinafter) is deemed to be an agreement supplemental to the Development Credit Agreement within the meaning of paragraph 3 of Section 2.01 of said General Conditions, and subject to the following modifications of said General Conditions (said General Conditions Applicable to Development Credit Agreements of the  -3- Association, as so modified, being hereinafter called the General Conditions): (a) Paragraph 9 of Section 2.01 is deleted and the following is substituted therefor: "9. The term Project means the project or program for which the Credit is granted, as described in the Develop- ment Credit Agreement and as the description thereof may be amended from time to time by agreement between the Borrower, the Association and the Bank." (b) Paragraph (b) of Section 6.02 is deleted and the follow- ing is substituted therefor: "(b) The Borrower shall have failed to perform any other obligation under the Development Credit Agreement or the Loan Agreement (as such term is defined in the Develop- ment Credit Agreement)." (,) Paragraph (c) of Section 7.01 is deleted and the fol- lowing is substituted therefor: "(c) A default shall occur in the performance of any other obligation on the part of the Borrower under the Development Credit Agreement or the Loan Agreement (as such term is defined in the Development Credit Agreement), and such default shall continue for a period of sixty days after notice thereof shall have been given by the Bank or the Association to the Borrower." 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 and the following additional terms have the following meanings: (a) "Project Agreement" means the agreement between the Association and SEMRY of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement and all agreements supplemental to the Project Agreement; (b) "SEMRY Financing Agreement" means the agreement to be entered into between the Borrower and SEMRY pursuant to Section  -4- 3.01 (b) of this Agreement and Section 3.01 of the Loan Agreement, term as the same may be amended from time to time, and such includes all schedules to the SEMRY Financing Agreement; even date (c) "Loan Agreement" means the agreement of herewith between the Borrower and the Bank for the purpose of the Project, as such agreement may be amended from time to time; and and such term includes the General Conditions Applicable to Loan Guarantee Agreements of the Bank, dated March 15, 1974, as made to the applicable to such agreement, all agreements supplemental Loan Agreement and all schedules to the Loan Agreement; (d) "Loan" means the loan provided for in the Loan Agree- ment; (e) "Loan Account" means the account defined in paragraph 8 of Section 2.01 of the General Conditions referred to in Section 1.01 of the Loan Agreement; (f) "SEMRY" means the Socift6 d'Expansion et de Modernisa- tion de la Riziculture de Yagoua, a Socigtf de D&veloppement of the Borrower established and operating pursuant to the Bor- rower's Law No. 68/LF/9, dated June 11, 1968, Decree No. 68/DF/275, dated July 15, 1968, Decree No. 71/DF/74, dated February 24, 1971, and the Statuts of SEMRY, as such Law and Decrees may be amended from time to time; (g) "Statuts" means the Statuts of SEMRY as approved by the Borrower's Decree No. 71/DF/74, dated February 24, 1971, including the amendments approved by the Borrower's Decrees No. 77/300, dated August 16, 1977, and No. 77/394, dated October 3, 1977, and as such Statuts may be further amended from time to time; (h) "FONADER" means the Fonds National de Dfveloppement Rural of the Borrower, established and operating pursuant to the Borrower's Ordinance No. 73/24, dated May 29, 1973, as amended by the Borrower's Law No. 77/05, dated July 13, 1977, and Decree No. 73/496, dated August 28, 1973, as such Ordinance, Law and Decree may be amended from time to time; (i) "FONADER Financing Agreement" means the agreement to be entered into between the Borrower and FONADER pursuant to Section 3.01 (c) of this Agreement and Section 3.01 of the Loan Agreement, as the same may be amended from time to time, and such term includes all schedules to the FONADER Financing Agreement;  -5- (j) "Credit Administration Agreement" means the agreement to be entered into between SEMRY and FONADER pursuant to Section 3.02 (a) of this Agreement, Section 3.01 of the Loan Agreement and Section 2.05 (b) (i) of the Project Agreement, as the same may be amended from time to time; (k) "Protocole d'Accord" means the Protocole d'Accord concernant les am6nagements hydrauliques sur le Logone between the Borrower and the Republic of Chad signed on August 20, 1970, as the same may be amended from time to time; and (1) "Project Area" means the area referred to in the intro- duction to the Project description in Schedule 2 to this Agree- ment. 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 equiva- lent to fourteen million five hundred thousand dollars ($14,500,000). 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, the Association and the Bank, 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, procurement of the goods and civil works to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be September 30, 1984, or such later date as the Association shall establish. The Asso- ciation shall promptly notify the Borrower of such later date. 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  ~6 - 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 semiannually on March 15 and September 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 15 and September 15 commencing March 15, 1988, and ending Septem- ber 15, 2027, each installment to and including the installment payable on September 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 French Republic is hereby specified for the purposes of Section 4.02 of the General Condi- tions. ARTICLE III Execution of the Project Section 3.01. (a) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause SEMRY to perform in accordance with the provisions of the Projdct Agreement, the SEMRY Financing Agreement and the Credit Administration Agreement all the obLi- gations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable SEMRY to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make available to SEMRY the proceeds of the Credit, except those allocated to Part E (iii) of the Project, under a financing agreement to be entered into between the Borrower and SEMRY on terms and conditions which shall have been approved by the Association. (c) The Borrower shall make available to FONADER the pro- ceeds of the Credit allocated to Part E (iii) of the Project under a financing agreement to be entered into between the Borrower and FONADER on terms and conditions which shall have been approved by the Association. Such terms and conditions shall, inter alia,  -7- include that such proceeds shall be used for providing inputs to farmers under Part E (iii) of the Project through SEMRY as agent of FONADER, in accordance with the provisions of the Credit Administration Agreement. (d) The Borrower shall exercise its rights under the SEMRY and FONADER Financing Agreements in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and except as the Associa- tion shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the SEMRY Financing Agreement or the FONADER Financing Agreement or any provision thereof. Section 3.02. (a) The Borrower shall cause FONADER to enter into a credit administration agreement with SEMRY, not later than June 30, 1978, and on terms and conditions satisfactory to the Association, for the purpose of the joint execution of Part E (iii) of the Project by FONADER and SEMRY. (b) The Borrower shall cause FONADER to duly perform all its obligations under the Credit Administration Agreement, to exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and to accom- plish the purposes of the Credit and, except as the Association may otherwise agree, not to assign, amend, suspend, terminate, abrogate or waive the Credit Administration Agreement or any provision thereof. (c) The Borrower shall cause FONADER: (i) at the request of the Association, to exchange views with the Association with regard to the progress of Part E (iii) of the Project, the per- formance of FONADER's obligations under the FONADER Financing Agreement and under the Credit Administration Agreement, and other matters relating to the purposes of the Credit; and (ii) promptly to inform the Association of any condition which interferes, or threatens to interfere, with the progress of Part E (iii) of the Project, the accomplishment of the purposes of the Credit, or the performance by FONADER of its obligations under the FONADER Financing Agreement and under the Credit Administration Agreement. ARTICLE IV Other Covenants Section 4.01. The Borrower shall, by June 1, 1980, improve and thereafter maintain the road from Guirvidig to Bogo as  -8- required for the development of the Project Area, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 4.02. The Borrower shall exercise its rights under the Protocole d'Accord so as to ensure that, except as the Asso- ciation may otherwise agree, no works shall be carried out on the Logone River which might have a material adverse effect on agri- cultural development in the Project Area, and shall take, with respect to its territories, all action required for this purpose. Section 4.03. Without limitation or restriction upon the provisions of Section 3.01 of this Agreement, the Borrower speci- fically undertakes to take or cause to be taken all action neces- sary, including the guarantee of bank overdraft facilities of SEMRY and the provision of funds by the Borrower to SEMRY on terms and conditions satisfactory to the Association, to enable SEMRY to perform its obligations under Section 4.03 (a) of the Project Agreement. Section 4.04. Except as the Association may otherwise agree, the Borrower shall cause FONADER to use the proceeds of the Credit disbursed on account of inputs provided on credit to farmers under Part E (iii) of the Project, as and when such credits are repaid by beneficiaries, for providing further such credits under the program established under said Part of the Project. 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) SEMRY shall have failed to perform any covenant, agree- ment or obligation of SEMRY under the Project Agreement. (b) A default shall occur in the performance of any cove- nant, agreement or obligation on the part of SEMRY or FONADER, as the case may be, under the Credit Administration Agreement or the FONADER Financing Agreement. (c) An extraordinary situation shall have arisen which shall make it improbable: (i) that SEMRY will be able to perform  -9- its obligations under the Project Agreement; or (ii) that FONADER will be able to perform its obligations under the Credit Adminis- tration Agreement. (d) A representation made by SEMRY in or pursuant to the Project Agreement, or any statement furnished in connection therewith, and intended to be relied upon by the Association in making the Credit, shall have been incorrect in any material respect. (e) SEMRY shall have become unable to pay its debts as they mature or any action or proceeding shall have been taken by SEMRY or by others whereby any of the assets of SEMRY shall or may be distributed among its creditors. (f) The Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of SEMRY or for the suspension of its operations. (g) The Borrower's Law or Decrees referred to in Section 1.02 (f) of this Agreement or the Statuts of SEMRY or any pro- vision of such Law, Decrees or Statuts shall have been amended, suspended, terminated or repealed so as to affect materially and adversely SEMRY's ability to carry out the covenants, agreements and obligations set forth in the Project Agreement. (h) The Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of FONADER or for the suspension of its operations without prior arrangements satisfactory to the Association having been made by the Borrower for the transfer to another department or agency of the Borrower of the functions of FONADER with respect to the credit program to be established under Part E (iii) of the Project. (i) The Borrower's Ordinance No. 73/24, dated May 29, 1973, as amended by the Borrower's Law No. 77/05, dated July 13, 1977, or Decree No. 73/496, dated August 28, 1973, or any provision thereof shall have been amended, suspended, terminated or repealed so as to affect materially and adversely the ability of FONADER to assist in carrying out Part E (iii) of the Project in accordance with the Credit Administration Agreement. (j) The Protocole d'Accord shall have been terminated, suspended or amended so as to affect materially and adversely  - 10 - the execution of the Project or the use of the works carried out thereunder. (k) (i) Subject to subparagraph (ii) of this paragraph: (A) the funds to be provided under the FAC Agree- ments shall not become available as and when needed for carrying out the Project; or (B) the right of the Borrower or SEMRY to withdraw the proceeds of any grant or loan made to the Borrower or SEMRY for the financing of the Project, including the Caisse Centrale Loan and the FAC Grants, shall have been suspended or terminated in whole or in part, pursuant to the terms of the agreement providing therefor; or (C) any such loan shall have become due and payable prior to the agreed maturity thereof. (ii) Subparagraph (i) of this paragraph shall not apply if: (A) in case of an event referred to in subpara- graphs (i) (B) and (C) of this paragraph, such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower or SEMRY to perform any of its obligations under such agreement; and (B) adequate funds for the Project are available to SEMRY from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement and of SEMRY under the Project Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (d) thereof: (a) the event specified in paragraph (a) of Section 5.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower and SEMRY; and  - 11 - (b) any event specified: (i) in paragraphs (e), (f), (g) or (h); or (ii) in paragraphs (j) or (k) (i) (C) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the SEMRY Financing Agreement has been executed on behalf of the Borrower and SEMRY; (b) all the conditions precedent to the effectiveness of the Loan Agreement have been fulfilled; and (c) the Caisse Centrale Loan Agreement has been duly signed. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinions to be furnished to the Association: (a) that the Project Agreement has been duly authorized or ratified by SEMRY, and is legally binding upon SEMRY in accor- dance with its terms; and (b) that the SEMRY Financing Agreement has been duly autho- rized or ratified by the Borrower and SEMRY and is legally binding upon the Borrower and SENRY in accordance with its terms. Section 6.03. The date June 1, 1978, is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sections 4.01, 4.03 and 4.04 of this Agreemeit and the provisions of paragraph (b) (i) of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agree- ment shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier.  - 12 - ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for planning 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 purpose of Section 11.01 of the General Conditions: For the Borrower: Ministry of Economic Affairs and Planning Yaound6 United Republic of Cameroon Cable address: Telex: MINEP 8268 KN Yaound6 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)  - 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. UNITED REPUBLIC OF CAMEROON By /s/ Benott Bindzi Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Is/ Roger Chaufournier Regional Vice President Western Africa  - 14 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit and of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit and of the Loan, the allocation of amounts of such proceeds to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit and of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 13,620,000 66% (2) Equipment and 7,470,000 66% vehicles for Parts A through D and F of the Proj- ect, including a light plane (3) Equipment and 960,000 66% fertilizer for Part E (iii) of the Project (4) Engineering 2,020,000 66% consultants' services (5) Other con- 580,000 66% sul.tants' cervices (6) Unallocated 4,350,000 TOTAL 29,000,000  - 15 - 2. The disbursement percentages have been calculated in compli- ance with the policy of the Association and the Bank that no proceeds of the Credit and 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 the importation, manu- facture, 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 of the proceeds of the Credit and of the Loan decreases or increases, the Association and the Bank may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be con- sistent with the aforementioned policy of the Association and the Bank. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made: (a) in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggre- gate amount not exceeding the equivalent of $1,100,000, $400,000 and $100,000, respectively, may be made under Categories (1), (2) and (4), respectively, on account of payments made for such expenditures before that date but after November 1, 1977; and (b) in respect of expenditures under Category (3), until evidence satisfactory to the Association shall have been furnished to the Association, showing: (i) that the FONADER Financing Agreement has been duly signed on behalf of the Borrower and FONADER; (ii) that the Credit Administration Agreement has been duly signed on behalf of SEMRY and FONADER; (iii) that the execu- tion of the FONADER Financing Agreement on behalf of the Borrower and FONADER and of the Credit Administration Agreement on behalf of SEMRY and FONADER has been duly authorized or ratified by all necessary governmental and corporate action; and (iv) that the FONADER Financing Agreement is legally binding upon the Borrower and FONADER and the Credit Administration Agreement is legally binding upon SEMRY and FONADER, in accordance with their terms. 4. Except as the Borrower, the Association and the Bank shall otherwise agree, and until all amounts of the Credit shall have been withdrawn or committed, no withdrawals shall be made from the Loan Account except under commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions referred to in Section 1.01 of the Loan Agreement.  - 16 - 5. Notwithstanding the allocation of an amount of the Credit and of the Loan or the disbursement percentages set forth in the table in paragraph 1 above, if the Association and the Bank have reason- ably estimated that the amount of the Credit and of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association and 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 Credit or of the Loan, as the case may be, which are then allocated to another Category and which in the opinion of the Association and 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 applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Association and the Bank 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 of the Loan and the Association or the Bank may, without in any way restricting or limiting any other right, power or remedy of the Association and of the Bank under the Development Credit Agreement and the Loan Agreement, by notice to the Borrower cancel such amount of the Credit or the Loan as, in the Association's and 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 Credit and the Loan.  - 17 - SCHEDULE 2 Description of the Project The Project is designed to provide for flood protection of an area of about 15,000 ha on the Western bank of the Logone River about 70 km North of Yagoua and the development for irrigated rice cultivation of about 7,000 ha of this area, requiring the crea- tion of a water reservoir with a maximum extension of about 38,000 ha. The Project consists of the following Parts: Part A: Flood Protection, Water Storage and Access Roads Construction of: (i) a reservoir dike of about 27 km between Pouss and Guirvidig; (ii) a flood protection dike of about 21 km along the Western bank of the Logone River between Pouss and TMk_l6; (iii) an intake structure on the Logone River near Djafga and a feeder canal for the reservoir of about 11 km between the Logone River and the Mayo Burad; (iv) a weir up-stream from the Mayo Pouss and an outlet into the Mayo Vrik near Maga for the discharge of excess flood water from the reservoir; and (v) two main access roads of an aggregate length of about 50 km along the dikes to be constructed under Parts A (i) and (ii) of the Project. Part B: Irrigation, Drainage and On-Farm Development (i) Construction of primary irrigation canals and drains to serve an area of about 7,000 ha. (ii) On-farm development of said area, including land clearing and levelling and construction of secondary and tertiary canals and drains. Part C: Feeder Roads Construction of a feeder road network along the primary and secondary irrigation canals and drains under Part B of the Project.  - 18 - Part D: Project Administration and Support (i) Establishment, equipping and staffing of the SEMRY department responsible for Project execution. (ii) Construction and equipping of Project headquarters at Maga, including staff housing, machinery sheds, repair facilities and utilities. (iii) Construction and equipping of a rice mill at Maga, consisting of two milling units with a capacity of 5 tons per hour each, and of storage facilities for about 26,000 tons of paddy and rice. (iv) Construction of an airstrip at Maga. (v) Training of local staff, including scholarships for specialized training abroad, specialized courses and on-the-job training. (vi) Applied food crop research and studies on the development of livestock and other food resources in the Project Area. Part E: Settlement and Agricultural Credit Programs (i) Settlement of about 7,000 farm families in the Project Area, including resettlement of about 1,350 farm families living in the area of the water reservoir to be created under Part A (i) of the Project, to cultivate the land to be developed under the Project. (ii) Provision of infrastructure, such as enclosed drinking water wells and feeder roads, and tech- nical and extension services for farmers in the Project Area. (iii) Provision of seedlings, fertilizer, equipment and other agricultural inputs and of housing construc- tion materials, on credit, to SEMRY farmers. Part F: Health Program (i) Construction and equipping of a health center in Maga and three propharmacies in Yagoua, Guirvidig  - 19 - and Maga, and upgrading of the departmental center of preventive medicine in Yagoua and of the health centers in Guirvidig and Pouss. (ii) Training of medical personnel required for the facilities included in Part F (i) of the Project and carrying out of a program to improve mother- and-child care and endemic disease control in the Project Area. (iii) Surveys on the sanitary situation in the Project Area and monitoring of the health program. The Project is expected to be completed by December 31, 1983.  - 20 - SCHEDULE 3 Procurement; A. International Competitive Bidding 1. Except as provided in Parts B.2 and D 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 March 1977 (hereinafter called the Guidelines); such contracts shall be procured on the basis of international competitive bidding as described in Part A of the Guidelines, except as provided in Part B.1 hereof. 2. To the extent feasible, vehicles and equipment shall be grouped for purposes of bidding so as to permit bulk procurement. B. Other Procurement Procedures 1. Contracts for the purchase of vehicles, equipment and furniture estimated to cost less than the equivalent of $100,000 each may be procured on the basis of competitive bidding adver- tised locally, without notification of diplomatic and trade representatives as described in paragraph 1.2 of Part A of the Guidelines. 2. Contracts for the purchase of office furniture and operation and maintenance equipment estimated to cost less than the equiva- lent of $20,000 each may be procured on the basis of price quota- tions from not less than three suppliers. 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 except those to be procured in accordance with the procedures set forth in Part B.2 of this Schedule: (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 import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to SEMRY or FONADER, as the case may be, of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included.  - 21 - 2. Goods manufactured in Cameroon 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 -reference 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 Cameroon if the bidder shall have established to the satisfaction of SEMRY or FONADER, as the case may be, and the Association that the manufacturing cost of such goods includes a value added in Cameroon equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Cameroon. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first com- pared 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 bid 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 said customs duties and taxes exceed 15% of such price. If  - 22 - the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. D. Procurement Without Contracting Civil works under Parts B, C, D (ii), (iii) and (iv) and F well as those for the feeder roads under (i) of the Project as Part E (ii) of the Project may be carried out by force account by SEMRY. E. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equiva- lent of $100,000 or more: (a) Before bids are invited, 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, shall be furnished to the Association for its comments, and such modifications shall be made in the said docu- ments 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 prospec- tive bidders. (b) After bids have been received and evaluated and before a final decision on the award is made, the Association shall be informed of the name of the bidder to which the contract is intended to be awarded, and a detailed report on the evaluation and comparison of the bids received, together with such other information as the Association shall reasonably request, shall be furnished to the Association in sufficient time for its review. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform SEMRY or FONADER, as the case may be, 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.  - 23 - (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 pro- ceeds of the Credit and not governed by the preceding paragraph, 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, shall be furnished to the Association promptly after the execution of such contract 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. The Association shall, if it deter- mines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform SEMRY or FONADER, as the case may be, and state the reasons for such determination.