India - Inland Fisheries Project : Credit 0963 - Development Credit Agreement - Conformed

7FFICIAL CREDIT NUMBER 963 IN DOCUJMTS' Development Credit Agreement (Inland Fisheries Project) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated / / f , 1980 CREDIT NUMBER 963 IN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, io a if , 1980, between INDIA, acting by its President (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) by five separate project agreements of even date herewith between the Association and the States of West Bengal, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh, respectively, each of the said States has agreed to undertake certain obliga- tions in respect of the carrying out of the Project; and (C) by an agreement of even date herewith between the Association and Agricultural Refinance and Development Corporation (hereinafter called ARDC), ARDC has agreed to undertake certain obligations in respect of the carrying out of the Project; 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 Agreements referred to in Recitals (B) and (C) above; 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 (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 have the respective meanings therein set forth and the following additional terms have the following meanings: -2- (a) "West Bengal" means the State of West Bengal, a State of India, or any successor thereof; (b) "Bihar" means the State of Bihar, a State of India, or any successor thereof; (c) "Orissa" means the State of Orissa, a State of India, or any successor thereof; (d) "Madhya Pradesh" means the State of Madhya Pradesh, a State of India, or any successor thereof; (e) "Uttar Pradesh" means the State of Uttar Pradesh, a State of India, or any successor thereof; (f) "States" means West Bengal, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh, and "State" means any of the States; (g) "West Bengal Project Agreement", "Bihar Project Agree- ment", "Orissa Project Agreement", "Madhya Pradesh Project Agree- ment" and "Uttar Pradesh Project Agreement" mean the respective project agreements referred to in Recital (B) of this Agreement, as each such Agreement may be amended from time to time, and each such term includes all schedules to each such Agreement and all agreements supplemental thereto; (h) "the State Project Agreements" means the West Bengal Project Agreement, the Bihar Project Agreement, the Orissa Project Agreement, the Madhya Pradesh Project Agreement and the Uttar Pradesh Project Agreement, collectively, and "the respective State Project Agreement" means, in relation to any one of the States, the said Project Agreement to which that State is a party; (i) "ARDC" means the Agricultural Refinance and Development Corporation, a statutory corporation established and operating under the laws of the Borrower; (j) "ARDC Agreement" means the agreement between the Asso- ciation and ARDC, referred to in Recital (C) of this Agreement, as the same may be amended from time to time and such term includes all agreements supplemental to the ARDC Agreement; (k) "Participating Banks" means banks selected by ARDC for purposes of Part A of the Project; -3- (1) "Beneficiaries" means FSDCs and Farmers (be they individuals, groups or cooperatives) which are eligible to receive a loan from a Participating Bank under Part A of the Project. Such term shall include the term "Small Farmer"; (m) "Farmer" and "Small Farmer" have the respective meanings assigned to them under the Third ARDC Credit Project, when such person is primarily engaged in fishing or fish farming; (n) "Third ARDC Credit Project" means the Project financed under the Development Credit Agreement Number 947 IN (Third ARDC Credit Project), between India and the Association; (o) "Project Area" means the area comprising the dis- tricts in the States listed in the Annex to Schedule 2 to the Development Credit Agreement, as such Annex may be amended from time to time by agreement between the Borrower and the Association; and "Project Sub-area" means, in each State, those districts of the Project Area in that State; (p) "FSDCs" means the Fish Seed Development Corporations established or to be established in the States pursuant to Section 2.05 of the State Project Agreements, and "FSDC" means, in each State, the respective FSDC so established; (q) "FFDAs" means the Fish Farmer Development Agencies established or to be established to serve all districts of the Project Area for the purposes of promoting fish culture and assisting fish farmers; (r) "CMCC" means the Central Monitoring and Coordinating Committee to be established in the Ministry of Agriculture of the Borrower pursuant to Section 3.02 (a) of this Agreement; (s) "SMCCs" means the State Monitoring and Coordinating Committees established or to be established in the States pursuant to Section 2.03 (a) of the State Project Agreements, and "SMCC" means in each state, the respective SMCC so established; (t) "CPU" means the Central Project Unit to be established within the Fisheries Division of the Department of Agriculture and Cooperation of the Borrower, pursuant to Section 3.02 (b) of this Agreement; (u) "SPUs" means the State Project Units established or to be established in the States pursuant to Section 2.03 (b) of the -4- State Project Agreements, and "SPU" means, in each state, the respective SPU so established; (v) "Gujarat Fisheries Project" means the Project partially financed out of the proceeds of the Development Credit Agreement No. 695 IN and the Loan Agreement No. 1394 T-IN, both dated April 22, 1977, between the Borrower and the Association and the International Bank for Reconstruction and Development, respec- tively; and (w) the sign "Rs" means rupees in the currency of the Borrower. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in this Agreement set forth or referred to, an amount in various currencies equivalent to twenty million dollars ($20,000,000). 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 Associa- tion, 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 set forth in Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be September 30, 1985 or such later date as the Association shall establish. The Association 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 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. -5- Section 2.06. Service charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each Febru- ary 15 and August 15 commencing February 15, 1990, and ending August 15, 2029, each installment to and including the installment payable on August 15, 1999, 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. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out Part C of the Project and cause to be carried out Parts A and B of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilit'ies, services and other resources required for the purpose. (b) Without any limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall cause the States and ARDC to perform in accordance with the provisions of the State Prcject Agreements and the ARDC Agreement all the obligations 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 the States and ARDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall make available part of the proceeds of the Credit to the States in accordance with the Borrower's standard arrangements for development assistance to the States of India. (d) The Borrower shall enter into financial arrangements with ARDC on terms and conditions (including inter alia those set forth in Schedule 4 to this Agreement) satisfactory to the -6- Association for the purpose of lending to ARDC funds equivalent to $9,300,000 out of the proceeds of the Credit. Except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of said financial arrange- ments. Section 3.02. The Borrower shall: (a) promptly establish, and thereafter maintain and operate the CMCC, with responsibilities inter alia for overall policy guidance and review of Project execution; (b) promptly establish, to monitor and coordinate Project execution, and thereafter maintain and operate the CPU with powers, responsibilities and initial staff satisfactory to the Association, and headed by a full-time officer not below the rank of a Deputy Commissioner; (c) hire and employ thereafter in the CPU until such date as shall be specified in the respective terms of reference: (i) by April 30, 1980, a hatchery engineer; and (ii) by April 30, 1981, a hatchery management specialist, the qualifications, experience and terms of reference of both to be satisfactory to the Associ- ation; (d) without limitation to the generality of paragraph (b) above, hire or appoint, by April 30, 1980, and employ there- after in the CPU the key staff to head CPU's sections dealing with FFDAs, monitoring and hatchery engineering; and (e) cause the CPU to prepare, in consultation with the SPUs, and furnish to the Association, not later than June 30, 1980, work plans and schedules for the implementation of the Project. Section 3.03. For the purposes of carrying out Part C of the Project, the Borrower shall: (a) cause the CPU to: (i) prepare, in consultation with the Fisheries Department of the State concerned and furnish to the Association for its comments, not later than June 30, 1980, a work plan and a timetable for the study to be carried out under Part C.2 (i), and (ii) carry out or cause to be carried out said study in accordance with such plan; and -7- (b) ensure that, by April 30, 1980, the All-India fish marketing study financed under the Gujarat Fisheries Project is expanded to include inland fish marketing. Section 3.04. (a) The Borrower shall cause to be insured, or adequate provision to be made 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 insur- ance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (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. Based in part on the information to be provided by the States under Section 2.10 of the State Project Agreements and in accordance with the States undertakings thereunder, the Borrower shall: (a) furnish to the Association, promptly upon their prepara- tion, 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) (i) maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and 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 the Project; (ii) enable the Association's accredited representatives to visit the facilities and construc- tion sites included in 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) furnish to the Associa- tion quarterly reports on the progress of the Project, together with all such other information as the Association shall reason- ably request concerning the Project, its cost and, where appro- priate, the benefits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds; and (c) promptly after completion of the Project, but in any event not later than six months after the Closing Date or such -8- later date as may be agreed for this purpose between the Borrower and the Association, prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement, the performance by the Association and the States of their respec- tive obligations under the State Project Agreements and the accomplishment of the purposes of the Credit. ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph (h) thereof: (a) any of the States shall have failed to perform any of its obligations under the respective State Project Agreement; (b) ARDC shall have failed to perform any of its obligations under the ARDC Agreement; (c) ARDC shall have become unable to pay any of its debts as they mature or any action or proceeding shall have been taken by ARDC or by others whereby any of the property of ARDC shall or may be distributed among its creditors; (d) the Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of ARDC or for the suspension of the operations thereof; and (e) an extraordinary situation shall have arisen which shall make it improbable that: (i) any of the States will be able to perform its obligations under the respective State Project Agreement, or (ii) ARDC will be able to perform its obligations under the ARDC Agreement. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (d) thereof: -9- (a) any event specified in paragraphs (a) or (b) of Section 4.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower and the concerned State or ARDC; and (b) any event specified in paragraphs (c) or (d) of Section 4.01 of this Agreement shall occur. ARTICLE V Effective Date; Termination Section 5.01. 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 financial arrangements between the Borrower and ARDC referred to in Section 3.01 (d) of this Agreement have been made; and (b) the CMCC and the CPU have been established pursuant respectively to Section 3.02 (a) and (b) of this Agreement. Section 5.02. The following are specified as additional matters, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association: (a) that the State Project Agreements have been duly authorized or ratified by, and executed and delivered on behalf of, each of the States, and each such Agreement is legally binding upon the State party to it in accordance with its terms; and (b) that the ARDC Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, ARDC and is legally binding upon ARDC in accordance with its terms. Section 5.03. The date /%iO&i /i /'90 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.04. The provisions of Section 4.02 of this Agree- ment shall cease and determine on a date 20 years after the date of this Agreement or on the date on which the Development Credit Agreement shall terminate, whichever shall be the earlier. - 10 - ARTICLE VI Representative of the Borrower; Addresses Section 6.01. Any Secretary, Additional Secretary, Joint Secretary, Director or Deputy Secretary of the Department of Economic Affairs in the Ministry of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purpose of Section 11.01 of the General Conditions: For the Borrower: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address: Telex: ECOFAIRS 312282 or New Delhi 313546 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) - 11 - 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. INDIA By ' Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By A"/ (12Ad '- Regional Vice President South Asia - 12 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 4,400,000 75% (Part B of the Project) (2) Equipment, ve- 3,400,000 100% of foreign hicles and ma- expenditures and terials (Part B 75% of local ex- of the Project) penditures (3) Staff (Part B of 1,800,000 75% the Project) (4) Loans by ARDC 9,300,000 55% of the (Part A of the amounts dis- Project) bursed by ARDC to refinance such loans (5) Consultants services, 600,000 100% project preparation and marketing study (Part C of the Proj- ect) (6) Unallocated 500,000 TOTAL 20,000,000 - 13 - 2. For the purposes of this Schedule, the term "foreign expen- ditures" means expenditures 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. 3. The disbursement percentages have been calculated in com- pliance 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 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: (a) payments made for expenditures prior to the date of this Agreement; and (b) payments for expenditures in respect of each State: (i) under Categories (1), (2) and (3), until that State has complied with Sections 2.03 and 2.05 (a), (b) and (d) of the respective State Project Agreement; and (ii) under Category (4), until a Project banking plan concerning such State has been furnished to the Association pursuant to Section 2.08 of the ARDC Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 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 and which in the opinion of the Association are not needed to meet other expenditures; and (ii) - 14 - if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expen- ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. 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 pro- ceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the 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 financ- ing out of the proceeds of the Credit. - 15 - SCHEDULE 2 Description of the Project The Project is designed to increase the production of carp in the Project Area. The Project consists of the following Parts: Part A: A credit program to finance: 1. Construction of about 27 modern fish seed hatchery complexes to be operated by the FSDCs (each to include indoor hatchery facilities) ranging in size from about 10 ha to about 30 ha of pond area. 2. Improvements and first year cash inputs for fish ponds to be operated by Farmers as individuals, groups or cooperatives. Part B: 1. Construction of an all-weather approach road for con- necting each hatchery to a major road or rail line. 2. Provision of staff, vehicles and equipment to provide extension services and training to Farmers through: (i) the establishment of new FFDAs to serve about 42 dis- tricts in the Project Area; and (ii) the strengthening of the existing FFDAs serving about 16 districts in the Project Area. 3. Provision of civil works and equipment for: (i) the construction of a fish culture extension training center each in West Bengal, Bihar and Uttar Pradesh; and (ii) the improvement of an existing center in Madhya Pradesh. Part C: 1. Provision of the services of a hatchery engineer consul- tant and a hatchery management specialist. 2. The carrying out of: (i) a preparation study for a reservoir management project, including construction of a modern carp seed hatchery of about 5 ha; and (ii) an inland fish marketing study. The Project is expected to be completed by March 31, 1985. - 16 - ANNEX TO SCHEDULE 2 Project States and Districts West Madhya Uttar Bengal Bihar Orissa Pradesh Pradesh Midnapur Paschimi Balasore* Raipur* Lucknow Champaran** Bankura Purbi Cham- Cuttack Durg Unnao paran** Howrah Sitamarhi Puri Bilaspur Gonda* Hooghly Madhubani Ganjam* Rajnandgaon Barabanki Purulia Saharsa Bolangir* Raigarh Faizabad Burdwan* Purnea Sambalpur Shahdol* Jaunpur* Nadia Gopalganj Phulbani* Asamgarh Barbhum* Siwan (Baudh Basti Murshida- Saran Khondmals) Gorakhpur bad* Malda* Muzaffarpur Ghazipur West Dinajpur* Vaishali Allahabad* Darbhanga Deoria Samastipur Ballia Begusarai Varanasi Katihar Rae Bareli Patna Pratapgarh Monghyr Sultanpur * District with ongoing FFDA. ** Two districts together served by a single ongoing FFDA. NOTE: The Project Area comprises the physical area included in above districts existing as of January 1, 1979. - 17 - SCHEDULE 3 Procurement A. 1. Except as provided in sub-paragraphs 2, 3 and 4 here- under, all contracts shall be let on the basis of competitive bidding advertised locally under procedures satisfactory to the Association. 2. Contracts for purchase of equipment, materials and vehicles shall be bulked wherever possible to encourage local competitive bidding, and if the value of such equipment, materials and vehicles that cannot be bulked is estimated to cost less than $50,000 equivalent it may be procured by prudent shopping through normal commercial channels. 3. In order to encourage local competitive bidding, civil works for the approach road for each hatchery shall not be let under more than two contracts (one for the earthwork and the other for road formation and surfacing), provided, however, that these or other civil works estimated to cost less than $50,000 equiva- lent may be carried out by force account. 4. Fish pond improvement works may be carried out by the beneficiaries through their own or hired labor. B. 1. With respect to all contracts estimated to cost the equivalent of $200,000 or more, and contracts for the first hatchery in each State: (a) Before bids are invited, the Borrower or the State concerned, as the case may be, shall furnish to the Association, through CPU, for comments by the Association, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising proce- dures to be followed for the bidding, and shall make such modifi- cations 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 or the State concerned, as the case may be, shall, before a final decision on the award is made, inform the Associa- tion of the name of the bidder to which it intends to award the - 18 - contract and shall furnish to the Association, though CPU, in sufficient time for review by the Association, 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 the Borrower or the State concerned, 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. (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 not governed by the preceding paragraph, the Borrower or the State concerned, as the case may be, 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 the Borrower or the State, as the case may be, and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an exten- sion of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower or the State concerned, as the case may be, shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower or the State con- cerned, as the case may be, and state the reasons for its deter- mination. - 19 - SCHEDULE 4 Principal Lending Terms and Conditions 1. Borrower to ARDC (a) For ARDC refinancing not exceeding 9 years: (i) interest rate of 6.25% per annum, less 0.25% for prompt payment; and (ii) repayment at the end of 9 years. (b) For ARDC refinancing in excess of 9 years, but not exceeding 15 years: (i) interest rate of 6.75% per annum, less 0.25% for prompt payment; and (ii) repayment at the end of 15 years. (c) The Borrower shall bear the foreign exchange risk. 2. ARDC to Participating Banks (a) Interest rate of 6.5% per annum for lending to Small Farmers, and 7.5% to all other beneficiaries. (b) Installment repayments to coincide approximately with agreed schedule for collections from ultimate borrowers. (c) Refinancing to be by purchase of debentures or by loans, generally up to 90% of individual loans. 3. Participating Banks to Ultimate Borrowers (a) Interest rate to be 9.5% per annum for lending to Small Farmers, and 10.5% for all other beneficiaries. (b) A once-and-for-all evaluation fee of 0.5% of the cost of investment may be charged; this fee may be waived with the concurrence of ARDC. (c) Beneficiaries' contributions (for Farmers including own labor and other contributions in cash or kind): - 20 - (i) for lending to Small Farmers, a minimum of 5% of the investment cost; (ii) for Farmers primarily engaged in fishing or fish farming activities providing a predevelopment net return to family resources to such Farmer and his family ranging from Rs2,001 to Rs3,500 annually based on 1972 prices, a minimum of 10%* of the investment cost; (iii) for other Farmers a minimum of 15%** of the investment cost; and (iv) for FSDCs, a minimum of 30% of the investment costs. (d) Repayment periods to be based on the ultimate borrowers' repayment capacity, but not to exceed 7 years including up to two years grace period for Farmers, and not to exceed 15 years including up to five years grace period for FSDCs. 4. General (a) ARDC and Participating Banks to maintain separate accounts for lending to Small Farmers, other Farmers and FSDCs. (b) Security to be in accordance with arrangements between Participating Banks and ARDC. (c) ARDC shall refinance only sound schemes which, on the basis of careful study, are considered to be finan- cially viable. (d) Where necessary, ARDC may approve rescheduling of loans. (e) ARDC may assist Participating Banks and ultimate bor- rowers in the preparation and evaluation of investment plans. (f) ARDC may assist FSDCs to ensure sound financial manage- ment. * 7% for two or more Farmers receiving a loan as a group or cooperative. ** 10% for two or more Farmers receiving a loan as a group or cooperative. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the ? day of / 198CL. FOR SECRETARY