Jordan - Third Education Project : Loan 1781 - Loan Agreement - Conformed

O C LOAN NUMBER 1781 JO DOCUMTS Loan Agreement (Third Education Project) between THE HASHEMITE KINDGOK OF JORDAN and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated , 1980 LOAN NUMBER 1781 JO LOAN AGREEMENT AGREEMENT, dated J 1 , 1980, between THE HASHEMITE KINGDOM OF JORDAN (hereinafter called the Borrower or Jordan) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOP- MENT (hereinafter called the Bank). WHEREAS the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; WHEREAS the Borrower intends to implement the technical assistance components referred to in Parts A and. C of the Project with the assistance of the United Nations Development Program (UNDP); WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan to the Borrower upon the terms and conditions hereinafter set forth; and NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE 1 General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank 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 and the following additional terms have the following meanings: (a) "MOE" means the Ministry of Education of the Borrower; (b) "Project Unit" means the Project Unit established under the Development Credit Agreement (Education Project) and main- tained under the Development Credit Agreement (Second Education -2- Project), entered into between the Borrower and the International Development Association on February 11, 1972 and March 12, 1975, respectively; (c) "DEO" means any District Education Office of MOE; and (d) "Project Institution" means any of the institutions included in, or to be established under, the Project. ARTICLE II The Loan Section 2.01. The Bank. agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to nineteen million dollars ($19,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan 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 Bank, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 hereto and to be financed out of the proceeds of the Loan. Section 2.03. Except as the Bank shall otherwise agree, procurement of the goods and works for the Project and to be financed out of the proceeds of the Loan, shall be governed by the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1983 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of seven and ninety-five hundredths per cent (7.95%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. -3- Section 2.07. Interest and other charges shall be payable semiannually on May 15 and November 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. ARTICLE III Execution of the Project Section 3.01. The Borrower shall through MOE carry out the Project with due diligence and efficiency and in conformity with appropriate financial, technical, educational and adminis- trative practices, and shall, promptly as needed, provide or employ, as the case may be, the funds, facilities, services and other resources required for the purpose and all the necessary experts required for the carrying out of the Project. Section 3.02. The Borrower shall ensure that MOE, for the purpose of over-all management and coordination in the carrying out of the Project, maintain the Project Unit with such staff and continue to vest it with such powers and responsibilities, as specified in Schedule 5 to this Agreement. Section 3.03. In order to assist the Borrower in the planning and supervision of the construction of the facilities included in Part A of the Project, the Borrower shall continue to employ architectural consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank. 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 Loan 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. (b) Except as the Bank shill otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. Section 3.05. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, -4- reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (in- cluding its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Loan, and to disclose their use in the Project; (ii) shall enable the Bank's accredited representatives to visit the facili- ties and construction sites included in the Project and to examine the goods financed out of the proceeds of the Loan and any rele- vant records and documents; and (iii) shall furnish to the Bank at regular intervals all such information as the Bank 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 Loan and the goods and services financed out of such proceeds. (c) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, of such scope and in such detail as the Bank shall reason- ably 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 Bank of their respec- tive obligations under the Loan Agreement and the accomplishment of the purposes of the Loan. Section 3.06. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for the construction and operation of the facilities included in the Project and shall furnish to the Bank, promptly after such acquisition, evidence satisfactory to the Bank that such land and rights in respect of land are available for purposes related to the Project. ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, -5- in normal circumstances, special security from the member con- cerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distri- bution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the alloca- tion, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the princip.A of, and interest and other charges on, the Loan by an equtialent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdivision thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section 4.02. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained sound 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. -6- Section 4.03. The Borrower shall cause the Project Institu- tions (i) to be operated in conformity with appropriate adminis- trative and educational policies and practices and with due regard to economy, (ii) to be staffed with teachers, instructors and administrators in adequate numbers and with appropriate qualifi- cations and experience and (iii) to be adequately maintained at all times in accordance with appropriate technical practices. Section 4.04. Not later than six months before the opening of the community college referred to in Part A.1 (c) of the Project, the Borrower shall ensure that MOE: (i) establish an advisory committee for said college, including prominent Zarqa residents among its members; (ii) establish a department for con- tinuing education headed by a suitably qualified and experienced educator appointed on a full-time basis; (iii) prepare and review with the Bank the detailed programs for continuing education to be implemented at said college; and (iv) prepare and submit to the Bank, for its review and comments, a proposed system for eva- luating the effectiveness of said college. Section 4.05. The Borrower shall take all action required to ensure that instructors in the new specializations of indus- trial electronics, instrument mechanics and watch repair, for which textbooks in Arabic are not currently available shall be appointed to the training complex included in Part A.1 (a) of the Project, not later than six months prior to the scheduled opening date of such complex, for the purpose of preparing such textbooks. Section 4.06. The Borrower shall ensure that MOE provide the Bank, for its review and comments, with a detailed staffing plan for the management information system included in Part C.1 of the Project and then appoint the staff required for the operation of such system, taking into account the Bank's comments on such staffing plan; it being understood that all such actions shall be completed not later than December 31, 1980 (or such other date as the Bank may agree). Section 4.07. The Borrower shall through MOE: (i) prepare the adult education programs, to be implemented at the compre- hensive secondary schools referred to in Parts A.1 (b) and A.2 (a) of the Project, and submit such programs to the Bank for its review and comments not later than six months before the scheduled opening date of such schools; and (ii) promptly there- after, designate qualified and experienced staff to each such school on a full-time basis to implement such programs, it being -7- understood that such programs shall be implemented taking into account the Bank's comments. Section 4.08. In order to enhance the availability of quali- fied instructors for the industrial subjects at the Borrower's comprehensive and industrial secondary schools and trade training centers and at the prevocational teacher training institute provided in Part A.2 (c) of the Project, the Borrower shall: (i) provide such incentives as shall be required to attract an adequate number of qualified trainees into the instructor training programs of the Marka Polytechnic Institute of the Borrower; and (ii) take, through suitable governmental and administrative action and by September 30, 1980 (or such other date as the Bank may agree), such measures as shall grant qualified teacher status and ensure appropriate incremental financial rewards for the graduates of said instructor training programs. Section 4.09. The Borrower shall cause MOE: (a) to extend the operation of its existing tracer system so as to ensure the continuous monitoring of the employment of graduates of the training complex referred to in Part A.1 (a) of the Project and of the comprehensive secondary schools referred to in Parts A.1 (b) and A.2 (a) of the Project; and (b) to provide the Bank, during the five years following immediately the first graduation of students from said schools and training complex, with annual reports on the results obtained through the operation of said tracer system. ARTICLE V Termination Section 5.01. The date ,A go is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The President of the National Planning Council of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. -8- Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: National Planning Council P.O. Box 555 Amman The Hashemite Kingdom of Jordan Cable address: Telex: NPC 1319 JO Amman For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) 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. THE HASHEMITE KINGDOM OF JORDAN By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Regional Vice President Europe, Middle East and North Africa -9- SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 6,600,000 35% (2) Furniture and 6,400,000 100. of foreign equipment expenditures for directly imported goods, 100% of local expenditures ex- factory for lcally manufac- tured goods and 85% of local expenditures for imported goods procured locally (3) Experts' 1,200,000 100% of foreign ex- Services for penditures for ex- Part C.1 of perts domiciled the Project outside Jordan and 80% of local ex- penditures for other experts (4) Unallocated 4,800,000 TOTAL 19,000,000 - 10 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" 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; and (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. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Bank that no proceeds 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, 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 Loan decreases or increases, the Bank 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 Bank, 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in para- graph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insuf- ficient to finance the agreed percentage of all expenditures in that Category, 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 Loan which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures; and (ii) if such realloca- tion 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 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 - 11 - expenditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in 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 Loan. - 12 - SCHEDULE 2 Description of the Project The main objectives of the Project are to: (i) expand voca- tional and technical training and improve the quality of agricul- tural secondary education; (ii) assist in meeting the needs for technicians and teachers, through the development of a new type of post-secondary training institution; (iii) improve the relevance and quality of basic and secondary education, through the training of pre-vocational subject teachers and the expansion of the comprehensive secondary school system; (iv) initiate continuing education, through the use of the facilities of the Project Institutions; (v) improve school building maintenance capability, through the provision of mobile building maintenance units; and (vi) improve the MOE's capability for planning, research, eva- luation and management. The Project Institutions and the technical assistance included in the Project are, respectively, further described in Exhibits 1 and 2 to this Schedule, as such Exhibits may be revised from time to time by agreement between the Borrower and the Bank. The Project consists of the following Parts: Part A: Project Institutions 1. Construction, furnishing and equipping of and provision of technical assistance for: (a) One training complex. (b) Three comprehensive secondary schools. (c) One community college. 2. Extension furnishing and equipping of and provision of technical assistance for: (a) Two general secondary schools to convert them into comprehensive secondary schools. (b) The agricultural secondary school at Shaubak to improve its range of specializations and the quality of training. - 13 - (c) The agricultural teacher training institute at Shaubak to convert it into a pre-vocational teacher training institute. Part B: Building Maintenance Establishment, at certain selected DEOs, of eight mobile building maintenance units. Part C: Institution Building 1. Provision of computer hardware and equipment, software development (employment of experts and local training for staff), all as required for the establishment and operation of a computerized management information system within MOE. 2. Establishment and starting of the operation of an evaluation system at MOE, through inter alia, the employment of an educational evaluation expert and fellowships for MOE's staff. 3. Provision of experts' services to upgrade the research section of MOE. 4. Provision of fellowships abroad for the staff of the Project Unit to study education projects' management and evaluation. The Project is expected to be completed by June 30, 1983. - 14 - EXHIBIT 1 TO SCHEDULE 2 Project Institutions Student Places Accommodations New/ Student Replace- Board- Staff Institution Grades Total ment ing Housing Location 1 Training 10-11 440 440 - - Saahab complex 10-12 680 680 5 Compre- 10-12 4,100 3,130 - - Salt hensive (girls) secondary Aqaba schools (2 (girls) extensions) Ma'an (boys) Kitteh (boys) Kufr Yuba (boys) 1 Community 13-14 980 980 - 8 Zarqa college 1 Agricultural 10-12 240 0 - - Shaubak secondary school (extension) 1 Pre-voca- 13-14 256 196 196 10 Shaubak tional teacher training institute (extension) - 15 - EXHIBIT 2 TO SCHEDULE 2 Technical Assistance Included in the Project Specialists Fellowships Total Begin- Total Begin- Man- ning Man- ning Months Dates Months Dates (approx- (approx- (approx- (approx- Institution Number imate) imate) Number imate) imate) Training complex: Adminis- tration 1 3 4/81 Instrument mechanics, upholstery 2 24 7/82 4 48 9/80 Other instructors 10 90 4/81 Comprehensive secondary schools: Adminis- tration 10 30 1/82 Vocational instructors 16 144 10/81 Community college: Adminis- tration 1 12 5/82 4 16 1/82 Technical instructors 5 41 9/81 Agricultural secondary school: Technical instructors 3 39 1/80 - 16 - Specialists Fellowships Total Begin- Total Begin- Man- ning Man- ning Months Dates Months Dates (approx- (approx- (approx- (approx- Institution Number imate) imate) Number imate) imate) Pre-vocational teacher training institute: Adminis- tration 1 4 1/82 Technical instructors 6 48 6/81 Institution building: Management Information System 15 180 8/80 Evaluation 1 6 10/80 2 12 10/80 Educational research 3 18 7/80 Project management support 6 24 7/80 TOTAL 22 240 68 499 - 17 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each May 15 and November 15 beginning May 15, 1984 through May 15, 1996 730,000 On November 15, 1996 750,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal. - 18 - Premiums on Prepayment The following percentages are specified as the premiums payable on rerayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.40% More than three years but not more than six years before maturity 2.80% More than six years but not more than eleven years before maturity 5.15% More than eleven years but not more than fifteen years before maturity 7.00% More than fifteen years before maturity 7.95% - 19 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Part C hereof, goods and civil works shall be procured under contracts awarded 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), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For goods and works to be procured on the basis of inter- national competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Bank as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Bank shall reasonably request; the Bank will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of international competitive bidding. 3. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for the imported goods, or the ex-factory price or off-the-shelf price of other goods, offered in such bid; and (ii) customs duties and other import taxes levied in connection with the importation, or the sales and similar taxes levied in connection with the sale or delivery, pursuant to the bid, of the goods shall not be taken into account in the evaluation of the bids. B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A of this Schedule, goods manufactured in - 20 - Jordan may be granted a margin of preference in accordance with, and subject to, the following provisions: 1. 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. 2. After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Jordan if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in Jordan equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Jordan. (3) Group C: bids offering any other goods. 3. In order to determine the lowest evaluated bid of each group, all evaluated bids in each group shall first be compared among themselves, without taking into account customs duties and other import taxes levied in connection with the importation, and sales and similar taxes levied in connection with the sale or delivery, pursuant to the bids, of the goods. 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. 4. If, as a result of the comparison under paragraph 3 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 evaluated 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 the group A bid in such further comparison is the lowest, it - 21 - shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Other Procurement Procedures With respect to contracts for items of equipment and furni- ture which: (i) cannot be grouped in bulk contracts costing the equivalent of $100,000 or more (including taxes); or (ii) are of such highly specialized nature that international competitive bidding would not be practicable, the Borrower may award such contracts in accordance with local procurement procedures accept- able to the Bank. Prior to awarding such contracts, the Borrower shall, to the extent feasible, obtain price quotations from no fewer than three manufacturers or suppliers. The aggregate amount of contracts so awarded shall not exceed $1,000,000 equivalent (including taxes). D. Review of Procurement Decisions by the Bank 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for the Project estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Bank, 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 Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Bank shall reasonably request. The Bank 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. - 22 - (c) The terms and conditions of the contract shall not, without the Bank'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 Bank promptly after its execution and prior to the sub- mission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such con- tract, together with the analysis of the respective bids, recom- mendations for award and such other information as the Bank shall reasonably request. The Bank 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 determtnation. 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 30% -f the original price, the Borrower shall inform the Bank of the proposed modification, waiver, extension or change order and the reasons therefor. The Bank, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. - 23 - SCHEDULE 5 The Project Unit 1. The staff of the Project Unit shall at all times include, on a full-time basis, in addition to the Director and Deputy Director, one chief engineer and two engineers (all or two of th--m will be architect/engineers), two procurement specialists, two accountants and an adequate number of support staff. 2. The Project Unit shall have the necessary powers for the execution of the Project, including, inter alia: (i) the coordination of the Project with ministries and government services; (ii) the selection, briefing, coordination and supervi- sion of architectural consultants and contractors; (iii) the approval of the civil works design of the educational institutions included in the Project; (iv) the preparation of detailed lists of the furniture, equipment and books required for the Project; (v) the procurement of civil works, furniture, equip- ment and books including the preparation of bidding documents, the analysis of bids and the making of recommendations regarding the award of contracts; (vi) the regular inspection of all construction work; (vii) the keeping of records, including financial records, of the execution of the Project, and the preparation of regular reports to the Bank; and (viii) the selection, coordination and supervision of consultants' services and technical assistance (including fellowships) of the specialists provided under the Project. 3. The functions of the Director, the Deputy Director, the chief engineer and the engineers, the procurement specialists and the accountants shall be as follows: - 24 - (a) The Project Director: The Director shall be responsible, with the assis- tance of the Deputy Director, for directing all aspects of the execution of the Project. He shall report directly to the Minister of Education. He shall be responsible, inter alia, for the following: (i) the administration of agreements with the archi- tectural consultants in accordance with their terms of reference; (ii) making the necessary arrangements for briefing architectural consultants and other architects and engineers of the agencies of the Borrower; (iii) reviewing and approving or arranging for the review and approval by the appropriate authorities of all reports, plans, specifications and other material related to the Project; (iv) making all necessary arrangements for calling bids and awarding all contracts relating to the Project; (v) the coordination and integration of all Project activities with the relevant ministries, authori- ties and agencies, and with the Bank; (vi) the organization and administration in consultation with the appropriate authorities of the technical assistance program included in the Project; (vii) the selection and organization of the staff of the Project Unit and the supervision and direction of their performance of their respective duties; and (viii) the preparation of quarterly project progress reports for the Borrower and the B-nk. (b) The Chief Engineer: Under the general direction of the Director, and in coordination with the architectural consultants, ane - 25 - with the assistance of the engineers, the chief engineer shall, inter alia: (i) assemble all information relating to site and site conditions of the Project institutions; (ii) prepare schedules for the construction, furnishing and equipping of the Project institutions; (iii) prepare the architects' briefs, relating educa- tional specifications to realistic costing and functional design; (iv) act as technical and architectural adviser to the architectural consultants to ensure that the brief is fully understood and that the Project is carried out in accordance with the brief; (v) check the architectural drawings to see that the space provisions and educational specifications are interpreted correctly so as to minimize changes during construction; (vi) ensure that the architectural consultants and contractors are meeting performance standards as reflected in the contract documents; (vii) take all steps required to ensure that the furni- ture is designed and constructed in accordance with the specifications; (viii) ensure that furniture and building materials are procured in time and available for use on schedule; (ix) process and expedite all certificates of payments from contractors; and (x) visit the works and inspect progress. (c) The Accountants: The accountants shall be responsible to the Director for setting up the accounting machinery and the technical and operational aspects of accounting control relating to Project implementation. - 26 - They shall be responsible, inter alia, for: (1) ensuring that funds are available in the relevant accounts as required to meet payments to be financed out of the proceeds of the Loan; (ii) conducting the overall supervision, maintenance and verification of any special bank account which may be set up for the Project; (iii) taking promptly all actions required under this Agreement in order to expedite the disbursement of the amounts of the Loan, including the preparation of withdrawal applications; (iv) ensuring that a detailed account is maintained in respect of each contract for the procurement of goods or services for the Project; (v) preparing such interim evaluation and financial statements as are required under this, Agreement; (vi) arranging for the establishment of letters of credits, if any; and (vii) signing or countersigning of checks. (d) The Procurement Specialists: Under the general direction of the Director, the procurement specialists shall be responsible, inter alia, for the following: (i) the procurement of all furniture, equipment, books and materials for the Project; (ii) the itemization and listing of all goods required for the Project showing the specifications and the estimated unit and total costs of each item, and the arrangement for the index coding and numbering of each item for identification with the relevant romponents of the Project; (iii) the grouping of goods to be procured so as to permit bulk procurement consistent with sound technical and procurement practices; - 27 - (iv) the drafting of standard documents for inviting bids and the implementation of bidding procedures in accordance with Section 2.03 of this Agreement; (v) the evaluation of bids received for all goods; (vi) the inspection of goods to ensure their conformity with the specifications; and (vii) the arrangement of safe custody and delivery of the goods to designated sites in accordance with target dates. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this '/ day of j2 LL19%l. FOR SECRETARY