Afghanistan - Third Highway Project : Credit 0927 - Development Credit Agreement - Conformed

 CONFORMED COPY SPECIAL ACTION CREDIT NUMBER 18 AF $tø Special Action Credit Agreement (Third Righway Project) between DEMOCRATIC REPUBLIC OF AFGHANISTAN and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMUNITY Dated June 25, 1979  SPECIAL ACTION CREDIT NUMBER 18 AF SPECIAL ACTION CREDIT AGREEMENT AGREEMENT, dated June 25, 1979, between DEMOCRATIC REPUBLIC OF AFGHANISTAN (the Borrower) and INTERNATIONAL DEVELOPMENT ASSO- CIATION as ADMINISTRATOR of the Special Action Account established with funds contributed by the MEMBER STATES of the EUROPEAN ECO- NOMIC COMMUNITY. WHEREAS (A) by the Agreement, dated May 2, 1978, between the International Development Association (hereinafter called IDA) and the European Economic Community and ita Member States there has been established by IDA a Special Action Account constituted by the funds which shall be contributed by the Member States of the European Economic Community and administered by IDA, acting as Administrator of such Special Action Account, for the purpose of, and in accordance with, the provisions of said Agreement; (B) the Borrower has requested the Administrator for assistance from the resources of the Special Action Account in the financing of a project described in Schedule 2 to this Agreement and the Administrator has determined that such assistance would be in accordance with the provisions of the Agreement of May 2, 1978 referred to above; and (C) the Borrower has also requested IDA to provide addi- tional assistance towards the financing of the Project and by an agreement of even date herewith between the Borrower and IDA (hereinafter called the Development Credit Agreement) IDA is agreeing to provide such assistance in an aggregate principal amount equivalent to seventeen million six hundred thousand dollars ($17,600,000) (hereinafter called the IDA Credit); and WHEREAS the Administrator has agreed, on the basis inter alia of the foregoing, to extend the Special Action Credit to the Borrower upon the terms and conditions hereinafter set forth; 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 International Development Association, af~j  -2- dated March 15, 1974, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable to Development Credit Agreements of the International Development Association, as so modified, being hereinafter called the General Conditions): (a) the term "Association", wherever used in the General Conditions, means the International Development Association acting as the Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agreement; (b) the terms "Development Credit Agreement" and "Credit", wherever used in the General Conditions are amended to read "Special Action Credit Agreement" and "Special Action Credit", respectively; (c) Sections 4.01, 4.02, 4.03, 4.04 and the second sentence of Section 5.01 are deleted; and (d) in Sections 6.02 and 7.01, the term "Association" shall also include the International Development Association acting in its own capacity. 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) "Member States" means the Member States of the European Economic Community, i.e. Belgium, Denmark, The Federal Republic of Germany, France, Ireland, Italy, Luxembourg, The Netherlands and .The United Kingdom; (b) "Administrator" means the International Development Association acting as Administrator of the Special Action Account r ferred to in the Preamble to this Special Action Credit Agree- inent; (c) "Development Credit Agreement" means the agreement of even date herewith between the Borrower and IDA for the purpose of the Project, as such agreement may be amended from time to-time; and, such.termtheludes the General Conditions Applicable to  G1~ 3 Development Credit Agreements of IDA, dated March 15, 1974, as made applicable to such agreement, all agreements supplemental to the Development Credit Agreement and all schedules thereto; (d) "RCMD" means the Road Construction and -Maintenance Department of the Borrower; and (e) "Afghani" and "Af" mean the currency of the Borrower. ARTICLE II The Special Action Credit Section 2.01 The Administrator agrees to lend to the Borrower on the terms and conditions in the Special Action Credit Agreement set forith or referred to, the, ollowing currency amounts: five million three hundred thirty-three -thousand Belgian francs (BF5,333,000); six hundred sixty- four thousand Danish kroner (DK664,000) two million five hundred sixty three thousand Deutsche marks (DM2,563,000); twó million seven hundred ten thousand French francs (FF2,710,000); five thousand nine hundred Irish pounds (IR£5,900); three hundred fourteen million f-our hundred sixty-two thousand Italian, lire (ITL314,462,000); one, hundred sixty- eight thousand Luxembourg francs (LY168,000); 2seven hundred nine thousand Netherlands guilders (DFl 709,000);  -4- and six hundred fifty-three thousand five hundred Pounds sterling (Z653,500). Section 2.02. (e) The proceeds of the Special Action 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 Administrator, for expenditures made (or, if the Administrator 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 Special Action Credit. (b) Withdrawals shall be made only on account of expendi- tures in the currency of the Borrower, or for goods produced in, or services supplied from, (i) any of the Member States and (ii) any developing country which is a member of the International Development Association and could be the recipient of a Special Action Credit, as determined by the Administrator. (c) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Special Action Credit have been paid or are payable or, at the option of the Administrator, in such currency or currencies as the Administrator shall from time to time select. Section 2.03. Except as the Administrator shall 'otherwise agree, procurement of the goods to be financed out of the proceeds oi the Special Action Credit shall be governed by the provisions of Schedule 31to this Agreement. Section 2.04. The Closing Date shall be June 30, 1984, or such later date as the Administrator shall establish. The Adminisfrator shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall p y to the Administrator a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum, on each of the various ,currency amounts with- drawn from the Credit Account and outstanding from time to time. The amounts of service charges 'in various currencies so found, and additionael service charges (if any) payable pursuant to Section 3.02 of the General Conditions, shall be payable in the currency of the United States of America, or in an ther currency selected Av". W ,.  -5- by the Administrator in accordance with the provisions of para- graph (b) of this Section, after their conversion into such currency on the basis of exchange rates determined in accordance with the provisions of Section 4.05 of the General Conditions. (b) If the Administrator shall at any time determine that the currency so specified or selected is not freely convertible or freely exchangeable by the International Development Association for currencies of other members of the International, DevelopmPnt Association for the purposes of its operations, service charges shall be payable in such other currency as the Administrator may select for such purposes and shall notify in writing to the Borrower, whereupon, commencing thirty days after the date of such notice, 'service charges shall be payable in such other currency. Section 2.06. Service charges shall be payable semiannually on May 1 and November 1 in each year. Section -2.07. (a) The Borrower shall repay the" principal amount of thä Special Action Credit in semiannual installments payable on each May 1 and November 1 commencing November 1, 1989 and ending May 1, 2029, each installment to and including the installment pyable on May 1, 1999, to be one-half of one per cent (1/2 of 1%) "of such principal amount, and each installment there- after to be one and one-half per cent (1-1/2%) of such principal amount. (b) Each of the installments paya.ble pursuant to garagraph (a) of this Section shall be the aggregate of such,amounts in the various currencies withdrawn from the Credit Account as shall be found by multiplying the total amount =in each currency so with- drawn by the applicable "insta=llment percentage as specified in paFagraph (a) of thisý Section, unless the Administrator shall otherwise specify by notice to the Borrower prior to each pay- ment date for the purpose of avoiding the payment of fractional currency amounts. (c) If withdrawal shall have been made in; a currency which the Administrator shall have purchased - with one or more other currencies for the pårpose of';such withdrawal, the portion of, the Special Action Credit so withdrawn shall, for the purpose of paragraph (b) of this Section, be deemed to have been Withdrawn oin the currency or currencies used by the Administrator for such purchase in the amounts of such currency or currenci:es so used.  6 d) The Administrator w:1l, at the requést of the Borrower and on such terms and, conditions as the Admidistrator shall determine, use its best efforts to purchase any currency needed by the Borrower for payment of principal required under this Agree- ment upon payment by the Borrower of sufficient, funds therefor in a currency or currencies to be specified by the Administrator from time to time. In purchasing the currencies required the Adminis- trator shall be acting as agent of the Borrower and the Borrower shall be deemed to have made any payment required under this Agreement only when and to the extente that the Administrator has received such paytent in the currency or currencies required. ARTICLE III Execution of the Project Section 3.01. The Borrower =shall carry out the Projeýct through its RCMD with due diligence and efficiency and in confor- mity with appropriate administrative, financial and engineering practices, and shall provide, promptly ,as needed, the fund-, facilities, services and other resourc€ýs required for thé purpose. Section 3.02. In order to assist the Borrower in the cärrying out, of, the Project and training RCMD staff, the Borrower shall employ a fitm of consultants with qualifications, experience and terms and conditions of employment satisfactory to the BorÉower and the AdministratorG Section 3.03. (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 Action Credit against fpecial 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 Administrator shall otherwiåe ag+ree, the Borrower shall cause all goods and services financed out of the proceeds 'of the Special Action Credit to be used exclusively fpr the Project,. Section 3.04. (a) The Borrower shall furnish to the Administrator, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and  -7- procurement schedules for the Project, and any material modifica- tions thereof or additions thereto, in such detail as the Admin- istrator shall reasonably request. (b) The Borrower: (i) shall maintain records and pro- cedures 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 Special Action Credit, and to disclose their use in the Project; (ii) shall enable the Administrator's accredited repre- sentatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Special Action Credit and any relevant records and documents; a d (iii) shall furnish to the Administrator at regular intervals all such information as the Administrator 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 Special Action Credit 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 Administrator, the Borrower shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator 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 Administrator of their respective obligations under the Special Action Credit Agreement and the accomplishment of the purposes of the Special Action Credit. Section 3,-05. 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 carrying out the Project and,_shall furnish to the Administrator, promptly after such acquisition, evidence satisfac- tory to the Administrator that such land and rights in respect of land are available for purposes related to the Project. Section 3.06. The Borrower shall, from time to time upon the Association's request, review with the Association, the progress of the Borrower's program for the training of highway maintenance personnel, and shall carry out all such measures as may be nec- cessary for the effective implementation of the said program. V I  -8- Section 3.07. The Borrower shall, prior to commencing any works, .furnish to the Administrator, technical and economic justification satisfactory to the Administrator, for each overlay section of the roads included under Part A of the Project, of which the total traffic density, the traffic composition, the present pavement condition and the thickness of the t-quired overlay shall be similar. The pavement thickness designs and technical standards for the execution of pavement works shall be satisfactory to the Administrator. ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. The Borrower shall: (a) take all measures reasonably necessary to ensure at all times that the dimensions and axle loa ds of the vehicles using its highways do not exceed limits consistent with the design standards of such highways; (b) not later than December 31, 1979 or such other date as shall be agreed with the Administrator, adopt and put into full force and effect regulations, acceptable to the Administrator for the purposes set forth in paragraph (a) of this Section; and (c) thereafter, take all measures necessary to ensure that the limits imposed by such regulations on such dimensions and axle-loads in accordance with such design standards are duly observed. Section 4.03. The Borrower shall cause its highway system to be adequately maintained in accordance with sound engineering practices, and shall provide promptly as needed, the funds, equipment, facilities, staff, services and other resources required for the purpose, and in particular, shall ensure that adequate amounts for road maintenance are included in its budg.t each year.  9- ARTICLE V Remedies of the Administrator Section 5.01. For the purposes of Section 6.02 of the General Conditions the following additional event is specified- pursuant to paragraph (h) thereof4. namely, that, subject to paragraph (c) of this Section: (a) the right of the Borrower to withdraw the proceeds of the Development Credit made to the Borrower for the financing of the, Projéct shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of 'the Development Credit Agreement providing therefor; or (b) the Development Credit shall have become due and payable prior to the agreed naturity thereof; or (c) paragraphs (a) and (b) of this Section shall not apply if: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (ii) adequate funds for the Project are available to the Bor rower from other sources on. terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof: The event specified in paragraph (b) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition to the effectiveness of the Special Action Credit Agreement within the meaning of Sectiong 12.01, (b) of the General Conditions, namely, that, all condition'sprecedent to the effectiveness of the Development Credit Agfeementi, except for the effectiveness of this Agreement, have been fulfiLled. 1iz- l,,  10 Section 6.029 The date December 27, 1979 is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Article IV and .Section 5.02 of this Agreement shall cease and determine on the date on whith the Special Action Credit Agreement shall terminate or on a date fifteen years\ýaf ter the date of this Agreement, whichever shall be the earlier. ARTICLE VII Represntative of the Borrower; Addresses Section 7.01. The Minister of Public Works of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Public Works P.0. Box 577 Kabul Afghanistan Cable address: Telex: MINWORKS 41 RCMD AF Kabul, Afghanistan For the Administrator: Administrator of the Special Action Account (International Development Association) 1818 H Street, N.W. Washington, D.Co, 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or -64145 (WUI) Q.  -*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. DEMOCRATIC REPUBLIC OF AFGHANISTAN By Is/ A. G. Farahi Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the ME9BER STATES of the EUROPEAN ECONOMIC COMMUNITY By /s/ M. P. Benjenk Regional Vice President Europe, Middle East and NortlQkýAfrica 711 1  - 12 SCHEDULE 1 Withdrawals of the Proceeds of the Special Action Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Special Action Credit, the allocation of the -amounts of the Secial Action Credit to each Category and the percentage for itels so to be financed in each Category: Amount of the Special Action Credit % of Allocated (Expressed Expenditures Category in Dollar Equivalents) to be Financed (1) Equipment for 1,000,000 100% of foreign maintenance expenditures and and improve- 100% of local ment program expenditures, under Part B ex-factory of the Project (2) Asphalt re- 3,000,000 100% of foreign quired for pave- expenditures strengthening yunder Part A of the Project (3) Unallocated 400,000 TOTAL 4,400,000 2. The total dollar amount shown in the foregoing table shall be adjusted from time to time as required to reflect the aggregate dollar equivalent of the unwithdrawn currency amounts in the Credit Account; the unallocated dollar amount shall be adjusted accyrdingly.* 3. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of, and for goods produced in or services supplied * The dollar amounts shown in the-foregoing table are cal- culated on the basis of the same exchange rates as the exchange rates on the basis of which the currency amounts specified 'n Section 2.01 are calculated, so th the dollar - amounts shown represent the dollar equivalents of those currency amounts as of the date on which such exchange rates are in effect.  - 13 - from, (i) any of the Member States and (ii) any developing country other than the Borrower which is a member of the International Development Association and could be -the recipient of a Special Action Credit, as determined by the Administrator; 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. 4. The disbursement percentages have been calculated in com- pliance with the policy of the Administrator that no proceeds of the Special Action 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, procure- ment 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 Special Action Credit decreases or increases, the Administrator may, by notice to the Borrower, increase or decrease the disbuisement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Administrator. 5. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 6. Notwithstanding the allocation of an amount of Special Action Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Administrator has reasonably estimated that the amount of the Special Action Credit then allocated to any Category will be insufficient to finance the agreed percentage of . all expenditures in that Category, the Administrator may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Special Action Credit which are then allocated to another Category and which in the opinion of the Administrator 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 expen- ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 7. If the Administrator 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 Special Action  17l -14 Credit Agreement, no expenditures for such item shall be financed out of the proceeds of the Special Action Credit and the Admin- istrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under the Special °Action Credit Agreement, by notice to the Borrower, cancel such currency, amounts of the Special Action Credit as, in the Adminis- trator's reasonable opinion, represent the currency amounts which would otherwise have been eligible for withdrawal out of the proceeds of fthe Special Action Credit in respect of such expendi- tures. - r a Qj. -- i i i 6 ~ü  15 SCHEDULE 2 Detcription of the Project The Project consists -o the following Parts: A. a three-year time slice of the pavement strengthening program of the Borrower for the Kabul-Kandahar, Kabul"Tarkham and Boldak, roads comprising asphaltic concrIete paing of about '450 km of, road sections and surface dressing of about 160 km of road sections, all such sections to be selcted, in agreement with the Administrator; B. the tarrying out of a three-year time slice of the mainte- nanccand improvementt program of the Borrower for the part of RCMD's road network not referred to in Part A above; and C. the improvement of RCMD's platining and operational capabil- ities. * * * The Project is expected to be completed by December 31, 1983. r - -- .. . . . - . -- ..  - 16- -16- SCHEDULE 3 Procurement A. International Competitive Bidding 1. Subject to the eligibility restrictions set forth in Section 2.02 (b) of this Agreement and except as provided in Part C hereof, goods shall be procured under contracts awarded in accor- dance 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 to be procured on the basis of international com- petitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Administrator 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 .Administrator shall reasonably request; the Administrator 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 imported goods, or the ex-factory price for domestically manufactured goods; (ii) customs duties and other import taxes on imported -goods, and sales and simi-lar taxes on domestically supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery 'of goods to the place of their use or installation shall be included. 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  -- - 17 -17- Afghanistan 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 compdrison 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 Afghanistan if the bidder shall have established to the satisfaction of the Borrower and the Adminis- trator that the manufacturing cost of such goods includes a value added in Afghanistan equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Afghanistan. (3) Group'C: bids offering any other goods. 3. All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest eva Lated bid of each group. Such lowest evaluated bids shall then W 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;,"of (11) 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 I 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. 4 Other Procurement Procedures 1. Spare parts for existing 'equipment may be procured either from the supplier or manufacturer thereof or, wherever practi- cable, by international shopping. 2. Equipment estimated to cost $50,00 equivalent or less may be procured through normal trade channelsi D. -Review of,Procurement Decisions by the Administrator 1. Review of invitations to -bid and of proposed awards and final contracts: With respect to all contracts for equipment and asphalt estimated to cost the equivalent of $100,000 or more: (a) 'Before bids are invited, the Borrower shall furnish to the Administrator, for its comments, the text of the invita- tions 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 ,uch modifications in the said documents or procedures as the Administrator shall reasonably request. Any fur-ther modification to the: bidding documents shall require the Administrator's concurrence bEfore it is issued to the prospective bidders. (b) Af ter bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Administrator of the name of the bidder to which it intends to award the contract and shall furnish to the Administrator, in sufficient time for its review, a detailed report on the evalua- tion and comparison of the bids received, together with the recommendations for award and such other information as the Administrator shall reasonably request. The Administrator shall, 4,f it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borröwer and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Administrator's° concurrence, materially differ from those on which bids were asked. ~:i1~. ______________0  19 (d) Two conformed copies of the contract shall be furnishe'. to the Administrator promptly after its execution and prior to the submission to the Administrator 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 shall furnish to the Administrator, promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds ""om the Credit Account in respect of such contract, two conformed copies of such tontract, together, with the analysis of the respective bids, recommendations for award and such =other inf or- mation as the Administrator shall reasonably request. The Adminis- trator 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 rea3ons for such determination. 3. Before agreeing to any material modification or waiver of the tärms and conditions-of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except, in cases of extteme urgency) wich would increase the cost of the contract by more than 10% of the original price, the Borrower shall inform the Administrator of the proposed modification, waiver, extension or. change ordervand the reaéons therefor. The Administrator, if it determi-nes 3that the proposal would be inconsistent with the provisidnå of this Agreement, shall promptly, inform the Borrower and state the reasons for. its determination. v,l