Somali - Central Rangeland Project : Credit 0906 - Project Agreement - Conformed

eFFICAL CREDIT ~UMBER 906 SO DOCUMTS Projeet esment (Central Rangeland Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and NATIONAL RANGE AGENCY Dated 4 , 1979 . .. .. . ....m o m CREDIT NUMBER 906 SO PROJECT AGREEMENT AGREEMENT, dated Q<;a.t, P.-, 1979, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and NATIONAL RANGE AGENCY (hereinafter called NRA). WHEREAS (A) by the Development Credit Agreement of even date herewith between Somali Democratic Republic (hereinafter called the Borrower) and the Association, the Association has agreed to make" available to the -Borrera amutivros currencies equivalent to eight million dollars ($8,000,000), on the terms and conditions set forth in the Development Credit Agreemert, but only on condition that NRA agree to undertake such obligations toward the Association as are hereinafter set forth; (B) the Borrower has applied to the -International Fund for Agricultural Development (hereinafter called the Fund) for a loan (hereinafter called the Fund Loan) in an amount equivalent to seven million Special Drawing Rights (SDR7,000,000) to assist in financing the Project on the terms and conditions set forth in an agreement (hereinafter called the Fund Loan Agreement) between the Borrower and the Fund; (C) the Fund has appointed the Association as Cooperating Institution to administer the Fund Loan in accordance with the provisions of this Agreement, and the Association has accepted such appointment; (D) by a Subsidiary Agreement to be entered into between the Borrower and NRA, the proceeds of the credit provided for under the Development Credit Agreement will be made available to NRA on the terms and conditions therein set forth; and WHEREAS NRA, in consideration of the foregoing, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General, Conditions (as so defined) have the respective meanings therein set forth. %4.4 -2- ARTICLE II Execution of the Project Section 2.01. NRA shall carry out Parts A, B, C, D (a), E, G, H and I and coordinate execution of Parts D (b) and (c) and F of the Project described in Schedule 2 to the Development Credit Agreement and the procurement of all items financed under the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 2.02. In order to assist NRA in the prepariation of plans and specifications for the Project, the" preparation of bidding documents for the Project and the procurement of goods financed under the Project, NRA shall employ architectural consul- tants, procurement experts and technical assistance staff whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. 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 provi§ions of the Schedule to this Agreement. Section 2.04. (a) NRA undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit or the Fund Loan made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or instal- lation, and for such insurance any indemnity shall be payable in a currency freely usable by NRA to replace or repair such goods. (b) Except as the Association may otherwise agree, NRA shall cause all goods and services financed out of the proceeds of the Credit or the Fund Loan made available to NRA by the Borrower to be used exclusively for the Project until its com- pletion. Section 2.05. (a) NRA shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or .... . .. -3- additions thereto, in such detail as the Association shall reason- ably request. (b) NRA: (i) shall 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 the Fund Loan and to disclose their use in the Project; (ii) shall enable the Association's and the Fund'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 Credit and the Fund Loan and any relevant records and documents; and (iii) shall furnish to-othe Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived flom ita the xpenditures of the proceeds of the Credit and the Fund 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 NRA and the Association, NRA shall prepare and furnish to the Association and the Fund 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 NRA and the Association of their respective obligations under the Project Agreement and the accomplishment of the purposes of the Credit and the Fund Loan. (d) NRA shall enable the Association's and the Fund's representatives to examine all installations, sites, works, buildings, property and equipment of NRA and any relevant records and documents. Section 2.06. NRA shall duly perform all its obligations under the Stbsidiary Agreement. Except as the Association shall otherwise agree, NRA shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Agreement or any provision thereof. Section 2.07. NRA shall prepare detailed annual work programs for the Project and furnish such programs together with relevant parts of its regular budget to the Association for its review -4- not later than November 15 of each year, starting November 1979 until 1984. Section 2.08. (a) NRA \,hall at the request of the Associ- ation, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and under the Subsidiary Agreement, and other matters relating to the purposes of the Credit. (b) NRA shall promptly inform the Association of any condi- tion which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit or the Fund Loan, or the performance by NRA of its obligations under this Agre.-ment and under the Subsidiary Agreement. ARTICLE III Management and Operations of NRA Section 3.01. NRA shall at all times carry on its operations under qualified and experienced managerial staff, with sufficient supporting staff, in accordance with appropriate management practices. Section 3.02. NRA shall take out and maintain with respon- sible insurers, or make other provisions satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with appropriate practice. I4 Section 3.03. NRA shall adequately maintain the works, installations, vehicles and equipment used in NRA's operations and promptly make all necessary renewals and repairs thereof, all in accordance with appropriate engineering and management practices. Section 3.04. NRA shall at all times take all steps neces- sary to maintain its right to carry on its operations, includ- ing the Project, and shall, except as the Association shall otherwise agree, t..ke all steps necessary to acquire and retain such land, interest in land and properties, and to acquire, maintain and renew such licenses, consents, franchises and other rights, as may be necessary or useful for carrying on its operations. k ARTICLE IV Financial Covenants Section 4.01. NRA shall maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations and financial condition. Section 4.02. (a) NRA shall: (i) have its accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association and the Fund; (ii) furnish to the Association and the Fund as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of its financial statements for such year as so audited and (B) the report of such audit by' said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association and the Fund such other information concerning the accounts for all expenditures under the Project and financial statements of NRA and the audit thereof as the Association shall from time to time reasonably request. (b) NRA shall open a separate account for the Project at the Central Bank of Somalia. ARTICLE V Effective Date; Termination; Cancellation and Suspension Section 5.01. This Agreement shall come into force and effect on the date L!pon which the Development Credit Agreement or the Fund Loan Agreenient becomes effective. Section 5.02. (a) This Agreement ad all obligations of the Association and of NRA thereunder sh '11 terminate on the earlier of the following two dates: (i), the earliest date on which both the Development Credit Agreement and the Fund Loan Agreement shall have terminated in accordance with their respective terms; or ,MF J .. ...... -6- (ii) a date 20 years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (il) of this Section, the Association shall promptly notify NRA of this event. (c) If either the Development Credit Agreement, or the Fund Loan Agreement, terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section and the other Agreement remains in force, all obligations under this Project Agreement of NRA and of the Borrower under that other Agreement shall remain in force. (d) If the Association shall notify NRA that its appointment as Cooperating Institution under the Fund Loan Agreement has terminated, all references in this Agreement to the Fund, to the Fund Loan and to the Fund Loan Agreement shall be deemed to be deleted. Section 5.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions. ARTICLE VI Miscellaneous Provisions Section 6.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement 8hall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address herein- after specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America  7 - Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For NRA: National Range Agency P.O. Box 1759 Mogadishu Somali Democratic Republic Cable address: SOMALRANGE Mogadishu Section 6.02. Any action, required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of NRA may be taken or executed by the General Manager or such other person or persons as NRA shall designate in writing, and NRA shall furnish to the Association sufficient evidence of the authority and the authenticated speci- -men signature of each such person. Section 6.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collec- tively but one instrument. 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 Columbiå, United States of America, as of the day and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Eastern Africa NATIONAL RANGE AGENCY By Authorized Representative 41 -8- SCHEDULE Procurement A. International Competitive Bidding 1. Except as provided in Parts B, C and D hereof, civil works, vehicles, furniture and equipment shall be procured under con- tracts 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 (here- inafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For works, vehicles, furniture and equipment to be p-rocured on the basis of international competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, NRA shall prepare and forward to the Association 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 procure- ment notice, in such form and detail and containing such informa- tion as the Association shall reasonably request; the Association will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the oppor- tunity to bid for the goods and works in question. NRA 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 similar taxes on domestically supplied goods, shall be excluded; and (iii) the cost to NRA 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 -9- . Somalia 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 stageO that will be followed in the evaluation and comparison of bids. 2. After evaluation, responsive bids will be lassified in one of the following three groups: (1) Group A: bids offering goods manufadtured in Somalia if the bidder shall have established to the satisfaction of Somalia and the Association that the manufacturing cost of such goods includes a value added in Somalia equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Somalia. (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 evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. 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 tyported 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 shall be selected for the award; if not, the bid from group C -10- which as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Preference for Domestic Contractors With respect to the evaluation of bids for any contract for civil works included under Category 2 of the table set forth in Schedule 1 to the Development Credit Agreement and to be procured in accordance with the procedures described in Part A of this Schedule, NRA may grant a margin of preference of 7-1/2% to domestic contractofs, in accordance with, and subject to, the following provisions: 1. Contractors shall be required to prequalify as provided in Part A of this Schedule and applicants for qualification applying for such preference shall be asked to provide, as part of the data for qualification, such information, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indi- cate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such pre- ference. 2. After bids have been received and reviewed by NRA, responsive bids will be classified into the ,fvllowing groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. D. Other Procurement Procedures Vehicles, equipment and furniture under Parts B, C, D and G of the Project estimated to cost $250,000 equivalent may be procured through local or international procedures acceptable to the Association and the Fund for a period not exceeding twelve months from the date that the Development Credit Agreement becomes effective. E. aReview of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for works, vehicles, furniture and equipment estimated to cost the equivalent of $50,000 or more: (a) Before bids are invited, NRA shall furnish to the Association, 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 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, NRA 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 contract and shall furnish to the Association, in sufficient time for its review, a detailed report, by the consultants referred to in Section 2.02 of this Agreement, on the evaluation and compari- son of the bids received, together with the recommendations for award of the said consultants and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform NRA 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 or prequalification invited. (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, NRA shall furnish to the Association, promptly after its execution and prior to the submission to the Association 12 of the first application for withdrawal of funds from the Credit Accdunt 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 the Guidelines or this Schedule, promptly inform NRA and state the reasons for such determination. . 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 10% of the original price, NRA shall inform the Asso- ciation 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 NRA and state the reasons for its determination. ZZ,' . .. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Developmefft Association. In witness whereof I have signed this Certifi- tate and affixed the Seal of Ihe Association thereunto the day of 197F S E FOR SECRETARY