Honduras - Eight Highway Project : Loan 1901 - Loan Agreement - Conformed

OFFICIAL DOCUMTS LOAN NUMBER 1901 HO Loan Agreement (Eighth Highway Project) between REPUBLIC OF HONDURAS and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated 2L , 1980 LOAN NUMBER 1901 HO LOAN AGREEMENT AGREEMENT, dated 1 lat 2f , 1980, between REPUBLIC OF HONDURAS (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (herein- after called the Bank). ARTICLE I 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 have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "SECOPT" means the Borrower's Secretaria de Comunica- ciones, Obras Pfblicas y Transporte; (b) "Maintenance Program" means the program for maintenance of the Borrower's road system under the jurisdiction of SECOPT, to be carried out by the Borrower during the years 1981 - 1984, as described in SECOPT's Reports dated November 1979 and February 1980; (c) "Road Training Production Unit" and "RTPU" means the unit to be established in accordance with Section 3.05 of this Agreement; (d) "Mechanical Training Production Unit" and "MTPU" means the unit to be established in accordance with Section 3.05 of this Agreement; (e) "Sub-Project" means a specific road section of the Borrower's feeder road system to be rehabilitated, improved or constructed under the Project; -2- (f) "DGM" means the Borrower's Direcci6n General de Mantenimiento de Caminos y Aeropuertos established as a Direc- torate within SECOPT and in charge, inter alia, of carrying out road and highway maintenance, and maintenance training pro- grams; (g) "DGC" means the Borrower's Direcci6n General de Caminos established as a Directorate within SECOPT and in charge of carrying out construction and supervision of feeder and secon- dary roads; (h) ".Feeder Roads Program" means the Borrower's program for rehabilitation, improvement and construction of feeder roads to be carried out by the Borrower during the years 1981 - 1984; and (i) "Feeder Roads Section" and "FRS" means the section to be established within DGC pursuant to Section 3.04 of this Agree- ment and "Field Offices" means the offices to be established within DGC under the jurisdiction of FRS, pursuant to Section 3.04 of this Agreement. 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 twenty-eight million dollars ($28,000,000). 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 to this Agree- ment 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 civil works to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. -3- Section 2.04. The Closing Date shall be June 30, 1985 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 commit- ment charge at the rate of three-fourths of one percent (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 nine and one-fourth percent (9-1/4%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semianually on May 1 and November 1 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. (a) The Borrower, acting by means of SECOPT, shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, engineering, environmental, financial and road construction and maintenance practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the pur- pose; and (b) the Borrower shall carry out the Maintenance Program with due diligence and efficiency and in conformity with appro- priate administrative, engineering, environmental, financial and road maintenance practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in carry- ing out Parts B.2, C.5 and D.1 of the Project, the Borrower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank. -4 (b) The Borrower, for purposes of carrying out Part D of the Project, shall, upon the employment of the consultants referred to in paragraph (a) above, assign to each one of them and until the completion of the Project, competent counterpart staff in number and with qualifications satisfactory to the Bank. Section 3.03. The Borrower shall, by December 15, 1980 and thereafter not later than June 30 of each year until the completion of the Project, furnish to the Bank for approval, the final engineering and the economic evaluation of each of the Sub-projects to be carried out during the following calendar year. Section 3.04.The Borrower shall: (a) establish, and thereafter maintain, within DGC, a Feeder Roads Section, and field offices as required, for coor- dinating the planning and construction of the feeder roads included in the Project with such organization, responsibilities, functions and staffing as shall be satisfactory to the Bank; and (b) employ, as head of FRS, a civil engineer with qualifi- cations and experience satisfactory to the Bank. Section 3.05. For purposes of carrying out Part D.1 of the Project, the Borrower shall, not later than June 30, 1981, establish and thereafter maintain a Road Training Production Unit and a Mechanical Training Production Unit for carrying out training programs, and provide, promptly as needed, the necessary staff, facilities, funds and equipment, including spare parts and other resources, as shall be required for the efficient operation thereof. Section 3.06. (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 shall otherwise agree, all goods and services financed out of the proceeds of the Loan shall be -5- used exclusively for the carrying out of the Project until its completion. Section 3.07. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the 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 3.08. 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 Bank, promptly after such acquisition, evidence satisfactory to the Bank that such land and rights in respect of land are avail- able for purposes related to the Project. -6- 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, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution 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 allocation, 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 principal of, and interest and other charges on, the Loaa by an equivalent 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 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 -7- consistently 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. Section 4.03. The Borrower shall: (a) employ in SECOPT such experienced and competent staff as shall be required to manage and operate efficiently all depart- ments, units and other administrative subdivisions of SECOPT; (b) not later than January 1, 1981, stablish and maintain thereafter a system, satisfactory to the Bank, to expedite the purchasing of spare parts; (c) not later than January 15, 1982, establish a program, satisfactory to the Bank, for systematic funding of the renewal of SECOPT's maintenance equipment and vehicles and, starting January 1, 1983, carry out such program; (d) not later than January 1, 1982, establish, and there- after maintain, a country-wide system of traffic counts, satis- factory to the Bank, and on the basis, inter alia, of such system, update, not later than June 30, 1983, the Borrower's Highway Master Plan for selecting and programming highway investment projects; and (e) not later than July 31 in each year, beginning on July 31, 1981 and until the completion of the Project, exchange views with the Bank with regard to: (i) the staffing requirements of SECOPT; (ii) the progress made in the carrying out, and tne continuing suitability of, the Borrower's Highway Investment Program (1980-1984); and (iii) the carrying out of the Feeder Roads Program and on the operations of DGC's Department of Labor-Based Road Construction. Section 4.04. The Borrower shall: (a) adequately maintain its road network in accordance with sound engineering and financial practices; -8- (b) adequately maintain all of SECOPT's road maintenance equipment and make all necessary repairs and renewals thereof, all in accordance with sound engineering practices; (c) establish and maintain workshops and stocks of spare parts as required for the foregoing; and (d) take all necessary action and provide the necessary funds and resources for the foregoing. Section 4.05. The Borrower shall ensure that: (a) SECOPT efficiently enforces the vehicle dimension and axle-road regulations of the Borrower in effect on the date of this Agreement; and (b) SECOPT monitors the data collected in the enforcement of such regulations, and, at any time at the request of the Bank, exchanges views with the Bank on the results of such moni- toring. Section 4.06. The Borrower shall, not later than June 30, 1981, inform the Bank of its proposed action to promote the construction industry of Honduras and afford the Bank a reasonable time to comment thereon; such proposal shall be prepared taking into account the recommendations of the studies carried out pursuant to the provisions of Loan Agreements Nos. 1341-HO and 1342-T-HO, both entered into by the Borrower and the Bank on December 16, 1976. Section 4.07. The Borrower shall monitor and control, in a manner satisfactory to the Bank: (a) the utilization of maintenance equipment by DGM; (b) the carrying out of the Maintenance Program in accor- dance with adequate road maintenance standards; (c) the number of trainees participating in the training programs under Part D of the Project; (d) the traffic counts to be carried out periodically on public roads; and (e) the performance of the system referred to in Section 4.03 (b) of this Agreement. -9- ARTICLE V Effective Date; Termination Section 5.01. The date &avmba 30,,) i 9O , is hereby specified for the purposes of Section 12.04 of the General Condi- tions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Secretario de Hacienda y Credito Publico of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Secretaria de Hacienda y Credito Pu'blico Tegucigalpa Honduras Cable address: HACIENDA Tegucigalpa, Honduras 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) - 10 - 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. REPUBLIC OF HONDURAS By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By 8w hc4Q O~Lz Ldt*6- I Regional Vice President Latin America and the Caribbean - 11 - 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 for 9,820,000 55% Parts A and B.1 of the Project and engineering services for Part B.2 of the Project (2) Equipment, vehicles, 10,010,000 100% of for- spare parts and tools eign expendi- for Parts A.2, C.1, tures C.2, C.3, C.4 and D.2 of the Project (3) Technical assistance 1,575,000 80% for Parts C.5 and D.1 of the Project (4) Training for Part D.1 25,000 100% of for- of the Project eign expendi- tures (5) Unallocated 6,570,000 TOTAL 28,000,000 2. For the purposes of this Schedule, the term "foreign ex- penditures" 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. - 12 - 3. The disbursement percentages have been calculated in compliance 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 1 above, no withdrawals shall be made in respect of: (a) Category 2 on account of payments made for Parts C.1 through C.4 of the Project until the San Pedro Sula workshop is operating in a manner satisfactory to the Bank; and (b) Category 1 on account of payments made for Part A of the Project until the Feeder Roads Section has been established and the civil engineer referred to in Section 3.04 of this Agreement has been employed. 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 insufficient 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 dis- bursement 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 expenditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting - 13 - 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. - 14 - SCHEDULE 2 Description of the Project The purposes of the Project are to assist the Borrower in: (a) carrying out of the Maintenance Program; (b) construction of feeder roads to facilitate the access to and from rural areas; (c) improvement of secondary roads; and (d) strenghtening, through training programs, the technical capability of SECOPT. The Project consists of: Part A: Feeder Roads 1. Engineering, design and construction of about 350 km of feeder roads serving selected agricultural valleys, according to design standards as described in Schedule 5 to this Agreement. 2. Acquisition and utilization of vehicles for supervision of the above civil works. Part B: Secondary Roads 1. Improvement of about 115 km of secondary roads as described in Schedule 5 to this Agreement. 2. Engineering supervision for the above improvement. Part C: Road Maintenance 1. Acquisition and utilization of road maintenance equipment and vehicles and the establishment of an initial stock of spare parts. 2. Improvement of SECOPT's maintenance workshops, including acquisition and utilization of related workshop tools and equip- ment. 3. Establishment of a preventative maintenance system for SECOPT's maintenance equipment, including acquisition and utiliza- tion of related spare parts. 4. Rehabilitation of SECOPT'S existing maintenance equipment, including acquisition and utilization of related spare parts. - 15 - 5. Strengthening of DGM's technical and managerial capabilities as required to carry out the Maintenance Program. Part D: Training 1. Strengthening of DGM's Training Department through estab- lishment of training units to carry out on-the-job training and seminars for DGM's personnel at all levels, including short courses abroad for about three staff members of DGM's Training Department. 2. Acquisition of teaching and training equipment and materials and utilization thereof by DGM's Training Department. 3. Construction and equipping of training facilities. The Project is expected to be completed by December 31, 1984. - 16 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars) On each May 1 and November 1 beginning May 1, 1986 through May 1, 2000 935,000 and on November 1, 2000 885,000 - 17 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment 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 2.75% More than six years but not more then eleven years before maturity 5.00% More than eleven years but not more than sixteen years before maturity 7.40% More than sixteen years but not more than eighteen years before maturity 8.30% More than eighteen years before maturity 9.25% - 18 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Part B 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. Bidders for civil works under Part B.1 of the Project shall be required to prequalify pursuant to the provisions of paragraph 1.3 of Part A of the Guidelines. 4. 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. - 19 - 5. Before issuing the invitations to bid, goods to be procured in accordance with the provisions of paragraph 1 above shall, for bidding purposes, be divided into lots, such lots to be satisfac- tory to the Bank. B. Other Procurement Procedures 1. Contracts for equipment, vehicles, parts and tools estimated to cost less than the equivalent of $50,000 may be procured in accordance with procurement procedures satisfactory to the Bank, including local advertising; provided, however, that the aggregate of the contracts procured shall not exceed the equiva- lent of $500,000. 2. Contracts for spare parts for specific brands estimated to cost less than the equivalent of $50,000 may be directly procured through negotiated purchases from established and reliable sup- pliers in accordance with procurement procedures satisfactory to the Bank. 3. Contracts for civil works for Part A shall be procured in accordance with local competitive bidding procedures satisfactory to the Bank; provided, however, that to the extent of DGC's capability, such civil works may be carried out by DGC on force account. C. Review of Procurement Decisions by the Bank 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Bank in detail of the proce- dure to be followed, and shall introduce such modifications in said procedure as the Bank shall reasonably request. The list of prequalified bidders, together with a statement of their qualifi- cations and of the reasons for the exclusion of any applicant for prequalification shall be furnished by the Borrower to the Bank for its comments before the applicants are notified of the Bor- rower's decision, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Bank shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for goods estimated to cost the equivalent of $50,000 or more and contracts for civil works estimated to cost the equivalent of $200,000 or more: - 20 - (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 Borrower 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, by the consultants refer- red to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants and such other information as the Bank shall reasonably request. The Bank shall, if it deter- mines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (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 delivery to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. 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 delivery 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 determination. 4. 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 - 21 - issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 20% of 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, - 22 - Schedule 5 Design Standards for Secondary and Feeder Roads (Estimates) Plat- form Shoul- Secondary Length Design Speed Width ders Minimum Radius Maximum Grade Roads - km km/m m m of Curvature i % F R M F R M F R M 1. Rio Dulce- El Porvenir 48 80 60 40 7.0 - 210 115 50 4 7 8 2. Danli-Santa Maria (a) Danli- Los Al- mendros Bridge 29 80 60 40 7.0(*) 1.50 210 115 50 4 6 8 (b) Los Al- mendros Bridge- Santa Maria 18 80 60 40 7.0 - 210 115 50 4 6 8 3. Telica-S. Francisco De La Paz 20 80 60 50 7.7 - 210 115 50 4 7 10 Feeder Roads 350 80 60 40 4.5 - 210 115 50 4 7 10 Topography: F - Flat R - Rolling M - Mountainous (*) To be paved. 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 2A -day of 198 . FOR SECRETARY