India - Second Population Project : Credit 0981 - Credit Agreement - Conformed

TO CUMYWj CREDIT NUMBER fS IN Development Credit Agreement (Second Population Project) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated i , 1980 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated A/ , 1980, between INDIA acting by its President (hereinafter called India) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association.) WHEREAS (A) India has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; and (B) the Project will be carried out partly by the State of Andhra Pradesh (hereinafter called Andhra) and partly by the State of Uttar Pradesh (hereinafter called U.P.) with the Borrower's assistance and, as part of such assistance, the Borrower will make available to Andhra and U.P. the proceeds of the Credit as herein- after provided; WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Burrower upon the terms and conditions hereinafter set forth and in the Project Agreement of even date herewith between the Association, Andhra and U.P.; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: -2- (a) "Project Agreement" means the agreement between the Association, the State of Andhra Pradesh and the State of Uttar Pradesh of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement and all agreements supplemental to the Project Agree- ment; (b) "the States" means Andhra and U.P.; (c) "Project Area" means the area comprising primarily the districts of Anantpur, Chittoor and Cuddapah in Andhra and the districts of Azamgarh, Basti, Deoria, Ghazipur, Mirzapur and Varanasi in U.P.; and (d) "Indian States" means all the states of India. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equi- valent to forty-six million dollars ($46,000,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Associa- tion, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Credit, shall be governed by the provisions set forth or referred to in Section 2.02 of the Project Agreement. Section 2.04. The Closing Date shall be December 31, 1985 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. -3- Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semiannually on April 1 and October 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 1 and October 1 commencing April 1, 1990, and ending October 1, 2029, each installment to and including the installment payable on October 1, 1999, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause Andhra and U.P. to perform in accordance with the provisions of the Project Agreement all the obligations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the States to perform such lbligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Credit, excluding the amount allocated to Category (3) (a) set forth in the table in Schedule 1 to this Agreement, available to Andhra and U.P. in accordance with the Borrower's standard arrangements for development assistance to Indian States. -4- ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph (h) thereof: (a) a default shall occur in the performance of any obli- gation on the part of either of the States under the Project Agreement; and (b) an extraordinary situation shall have arisen which shall make it improbable that either of the States will be able to perform its obligations under the Project Agreement. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that any event specified in paragraphs (a) and (b) of Section 4.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower and the State concerned. ARTICLE V Effective Date; Termination Section 5.01. The following is specified as an additional matter, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association, namely, that the Project Agreement has been duly authorized or ratified by Andhra and U. P., and is legally binding upon each of the States in accordance with its terms. Section 5.02. The date /4 /#V is hereby specified for the purposes o Se ion Y2.04 of the General Con- ditions. Section 5.03. The provisions of Section 4.02 of this Agree- ment shall cease and determine on the date on which the Develop- ment Credit Agreement shall terminate or on a date twenty years after the'date of this Agreement, whichever shall be the earlier. -5- ARTICLE VI Representative of the Borrower; Addresses Section 6.01. Any Secretary, Additional Secretary, Joint Secretary, Director or Deputy Secretary in the Department of Economic Affairs of the Ministry of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purpose of Section 11.01 of the General Conditions: For the Borrower: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address: ECOFAIRS New Delhi For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authoriz2d, have caused this Agreement to be signed in their respective names in the District -6- of Columbia, United States of America, as of the day and year first above written. INDIA By /V Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By A// A 'L ~ (< IAAA Regional Vice President South Asia -7- SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 17,000,000 48% (2) Furniture, equip- 5,400,000 48% ment, -iaterials and vehicles (3) Staff salaries: 48% (a) for Borrower's 300,000 monitoring and evaluation systems (b) for States staff 8,700,000 (4) Operation and main- 10,600,000 48% tenance including studies and study tours (5) Innovative activities 1,000,000 66% costs (6) Unallocated 3,000,000 TOTAL 46,000,000 -8- 2. The disbursement percentages have been calculated in com- pliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amouut of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equivalent of $1,000,000 may be made in respect of Categories 1 through 4 on account of payments made for such expenditures before that date but after July 1, 1979; and (b) payments for expenditures under Category (5) above in respect of any population sub-project related to innovative activities and estimated to cost the equivalent of $50,000 or more unless: (i) the Association shall have approved such sub-project; and (ii) the purpose and amount of the withdrawal requested accord with the terms of the proposal in respect of such sub-project approved by the Association, as such terms may be amended from time to time. 4. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expen- ditures, and (ii) if such reallocation 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. -9- 5. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way res- tricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Associa- tion's reasonable opinion, represents the amount of such expendi- tures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 10 - SCHEDULE 2 Description of the Project The Project is designec' to assist the Borrower in the further development and implementation of its voluntary family welfare program in the Project Area, and consists oi the following Parts: Part A: In Andhra, the construction furnishing and equipping of about 430 Sub-centers to provide health services in rural areas, about 40 Primary Health Centers, about five hostels for training multipurpose workers and of additional facilities in various existing hospitals and health centers. Part B: In U.P., the construction, furnishing and equipping of about 1,560 Sub-centers to provide health services in rural areas, about 80 Primary Health Centers, two urban maternity homes, training facilities for Lucknow Population Center and of addi- tional facilities in various existing hospitals and health centers. Part C: The provision of additional staff, medical supplies, vehicles and maintenance facilities for delivery of services and program management. Part D: The provision of incremental costs for training, including stipends. Part E: The provision of vehicles, equipment and materials for information, education and communication activities. - 11 - Part F: The strengthening of the monitoring and evaluation systems of the Borrower and the States, and the carrying out of operations research and innovative activities. The Project is expected to be completed by March 31, 1985. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the _.. day of V FOR SECRETARY