Togo - Second Technical Assistance Project : Credit 1270 - Credit Agreement - Conformed

t CREDIT NUMBER 1270 TO Development Credit Agreement (Second Technical Assistance Project) between REPUBLIC OF TOGO and INTERNATIOWAL DEVELOPMENT ASSOCIATION Dated , 1982 CREDIT NUMBR 1270 TO DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated UkJM, , 1982, between the REPUBLIC OF TOGO (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) by a Der,lopment Credit Agreement (Technical Assistance Project) dated June 22, 1979 between the Borrower and the Association (hereinafter called the 1979 Credit Agreement) the Association made a development credit to the Borrower in an amount in various currencies equivalent to two million two hundred thousand dollars ($2,200,000) on the terms and conditions set forth or referred to in the 1979 Credit Agreement; WHEREAS (B) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement (said Project being a continuation of the Technical Assistance Project described in Schedule 2 to the 1979 Credit Agreement) by extending the Credit as hereinafter provided; and (C) the Association has agreed, on the basis, inter alia, of the foregoing to extend the 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 Association, dated June 30, 1980, 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. -2- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Crcdit Agreement set forth or referred to, an amount in various currencies equivalent to three million one hundred thousand Special Drawing Rights (SDR 3,100,000). 1M.ction 2.02. The amount of the Credit may be withdrawn fror se Credit Account in accordance with the provisions of Schedule I to this Agreement, as such SchedulL may be amended from time to time by agreement between ths Borrower and the Association, 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 ctherwise earee, procurement of the goods to be financed out of the proceeds of the Credit, shall be governed by local procedures arceptable to the Association. Section 2.04. The Closing Date for the Credit shall be June 30, 1986 or such later date as the Association shall estab- lish. The Association shall promptly notify the Borrower of such later date. 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. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without -3- restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligi:le currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.07. Commitment and service charges shall be payablc semiannuzl.ly on June 15 and December 15 in each year. Section 2.08. The Borrower shill repay the principal imount of the Credit in semiannual installments payable on each Jque 15 and December 15 commencing December 15, 1992, and ending June 15, 2032, each installment to and including the installment payable on June 15, 2002, 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 2.09. The currency of the Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the ?roject Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appropriate financial, administrative, accounting, rural development and economic planning practices, and shall provide, promptly as needed, the funds, facilities, services, personnel and other resources required for the purpose. Section 3.02. (a) The Borrower shall employ the following consultants and experts whose selection, q.alifications, experience and terms and conditions of employment shall be satisfactory to the Association in accordance with the principles and procedures described in the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as ExKecuting Agency" published by the Bank in August 1981: (i) a Senior Economic Adviser and an Investment ProE;rammer who will be directly responsible to the Minister of Planning of the Borrower to assist the Borrower in carrying out Part A of the Project; I4 (ii) art agricultural planning expert and a research coordinator who will be directly responsible to the Director of Rural Development of the Borrower to assist the Borrower in carrying out Part B of the Project; (iii) consultants and experts who will be directly responsible to the Minister of Industry and State Enterprises of the Borrower to assist the Borrower in carrying out Part C of the Project; and (iv) short-term consultants, to assist the Bortower in carrying out Part D of the Project. (b) The Borrower shall ensure that the consultants and experts referred to in paragraph (a) (ii) through (iv) of this Section c-ordinate their activities with the Seni. Economic Adviser referred to in paragraph (a) (i) of said Section. (c) The Borrower shall employ staff whose qualifications shall be acceptable to the Association on a full-time basis to work as counterpart to and closely with each of the indivielils referred to in paragraph (a) (i) through (iii) of this Section, (d) Without limitation to the obligations set forth in Section 3.01 of this Agreement, the Borrower shall ensure that secretarial and other support staff, office equipment and supplies are made available, as and when needed, to the consultants, experts and counterpart staff referred to in this Section. Section 3.03. For purposes of Part D of the Project the Borrower shall: (a) select specific studies in accordance with criteria acceptable to the Association; and (b) submit to the Association for its prior approval its proposals for each study referred to in paragraph (a) of this Section. Section 3.04. The Borrower shall, not later than March 31, 1983 establish the rural planning unit and the agricultural research coordination unit under Part B of the Project. Section 3.05. Except as the Association shall ovherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. -5- Section 3.06. The Borrower shall take all reasonable mea- sures to facilitate the work of the consultants and experts employed under the Project and make available to them all information relevant to performance of their services. Section 3.07. (a) The Borrower shall cause consultants employed for the carrying out of the Project to furnish the Asso- ciation with copies of the studies and reports prepared by them fcr the purposes of the Project, including drafts thereof, as and when the Association shall reasonably request. (b) The Borrower and the Association shall from time to time exchange views with respect to the evaluation and implemen- tation of the recommendations and other conclusions included in the studies and reports referred to in the foregoing para- graph (a). Section 3.08. (a) The Borrower shall: (i) maintain or cause to be maintained records adequate to show the use of the proceeds of the Credit, and to record and monitor the progress of the Project (including its cost and the benefits to be derived from it); (ii) enable the Association's representatives to inspect any records and documents relevant to the progress of the Project, including records and documents which the consultants employed by the Borrower shall be required to keep for the purposes of the progress of the Project; and (iii) furnish or cause to be fur- nished to the Association all such information as the Association shall reasonably request concerning the expenditure o:! the pro- ceeds of the Credit and the progress of the Project. (b) Upon award by the Borrower of any contract for services to be finanzed out of the proceeds of the Credit, the Association may publi,h a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (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 Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and ini- tial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and -6- the Association of their respective obligations under the Devel- opment Credit Agreement and the accomplishment of the purposes of the Credit. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained separate accounts adequate to reflect in accordance with consistently 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. (b) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to ' maintained separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of certificates of expenditure; (ii) retain, until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing the expenditures on account of which withdrawals are requested from the Credit Account on the basis Xr statements of expenditure; and (iii) enable the Association's representatives to examine such records. (c) The Borrower shall: (i) have the separate accounts referred to in paragraphs (a) and (b) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors accept- able to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each year, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Associa- tion shall b,Ave reasonably requested, including, without limita- tion to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of this Section as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of statements of expenditure have been used for the purpose for wbich they were provided; and (iii) furnish to the Association such other information concerning said separate accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably requesl. -7- ARTICLE V Termination Section 5.01. The date \ is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Ministre de 1' Economie et des Finances 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: Ministere de 1' Economie et des Finances B.P. 387 Lomf Republic of Togo Cable address: Telex: MINFIE 5286 Lom6, Togo 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) -8- IN WITNESS WHE?EOF, 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 TOGO By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By A 0 Regional Vice President Western Afi:a -9- 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 SDR Equivalent) to be Financed (1) Technical 2,600,000 100% assistance and fellowships (2) Equipment 71,000 100% (including vehicles), supplies, and local travel and subsistence costs for resident experts and counterparts staff (3) Salary supple- 29,000 100% ments for counterpart and support staff to consultants and experts employed under the Project (4) Unallocated 400,000 TOTAL 3,100,000 - 10 2. For the purposes of this Schedule the term "salary supple- ments" means amounts received by counterpart and support staff to consultants and experts employed under the Project over and above the amount normally zeceived by said staff. 3. The disbursement percentages have been calculated in compliance 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 amount 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 as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 5. Notwithntanding the allocation of an amount of the Credit or the disbursement percentages set fo,th in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit 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 expenditures; 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 tintil all expenditures thereunder shall have been made. 6. If the Association shall have reasonably determined that the procurement of any items ii 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 restricting or limiting any other right, power or remedy of the Association undei the Development CredY.t Agreement, by notice to the Borrower, cincei such amount of the Credit as, in the - 11 - Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 12 - SCEULE 2 Description of the Project The objective of the Project is to assist the Borrower in: (i) improving its public finance, economic planning and project preparation and implementation capabilities; and (ii) developing its capacity to conceive and implement sound, comprehensive and consistent economic and financial policies and to pursue adjustment policies in, inter alia, rural development, state enterprises and public investment programming. The Project consists of the following Parts: Part A: (i) Improvement of the Borrower's administration in the field of economics and public finance. (ii) Preparation of major new investments and strengthening of the economic and financial viability of major existing inveatments. (iii) Training of counterpart staff. Part B: (i) Establishment and initial operation of a planning unit withirt the Ministry of Rural Development of the Borrower to assist in: (a) the preparation of a long- term rural develcpment strategy; (b) the preparation of projects in the rural sector; (c) the study of difficulties encountered in the rural sector and deter- mining said sector's medium-term prospects; and (d) the monitoring and evaluation of rural development pro- jects. Fellowships for counterpart staff for the plan- ning unit. (ii) Establishment and initial operation of a research coordination unit within the Ministry of Rural Develop- ment of the Borrower with responsibility for (a) co- ordinating the research activities carried out in the Borrower's territory under the sponsorship of various development organizations, and (b) taking steps to promote relations with development organizations other - 13 - than those already actively involved in the Borrower's research activities. Part C: Formulation and implementation of a policy for state enter- prises, through, inter alia, the preparation and introduction of performance criteria, the introduction of analytical accounting and the carrying out of analytical studies. Part D: Specific studies in the areas of macroeconomic planning and project analysis. The Project is expected to be completed by December 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 , 198 .Z FOR SECRETARY