Peru - Agricultural Research And Extension Project : Loan 2150 - Loan Agreement - 1 - Conformed

LOAN NUMBER 2150-PE Loan Agreement (Agricultural Research and Extension Project betveen REPUBLIC OF PERU and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and BANCO DE LA NACION Dated , 1982 LOAN NUMBEL 2150-PE LOAN AGREEMENT AGREEMENT, dated 60777/6 , 1982 between REPUBLIC OF PERU (herei after called the Boriower) and INTER- NATIONAL BANK FOR RECONSTRUCTION, AND lEVELOPMENT (hereinafter called the Bank) and BANCO DE LA NACION (hereinafter called Banco Nacidn). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; (B) the Borrower has agreed to carry out the Project, other than Part F (iii) thereof', through INIPA (as the term is defined in Section 1.02 (e) of this Agreement), and Part F (iii) of the Project through INAF (as the term i6 defined in Section 1.02 (f) of this Agreement); (C) Banco Nacidn has participated in the negotiations of this Agreement, and has represented to the Bank that it has discharged all of its other responsibilities as financial agent of the Borrower pursuant to the Borrower's Decreto Legislativo No. 5 published in El Peruano on December 31, 1980; (D) the Borrower has agreed to make the proceeds of the Loan available severally' to INIPA and INAF as hereinafter provided; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan 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 Loan and Guarantee Agreements of the Bank, dated October 27, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee -2- 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 term defined in the General Conditions have the respec. .ve meanings therein set forth and the following additional terms have the following meanings: (a) "Project Preparation Advance" means , the project preparation advance granted by the Bank to the Borrower pursuant to an exchange of letters dated F46"bruary 5, 1982 and.February 25, 1982 'between the Borrower and the Bank; (b) "Specific Accounts" means all of the following ,accounts a reflecting all capital and recurrent expenditures for p-rposes of the Project incurred by: (i.) each CIPA; (ii) the Monitoring and Evaluation Unit; (iii) the Project Management Unit;, (iv) the Training and Documentation Center; and (v) the Engineering Planning Service Unit; (c) "Project Area" means the departments of Piura, Tumbas, Lambayeque, Cajamarca, La Libertad and Ancash and the province of Maranon, all political subdivisions of the Borrower; (d) "CIPA" means a Centro de Investigacion y -Promoci n Agropecuaria (Center for Agricultural and Livestock Research and Extension) eqtablished within INIPA by the Bprrower'-s Supreme Decree No. 046-81-AG published in El Peruano 'on March 29, 1981 and which discharges its responsibilities within a department- or province included in the Project Area; (e) "INIPA" means Instituto Nacional de Investigacidn y Promociojn Agropecuaria (National Institute for Agricultural and Livestock Research and Extension), or any successor thereto, a decentralized public institution established by the Borrower 's Legislative Decrees No. 21 and 142 published in El Peruano on January 20, 1981 and on June 15', -1981, respectively, the functions and structure of which have been set forth in the Borrower's Supreme Decree No. 046-81-AG, published-in El Peruano on March 29, 1981; (f) "INAF" means Instituto Nacional de Ampliacion de la Frontera Agrrcola (National Institute for the Expansion of the Agricultural Frontier), or any successor thereto, a decentra- lized public institution established by the Borrower's Legis- lative Decree No. 21 published in El Peruano on January 20, 1981; -3- (g) "Contractual Arrangements" means the contractual arrangements to be entered into between the Borrower and INIPA or INAF, as the case may be, pursuant to Section 3.01 (b) of this Agreement, or the contractual arrangements to be entered into between INIPA and Banco Agrario del Peru pursuant to Section 3.01 (c) of this Agreement; (h) "Project Management Unit", "Monitoring and Evaluation Unit" and "Engineering Planning Service Unit" mean the units referred to in sub-paragraphs (i), (ii) and (iii) of paragraph (a) of Sectior 3.02 of this Agreement established by resolution of I IIPA's Jefe No. 0016-82-INIPA (ssued on May 23, 1982, named Unidad de Manejo de Proyectos de Inversion, Unidad de Supervisidn y Evaluacidn, and Unidad de Programacidn de- Ingenieria, respectively, each to be operated under regulattons to be sE-ued pursuant to Article 2 of such resolution; (i) "Credito Pulblico" means Direccior General de Credito PAblico (General Directorate of Public Credit) of the Borrower's Ministry of Ecoanomy, Finance and Commerce; (j) "Training, and Visit Techniques" means a system of extension activities which incorporates the principles of pro- grammed, regular and supervised extension activities, the main characteristics of which are regular visits at approximately fortnightly intervals made by an extension worker ("sectorista"), who would have no duties other than field extension and who would contact individual farmers selected, from a group of about ten neighboring farmers with similar resources, each such contact farmer representing the main contact point between INIPA's extension services and the farmer group in question; and (k) "DEPEREHATIC" means Direccidn Ejecutiva del Proyecto Especial de Rehabilitaci6n de Tierras Costeras, established under the Borrower's Supreme Decree No. 411-77-AG published in El Peruano on October 10, 1977, which operates legally and admini- stratively within the jurisdiction of INAF. 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 forty million six hundred thousand dollars ($40,600,000). -4- Section 2.02. (a) 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 and to be financed out of the proceeds of the Loan. (b) Promptly after the Effective Date, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and pay to itself the amount required to repay the principal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the Project Pieparation Advance shall thereupon be§"ancelled. Section 2.03. Except as the Bank shall otherwise agree, procurement of the goods and civil y"orks required for the Project and to be financed out of the pboceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 2.04. The' Closing Date shall be March 31, 1988 or such "later date 'as the Bank shall establish. The KBank shall promptly notify the Borrower-of such later date. Section 2.05. Not later than the Effective Date, the Borrower shall pay to 'the Bank a fee equivalent to six hundred thousano dollars ($600,000). The fee shall be payable in %uch currency or currencies as the Bank shall specify. In the event that the Bank shall not have received full payment of the fee by the Effective Date, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and pay to itself the amount required for the full payment of the fee in the currency or currencies specified for the purpose. Section 2.06. The Borrower shall pay to the Bank a commit- ment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.07. The Borrower shall pay interest at the rate of eleven and three-fifths per cent (11-3/5%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. -5- Section 2.08. Interest and other charges shall be payable semiannually on January 15 and July 15 in each year. Section 2.09. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. Section 2.10. The Jefe (Head) of INIPA and the Director Ejecutivo of DEPEREHATIC, or the person or persons authorized by each of them, are designated as representatives of the Borfower for the purposes of taking any action required or permitted to be taken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions, in respect of Parts A, B, C, D, E and F (i) and (ii) of the Project, and Part F (iii) thereof, respectively. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project, other than Part F (iii) thereof, through INIPA, and Part F (iii) of the Project through INAF, all with due diligence and efficiency and in Conformity with appropriate agricultural and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall enter into contractual arrange- ment satisfactory to the Bank with INAF and INIPA whereby: (i) the Borrower shall make available to INAF and INIPA without any obligation of repayment, or payment of any charge in respect thereon, the proceeds of the Loan allocated from time to time to Category (5) and to Categories (1), (2), (3), and (4), respec- tively, of the table set forth in Part 1 of Schedule 1 to this Agreement; and (ii) INAF and INIPA shall commit to discharge its respective responsibilities in connection with the carrying out of Part F (iii) of the Project and the other Parts thereof; provided, however, that in respect of INAF, the corresponding contractual arrangements shall specify that INAF activities in respect of the Project shall be channeled through DEPEREHATIC. -6- (c) The Borrower shall cause INIPA to enter with Banco Agrario del Peru, not later than 5 months after having"hired- tie services of the expert, referred to in Section 3.03 (b) (iv') of this Agreement, into contract6al arrangements satisfactory to a( Bank to coordinate the act'iiities: of INIPA and sudh Banco in respect of the carrying out of Part B.(2) (vii) of the Project. (d) The Borrower shall exercise, and cause INIPA, INAF and Banco Agrario del Peru to exercise, its respective rights under the contractual arrangements referred to in the preceding paragraphs (b) or (c) or both, as the case may be, in such maaner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan. Except as the Bank shall otherwi-e aR_ree .te Borrower shall not assign, amend, abrogate or aive any., of such contractual arrangements or "any provision thereof, nor shall the Borrower permit INIPA, INAF or Banco Agrario del Peru-to take any of such actions. Section 3.02. The Borrower shall take all steps as shall be necessary to ensure that: (a) INIPA shall maintain the following units which shall be operated under regulations satisfactory to the Bank: (i) a Project Management Unit, which will be respon- sible for planning, coordinating and supervising all operations under the Project and which will be directly under the Director of INIPA's Planning Department; (ii) a Monitoring and Evaluation Unit, which will coordinate all research monitoring activities of INIPA and evaluate INIPA's extension services; and (iii) an Engineering Planning Service Unit, which will function as a technical support unit to ensure efficient execution of civil works carried out by or through INIPA, including those which are part of the Project; and (b) INIPA shall provide each of such units, promptly as needed, the funds, facilities and other resources required for the diligent and efficient discharge of its responsibilities, including, but without limitation; -7- in respect of the Project Management Unit, a Pro- ject Manager, who shall be the head of such Unit and two assistants with-accounting and procurement experience; and- ii) in respect of the, Monitoring and Evaluation Unit, which shall be staffed in form and substance satisfactory to the Bank not later than Decem- ber 31, 1982: (A) about five professionals in the fields of agronomy, economy, sociology and statis- tics; (B) ten field surveyors, two of which will be posted at each "CIPA; and (C) about four monitoring specialists who -will supervise such field surveyors and coordinate and confrol the' field Curveys carried" out by the monitoring and evaluation field staff of each CIPA. Section 3.03. (a) In order to assist the Borrower in the carrying out of, the Project, the Brrower shall cause INIPA or INAF, as the case may be, to employ consultants or expert , as specified' in paragraph (b) below, whose selection., qualifica- tions, experience and terms and conditions of employment shall be in accordan6e with the principles and procedures described in- the "Guidelines for the 'Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981 and in Part E of Schedule 4 to this Agreement., P (b) (i) in respect of Part A.(1) (i) of the Project, INIPA shall hire as and when need,4d 'for purposes of the Project but not later than April 30, 1983, the services of ten commodity and scientific dis- cipline research experts; (ii) in respect of Part A.(2) of the Project, INIPA shall hire about nineteen man-months of agri- cultural consultant services; (iii) in respect of Part B.(1) (i) and (ii) of the Proj- ect, INIPA shall hire about thirty man-years of consultant services who will train INIPA's staff in the use of Training And Visit Techniques and initiate and supervise the putting into effect of such Techniques over a period of three years. -8- (iv) in respect of Part B.(2) (vii) of the Project, INIPA shall hire, not later than December 31, 1982, the services of a credit coordinator who will organize the credit assistance program and, not later than 5 months- of" being hired, design and coordinate the initiation of the study, all included in such Part of the Project; (v) in respect of Part C of the Project, INIPA shall hire, for the Project Management Unit, the ser- vices of a consultant for Pibject start-up opera- tions, such as procgrement and recruitment, and of the Project Manage referred to in Section -3.02 (b) (i) of this Ag eement, anffor the Monitoring and Evaluation Unit the services of a group of experts who will conduct an external review of the research activities, and ,of consultants who will design ahd, initiate the methodology, and period- ically supervise the system of operations of such unit with respect to the monitoring and evaluation of extension activities. In addition, the consul- tants referred to in (iii) above will design a reporting system to measure progress in the carryirig out of Part B.(i)(i) of the Project; (vi) in respect of Part D of the Project, INIPA will hire consultants who will design or organize, or both, improved library services; (vii) in respect of Part F (i) and Part F (ii) of the Project, INIPA shall hire about two man-years of consultant services for each of the studies included in such Part F (i), and about one man-year for future project preparation under such Part F (ii,); and (viii) in respect of Part F (iii) of the Project, INAF shall hire engineering consultants. Section 3.04. (a) The Borrower undertakes to insure or to cause INIPA or INAF, as the case may be, to insure, or to make, or cause INIPA or INAF, as the casi may be, to 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 -9-/ 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,2 INIPA or INAF, as the case may be, to replace or repair such goor (b) The Borrower shall 'cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the purposes of the Project. Section 3.05. (a) The Borrower shall cause INIPA or,INAF, as the case may be, to furnish to the Bank, promptly upon their pre- paration, the plans, specifications, reports, contract documents and construction 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 shall cause INIPA or INAF, as the case may be: (i) to 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 ser- vices financed out of the proceeds of the Loan, and to disclose their use in the Project; (ii) to enable the Bank's representa- tives to visit the facilities and construction sites included in the Project and to examine theugoods financed out of the proceeds of the Loan and any relevant records and docKents; and (iii) to furnish to the Bank at regular intervals of not more than six months all such information as the Bank shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the proceeds of the Loan and the goods and services financed out of such pro- ceeds. (c) The Borrower shall cause INIPA to furnish to the Bank for comment, not later than December 31, 1982, a Project progress reporting format and shall make such changes to such format as the Bank shall reasonably request. (d) Upon the award by INIPA or INAF, as the case may b, of any contract for goods, works or services to be financed out of the proceeds of the Loan, the Bank may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (e) Promptly after completion of the Project, but in any event not later than one year after the Closing Date or such - 10 - later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall cause INIPA to prepare and furnish to the Bank a report, of such scope and in such detail as the Bank 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 Bank of their respective obligations under the Loan Agreement, the performance by the Borrower, INIPA and INAF of their respec- tive obligations under the Contractual Arrangements and the accomplishment of the purposes of the Loan. Section 3.06. (a) In order to carry out Part A 1 (iii) of the Project, the Borrower shall cause INIPA to enter into con- tracts with suitable institutions which will carry out specific research activities to be agreed from time to time between the Bank and INIPA. The respective institutions and contracts shall require the prior approval of) the Bank to the extent such contracts are financed out of the proceeds of the Loan. (b) The Borrower shall cause INIPA to obtain Bank's approval before entering into contracts for purposes of admini- strative training courses under Part D of the Project; such contracts shall be, in all cases, for a one-year period and if the Bank and INIPA so agree, renewable for one or more periods. (c) The Borrower shall, for purposes of the carrying out of Parts A (2) (vi), C, D and E of the Project, cause INIPA to furnish to the Bank, as and when needed for purposes of such Parts of the Project, an annual program of scholarships for. one academic year or more, to modify such program as the Bank shall reasonably request, and to carry out such program, as so modified. Section 3.07. The Borrower shall cause INIPA not to estab- lish in any CIPA any research station or substation additional to those set forth in the Annex to Schedule 2 to this Agreement, unless the establishment of any such station or substations has been justified to the satisfaction of the Borrower and the Bank. Section 3.08. The Borrower shall cause INIPA to furnish to the Bank not later than August 31, 1983 a master plan for future facility construction and expansion which will ensure the compatibility of such future expansion or construction with the facilities to be constructed or expanded under the Project. - 11 - Section 3.09. 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 Part A (2) (i) and (ii) and Part B.(2) (iii) and (iv) of 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 available for purposes related to the Project. 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, i2so 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 Loan 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 - 12 - 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 cause INIPA and INAF: (a) to maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices their operations and financial condition, including, without limitation to the foregoing, separate accounts (including, in the case of INIPA, the Specific Accounts) reflecting all expenditures on account of which withdrawals are requested from the Loan Account on the basis of statements of expenditure; notwithstand- ing the aforesaid, the Borrower shall cause INIPA's accounts to show separately, at all times, INIPA's administrative, research and extension operations; (b) to 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 with- drawals are requested from the Loan Account on the basis of statements of expenditure, and to enable the Bank's representa- tives to examine such records; (c) to have their respective accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (d) to furnish to the Bank as soon as available, but in any case not later than six months after the end of each such yearo (i) certified copicz of their accounts for such year as so audited, and (ii) the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested, including, without limitation to the foregoing, separ- ate opinion by said auditors: (A) on the senarate accounts referred to in paragraph (a) of this Section; and (B) in respect of the expenditures and records referred to in paragraph (b) of this Section, as to whether the proceeds of the Loan made avail- able to INIPA and INAF under the respective Contractual Arrange- ments and withdrawn from the Loan Account on the basis of - 13 - statements of expenditure have been used for the _rpose for which they were provided; and (e) to furnish to the Bank such other information concern- ing said accounts, records and expenditures, as well as the audit thereof, as the Bank shall from time to time reasonably request. Section 4.03. The Borrower shall cause INIPA: (a) to take out and maintain with responsible insurers, or to make other provision satisfactory to the Bank for, insurance against such risks and in such amounts as shall be consistent with appropriate practice; (b) to carry on its operations and conduct its affairs in accordance with sound administrative, financial, agricultural and engineering practices under the supervision of qualified and experienced management assisted by competent-staff in adequate numbers; and (c) at all times to operate and to maintain its facilities, machinery, equipment and other property, and from time to time, promptly as needed, to make all necessary repairs and renewals t'lereof, all in accordance with sound engineering, financial and agricultural practices. ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (k) thereof: (a) INIPA or INAF shall have failed to perform any of its respective obligations under the corresponding Contractual Arrangements; (b) an extraordinary situation shall have arisen which shall make it improbable that any of INIPA or INAF will be able to perform its respective obligations under any of the Contrac- tual Arrangements to which INIPA or INAF, as the case may be, is a party to; -14- (c) INIPA or INAF shall have assigned, amended, abrogated or waived any of the Contractual Arrangements to which INIPA or INAF, as the case may be, is a party to or any provision thereof; and (d) a change in the legislation of the Borrower, shall have occurred which shall materially and adversely affect the ability of the Borrower to carry out its covenants, agreements and obli- gations set forth in the Loan Agreement or the ability of INIPA or INAF, as the case may be, to carry out their respective cove- nants, agreements and obligations set forth in any of the Con- tractual Arrangements to which INIPA or INAF, as the case may be, is a party to. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following events are specified pursuant to paragraph (h) thereof: (a) any event specified in paragraph (a) or paragraph (c) of Section 5.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Bank to the Borrower; and (b) any event specified in paragraph (d) of Section 5.01 of this Agreement shall occur and shall continue for a period of 30 days after notice thereof shall have been given by the Bank to the Borrower. ARTICLE VI Effective Date; Termination Section 6.01. The following events 1are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) that this Agreement has been duly registered by Credito Pu'blico; (b) that the Borrower has entered into the Contractual Arrangements with INIPA referred to in Section 3.01 (b) of this Agreement; - 15 - (c) that the Project Manager referred to in paragraph (b) (i) of Section 3.02 of this Agreement has been appointed on terms and conditions satisfactory to the Bank; and (d) that the unit referred to in Section 3.02 (a) (iii) of this Agreement has been staffed in form and substance satisfactory to the Bank. Section 6.02. The following is specified as an additional matter, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank, namely, that this Agreement has been registered by Cr&dito Putblico. Section 6.03. The dateo< ,,<A JO, a, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of Economy, Finance and Commerce of the Borrower and the General Director of Crfdito P6blico are severally designated as representatives 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: Ministerio de Economfa Finanzas y Comercio Avenida Abancay 5a Cuadra Lima, Peru Cable address: Telex: MINDEF 20187 PU Lima, MINDEF Peru - 16 - With copy to: Ministerio de Agricultura Edif. Ministerio de Trabajo, Avda. Salaverry Lima, Peru Telex: 25835-PE and to: Telex: INIPA 25091 PE Avda. Guzman Blanco 309 AGRONK Lima, Peru 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) IN WITNESS WHEREOF, the parties hereto, and Banco Nacion in the role described in the Preamble to this Agreement, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed ip. their respective names in - 17 - the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF PERU By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Regional Vice President Latin America and the Caribbean BANCO DE LA NACION By Authorized Representative -18- SCEDULE 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) Goods (excluding 9,200,000 furnishings) for Parts A.(2) (iii), A.(2) (iv), B (2) (v), C, Drand E of the Project: (a) Procured 100% of foreign abroad expenditures (b) Locally procured 80% (2) Consultant, training 12,000,000 and library services: (a) Services of 100% consultants and experts referred to in Section 3.03 (b) of this Agree- ment (other than the consultants for Part F (iii) of the Project referred to in subparagraph (viii) of the aforesaid Secton but including the Project Manager - 19 Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed referred to in Section 3.02 (b) (i) of this Agree- ment, and inter- nationally rem cruited trainrs) (b) Training in Peru 100% of foreign and abroad (ex- expenditures cluding trainers and 30% of but including local expendi- travelling and tures fellows tips), servi&es for Part (A) (1) (iii) of the Project and library services for Parts A, B, D and E of the Project (3) Civil works (ex- 3,200,000 30% cluding amounts withheld as per- formance guaran- tees) architectural or engineering fees therefor and furnishings, all for the Project (4) Incremental 9,000,000 salaries and operating and maintenance expenditures: (a) For Part A 100% of amounts of the Proj- specified in ect, expressed Paragraph A of in terms of the Annex to dollar equiva- this Schedule lent of cer- tain maximum - 20 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed amounts of annual salaries (b) Salaries, (i) 50% up to wages and the moment the benefits of aggregate. staff speci- amount of dis- fied in Para- bursements graph B of under this sub- the Annex to Category this Schedule reaches the equivalent of $1,400,000; (ii) 30% thereafter up to the moment such aggregate amount reaches the equivalent of $2,700,000; and (iii) 10% thereafter. (c) Travelling (i) 50% up to and opera- the moment the tional ex- aggregate amount penditures of disbursements specified in under this"sub- Paragraph C of Category reaches the Annex to the equivalent this Schedule of $1,100,000; (ii) 30% there- after up to the moment such aggregate amount reaches the equivalent of $2,200,000; and (iii) 10% there- after. - 21 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalcnt) to be Financed (5) PartF (iii) of 1,600,000 the Project: (a) Consultants' 100% of foreign services expenditures (b) Vehicles and 100% of foreign, equipment expenditures and 80% of local expendi- tures (6)) Refunding of 1,000,000 Amount due Project Prepara- tion Advance and unpaid charges thereon (7) Fee under Section 600,000 Amount due 2.05 of this Agreement (8) Unallocated 4,000,000 TOTAL 409600,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" 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; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower. - 22 - 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 payments made for expen- ditures: (i) prior to the date of this Agreement; and in respect of Category (5) on account of payments made for such expenditures unless the Borrower and INAF have entered into the contractual arrangements referred to in Section 3.01 (b) of this Agreement. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph 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 Cate- gory, the Bank may, by notice to the Borrower and INIPA, or INAF, as the case may be: (i) reialocate 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 expendi- tures; and (ii) if such reallocation cannot fully meet the esti- mated shortfall, reduce the disbursement percentage then applic- able 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 pro- curement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting 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. - 23 - ANNEX TO SCHEDULE 1 Disbursement against Incremental Research and Extension Staff and Maintenance Operating Expenditures The provisions of this Annex may be changed from time to time, by agreement between the Bank and such INIPA's representative or representatives, as INIPA may from time to time appoint to act on behalf of the Borrower pursuant to Section 2.09 of this Agreement. Paragraph A: 1. Disbursement under Category (4) (a) shall be made at the equivalent of the following annual rates per person expressed in terms of incremental CIPA research staff: (a) $3,250 equivalent per annum per each research profes- sional above a base figure of 56 professionals, up to a maximum of 69 additional professionals; 0 (b) $1,730 equivalent per annum per each research techni- cian above a base figure of 54 technicians, up to a maximum of 94 additional technicians; and (c) $1,580 equivalent per annum per each clerical and support employee above a base figure of 285, up to a maximum of 262 additional employees. 2. Disbursement shall be made on a quarterly basis using one- fourth of the rates indicated in sub-paragraph 1 above. 3. Disbursements shall be made on the basis of a statement of INIPA staff strength, certified by the Jefe of INIPA, indicating the number of full-time CIPA professionals, technicians and employees, as the case may be, who have been on duty in the Project Area for the entire quarter and have received their full salaries, wages and benefits. Paragraph B: 1. Disbursement under Category 4 (b) shall be made against the cost of incremental staff for the Project, as follows: -24 - (a) For CIPA extension and credit promotion professionals, technicians and clerical and other staff, above base figures of 126 professionals, 220 technicians and 34 clerical and other staff up to a maximum of 80 prof es- sionals, 162 technicians and 34 clerical and other staff. (b) For staff rendering services in INIPA's Planning Department (Part C of the Project), in the Documenta- tion and Training Center (Part D of the Project), in Computing and Statistical Services (Part E of the Project) and in each CIPA headquarterp (Part B.(2) (iv)) of the Project, above base figures to be agreed from time to time between the Borrower and the Bank. (c) For staff rendering services in the Monitoring and Evaluation Unit and, under their direction, in field offices of each CIPA above a base figure of 0. 2. Disbursements shall be made on a quarterly basis. 3. The provisions of sub-paragraph 3 of paragraph A of this Annex shall apply to this paragraph B. Paragraph C: 1. Disbursement under Category 4 (c) shall be made against the following expenditures for the Project: (a) Travelling, operational and maintenance expenditures for INIPA's extension services in the Project Area (including INIPA's headquarters) and for the Monitoring and Evaluation Unit (headquarters and the field monitoring and evaluation activities directed by such Unit). (b) Incremental travelling, operation and maintenance expenditures, as determined from time to, time by the Bank, for INIPA's Planning Department (excluding the Monitoring and Evaluation Unit), Documentation and Training Center (Part D of the Project), Computing and Statistical Services (Part E of the Project) and each CIPA's headquarters. -25- All of the above shall be exclusive of salaries, wages, benefits and other expenditures included in other Categories or sub-Categories of the table set forth in the Schedule to which this is an Annex. 2. Disbursements shall be made on the basis of a statement of the expenditures on the basis of which disbursements are being sought, certified by the Jefe of INIPA, indicating the Part of the Project and facility to which such expenditures are related. Withdrawal applications shall exceed the minimum amounts agreed from time to time between the Bank and the Borrower. - 26 - SCHEDULE 2. Description of the Project The main objective of the Project is to rehabilitate and expand the Borrower's agricultural research and extension activities so as to lead to significant increases in production and in producer welfare. The Project consists of: Part A: Strengthening of the national and field research programs, both at INIPA's and CIPA's levels by means of: (1) INIPA's-level (i) Reinforcement of ongoing research, introduction of farm system analysis capacity and upgrading in-service staff training. (ii) Development of INIPA's institutional capabilities. (iii) Development of existing capacity outside INIPA to complement INIPA's research activities and enhancing the cooperation in that respect between INIPA and specialized institutions. (2) CIPA's level (i) Acquisition and development of land for research activities of each CIPA. (ii) Construction or expansion of office, laboratory, storage and accomodation facilities (about 13,000 square meters in the aggregate) and furnishing there- of. Construction will be undertaken in the stations and sub-stations set forth in Part B of the Annex hereto and expansion in those set forth in Part A thereof. (iii) Acquisition of scientific, technical and office equip- ment and agricultural machinery and utilization thereof by the CIPA's stations and sub-stations set forth in the Annex hereto. - 27 - (iv) Acquisition of about.75 vehicles for, and utilization thereof by, each CIPA, as required. (v) Development in each CIPA of a 5 year research program which will be oriented toward solving production prob- lems pertaining to the farming systems in the area covered by the CIPA in question, including about 19 man-months of consultant services to assist solving specific research problems. (vi) In-service and external training and education of each CIPA's research staff, including scholarships abroad and in Peru, attendance at scientific meetings and short-term visits abroad, and library services. Part B: Reinforcement of CIPA's extension program, both at INIPA's and CIPA's levels (1) INIPA's Level (i). Introduction throughout Peru of the Training and Visit Techniques. (ii) Training of CIPA's staff on the above mentioned Techni- ques. (iii) Provision of technical support to agricultural consultants whose services are retained by farmers. (2) CIPA's Level (i) Utilization of the Training and Visit Techniques to provide extension services to farmers operating farms ranging in size, primarily, from 1 to 20 hectares. (ii) Utilization of extension officers to provide extension services to cooperatives under the principle of pro- grammed activities with continuous progress review. (iii) Construction of about 80 office or office/dwelling facilities for CIPA's staff (about 6,500 square meters in the aggregate), furnishing and, in the case of offices, operations thereof. - 28 - (iv) Construction of headquarters facilities in each CIPA (about 4,600 square meters in the aggregate), fur- nishing and operation thereof. (v) Acquisition for and utilization by CIPA staff of about 650 vehicles, and extension equipment. (vi) In-service and external training and education of each CIPA's extension staff, including scholarships abroad and in Peru, attendance at scientific meetings and short-term visits abroad, ane library services. (vii) Organization of a credit assistance program, including the definition, through a study, of credit delivery mechanisms suitable to individual small-scale farmers. Part C: Planning and operation of INIPA Reinforcement of INIPA's Planning Department and expansion of the activities thereof with the establishment within it of the Project Management Unit, the Evaluation and Monitoring Unit and the Engineering Planning Service Unit. This Part of the Project includes the acquisition and utilization of vehicles and equipment for the aforesaid ?Department and Units, and training (including local and overseas fellowships) of such Department's staff. Part D: Documentation and Training Center Construction, equipping, installation and operation of a documentation and training center at La Molina (about 2,000 square meters) in which the central library for INIPA's research and extension activities will be located and which will have the capacity to issue reports and to *koduce mass media extension services. This Part of the Project includes the acquisition and utilization of vehicles, overseas and local fellowships for the Center's staff, technical and administrative training courses of INIPA's staff and staff of entities within the agricultural sector the activities of which are related to INIPA's functions, and library services. Part E: Computing and Statistical Services Establishment of computing and statistical services in INIPA, including the acquisition and utilization of scientific -29- and office equipment and a vehicle therefor, overseas and local fellowships and local training courses for the services staff, and library services. Part F: Other Studies (i) Execution of 2 studies to determine the most appro- priate role for INIPA in the provision of agricultural machinery services to farmers, and in the marketing of agricultural produce in rural areas; (ii) Execution of studies required for the preparation of a second phase agricultural research and extension pro- ject; and (iii) Execution of a pre-feasibility study based on the orthophoto maps which are being financed by the Bank under the Project Preparation Advance for, and if warranted full feasibility study of, an irrigation rehabilitation project on certain valleys along the Peruvian coastal belt north of Lima. T * * The Project is expected to be completed by June 30, 1987. - 30 - ANNEX TO SCHEDULE 2 Research stations and sub-stations of every CIPA where civil, work under Part A.(2) (ii) of the Project will be carried out: Part A: Existing stations and sub-stations: Chira, Vista Florida, Huaraz, Los Cedros, Bagua, ,jajamarca, Jequetepeque, Paijan, Cajabamba, Tingua and 4uari. Part B: New stations and sub-stations: Huancabamba, San Ignacio, Olmos, Chota, Otuzco, Viru and Huamachuco. - 31 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars) On each January 15 and July 15 beginning January 15, 1987 through January 15, 1999 1,560,000 On July 15, 1999 1,600,000 * The figures in this column represent dollar equivalents determined as of the respective dates of withdrawal; see General Conditions, Section 3.04. - 32 - 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 3.04 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 2.05% More than three years but not more than six years before maturity 4.10% More than six years but not more than eleven years before maturity 7.50% More than eleven years but not more than fifteen years before maturity 10.25% More than fifteen years before maturity 11.60% - 33 - SCHEDULE 4 Procurement A. International Comfetitive Bidding 1. Except as provided in Part C hereof, goods and civil works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the current edition of 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 paragraphs 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 publica- tion 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 iemain to be procured on the basis of international competitive bidding. 3. (i) Vehicles shall be grouped in large bidding packages to the maximum extent possible. (ii) Scientific and technical equipment and agricultural machinery shall be grouped, to the extent possible, so as to form bidding packages estimated to cost the equivalent of $100,000. 4. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international com- petitive 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; (ii) customs duties and other import taxes levied in connection with the importation, or the sales and -34- 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; and (iii) the cost of inland freight and other expenditures incidental to the delivery of the goods to the place of their use or installation shall be included. B. Preference for Domestic and Regional Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A of this Schedule, goods manufactured in Peru or in a country which is a party to the Cartagena Agreement or to any other regional trade agreement acceptable to the Borrower and the Bank (the Cartagena Agreement or any such other regional agreement hereinafter called the Regional Agreement), 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 comparison of bids. 2. After evaluation, responsive bids will be classified in one of the following four groups: (a) Group A: bids offering goods manufactured in Peru if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in Peru equal to at least 20% of the ex- factory bid price of such goods. (b) Group B: all other domestic bids. (c) Group C: bids offering goods manufactured in a country other than Peru which is a party to the Regional Agreement. (d) Group D: bids offering any other goods. 3. In order to determine the lowest evaluated bid of each group, all evaluated bids in each group shall first be compared among themselves. Such lowest evaluated bids shall then be - 35 - 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, or group D, all group C and D 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 and group D 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 group D 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 or the group C bid in such further comparison is the lowest, it shall be selected for the award. 5. If, as a result of the further comparison under paragraph 4 above, a bid from group D is the lowest, and provided there are taxes actually payable for the importation of goods offered in the lowest evaluated bid from group C, as determined under paragraph 3 above, all group D bids shall be finally compared with such lowest evaluated bid from group C, after adding to the c.i.f. bid price of goods to be imported offered in each group D bid, for the purpose of this final comparison only, an amount equal to the smaller of (i) the positive difference, if any, between the amount of customs duties and other import taxes which would actually be payable for the importation of goods offered in such group D bid and for the importation of goods offered in the group C bid, or (ii) 15% of the c.i.f. price of goods to be imported offered in such group D bid. If the lowest bid in such comparison is the group C bid, it shall be selected for the award; if not, the lowest evaluated bid from group D, as determined under paragraph 3 above, shall be selected for the award. C. Other Procurement Procedures 1. Contracts for civil works for the Project may be procured on the basis of competitive bidding advertised in Peru after INIPA has combined adequate construction packages, where practicable, so as to maximize the possibility of obtaining competing bids from adequate contractors, and to the extent the applicable bidding procedures are satisfactory to the Bank. - 36 - 2. Orders for furniture and supplies, and for scientific and technical equipment and agricultural machinery which cannot be grouped into bidding packages as required in Part A.3 (ii) of this Schedule may, subject to 3 and 4 below, be procured on the basis of competitive bidding advertised in Peru, to the extent the bidding procedures are satisfactory to the Bank. 3. Contracts for furniture and supplies, and for scientific and technical equipment or agricultural machinery which cannot be grouped in bidding packages estimated to cost $50,000 or more may be awarded after obtaining quotations from not less than three suppliers, provided the aggregate of contracts so awarded does not exceed the equivalent of $250,000, in respect of furniture and supplies nor the equivalent of $150,000 in respect of scientific and technical equipment and agricultural machinery. 4. Contracts for specific scientific and technical equipment or agricultural machinery may be, when justified for purposes of compatibility with INIPA'S existing facilities for maintenance and servicing and with the prior approval of the Bank, directly awarded to the manufacturer of such equipment or machinery, provided the aggregate of the contracts so awarded does not exceed the equivalent of $600,000. D. Review of Procurement Decisions by the Bank 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for civil works estimated to cost the equivalent of $500,000 or more, the first headquarters to be constructed under Part B (2) (iv) of the Project and the first construction package for purposes of Part A (2) (ii) of the Project, and to all contracts for goods estimated to cost the equivalent of $1,000,000 or more: (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 docu- ments 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. - 37 (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 on the evaluation and comparison of the bids received, and such other information as the Bank shall reasonably request. The Bank shall, if it determines 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 was invited. (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its' execution and prior to the 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 the 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 contract, 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 extension 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, 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. - 38 - E. Procurement of Consultant or Expert Services 1. Consultants or experts whose services are to be employed for purposes of paragraph (a) of Section 3.03 of this Agreement shall be selected after inviting proposals from a short list of firms or individuals, Such short list will be sent to the Bank for approval and the invitations to be issued will, in each case, set forth the criteria to be taken into account for the selection of the individual or firm to which the contract , will be awarded. Such criteria will be determined from time to time by agreement between the Bank and the Borrower and will take price into account in accordance with methods and procedures satisfactory to the Bank. 2. Although under certain circumstances, as described in the Guidelines referred to in raragraph (a) of Section 3.02 of this Agreement, the Bank may sympathetically consider the possibility of asking proposals to a single firm or individual, extended lists will not be used for viting proposals. 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 -day of < , 198 . FOR SECRETARY