Guinea Bissau - Technical Assistance Project : Credit 1517 - Credit Agreement - Conformed

OFFIC!AL CREDIT NUMBER 1517-0 GUB DOCU M NTS Development Credit Agreement (Technical Assistance Project) between REPUBLIC OF GUINEA-BISSAU and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated e ks , 1984 CREDIT NUMBER 1517-0 GUB DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated _'Ele. 2- S , 1984, between REPUBLIC OF GUINEA-BISSAU (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS the Borrower 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 WHEREAS 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 Absociation, 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 Agree- ments 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 have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "BNG" means Banco Nacional da Guine-Bissau; and (b) "Project Preparation Advance" means the project pre- paration advance granted by the Association to the Borrower pursuant to an exchange of letters dated July 28, 1983 and October 6, 1983 between the Borrower and the Association. - 2 - ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to six million Special Drawing Rights (SDR 6,000,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement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 Asso- ciation, 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. (b) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the prin- cipal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges there- on. The unwithdrawn balance of the authorized amount of the Project Preparation Advance shall thereupon be cancelled. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agree- ment. Section 2.04. The Closing Date shall be December 31, 1988 or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. Section 2.05. (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 with- drawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. - 3 - (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without re- strictions 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 eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.06. 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 2.07. Commitment charges and service charges shall be payable semiannually on May 15 and November 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 15 and November 15 commencing November 15, 1994, and ending May 15, 2034, each installment to and including the installment payable on May 15, 2004, 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 United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. Section 2.10. BNG is designated as the representative of the Borrower for the purposes of taking any action required as per- mitted to be taken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project under the overall responsibility of BNG with due diligence and effi- ciency and in conformity with appropriate administrative, engin- eering, financial, management and planning practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) In order to assist BNG in carrying out its respon- sibility under paragraph (a) above, the Borrower, acting through BNG, shall: (i) employ a team of project management consultants and experts; and (ii) assign adequate numbers of qualified local professional and support staff in BNG to work with such team in discharging such responsibility. Section 3.02. (a) In order to assist the Borrower in carry- ing out the Project, the Borrower shall employ accounting, bank- ing, economic, engineering, financial, legal, management, plan- ning and training consultants and experts. (b) The qualifications, experience and terms and conditions of employment of the consultants and experts referred to in Sec- tions 3.01 (b) and 3.02 (a) above, shall be satisfactory to the Association and such consultants and experts shall be selected in accordance with principles and procedures satisfactory to the Association on the basis of the "Guidelines for the Use of Con- sultants by World Bank Borrowers and by the World Bank as Exe- cuting Agency" published by the Bank in August 1981. (c) The Borrower shall cooperate fully with such consul- tants and experts in the performance of their services for the Project and make available to them all information relevant to the Project. (d) Any amendment or waivers of the terms and conditions of employment of the consultants and experts employed under the Project, or any grant of any material extension of time or approval of sub-contracts or modifications thereof, or substitu- tion of personnel of such consultants and experts shall be satis- factory to the Association. Section 3.03. The Borrower shall cause the team of consul- tants and experts referred to in Section 3.01 (b) of this Agree- ment: (a) within three months of their arrival in the country to prepare and furnish to the Association for its review and aDproval work plans for the remainder of the calendar year; (b) subsequently, not later than November 30 of each year, to prepare and furnish to the Association for its review and approval annual work plans for the next year; (c) not later than one month after the end of each calendar quarter, to prepare and furnish to the Association progress -5- reports covering the execution of the work plans during that quarter; and (d) not later than January 31 of each year, to prepare and furnish to the Association detailed progress reports on the exe- cution of the work plans during the preceding calendar year. Section 3.04. Without any limitation upon its obligations under Section 3.01 and 3.02 of this Agreement, the Borrower shall assign to the consultants and experts employed under the Project adequate numbers of qualified professional staff as counterpart staff and provide such consultants and experts with adequate num- bers of local support personnel. Section 3.05. The Borrower shall appoint to the management unit referred to in Part C (iii) of the Project, one representa- tive each from BNG, the Ministry of Finance, the Ministry of Com- merce and Tourism and the Ministry of Economic Coordination, Planning and International Cooperation. Section 3.06. Before undertaking any study or providing any service referred to in Part F of the Project, the Borrower shall furnish to the Association for its approval a proposal for each such study or each such service. Section 3.07. Before undertaking the program of fellowships referred to in Part H (v) of the Project, the Borrower shall fur- nish to the Association for its approval a proposal detailing the courses to be followed and the qualifications and experience of the candidates intended to follow them. Section 3.08. Before undertaking the construction of the housing referred to in Part I (i) of the Project, the Borrower shall furnish to the Association for its approval the design of such housing. Section 3.09. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. -6- (b) The Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Section 3.10. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, 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 Association shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expen- diture of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the Credit, the Association may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (d) On or before September 30, 1986, or such later date as may be agreed for this purpose between the Borrower and the Asso- ciation, the Borrower and the Association shall conduct .a joint review of the progress of the Project to date and, to this end, the Borrower shall prepare and furnish to the Association a report of such scope and in such detail as the Association shall reasonably request. (e) 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 -7- 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 the Association of their respective obligations under the Devel- opment Credit Agreement and the accoriplishment of the purposes of the Credit. Section 3.11. 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 the construction (and operation) of the facilities included in the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association 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) The Borrower shall maintain or cause to be maintained separate accounts 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 respon- sible for carrying out the Project or any part thereof. (b) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to be maintained separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of statements of expenditure; (ii) retain, until one year after the Closing Date, all records (contracts, orde-s, invoices, bills, receipts and other documents) evidencing the expenditures on account of which withdrawals are requested from the Credit Account on the basis of statements of expenditure; and (iii) enable the Association's representatives to examine such records. (c) The Borrower shall: (i) have the accounts referred to in paragraphs (a) and (b) of this Section for each fiscal year audited, in accordance with appropriate auditing principles con- sistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as avail- able, but in any case not later than four months after the end of each such year, a certified copy of the report of such audit by - 8 - such auditors, of such scope and in such detail as the Associa- tion shall have 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 which they were provided; and (iii) furnish to the Association such other inform- ation concerning said accounts, records and expenditures and the audit thereof as the Association shall from time to time reason- ably request. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely that the team of project management consul- tants and experts referred to in Section 3.01 (b) of this Agree- ment shall have been employed. Section 5.02. The date CQe(-e4r1CA 2-J1 is hereby specified for the purposes of Section 12.04 of the General Condi- tions. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. Subject to the provisions of Section 2.10 of this Agreement, the Minister 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 purposes of Section 11.01 of the General Conditions: For the Borrower: BNG 38 Avenida Amilcar Cabral Bissau Republic of Guinea-Bissau -9- Cable address: Telex: BANGUINE 241 BNG-BI 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 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 GUINEA-BISSAU Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION y / Regional Vice President Western Africa - 10 - 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) Resident advisors 1,600,000 100% (2) Short-term consul- 800,000 100% tants and studies under Parts C thru G of the Project (3) Project management 400,000 100% of foreign team expenditures (4) Training and 440,000 100% fellowships (5) Junior economists, 100,000 100% of foreign secretarial and expenditures or support staff 85% of local expenditures (6) Equipment, materials, 260,000 100% of foreign supplies and vehicles expenditures or 75% of local expenditures (7) Civil works under 400,000 100% of foreign Part I of expenditures and the Project 75% of local ex- penditures (8) Refunding of 1,000,000 Amount due under Project Prepara- Section 2.02 (b) tion Advance of this Agreement - 11 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (9) Unallocated 1,000,000 TOTAL 6,000,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of 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. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Association that the proceeds of the Credit shall not be disbursed en 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; on this basis, if the amount of any such taxes levied on or in respect of items in any Category decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such Category as required to be consistent with the aforemen- tioned policy of the Association. 4. To the extent that the amount allocated to Category (8) above is in excess of the amount due, the balance will be reallo- cated to Category (9). 5. 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; - 12 - (b) payments made for expenditures in respect of Part F of the Project under Category (2), until the Association shall have given the approval provided for in Section 3.06 of this Agree- ment; (c) payments made for expenditures in respect of Part H (v) of the Project under Category (4), until the Association shall have given the approval provided for in Section 3.07 of this Agreement; and (d) payments made for expenditures in iespect of Part I (i) of the Project under Category (7), until the Association shall have given the approval provided for in Section 3.08 of this Agreement. 6. 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 expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expen- ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 7. 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 expen- diture 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 under the Development Credit Agreement, by notice to the Bor- rower, cancel such amount of the Credit as, in the 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. - 13 - SCHEDULE 2 Description of the Project The Project's objectives are to assist the Borrower in strengthening the macro-economic management capability of key economic ministries and to develop the institutional framework of other ministries and agencies. The Project consists of the fol- lowing Parts: Part A: Office of the President (i) Strengthening of the staff capability of the Office of the President in financial and monetary matters, general develop- ment policy and international economic affairs; (ii) strengthening of the staff capability of the State Secretariat of the Presidency in matters concerning public admin- istration and legislation complementary to the labor code and to the implementation of the Borrower's organic structure; and (iii) equipment of a Documentation Center. Part B: Ministry of Finance (i) Establishment of a Studies Bureau; and (ii) strengthening of the staff capability of the Ministry in handling legal and economic matters, namely with respect to support and management of state enterprises. Part C: BNG (i) Establishment of BNG's development banking activities; (ii) strengthening of BNG's commercial banking capabilities; (iii) strengthening of a management unit to administer emergency external aid; (iv) strengthening of BNG's staff capability in handling legal matters; and (v) installation and operation of banking equipment and materials. - 14 - Part D: Ministry of Economic Coordination, Planning and International Cooperation (i) Strengthening of the staff capability of the Ministry in administering external aid, in preparing annual reports on external aid and in operating a technical bureau for aid coor- dination and management; (ii) strengthening of the staff capability of the Ministry in the annual review of the Borrower's Four-Year Plan, in the preparation of yearly plans for the years 1984 to 1986 and in establishing and maintaining liaison with the technical minis- tries in the preparation of sector plans; and (iii) strengthening of the staff capability of the Ministry in the formulation of economic policy and in the preparation of economic studies, and in project preparation, evaluation and monitoring. Part E: Ministry of Natural Resources and Industry (i) Strengthening of the staff capability of the Studies, Projects and Planning Bureau; (ii) strengthening of the staff capability of the General Directorates for Industry and Energy in formulating investment policy, preparing investment projects and conducting general investment studies. Part F: Other Ministries Studies for, and consultants' and experts' services to, other Ministries in pursuit of national economic goals. Part G: Studies (i) The development of alternatives to the existing system of prices for agricultural products in order to determine an effective means of providing incentives to farmers for increased production; and (ii) a review of state enterprises, including an analysis of the institutions, controls, policies and other factors affect- ing such enterprises and their performance, together with recom- mendations for action by the Borrower, including possible liquid- ation, privatization or rehabilitation of individual enterprises. - 15 - Part H: Training (i) Training of BNG staff in banking activities; (ii) a three-year program of fellowships for staff of the Ministry of Economic Coordination, Planning and International Cooperation, and training of regional planners and planning staff of other Ministries; (iii) training of staff involved in public and regional administration, the application of labor legislation and human resource management; (iv) training of staff of the Ministry of Finance and other Ministries in the Ministry's Training and Documentation Center; and (v) a program of fellowships abroad for candidates for advanced degrees in economics, financial analysis, public admin- istration and other areas of importance to the achievement of national economic goals. Part I: Civil Works (i) Construction and furnishing of four detached houses and 10 duplex units for permanent advisors and short-term consul- tants; and (ii) construction and equipment of a Training and Documenta- tion Center in the Ministry of Finance. The Project is expected to be completed by June 30, 1988. - 16 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. E;xcept as provided in Part C hereof, goods and civil works shall be procured under contracts awarded it accordance with pro- cedu-:es consistent with those set forth in tte 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 bid- ding as described in Part A of the Guidelines. 2. For goods and works to be procured on the basis of inter- national competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Association as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Asso- ciation shall reasonably request; the Association will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of inter- national competitive bidding. 3. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international 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 simi- lar taxes levied in connection with the sale or delivery, pur- suant 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. - 17 - B. Preference for Domestic Contractors With respect to the evaluation of bids for any contract for civil works included under Category (7) of the table set forth in Schedule 1 to the Development Credit Agreement and to be procured in accordance with the procedures described in Part A of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: 1. Contractors applying for such preference shall be asked to provide, as part of the data for qualification, such informa- tion, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bid- ding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. 2. After bids have been received and reviewed by the Bor- rower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. C. Other Procurement Procedures Contracts for equipment, furniture and office supplies shall be procured on the basis of competitive bidding in accordance with local procurement procedures satisfactory to the Associa- tion. D. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: - 18 - With respect to all contracts: (i) for equipment, materials and supplies estimated to cost the equivalent of $50,OOC or more; (ii) for vehicles; and (iii) for civil works: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed. for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably re- quest. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in suf- ficient time for its review, a detailed report, by the consul- tants referred to in Section 3.01 (b) of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification was invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for with- drawal of funds from the Credit Account in respect of such con- tract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, prompt- ly after its execution and prior to the submission to the Asso- ciation of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if - 19 - it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Bor- rower and state the reasons for such determination. 3. 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 pe-:formance of such contract, or issu- ing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent with the pro- visions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. 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 19 8 FOR SECRETARY