Senegal - Urban Management And Development Project : Credit 1458 - Credit Agreement - Conformed

7 FICIAL CREDIT NUMBER 1458 SE DOCUMENTS Development Credit Agreement (Urban Management and Rehabilitation Technical Assistance Project) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated z, 1984 CREDIT NUMBER 1458 SE DEVELOPMENT CREDIT AGRELAENT AGREEMENT, dated " 1 , 1984, between REPUBLIC OF SENEGAL (he eina ter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) 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; (B) the Borrower has also requested the Association in its capacity as Administrator of the Special Fund established by its Executive Directors by Resolution No. IDA 82-6 adopted on October 26, 1982 to assist in the financing of the same Project by granting a special fund credit (hereinafter called the Special Fund Credit) to the Borrower in an amount equivalent to two million eight h-ndred thousand Special Drawing Rights (SDR 2,800,000) and the Association as such Administrator is willing to grant the Special Fund Credit to the Borrower on the terms and conditions set forth in an agreement (hereinafter called the Special Fund Credit Agreement) of even date herewith; and (C) the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit 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 Gen- eral Conditions and in the Preamble to this Agreement have the - 2 - respective meanings therein set forth and the following addi- tional terms have the following meanings: (a) "OHLM" means the Borrower's Office des Habitations A Loyer Modfrg; (b) "SICAP" means the Borrower's Societ& Immobiliere du Cap-Vert; (c) "Steering Committee" means the committee specified in Section 3.05 (c) of this Agreement; (d) "EPEVRY" means Etablissement public d'Evry ville nouvelle; (e) "SOTRAC" means the Societe des Transports en Commun du Cap-Vert; (f) "SONEES" means Soci&te Nationale d'Exploitation des Eaux du S6n6gal; (g) "SENELEC" means Societe S6n6galaise d'Exploitation de 1 'Electricitg; (h) "Special Account" means the account to be opened and thereafter maintained pursuant to Section 2.02 (c) of this Agreement; (i) "Deposit Account" means the account to be opened and thereafter maintained pursuant to Section 3.06 of this Agreement; (j) "CFA Francs" means the currency of the Borrower; (k) "Project Preparation Advance" means the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters dated January 3, 1984 and February 3, 1984 between the Borrower and the Association; and (1) "Dakar" means the "Communaute urbaine de Dakar" and the three "communes de la Rggion du Cap-Vert" as set forth in Law No. 83-48 dated February 18, 1983 of the Borrower. 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 -3- Agreement set forth or referred to, an amount in various cur- rencies equivalent to two million nine hundred thousand Special Drawing Rights (SDR 2,900,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provfDsions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. (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 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 Preparation Advance shall thereupon be cancelled. (c) The Borrower shall, for the purposes of the Project, open and thereafter maintain in CFA Francs a special account in a commercial bank on terms and conditions satisfactory to the Association. Deposits into, and payments out of, the Special Account shall be made in ac(,ordance with the provisions of Sched- ule 4 to this Agreement. 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. -4- (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 March 15 and September 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 15 ane September 15 commencing September 15, 1994, and ending March 15, 2034, each installment to and including the installment payable on March 15, 2004, to be one-half of one per cent (1/2 of1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.09. The currency of the Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the 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 with due diligence and efficiency, in conformity with appropriate finan- cial, administrative, engineering, economic planning, and train- ing practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the pur- pose. -5- (b) Without any limitation upon its obligations under paragraph (a) of this Section, the Borrower shall: (i) provide adequate support personnel and equipment, supplies and services (including office facilities) to the specialists and consultants employed under the Project; and (ii) appoint and ensure the availability of qualified Senegalese professional staff as required for training under Part C (4) (ii) of the Project. Section 3.02. (a) In order to assist the Borrower in carry- ing out the Project, the Borrower shall employ specialists and consultants whose qualifications, experience and terms and condi- tions of employment shall be satisfactory to the Association, such specialists and consultants to be selected in accordance with principles and procedures satisfactory to the Association on the basis of 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. (b) The Borrower shall cooperate fully with such special- ists and consultants in the performance of their services for the Project and make available to them all information relevant to the Project. (c) The Borrower shall promptly furnish to the Association copies of the documents prepared by such specialists and consul- tants for the Project, including reports and drafts thereof, plans, designs, specifications, work schedules and estimates of costs, in such detail as the Association shall reasonably request. (d) For the purposes of evaluation and implementation of the recommendations and other conclusions contained in the docu- ments referred to in the previous paragraph, the Borrower shall from time to time exchange views with the Association on said recommendations and conclusions during the carrying out and upon completion of the Project. Section 3.03. (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 3.04. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or addi- tions thereto, in such detail as the Association shall reasonably request. (b) The Borrower shall: (i) maintain records and proce- dures 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) 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) 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 expenditure 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) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution 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 Development Credit Agreement and the accomplishment of the purposes of the Credit. ' Section 3.05. In order to ensure effective monitoring of the progress of the Project and coordination among the ministries and -7- agencies of the Borrower responsible for the execution of the Project, the Borrower shall: (a) entrust responsibility for project coordination and administration to its Ministry of Planning and Cooperation. A Project Director, whose qualifications and experience shall be acceptable to the Association, shall be designated within said Ministry to follow up progress on all Parts of the Project and to carry out the administration of the Project, including, inter alia, administration of procurement, preparation of withdrawal requests, management of the Deposit Account, and preparation of six-monthly progress reports; (b) appoint and ensure the availability of a Technical Director, whose qualifications and experience shall be acceptable to the Association. The Technical Director shall ensure that the methodology, data base and technical standards prepared or pro- posed by the implementing ministries and agencies are consistent with the objectives of the Project as set forth in Schedule 2 to this Agreement; and (c) designate a Steering Committee chaired by the Planning Director of the Ministry of Planning and Cooperation and composed or representatives of the Secretariat for Decentralization, of the Ministries of Planning and Cooperation, Urbanism, Equipment, Economy and Finance, Interior and of SOTRAC, SONEES, SENELEC, and Dakar. The Steering Committee shall review all studies and reports prepared under the Project and shall formulate recom- mendations on actions to be taken to accomplish the objectives of the Project. Section 3.06. The Borrower shall, for the purposes of the Project, open and thereafter maintain in CFA Francs a deposit account in its Treasury ("caisse d'avance" in the form of a "compte de dep8t") in such amount and subject to such terms and conditions as are agreed. upon between the Borrower and the Association. Section 3.07. 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 C (3) of the Project and shall furnish to the Association, upon its request, evidence satis- factory to the Association that such land and rights in respect of land are available for the purposes of the Project. -8- ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained separate records and accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall: (i) have the accounts referred to in paragraph (a) above, including the Special Account and the Deposit Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by inde- Rfndent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than six months after the end of each such year, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably re- quested; and (iii) furnish to the Association such other informa- tion concerning said accounts, records and expenditures and the audit thereof as the Association shall from time to time reason- ably request. ARTICLE V Remedies of the Association Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional event is specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section: (i) the right of the Borrower to withdraw the proceeds of the Special Fund Credit shall have been sus- pended, cancelled or terminated in whole or in part, pursuant to the terms of the Special Fund Credit Agreement; or (ii) the Special Fund Credit shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if the Borrower establishes to the satisfaction of the Association that: -9- (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and con- ditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of Section 7.01 of the Gen- ei-al Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that the event speci- fied in paragraph (a) (ii) of Section 5.01 of this Agreement shall occur, subject to the provisions of paragraph (b) of that Section. ARTICLE VI Effective Date; Termination Section 6.01. 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: (a) the Borrower shall have provided the Association with evidence satisfactory to it that the Special Account has been opened pursuant to Section 2.02 (c) of this Agreement and that the Deposit Account has been opened pursuant to Section 3.06 of this Agreement; (b) the Borrower shall have provided the Association with evidence satisfactory to it with respect to the designation of representatives to serve on the Steering Committee pursuant to Section 3.05 (c) of this Agreement; and (c) all conditions precedent to the effectiveness of the Special Fund Credit Agreement, except for the effectiveness of this Agreement, have been fulfilled. Section 6.02. The date /OrO theiu >C f /, 19g?Yis hereby specified for the purposes of Section 12.04 of the General Conditions. - 10 - ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for economy and finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Con- ditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Minist4re de 1'Economie et des Finances Avenue Charles Laind Dakar Senegal Cable address: Telex: MINIFINANCES 3203 SG Dakar 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) - 11 - 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 Dakar, the Republic of Senegal, as of the day and year first above written. REPUBLIC OF SENEGAL By (sf" /C ctC/o,~ Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By (s"--t~c6 7, av 2c.& 'c ~ Regiona Vice President Western Africa - 12 - 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) Specialists ) and Consultants ) (a) for all Parts 1,080,000 ) of the Proj- ) 100% of foreign ect except A (1), ) expenditures A (2) (i), B (6), ) and 80% of local C (3) and C (4) ) expenditures (b) for Part B (6) 660,000 ) of the Project ) (2) Equipment, materials 50,000 100% of foreign and supplies expenditures and 80% of local ex- penditures (3) Initial deposit 380,000 Amount due under in Special Section 2.02 (c) Account of this Agreement (4) Refunding of 430,000 Amount due under Project Prepara- Section 2.02 (b) tion Advance of this Agreement (5) Unallocated 300,000 TOTAL 2,900,000 - 13 - 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 BorroWver or for goods or services supplied from the territory of the Borrower; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures". 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 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; 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. 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; and (b) pay- ments in respect of Category (1) (b) for Part B (6) of the Project unless the Association shall have agreed to the recom- mendations on the basis of which said Part is to be carried out. 5. Notwithstanding the allocaEion 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 insufficie,it 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, - 14 - 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. 6. 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. - 15 - SCHEDULE 2 Description of the Project The long-term objective of the Project is to support im- provements in the Borrower's economic performance by stimulating public savings and by improving the operational efficiency of public entities involved in urban management, maintenance and shelter. In the short-term, the objectives of the Project are: (i) to improve the allocation of scarce public resources in urban areas through better investment planning and programming; (ii) to formulate a housing and urban policy based on an appropriate allocation of resources; and (iii) to maintain, with a view to ultimately improving, the existing level of urban services in Dakar by improving its capacity to plan and program rehabilita- tion and maintenance works and to mobilize resources. The Project consists of the following Parts: Part A: Urban Investment Planning and Programming (1) Steering Committee: (i) preparatory and start-up activities of the Project including, inter alia, the selection of special- ists and consultants; and (ii) technical monitoring during the execution of the Project. (2) Seventh Plan: Preparation of the urban sector investment program of the Seventh Plan, including, inter alia: (i) the carrying out of a methodological study to define guidelines for appraisal and seleccion of urban rehabilitation projects for inclusion in the Seventh Plan, and to monitor physical and financial implementation of urban rehabilitation projects; (ii) completion of the Dakar/Cap-Vert detailed urban development plan in order to program rehabilita- tion works for serviced land to be included in the Seventh Plan; and - 16 - (iii) completion of the transport plan for the Cap-Vert regi,n in order to program investments for the Seventh Plan. Part B: Housing and Urban Policy (1) Housing Finance: (i) affordability analysis (including calculation of costs and prices of subsidized housing) and review of existing mechanisms of resource mobilization and of low cost housing finance; and (ii) on the basis of such analysis and review, formu- lation of recommendations aimed at improving resource mobilization and use and at increasing private sector participation in the financing of low cost housing. (2) Management of State-owned Properties: analysis of State- owned properties and related charges and revenues and formulation of recommendations on means to reduce subsidies and to increase rent collection by parapublic housing companies and the central government. (3) Rehabilitation of OHLM: preparation of a rehabilitation program for OHLM, and thereafter preparation of a contrat plan consisting of diagnostic studies, detailed recommendations, and a timetable for implementing the recommended actions, all aimed at improving financial and managerial performance and at redirecting OHLM's activities to lower standard, lower cost housing opera- tions affordable by the bottom two-thirds of the urban popula- tion. (4) Land Development Agency: carrying out of a feasibility study for the establishment of a parapublic enterprise for the servic- ing of urban land with infrastructure for community facilities and for residential, commercial, and industrial use, and focus- ing, inter alia, on standards that would make serviced land affordable to the bottom two-thirds of the urban population, on financial arrangements, and on the obligations of other para- public and private entities engaged in infrastructure service and delivery. - 17 - (5) Design Alternatives for Land Development: carrying out of a study on alternative designs for land development at different service levels, including the formulation of recommendations on standards and pricing policies designed to make serviced land affordable to the bottom two-thirds of the urban population. (6) Pilot Designs: on the basis of the recommendations developed under Part B (5) of the Project, the carrying out of: (1) a feasibility land development study for one or two sites in Dakar; and (2) detailed design and engineering of an infrastructure rehabilitation plan for part of central Pikine, taking into account the detailed urban development plan referred to in Part A (2) (ii) above. Part C: Municipal Policy (1) Municipal Organization and Management: (i) review and analysis of relationships between the Borrower's central government and Dakar, including the allocation of authority, responsibility and obligations with respect to delivery and main- tenance of infrastructure services; (ii) identification and implementation of actions to improve financial management of Dakar; (iii) identification of new financial resources, includ- ing development and establishment of a fiscal cadaster, and improvement of existing mechanisms to recover land and related taxes in Dakar; and (iv) analysis of the role and operating procedures of the Borrower's Fonds d' Equipement des Collec- tivites Locales and formulation of recommendations on its suitability as a financing instrument for municipal works projects. (2) Maintenance: (i) identification of rehabilitation and maintenance works and equipment required to rehabilitate and - 18 - maintain existing levels of infrastructure ser- vices in Dakar, and the formulation of recommen- dations for alternative solutions for regular maintenance of such services; (ii) establishment of a system to plan and program the maintenance and rehabilitation of Dakar's infra- structure services equipment, including the pur- chasing of equipment and spare parts; and (iii) establishment of a cost accounting and annual budgeting system for Dakar's Technical Department. (3) Traffic Management: establishment of a traffic bureau within the Directorate of Studies and Programming of the Ministry of Equipment and carrying out by such traffic bureau of: (i) preparation of a priority action program for traffic management in Dakar designed to improve circulation f or pedestrians, buses and municipal service vehicles and to improve access to and conditions in central Pikine; and (ii) implementation and monitoring of the first year of said traffic management program, including the surfacing of footpaths, paving of roads to simple design standards to allow bus access, traffic control measures, junction improvements and provision of traffic signals. (4) Training Program: (i) identification of technical and administrative staffing requirements for Dakar and establishment of a priority training program; and (ii) training of selected staff of Dakar through short-term traineeships, workshops and seminars. The Project is expected to be completed by December 31, 1987 - 19 - SCHEDULE 3 Procurement A. Local Competitive Bidding 1. Except as provided in Part B of this Schedule, all goods and works shall be procured under contracts awarded in accordance with local competitive bidding procedures acceptable to the Association. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts referred to in paragraph A.1 above: (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 request. 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 sufficient time for its review, a detailed report on the evalua- tion and comparison of the bids received, and such other informa- tion as the Association shall reasonably request. The Association shall, if it determines that the intended award would be incon- sistent 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 - 20 - submission to the Association of the first application for with- drawal of funds from the Credit Account in respect of such con- tract. B. Prudent Shopping 1. Purchases of goods estimated to cost less than the equiva- lent of $20,000 each may be made on the basis of local shopping after solicitation of at least three price quotations from suppliers, provided that the aggregate value of such contracts shall not exceed $200,000 equivalent. 2. With respect to each purchase referred to in paragraph B.1 above, the Borrower shall, before a final decision on the pur- chase is made, inform the Association of the name of the supplier from whom it intends to purchase and shall furnish the Associa- tion, in sufficient time for its review, a summary of the quota- tions received ;nd such other information as the Association shall reasonably request. The Association shall, if it determines that the purchase would be inconsistent with economic and effi- cient procurement or with this Schedule, promptly inform the Borrower and state the reasons for its determination. 3. The terms and conditions of the purchase shall not, without the Association's concurrence, materially differ from those on which quotations were solicited. - 21 - SCHEDULE 4 Special Account 1. For the purposes of this Schedule: (a) the term "Category" means a category of items to be financed out of the proceeds of the Credit as set forth in the table in paragraph 1 of Schedule 1 to this Agreement; (b) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required for the Project and to b financed out of the proceeds of the Credit allocated from time to time to Categories (1) and (2) in accor- dance with the provisions of Schedule 1 to this Agreement; and (c) the term "initial deposit" means an amount in C.F.A. Francs equivalent to the amount allocated to Category 3 and to be withdrawn from the Credit Account and deposited in the Special Account pursuant to the first sentence of paragraph 3 of this Schedule. 2. Payments out of the Special Account shall be made exclu- sively for eligible expenditures in accordance with the provi- sions of this Schedule. 3. The Association shall, at the request of the Borrower, withdraw on behalf of the Borrower from the Credit Account and deposit into the Special Account the initial deposit. Thereafter and on the basis of requests by the Borrower furnished to the Association at such intervals as the Association shall specify, the Association shall further so withdraw from the Credit Account and deposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts equal to payments made out of the Special Account for eligible expen- ditures, but only to the extent that the amount of any such deposit, together with any amount remaining on deposit in the Special Account as of the date of such request, shall not exceed in the aggregate the equivalent of the initial deposit. Except as the Association may otherwise agree, each such deposit after the initial deposit shall be withdrawn by the Association from the Credit Account under the respective Categories (1) and (2) and in the respective equivalent amounts, as shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. - 22 - 4. Prior to or at the time of each request by the Borrower for a deposit by the Association into the Special Account after the initial deposit, the Borrower shall furnish to the Association in respect of each payment made by the Borrower out of the Special Account such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expenditures. 5. Notwithstanding the provisions of paragraph 3 of this Sched- ule, no further deposit into the Special Account shall be made by the Association (a) when the Association shall have determined at any time that all further withdrawals can be made directly by the Borrower from the Credit Account in accordance with the provi- sions of paragraph (a) of Section 2.02 of this Agreement, or (b) unless otherwise agreed by the Association, when the total unwithdrawn amount of -the Credit allocated to Categories (1) and (2) for the Project, minus the amount of any qualified agreement to reimburse made by the Association and of any special commit- ment entered into by the Associ tion pursuant to Section 5.02 of the General Conditions with respect to the Project, shall be equal to the equivalent of twice the amount of the initial deposit, whichever shall be sooner. Withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allo- cated to Categories (1) and (2) for the Project shall follow such procedures as the Association shall specify by notice to the Borrower and shall, except as the Association shall otherwise agree, be made only after and to the extent the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice have been or will be utilized in making payments for eligible expenditures. 6. If the Association shall have determined at any time that: (a) any payment out of the Special Account (i) was made for any expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule, or (ii) was not justified by the evidence furnished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notice from the Association and, unless otherwise agreed by the Association, prior to any further deposit into the Special Account by the Association, deposit into the Special Account or, if the Association shall so request, refund to the Association an amount equal to the amount of such payment or the portion thereof not so eligible or justified; or (b) any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, - 23 - the Borrower shall, promptly upon notice from the Association, and unless otherwise agreed by the Association, refund to the Association such amount then outstanding in the Special Account. 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 YL 1984 FOR SECRETARY