India - Fourth Population Project : Credit 1623 - Credit Agreement - Conformed

OFFC'IAL CREDIT NUMBER 1623 IN Development Credit Agreement (Fourth Population Project) between INDIA and INTERNATIONAL DEVELOPHENT ASSOCIATION Dated , 1985 CREDIT NUMBER 1623 IN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1985, between INDIA, acting by its President (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Project will be carried out by the State of West Bengal with the Borrower's assistance and, as part of such assistance, the Borrower will make available to the State of West Bengal the proceeds of the Credit as provided in this Agreement; 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 set forth in this Agreement and in the Project Agreement of even date herewith between the Association and the State of West Bengal; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The General Conditions Applicable to Develop- ment Credit Agreements of the Association, dated January 1, 1985, (the General Conditions) constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions have the respec- tive meanings therein set forth and the following additional terms have the following meanings: (a) "Project Agreement" means the agreement between the Association and the State of West Bengal of even date herewith, as the same may be amended from time to time, and such term includes all schedules and agreements supplemental to the Project Agreement; -2- (b) "WB" means the State of West Bengal, a State of India; (c) "Project Districts" means the areas comprising the districts of Bankura, Birbhum, Bardhaman, and Puruliya in WB; (d) "PHC" means Primary Health Center; (e) "CHC" means Community Health Center; (f) "IEC" means Information, Education and Communication; (g) "SIHFW" means State Institute of Health and Family Welfare; and (h) "$" means dollars in the currency of the United States. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to fifty-one million five hundred thousand Special Drawing Rights (SDR 51,500,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Sched- ule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Associa- tion, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. The Closing Date shall be August 31, 1991 or such later date as the Association shall establish. The Asso- ciation shall promptly notify the Borrower of such later date. Section 2.04. (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 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Commitment charges and service charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each Febru- ary 15 and August 15 commencing August 15, 1995, and ending February 15, 2035. Each installment to and including the install- ment payable on February 15, 2005 shall be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter shall be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United States is hereby specified for the purposes of Section 4.02 of the General Condi- tions. 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, without any limitation or restric- tion upon any of its other obligations under the Development Credit Agreement, shall cause WB to perform in accordance with the provisions of the Project Agreement all the obligations of WB therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable WB to perform such -4- obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Credit available to WB in accordance with the Borrower's standard arrangement for development assistance to the States of India. Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to the Project Agreement. Section 3.03. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to in- surance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by WB pursuant to Section 2.03 of the Project Agreement. ARTICLE IV Remedies of the Association Section 4.01. Pursuant to Section 6.02 (h) of the General Conditions, the following additional events are specified: (a) WB shall have failed to perform any of its obligations under the Project Agreement. (b) As a result of events which have occurred after the date of the Development Credit Agreement, an extraordinary situation shall have arisen which shall make it improbable that WB will be able to perform its obligations under the Project Agreement. Section 4.02. For the purposes of Section 7.01 (d) of the General Conditions, the following additional event is speci-- fied, namely, that the event specified in paragraph (a) of Sec- tion 4.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower and WB. -5- ARTICLE V Effective Date; Termination Section 5.01. The following is specified as an additional matter, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association, namely, that the Project Agreement has been duly authorized or ratified by WB, and is legally bind- ing upon WB in accordance with its terms. Section 5.02. The date 90 days after the date of this Agree- ment is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Section 4.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. Any Secretary, Additional Secretary, Joint Secretary, Director, Deputy Secretary or Under Secretary of the Department of Economic Affairs in the Ministry of Finance of the Borrower is dtsigaated as represent.tive 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: The Secretary to the Government of India MIinistry of Finance Department of Economic Affairs New Delhi, India Cable address: Telex: ECOFAIRS 953-313546 New Delhi -6- 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 duly authorized representatives, 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. INDIA By S AK/CTc y IAuthorized Representative INTERNATIONAL DEVELUPMENT ASSOCIATION By O Regional Vice President -7- SCHEDULE I 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) Civil works 29,900,000 75% (2) Equipment 1,500,000 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 70% of local ex- penditures for other items pro- cured locally (3) Furniture and 2,800,000 70% vehicles (4) Staff salaries 7,700,000 50% (J) Haterials, sup- 3,800,000 50%. plies, operating and maintenance costs (6) Unallocated 5,800,000 TOTAL 51,500,000 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 tne 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. Notwithstanding the provisions of paragraph 1 above, no withdrawa's shall be made in respect of payments made for expen- ditures pzior to the date of this Agreement, except that with- drawals, in an aggregate amount not exceeding the equivalent of SDR 500,000, may be made on account of payments made for expen- ditures before that date but after November 5, 1984. SCHEDULE 2 Description of the Project The objectives of the Project are to assist the Borrower in the further development and implementation of its voluntary family welfare program and the attainment of its population goals in WB. The Project consists of the following parts, subject to such modification, thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Service Delivery: The construction, refurbishing, or provision of rental accommodation, where necessary, of subcenters, new PHCs, old PHCs, CHCs and maintenance workshops; provision of furniture, equipment and vehicles; incremental staff; and maintenance of equipment and vehicles to extend and improve the coverage of family welfare services in four districts. Part B: Demand Generation: (i) Provision for community education, IEC materials including the production, printing and distribution of films, incremental staff, furniture and equipment, and the replacement of vehicles; staff retraining and study tours to support service delivery activities and gene- rate demand for family welfare services; and (ii) Provision for allowances for trainers, operating costs of lectures and seminars; material production, incre- mental staff, furniture, equipment and vehicles to introduce population education in B.Ed. and teacher training colleges, workers' educational programs, panchayat organizations and adult education groups in order to involve communities in the family welfare program and reinforce demand generating activities. Part C: Training: The construction, furnishing and equipping of one SIHFW, one general nurse midwife training school, one supervisor training school, and field training annexes; incremental staff; operating - 10 - and maintenance costs and vehicles to provide basic training for incremental staff and systematic retraining to upgrade profes- sional skills throughout WB. Part D: Monitoring and Evaluation: Introduction of a managment information and evaluation system throughout WB, including incremental staff, equipment and vehicles; longitudinal sample surveys and operational research to monitor and evaluate Project and program performance as well as indicate new approaches. Part E: Project Management: Provision of furniture, equipment and vehicles and incre- mental staff required to implement the Project. The Project is expected to be completed by August 31, 1990. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the day of 198 FOR SECRETARY