China - Forestry Development Project : Credit 1605 - Project Agreement - Conformed

DOGUMENTS iREDIT NUMBER 1605 CHA Project Agreement (Forestry Development Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and GUANGDONG PROVINCE HEILONGJIANG PROVINCE and SICHUAN PROVINCE Dated 5 , 1985 CREDIT NUMBER 1605 CHA PROJECT AGREEMENT AGREEMENT, dated , 1985, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and GUANGDONG PROVINCE, HEILONGJIANG PROVINCE and SICHUAN PROVINCE (the Provinces). WHEREAS by the Development Credit Agreement of even date herewith between People's Republic of China (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to forty-seven million eight hundred thousand Special Drawing Rights (SDR 47,800,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that the Provinces agree to undertake such obligations toward the Associa- tion as are set forth in this Agreement; and WHEREAS the Provinces, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, have agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Preamble to this Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "PFD" means the Provincial Forestry Department of each of the Provinces; (b) "Provincial PMO" means the Provincial Project Manage- ment Office established within each of the PFDs; and (c) "Local PMO" means the local Project Management Office established within each of the SFFs. -2- ARTICLE II Execution of the Project Section 2.01. Each of the Provinces declares its commitment to the objective of the Project relating to Part A thereof as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall carry out its respective part of Part A of the Project described in said Schedule through its PFD with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and forestry practices, and shall provide, or*cause to be provided, promptly as needed, the funds, facilities, services and other resources required for its respective part of Part A of the Project. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for Part A of the Project and to be financed out, of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to the Development Credit Agreement. Section 2.03. Each of the Provinces shall carry out 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 insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement and Part A of the Project. Section 2.04. For the purposes of carrying out its respec- tive part of Part A of the Project, each of the Provinces shall: (a) maintain the Provincial PMO within such Province, with competent staff in adequate numbers and with functions and responsibilities acceptable to the Association; and (b) cause each of the SFFs within its jurisdiction to main- tain the Local PMO within such SFF with competent staff in ade- quate numbers and with functions and responsibilities acceptable to the Association. Section 2.05. (a) Each of the Provinces shall, at the request of the Association, exchange views with the Association with regard to the progress of Part A of the Project, the per- formance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) Each of the Provinces shall promptly inform the Asso- ciation of any condition which interferes or threatens to inter- fere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by such Province of its obligations under this Agreement. ARTICLE III Financial Covenants Section 3.01. (a) Each of the Provinces shall maintain records and accounts adequate to reflect in accordance with sound accounting practices its operations and financial condition in respect of activities related to Part A of the Project. (b) Each of the Provinces shall: (i) have the accounts referred to in paragraph (a) of this Section including the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent 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 said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning said accounts and the audit thereof and said records as the Association shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals are requested from the Credit Account on the basis of statements of expenditure, each of the Provinces shall: (i) maintain, in accordance with paragraph (a) of this Section, separate records and accounts reflecting such expenditures; (ii) retain, until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other documents evidencing such expenditures; (iii) enable the Association's representatives to examine such records; and (iv) ensure that such separate accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report thereof contains, in respect of such separate accounts, a separate opinion by the said auditors as to whether the proceeds of the Credit withdrawn in respect of such expenditures have been used for the purpose for which they were provided. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of the Provinces thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) the date twenty years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify the Provinces of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancella- tion or suspension under the General Conditions. -5- ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the.parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: 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) For Guangdong Province: Guangdong Provincial Forestry Department Guangzhou, Guangdong Province People's Republic of China Cable address: Guangdong Provincial Forestry Department Guangzhou, Guangdong For Heilongjiang Province: Heilongjiang Provincial Forestry Department Harbin, Heilongjiang Province People's Republic of China -6- Cable address: Heilongjiang Provincial Forestry Department Harbin, Heilongjiang For Sichuan Province: Sichuan Provincial Forestry Department Chengdu, Sichuan Province People's Republic of China Cable address: Sichuan Provincial Forestry Department Chengdu, Sichuan Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of any of the Provinces may be taken or executed by the Deputy Director of the PFD of such Province or such other person or persons as such Deputy Director shall designate in writing, and each of the Provinces shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collec- tively but one instrument. 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. INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President East Asia and Pacific GUANGDONG PROVINCE HEILONGJIANG PROVINCE SICHUAN PROVINCE By Authorized Representative 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 198-3 FOR SECRETARY