Ghana - Accra District Rehabilitation Project : Credit 1564 - Credit Agreement - Conformed

OFFICIAL 0"CUW1T 'CREDIT NUMBER 1564 GH Development Credit Agreement (Accra District Rehabilitation Project) between REPUBLIC OF GHANA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated Xo.k Oo% , 1985 CREDIT NUMBER 1564 GH DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1985, between REPUBLIC OF GHANA (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) Part A (1) of the Project will be carried out by the Ghana Highway Authority with the Borrower's assistance and, as part of such assistance, the Borrower will make available to the Ghana Highway Authority part of the proceeds of the Credit as provided in this Agreement; (C) Part B (2) of the Project will be carried out by the Accra City Council with the Borrower's assistanc? and, as part oif such assistance, the Borrower will make available to the Accra City Council part of 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 Agreements of even date herewith between the Association and, respectively, the Ghana Highway Authority and the Accra City Council; 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 and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: -2- (a) "ACC" means Accra City Council; (b) "ACC Project Agreement" means the Project Agreement of even date with the Development Credit Agreement between the Association and ACC; (c) "ADRU" means Accra District Roads Unit; (d) "Cedi" means the currency of the Borrower; (e) "GHA" means Ghana Highway Authority; (f) "GHA Project Agreement" means the Project Agreement of even date with the Development Credit Agreement between the Association and GRA; (g) "GIMPA" means Ghana Institute of Management and Public Administration; (h) "LGTS" means Local Government Training School; (i) "MFEP" means Ministry of Finance and Economic Planning; (j) "MLG" means Ministry of Local Government; (k) "MRH" means Ministry of Roads and Highways; (1) "MWH" means Ministry of Works and Housing; (m) "TSC" means Technical Services Center, a unit of MWH; (n) "WFP" means World Food Program; (o) "Project Preparation Advances" means the aggregate of the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters dated October 31, 1984 and December 4, 1984 between the Borrower and the Association, the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters dated January 13, 1984 and May 2, 1984 between the Borrower and the Association, and the project preparation advance granted by the Bank to the Borrower pursuant to an exchange of letters dated May 21, 1976 and June 1, 1976 between the Borrower and the Association; and -3- (p) "Special Account" means the account referred to in Sec- tion 2.02 (t) of this Agreement. ARTICLE 1I The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to twenty-two million five hundred thousand Special Drawing Rights (SDR 22,500,000). 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 agreemen.t 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) The Borrower shall, for the purposes of the Project, open and maintain in Dollars 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 accordance with the provisions of Schedule 5 to this Agreement. (c) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself and the Bank the amounts required to repay the principal amount of the Project Preparation Advances 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 Advances shall thereupon be cancelled. Section 2.03. The Closing Date shall be June 30, 1991 or such later date as the Association shall establish. The Asso- ciation shall promptly notify the Borrower of such later date. -4- 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. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions 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 May 15 and November 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 15 and November 15 commencing May 15, 1995, and ending November 15, 2034. Each installment to and including the installment payable on November 15, 2004, 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 of America 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 Part A (2) of the -5- Project through TSC, Part B (1) of the Project through MLG, and coordinate and administer all Parts of the Project through TSC, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and urban planning practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause ACC and GRA to perform in accordance with the provisions of, respectively, the ACC Project Agreement and the GHA Project Agreement all the obligations 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 ACC and GHA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall make the proceeds of the Credit allocated to Part A (1) and Part B (2) of the Project available to GHA and ACC, respectively, on a grant basis. (d) Without limitation upon the provisions of paragraphs (a) and (b) of this Section, the Borrower shall cause the Project to be carried out in accordance with the Implementation Program set forth in Schedule 3 to this Agreement, as such Schedule may be amended from time to time by Agreement between the Borrower and the Association. Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for Parts A (2) and B (1) of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 4 to this 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) in respect of Parts A (1) and B (2) of the Project shall be carried out by GHA and ACC, respectively, pursuant to Section 2.03 of, respectively, the GHA Project Agreement and the ACC Project Agreement. -6- Section 3.04. Without limitation upon the generality of the provisions of Section 3.01 of this Agreement, the Borrower shall not later than one month before the start of each calendar quarter: (i) prepare and submit for approval by the Association in respect of that quarter a work program together with an estimate of the Borrower's expenditures on the Project; and (ii) furnish to ADRU, GHA, ACC and all other departments and agencies of the Borrower involved in the Project an amount in Cedis which together with the Cedi resources then available to each such department or agency will enable it to meet its estimated expenditures on the Project during such quarter. Section 3.05. The Borrower, through MRH and MLG, shall cause GHA and ACC to cooperate in directing the operations of ADRU and to take all steps necessary to enable the transfer of ADRU from GHA to ACC by December 31, 1987, at the latest, in a manner satisfactory to the Association. The Borrower, in cooperation with GHA and ACC, shall review annually with the Association the progress made toward strengthening ADRU and its transfer to ACC. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained separate accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, of TSC and MLG in respect of Parts A (2) and B (1), respectively, of the Project. (b) The Borrower, through TSC, shall maintain consolidated accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures in respect of the Project of GHA, ACC and of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (c) 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, orders, 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) enaIe the Association's representatives to examine such records. (d) The Borrower shall: (i) have the consolidated accounts referred to in paragraph (b) of this Section 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 within four months after each fiscal year a copy of the unaudited consolidated accounts and, as soon as available, but in any case not later than eight 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 requested, including without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (c) 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 information concerning said accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably request, including quarterly reports on the progress of the Project. Section 4.02. the Borrower, shall not later than four weeks after the end of each calendar quarter, furnish to the Associa- tion with respect to such quarter, a report on the progress of the Project, broken down by the several Parts thereof as set forth in Schedule 2 to this Agreement, together with a statement of expenditures pertaining thereto. Section 4.03. In pursuance of Section 3.01 of this Agreement and without limitation upon any of its other obligations under this Agreement, the Borrower shall make sufficient foreign ex- change available in a timely manner for the purchase of equipment and vehicles required by ACC to replace equipment and vehicles needed for its financial management and its roads and drainage maintenance and solid waste management programs at the end of their useful life. ARTICLE V Remedies of the Association Section 5.01. Pursuant to Section 6.02 (h) of the General Conditions, the following additional events are specified: -8- (a) GHA shall have failed to perform any of its obligations under the GHA Project Agreement. (b) ACC shall have failed to perform any of its obligations under the ACC Project Agieement. (c) 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 GHA or ACC, as the case may be, will be able to perform its obligations under, respectively, the GHA Project Agreement or the ACC Project Agreement. (d) The Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of GHA or ACC or for the suspension of the operations of GHA or ACC. (e) ACC shall have failed to fund its road and drainage maintenance and solid waste collection programs in an amount acceptable to the Association and based on the results of the annual review referred to in paragraph 3 of Section E of Sched- ule 3 to this Agreement. Section 5.02. For the purposes of Section 7.01 (d) of the General Conditions, the following additional events are speci- fied: (a) the events specified in paragraphs (a), (b) or (e) of Section 5.01 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 (b) the event specified in paragraph (d) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit -9- Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) TSC shall have installed an appropriate accounting system acceptable to the Association for keeping consolidated accounts for all components of the Project; and (b) the Borrower shall have provided the Association with evidence satisfactory to it that the Special Account has been opened. Section 6.02. The following are specified as additional matters, 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: (a) that the GHA Project Agreement has been duly authorized or ratified by GHA, and is legally binding upon GHA in accordance with its terms; and (b) that the ACC Project Agreement has been duly authorized or ratified by ACC, and is legally binding upon ACC in accordance with its terms. Section 6.03. The date 120 days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sec- tion 4.03 of this Agreement and the provisions of paragraphs (d) and (e) of Section 5.01 of this Agreement shall cease and deter- mine on the date on which the Development Credit Agreement shall terminate or on the date 15 years after the date of this Agree- ment, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Provisional National Defence Council Secretary for Finance and Economic Planning of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: - 10 - For the Borrower: The Provisional National Defence Council Secretary Ministry of Finance and Economic Planning P. 0. Box M 40 Accra, Ghana Cable address: ECONOMICOM Accra For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 Uni.ted 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 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. REPUBLIC OF GHANA By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By e, Regional 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) Works (a) for Part A (1) (a) of the Project (i) to Decem- 3,470,000 100% of foreign ber 31, expenditures and 1986 90% of local expenditures (ii) thereafter 2,250,000 100% of foreign expenditures and 10% of local expenditures (b) for Part A 610,000 100% of foreign (1) (c) of the expenditures and Project 10% of local expenditures (c) for Part A (2) of the Project (i) to Decem- 720,000 100% of foreign ber 31, expenditures and 1986 90% of local expenditures (ii) thereafter 310,000 100% of foreign expenditures and 10% of local expenditures - 13 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (2) Vehicles, equipment, spare parts, office equipment and supplies, including local dealer preparation and installa- tion of directly imported vehicles and equipment (a) for Part A (1) of 2,350,000 100% of foreign the Project expenditures and 90% of local expenditures (b) for Parts A (2) 310,000 100% of foreign and B of the expenditures and Project 90% of local expenditures (3) Materials for road 1,020,000 100% of foreign maintenance expenditures (4) Training, consultants' and experts' services: (a) for Part A (1) (b) 820,000 100% of foreign expenditures and 90% of local expenditures (b) for Part A (1) (a) and (d) of the Project (i) to December 31, 720,000 100% of foreign 1986 expenditures and 90% of local expenditures (ii) thereafter 310,000 100% of foreign expenditures and 15% of local expenditures -14- Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (c) for Part A (2) 410,000 100% of foreign of the Project expenditures and 90% of local expenditures (d) for Part B (1) 1,430,000 100% of foreign of the Project expenditures and 90% of local expenditures (e) for Part B (2) 720,000 100% of foreign of the Project expenditures and 90% of local expenditures (5) Refunding of Project 1,020,000 Amount due under Preparation Advances Section 2.02 (c) of this Agreement (6) Special Account 720,000 Amounts to be deposited pur- suant to para- graph 3 (a) of Schedule 5 to this Agreement (7) Unallocated 5,310,000 TOTAL 22,500,000 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 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. - 15 - 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) Category (1) (b) until the Association shall have approved the works proposed to be carried out; and (b) Category (4) (a) until the Association shall have approved the terms of reference for the study referred to in Part A (1) (b) of the Project. - 16 - SCHEDULE 2 Description of the Project The objectives of the Project are: (i) to remove transport bottlenecks in Accra; (ii) to demonstrate cost-effective improve- ments to basic infrastructure in a small central area of Accra; (iii) to strengthen the institutions responsible for infrastruc- ture maintenance in Accra; and (iv) to increase municipal revenues of Accra City Council. 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: Infrastructure (1) Rehabilitation and Maintenance of Roads and Drainage in Accra: (a) Establishment and execution of a six-year program of (i) completion and rehabilitation of major roads and (ii) periodic and routine maintenance of the road and drainage net- work. (b) Execution of a study of the Accra Central Business District to determine road network requirements and traffic man- agement measures. (c) Execution of pilot measures and minor works indicated by the results of the study carried out under paragraph 1 (b) above. (d) Strengthening of ADRU through improved procedures, technical assistance, temporary secondment of GRA and ACC tech- nical staff, and modernization and expansion of its equipment fleet. (2) Basic Infrastructure in East Maamobi: Provision of basic roads, drainage, water supply, electri- city, sanitation and garbage disposal in a 30 ha area of Nima- Maamobi east of the Nima highway and north of the Nima stream, and technical assistance, vehicles and equipment therefor. - 17 - Part B: Resource Mobilization (1) Property Valuation: Referencing and revaluation of all properties first in Accra and thereafter in other cities, improvement of valuation management and control systems, and training of valuers and other technical personnel. (2) Municipal Revenues Mobilization: Improvement of ACC's revenue collection, financial manage- ment, and accounting systems, training of ACC staff, and execu- tion of the "Pay Your Rates" public information campaign. The Project is expected to be completed by December 31, 1990. - 18 - SCHEDULE 3 Implementation Program A. Overall Coordination and Administration of the Project 1. Overall coordination and administration of the Project will be assured by the Technical Services Center of the Ministry of Works and Housing. TSC will be strengthened through the recruit- ment of a project engineer, secondment of engineering and accounting staff from MWH or other government agencies, and by short-term technical assistance in accounting and such other areas as may be necessary for the efficient coordination and administration of the Project. TSC will maintain the consolidated project accounts referred to in Section 4.01 (b) of this Agree- ment and will coordinate the disbursement of the Credit to all components of the Project. TSC will operate the account referred to in Section 2.02 (b) of this Agreement, and will make payment from this account for Project expenditures certified by ADRU, GRA, ACC, and all Government agencies included in the execution of the Project. 2. To assist TSC and to give it guidance in its role of coordi- nator of all Project activities, the inter-agency coordinating committee will be maintained. The committee will be chaired by the head of MWH and will include representatives of ADRU, GHA, ACC, MLG, MRH and MFEP. B. Part A (1) of the Project 1. GHA's Accra District Roads Unit will be responsible for implementation of Part A (1) of the Project. ADRU will be strengthened through secondment of an expert by GRA and through technical assistance and training. The GHA seconded expert will direct ADRU until transfer of ADRU from GHA to ACC. ACC will recruit or designate a deputy to said expert to assist him and to assume the management of ADRU following its transfer from GRA to ACC. All procurement for ADRU will be handled by GRA until its transfer to ACC upon which ACC will assume responsibility for ADRU's procurement. Supervision of all civil works started under Part A (1) of the Project will remain the responsibility of GHA until their completion. ADRU staff will receive food in addition to wages under an incentive program managed by WFP. Training of ADRU staff will focus on programming and operation of continuous road and drainage maintenance, and on vehicle and equipment fleet maintenance and operation. - 19 - 2. Vehicles and equipment procured by GHA for the road and drainage maintenance program shall be registered in the name of ACC. They shall be maintained by ADRU in its own workshop. Beginning with the Effective Date of this Agreement, ACC shall establish an account for vehicle and equipment replacement. ACC shall annually provide in its budget and credit to such account such amounts as shall be required to replace said vehicles and equipment at the end of their useful life as determined in accor- dance with sound engineering and financial practices. 3. Pending the transfer of ADRU from GHA to ACC: (i) GHA and ACC will, not later than October 31 of each year, agree on sharing the recurrent expenses of road and drainage maintenance for the forthcoming fiscal year and make appropriate provision of their respective budgets for such shares; and (ii) GHA will assure the supervision of the road and drainage maintenance pro- gram in its entirety. Following such transfer, ACC will assure full operating and financial responsibility for ADRU's road and drainage maintenance program. 4. The roads and drainage rehabilitation and maintenance pro- gram will comprise: (i) completion of a key motorway segment (Motorway III from Nsawam Road to Winneba Road); (ii) rehabilitation of priority truink road segments as aTreed upon from time to time between the Borrower and the Association; and (iii) institution of a maintenance program comprising: (a) periodic maintenance averaging about 50 km of roads and drainage per year, increasing from about 10 km in the first year to about 90 km in the sixth year; and (b) routine maintenance averaging about 325 km per year, increasing from about 25 km in the first year to about 550 km in the sixth year, as agreed upon from time to time between the Borrower and the Association. The maintenance program will be designed annually on the basis of priority works identified during each year. C. Part A (2) of the Project 1. Part A (2) of the Project will be carried out by TSC, - 20 - 2. The following works will be undertaken and the following facilities will be installed in the East Maamobi area: construc- tion of approximately 2.2 km of up to 10 m, right-of-way (ROW) bitumen-surfaced roads with associated drainage, construction of approximately 1.65 km of up to 5 m ROW bitumen-surfaced footpaths, about 4.3 km of 10 cm and 20 cm diameter waterpipes, installation of 10 fire hydrants, 8 multi-compartment public latrines, 11 refuse containers of about 10 m3 capacity, and about 2.2 km of low tension overhead cable and limited street lighting. The electrical network will not be designed for private connections. The capacity of the water system will be designed to permit individual connections at the option of the building owners. 3. The Borrower shall provide timely and adequate compensation to the owners of structures destroyed in connection with the infrastructure installation and for land acquired for rights-of-way and public facilities. D. Part B (1) of the Project 1. Part B (1) of the Project will be carried out by the Valua- tion Department of MLG or such agency to take over the functions of said Valuation Department as the Borrower may establish. Prior to establishing such agency, the Borrower shall consult with the Association on the organization and staffing of such agency and shall take all measures necessary to ensure the smooth transfer of all staff, technical assistance, vehicles and equipment necessary to carry out Part B (1) of the Project from the Valua- tion Department to said agency. 2. The Valuation Department shall employ local private valuers (approximately 360 staff-months) to assist it in referencing all properties in Accra and shall obtain technical assistance from three qualified valuers (approximately three years each) to undertake the revaluation of real property in Accra and, time permitting, elsewhere in Ghana. A qualified valuer will be employed for approximately 12 staff-months to improve the Valuation Department's in-house training program and to develop improved management and control techniques for application in a country-wide revaluation program. The Valuation Department shall obtain short-term technical assistance to satisfy such other needs as may be identified during the execution of activities under Part B (1) of the Project. Training abroad of technicians and valuers shall also be provided. - 21 - E. Part B (2) of the Project 1. Part B (2) of the Project will be carried out by ACC, which will obtain such technical assistance as may be required for the purpose. 2. ACC's municipal revenue mobilization program will focus on: (a) increased revenue collection, (b) improved planning and budgetary procedures, and (c) improved accounting systems and controls. 3. Increased revenue collection will result from increased charges, increased collection targets, stepped-up enforcement and a public awareness campaign. ACC will annually review with the Association and revise its charges (including property rates, market fees, licenses, permits and fees) as required to permit the financing of its road and drainage maintenance and solid waste collection programs. Collection targets for 1985 will be increased to correspond to 1985 revenue estimates and will be based on overall collection levels of 80% of local assessments for fees and charges and 60% for property tax rates. Target collection levels will be revised annually. It is the intention that by end 1989 collections on property rates shall be at least 70%, and collections on fees and charges at least 90%. Enforcement of debt collection shall be enhanced through the recruiting of additional staff for the Solicitor's Department and through improved procedures for debt collection. Collection of municipal property tax arrears of parastatal entities shall be improved and increases shall be sought in the Government's contribution in lieu of full assessment on Government property. The timing of the "Pay Your Rates" public information campaign shall be coordinated with the timing of scheduled improvements in road maintenance and solid waste collection and in the upgrading of East Maamobi. 4. Planning and budgeting procedures will be improved through, inter alia, change-over to a service-oriented accounting and budgeting system, the establishment of annual action plans for ACC's operating departments and the adoption of a system of three-year rolling financial plans and an integrated Accra District budget. 5. The accounting system will be improved through, inter alia, adoption of a new coding system and conversion to a fully auto- - 22 - mated management information system. Workshops on the new accounting and management information system will be organized and procedure manuals will be introduced. Improved billing forms and accounting records will be introduced and amended as needed following a year's testing. The internal and external audits will be restructured to eliminate unnecessary duplication. 6. Training programs for ACC staff in subjects relevant to the activities to be carried out under Part B (2) of the Project will be established and carried out. Training will be provided by GIMPA and LGTS and such other entities as the Borrower and the Association may agree. To this end, the Borrower shall cause GIMPA and LGTS to employ such technical assistance and procure such equipment and facilities as are necessary to deliver effective training assistance. - 23 - SCHEDULE 4 Procurement and Consultants' Services I. Procurement of Goods and Works A. International, Competitive Bidding 1. Except as provided in Part C hereof, goods shall be procured under contracts awarded in accordance with procedures consistent with those set forth in Sections I and II of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in August 1984 (the Guidelines). 2. Contracts for vehicles and civil works equipment will be grouped to the maximum extent practicable to allow bulk procurement. B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A (1) of this Schedule, goods manufac- tured in Ghana may be granted a margin of preference in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 thereto. C. Other Procurement Procedures 1. Works to be carried out under Part A (2) of the Project may be procured on the basis of local competitive bidding in accord- ance with procedures acceptable to the Association. 2. Contracts for office equipment and supplies estimated to cost less than $20,000 equivalent may be procured on the basis of price quotations from at least three suppliers, provided that the aggregate amount of such contracts shall not exceed $260,000 equivalent. 3. Periodic and routine maintenance of the Accra road and drainage network may be carried out by ADRU by force account. D. Review by the Bank of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: - 24 - (a) With respect to each contract for civil works estimated to cost the equivalent of $500,000 or more and each contract for vehicles, equipment, spare parts, office equipment and supplies and raw materials estimated to cost the equivalent of $200,000 or more, the procedures set forth in paragraphs 2 and 4 of Appen- dix 1 to the Guidelines shall apply; provided, however, that where payments for such contract are to be made out of the pro- ceeds of the Special Account, the two conformed copies of the contract required to be furnished to the Association, pursuant to paragraph 2 (d) of Appendix 1 to the Guidelines, shall be furnished to the Association prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the pre- ceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply; provided, however, that where payments for such contract are to be made out of the proceeds of the Special Account, the two conformed copies of the contract required to be furnished to the Association, pursuant to paragraph 3 of Appendix 1 to the Guidelines together with the other information specified therein, shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this Agreement. (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. 2. The figure of 20% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. II. Employment of Consultants In order to assist the Borrower in coordinating and admini- stering the Project through TSC and in carrying out Part B (1) of the Project, the Borrower shall employ accounting and engi- neering consultants and valuation experts whose qualifications, experience and terms and conditions of employment shall be satis- factory to the Association. Such consultants and experts shall be selected in accordance with principles and procedures satis- factory 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. - 25 - SCHEDULE 5 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 the Development Credit Agreement; (b) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods, works and services required for the Project and to be financed out of the proceeds of the Credit allocated from time to time to Categories (1) through (4) in accordance with the provisions of Schedule 1 to the Development Credit Agreement; and (c) the term "Authorized Allocation" means an amount in Dollar equivalent to the amount allocated to Category (6) which is to be withdrawn from the Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) 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. (a) On the basis of a request or requests by the Borrower for a deposit or deposits which add up to the aggregate amount of the Authorized Allocation, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit in the Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the Association requests for replenishment of the Special Account at such inLervals as the Association shall specify. On the basis of such requests, the Association shall withdraw from the Credit Account and deposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the Special Account for eligible expenditures. Except as the Association may otherwise agree, each such deposit shall be withdrawn by the Association from the Credit Account under the respective Categories (1) through (4), and in the respective equivalent amounts, as shall have been - 26 - justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. For each payment made by the Borrower out of the Special Account for which the Borrower requests replenishment pursuant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Association, prior to or at the time of such request, such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expen- ditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made by the Association when either of the following situations first arises: (i) the Association shall have determined that all further withdrawals can be made directly by the Borrower from the Credit Account in accordance with the provisions of paragraph (a) of Section 2.02 of this Agreement; or (ii) unless otherwise agreed by the Association, when the total unwithdrawn amount of the Credit allo- cated to Categories (1) through (4), minus the amount of any outstanding qualified agreement to reimburse made by the Association and of any outstanding special commitment entered into by the Association 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 Authorized Allocation. (b) Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to Catego- ries (1) through (4) shall follow such procedures as the Association shall specify by notice to the Borrower. Except as the Association shall otherwise agree, such further withdrawals shall be made only after and to the extent that 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. - 27 - 6. (a) If the Association shall have determined at any time that 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 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. Unless otherwise agreed by the Association, no further deposit by the Association into the Special Account shall be made until the Borrower has made such deposit or refund. (b) If the Association shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. 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 198S. FOR SECRETARY