Niger - Transport Sector Project : Credit 1706 - Credit Agreement - 2 - Conformed

AFRICAN-FAC1LITY CREDIT NUMBER A-18 NIR African Facility Credit Agreement (Transport Sector Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FACILITY for SUB-SAHARAN AFRICA Dated , 1986 AFRICAN FACILITY CREDIT NUMBER A-18 NIR AFRICAN FACILITY CREDIT AGREEMENT AGREEMENT, dated <c , 1986, between REPUBLIC OF NIGER (th4Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FACILITY for SUB-SAHARAN AFRICA (the Administrator). WHEREAS (A) the Executive Directors of the International Development Association (IDA) have established by their Resolu- tion No. IDA 85-1 of May 21, 1985, (the Resolution), a Special Facility for Sub-Saharan Africa (the African Facility) consti- tuted by the funds which shall be contributed by the Inter- national Bank for Reconstruction and Development (the Bank) and other donors and administered by IDA, acting as Administrator of the African Facility, for the purpose of, and in accordance with, the provisions of the Resolution; (B) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested assistance from the resources of the African Facility in the financing of the Project, and the Administrator has determined that such assistance would be in accordance with the provisions of the Resolution; (C) the Borrower has also requested IDA to provide addi- tional assistance towards the financing of the Project and by an agreement of even date herewith between the Borrower and IDA (the Development Credit Agreement), IDA is agreeing to provide such assistance in an aggregate principal amount equivalent to thirteen million Special Drawing Rights (SDR 13,000,000) (the IDA Credit); (D) the Administrator has received a letter dated Decem- ber 30, 1985 from the Borrower describing a program of objec- tives, policies and actions designed to achieve structural adjustment of the Borrower's economy, declaring, inter alia, the Borrower's commitment to the execution of the transport sector adjustment program described in Annex 3 thereto; (E) Pursuant to Section F of the Resolution, the Government of Japan (Japan) has agreed to provide Japanese funds in the form of grants (the SJF Grants) in support of programs of structural change, policy reform and institutional improvement in countries which are eligible for financing from the African Facility's resources; -2- (F) by the notes exchanged between Japan and IDA on November 20, 1985, (the Notes) concerning the SJF grants, Japan and IDA agreed that IDA will act as Administrator of the Japanese funds in accordance with the provisions of the Notes; (G) the Borrower has requested Japanese funds from the Administrator for the financing of part of the Project, in an amount equivalent to four million US dollars (US$4,000,000), and the Administrator has determined that provision of such funds (the Japanese Grant) would be in accordance with the provisions of the Resolution and the Arrangement; (H) under the Notes concerning the provision of Japanese funds in the form of loans as a part of Japan's cooperation with the African Facility the Borrower intends to obtain from the Japan Overseas Economic Cooperation Fund (hereinafter called OECF) a loan (the OECF Loan) in an amount equivalent to sixteen million US dollars (US$16,000,000) to assist in the financing of the Project; (I) the Borrower intends to contract from the Caisse Centrale de Cooperation Economique (hereinafter called CCCE) a Loan in an amount of three billion CFAF (CFAF 3,000,000,000) (the CCCE Loan) to assist in the financing of the Project on terms and conditions set forth in an agreement (the CCCE Loan Agreement) to be entered into between the Borrower and CCCE; (J) the Borrower intends to contract from the African Development Fund (AfDF) a loan (the AfDF Loan) in an amount of ten million AfDF currency units (AfDF-CU 10,000,000) to assist in financing part of the Project on the terms and conditions set forth in an agreement (the AfDF Loan Agreement) to be entered into between the Borrower and AfDF; (K) the Borrower int,-s to contract from the European Development Fund (EDF) a grant (the EDF Grant) in an amount of ECU 20,000,000 equivalent to US$20,000,000 to assist in financing part of the Project on the terms and conditions set forth in an agreement (the EDF Grant Agreement) to be entered into between the Borrower and EDF; and WHEREAS the Administrator has agreed on the basis inter alia, of the foregoing, to extend the African Facility Credit to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: -3- ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of the International Development Associa- tion, dated January 1, 1985, with the modifications set forth below (the General Conditions) constitute an integral part of this Agreement: (a) the term "Association", when used in the General Conditions, means the International Development Association acting as Administrator of the African Facility, except in the phrase "member of the Association" in Sections 2.01 (5), 4.02 (b) and 6.02 (e) thereof; (b) the terms "Development Credit Agreement", "Credit" and "Credit Account", when used in the General Conditions, are amended to read "African Facility Credit Agreement", "African Facility Credit" and "African Facility Credit Account", respec- tively; (c) the last sentence of Section 3.02 and the second sentence of Section 5.01 are deleted; and (d) in Sections 6.02 and 7.01, the term "Association" shall also include the International Development Association acting in its own capacity. 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: (a) "Part II member of IDA" means a member of IDA with respect to which the terms and condiL ons of membership are those prescribed in the Articles of Agreement of IDA for countries whose names are listed in Part II of Schedule A to those Articles; (b) "RTPH" means the Ministere des Travaux Publics et de l'Habitat of the Borrower; -4- (c) "DMTP" means the Direction du Mat6riel des Travaux Publics of the Borrower; (d) "DTP" means the Direction des Travaux Publics of the Borrower; (e) "BGR" means the Bureau de Gestion Routiare of the Borrower; (f) "Development Credit Agreement" means the agreement of even date herewith between the Borrower and IDA for the Project, as such agreement may be amended from time to time; and such term includes the "General Conditions Applicable to Development Credit Agreements" of IDA, dated January 1, 1985, as applied to such agreement, and all schedules and agreements supplemental to the Development Credit Agreement; (g) "Special Account" meqns the account referred to in Section 2.02 (c) of this Agreement; and (h) "CFAF" means the common currency of the Borrower and the other members of the West African Monetary Union; (i) "Fiscal Year" means the Borrower's fiscal year beginning October 1 and ending September 30; (j) "Transport Study" means the study to be undertaken under IDA Credit No. 1493 NIR; (k) "BDRN" means Banque de Developpement de la Republique du Niger; and (1) "Project Account" means the account referred to in Section 3.03 of this Agreement. ARTICLE II The African Facility Credit Section 2.01. The Administrator agrees to lend to the Borrower on the terms and conditions set forth or referred to in the African Facility Credit Agreement, an amount in various currencies equivalent to thirteen million Special Drawing Rights (SDR 13,000,000). -5- Section 2.02. (a) The amount of the African Facility Credit may be withdrawn from the African Facility Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Administrator, for expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the African Facility Credit. (b) Withdrawals shall be made only on account of expendi- tures for goods produced in, or services supplied from, the territories of: (i) any Part II member of IDA; and (ii) any country designated by the Administrator as meeting the provisions set forth in paragraphs 4 (f) (ii) and (iii) of the Resolution. (c) The Borrower shall, for the purposes of the Project, open and maintain in CFAF a special account in a commercial bank on terms and conditions satisfactory to the Administrator. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 4 to this Agreement. (d) The Borrower shall, to the extent possible, withdraw the proceeds of the African Facility Credit before the proceeds of the Japanese Grant and the OECF Loan, and withdraw the proceeds of the Japanese Grant and the OECF Loan before the proceeds of the Credit. Section 2.03. The Closing Date shall be June 30, 1993 or such later date as the Administrator shall establish. The Admin- istrator shall promptly notify the Borrower of such later date. Section 2.04. (a) The Borrower shall pay to IDA a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per -um on the principal amount of the African Facility Credit not ,ithdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the African Facility Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the African Facility Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as IDA shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) - 6 - in the currency specified in this Agreement for 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 IDA a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the amount withdrawn from the African Facility Credit Account and outstanding from time to time. Section 2.06. Commitment charges and service charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.07. The Borrower shall repay to IDA the principal amount of the African Facility Credit in semiannual installments payable on each May 1 and November 1 commencing November 1, 1996 and ending May 1, 2036. Each installment to and including the installment payable on May 1, 2006 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 French Republic is hereby specified for the purposes of Section 4.02 of the General Condi- tions. ARTICLE III Execution of the Project Section 3.01. 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 through its Ministry of Public Works and Housing with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. Except as the Administrator 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 African Facility Credit shall be governed by the provi- sions of Schedule 3 to this Agreement subject to the eligibility restrictions set forth in Section 2.02 (b) of this Agreement. -7- Section 3.03. Without limitation or restriction upon any of its obligations under Section 3.01 of this Agreement, the Bor- rower shall: (a) open, on terms and conditions satisfactory to the Administrator and thereafter maintain for purposes of Parts B, C and D of the Project, a Project Account in BDRN for payment of expenditures under the investment budget; (b) make into such Project Account an initial deposit of forty million CFAF (CFAF 40,000,000); and (c) in addition to the initial deposit referred to in paragraph (b) hereof, quarterly replenish the Project Account so that the funds available in such Project Account shall at all times be sufficient to permit timely and efficient execution of Parts B, C and D of the Project. Section 3.04. (a) Unless the Borrower and the Administrator shall otherwise agree, the Borrower shall furnish to the Administrator for review not later than March 31 of each year until the Project has been completed: (i) the following documents for the past Fiscal Year: (A) an analysis of the Borrower's cost recovery achievements in the transport sector, and (B) an analysis of the Borrower's work program achieve- ments; (ii) the following documents for the upcoming Fiscal Year: (A) the draft expenditure program for the transport sector, (B) the action plan proposal for cost recovery, provided that, for Fiscal Year 1987/88, this action plan will be furnished not later than June 30, 1987, (C) the detailed draft work program and budget, (D) the draft three-year rolling plan for investments and recurrent expen- ditures in the transport sector, and (E) a propo- sal for sub-projects selected under Part B of the Project in accordance with criteria satisfactory to the Administrator. (b) The Borrower shall consult with the Administrator on matters related to the transport sector policy the draft docu- ments referred to under paragraph (a) (ii) above. -8- Section 3.05. The Borrower shall: (a) review with the Admin- istrator the recommendations of the Transport Study; and (b) promptly consult with the Administrator on the timetable of follow-up actions required to implement them. Section 3.06. Upon completion of the BGR study on the mea- sures to control axle loads, the Borrower shall consult with the Administrator on the recommendations of such study and on the program to implement them. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound 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) 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 Administrator; (ii) furnish to the Administrator, as soon as avail- able, 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 Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other informa- tion concerning the said accounts and the audit thereof and said records as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the African Facility Credit Account were made on the basis of statements of expenditure, the Borrower shall: -9- (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, separate records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Admin- istrator has received the audit report for the Fiscal Year in which the last withdrawal from the African Facility Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator'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 said auditors as to whether the pro- ceeds of the African Facility Credit withdrawn in respect of such expenditures were used for the purposes for which they were provided. Section 4.02. Unless the Borrower and the Administrator shall otherwise agree, the Borrower shall allocate in its budgets to cover the cost of routine recurrent maintenance of its roads, an amount equivalent to not less than: (i) CFAF 1,530,000,000 for Fiscal Year 1985/86; (ii) CFAF 1,800,000,000 for Fiscal Year 1986/87; (iii) CFAF 2,160,000,000 for Fiscal Year 1987/88; and (iv) CFAF 2,570,000,000 for Fiscal Year 1988/89; Section 4.03. The Borrower shall undertake an annual review of the scale of DMTP equipment rental rates and whenever such review reveals that the annual revenues of DMTP shall not be sufficient to allow DMTP to cover its full operational cost, repair cost and equipment amortization costs based on replacement costs, the Borrower shall revise such scale in order to allow DMTP to cover said full costs. - 10 - Section 4.04. The Borrower shall cause workshops, road maintenance equipment and related facilities to be operated and adequately maintained and all necessary repairs and replacements thereof to be made in accordance with appropriate engineering practices. Section 4.05. The Borrower shall cause its road network to be reasonably maintained and promptly repaired in accordance with sound engineering practices, and shall provide or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section 4.06. The Borrower shall take reasonable measures to enforce its traffic laws, including axle load control and vehicle inspection requirements, and shall inform the Administrator from time to time on the actions taken and proposed to be taken in this connection. ARTICLE V Remedies of the Administrator Section 5.01. Pursuant to Section 6.02 (h) of the General Conditions, the following additional event is specified, namely, that (a) Subject to paragraph (b) of this paragraph: (i) the right of the Borrower to withdraw the proceeds of any loan or credit (including the IDA Credit) made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement providing therefor; or (ii) any such loan or 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 Administrator that: (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 - 11 - terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. Pursuant to Section 7.01 (d) of the General Conditions, the following additional event is specified, namely that the event specified in paragraph (a) (ii) of Section 5.01 of this Agreement shall occur, subject to the proviso of para- graph (b) of that Section. ARTICLE VI Effective Date; Termination; Designation of Administrator Section 6.01. The following event is specified as an additional condition to the effectiveness of the African Facility Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that all conditions precedent to the effectiveness of the Development Credit Agreement, except for the effectiveness of this Agreement, have been fulfilled. Section 6.02. The date ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.03. In the event that the Executive Directors of IDA decide to terminate the functions of IDA as administrator of the African Facility pursuant to paragraph 10 of the Resolution, the Administrator may, by notice to the Borrower, designate another party which, on the date specified in such notice, shall assume part or all of the rights and obligations of the Admin- istrator under this Agreement in accordance with the Resolution and such decision of the Executive Directors, as specified in such notice. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for Planning 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: - 12 - For the Borrower: Ministere du Plan B.P. 862 Niamey Niger Cable address: Telex: MINIPLAN 5463NI Niamey For the Administrator: Administrator of the African Facility (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) - 13 - 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 NIGER By5 By Aut orized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FACILITY for SUB-SAHARAN AFRICA By /5 Regirdnal Vice President Western Africa - 14 - SCHEDULE 1 Withdrawal of the Proceeds of the African Facility Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the African Facility Credit, the allocation of the amounts of the African Facility Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the African Facility Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works 7,360,000 95% for road con- struction and maintenance (2) Workshop rehab- 520,000 95% ilitation (3) Fuel, lubricants 1,130,000 100% and supplies for Fiscal Year 1986 - 1987 (4) Consultants' 2,170,000 100% services (5) Unallocated 1,820,000 TOTAL 13,000,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for: (a) expenditures prior to the date of this Agreement; and (b) expenditures under Category 1 after September 30 of each year the Project is executed starting September 30, 1987, unless the Administrator shall be satisfied for the upcoming - 15 - with the documents referred to under Section 3.04 (a) (ii) of this Agreement. - 16 - SCHEDULE 2 Description of the Project The objective of the Project is to assist the Borrower in improving the performance of its transport sector through, inter alia, the implementation of an agreed sectoral strategy and investment program, an adequate allocation of resources for routine and periodic road maintenance, the provision of urgent road and bridge rehabilitation works, the construction of economically justified rural roads, institutional strengthening, and improved cost recovery. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Administrator may agree upon from time to time to achieve such objectives. Part A: Routine Maintenance Routine maintenance works on the priority road network including patching bitumen surfaced roads; regrading shoulders, gravel and earth roads; spot regravelling, culvert cleaning, and sand removal. Part B: Construction, Rehabilitation and Periodic Maintenance 1. Regravelling, resurfacing and strengthening of selected road sections. 2. Rehabilitation of drainage structure, and replacement of the Gaya bridge. 3. Improvement and construction of secondary and rural roads and tracks. 4. Construction of the Zinder-Agadez road, widening of the Takieta-Zinder road, rehabilitation of the Djadjiri- Diffa road. 5. Implementation of other agreed road construction, rehabilitation and periodic maintenance sub-projects to be identified. Part C: Equipment and Workshops 1. Acquisition of equipment and vehicles for DMTP. - 17 - 2. Rehabilitation and equipping of workshops. Part D: Studies, Technical Assistance and Training 1. Design, preparation of contract documentation, and con- struction supervision. 2. Assistance for institutional strengthening in planning, equipment management, personnel and financial manage- ment, and training, and for the implementation of cost recovery policies. The Project is expected to be completed by December 31, 1992. - 18 - SCHEDULE 3 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A. International Competitive Bidding 1. Except as provided in Part C hereof, goods and works 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 May 1985 (the Guidelines). For purposes of the African Facility Credit Agreement, all references in the Guidelines to the Bank and to loans shall be deemed to be references to the Administrator and to the African Facility Credit, respectively. 2. The eligibility requirements set forth in Section 2.02 (b) of this Agreement shall be stated in the tender or prequalifica- tion documents for the procurement of such goods and works. Bidders for the works included in Part B of the Project shall be prequalified as described in paragraph 2.10 of the Guidelines. Part B: Preference for Domestic Contractors In the procurement of works in accordance with the proce- dures described in Part A.1 hereof, the Borrower may grant a margin of preference to domestic contractors in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraph 5 of Appendix 2 thereto. Part C: Other Procurement Procedures 1. Goods and works for rehabilitation of drainage structures, regravelling, and workshop rehabilitation may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Administrator. 2. Routine maintenance, regravelling of unpaved roads, and construction of rural roads may be procured under force account by DTP. - 19 - Part D: Review by the Administrator of Procurement Decisions 1. Review of prequalification: With respect to the prequalification of bidders as provided in Part A.2 (i) hereof, the procedures set forth in paragraph 1 of Appendix 1 to the Guidelines shall apply. 2. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract estimated to cost the equivalent of US$300,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Administrator pursuant to said paragraph 2 (d) shall be furnished to the Administrator 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. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract, together with the other information re- quired to be furnished to the Administrator pursuant to said paragraph 3, shall be furnished to the Administrator as part of the evidence to be furnished pursuant to paragraph 4 of Sched- ule 4 to this Agreement. (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Admin- istrator has authorized withdrawals from the African Facility Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.01 (c) (ii) of this Agreement. 3. The figure of 10% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants In order to assist the Borrower in carrying out Part D of the Project, the Borrower shall employ consultants whose qualifi- cations, experience and terms and conditions of employment shall - 20 - be satisfactory to the Administrator. Such consultants shall be selected in accordance with principles and procedures satisfac- tory to the Administrator 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. For the purposes of the African Facility Credit Agreement, references in these Guidelines to the Bank and to loans shall be deemed to be to the Administrator and to the African Facility Credit, respectively. - 21 - SCHEDULE 4 Special Account 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categories 1. through 4 set forth in the table in paragraph I of Schedule 1 to this Agreement; (b) the term "eligible expenditures" means expenditures in respect of the reasonable crst of goods and services required for the Project and to be financed out of the proceeds of the African Facility Credit allocated from time to time to the eligible Categories in accordance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount equivalent to CFAF 400,000,000 to be withdrawn from the African Facility Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Except as the Administrator shall otherwise agree, payments out of the Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Administrator has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account may be made as follows: (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 Administrator shall, on behalf of the Borrower, withdraw from the African Facility 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 Administrator requests for replenishment of the Special Account at such inter- vals as the Administrator shall specify. On the basis of such requests, the Administrator shall withdraw from the African Facility 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 - 22 - Special Account for eligible expenditures. All such deposits shall be withdrawn by the Administrator from the African Facility Credit Account under the respective eligible Categories, 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. 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 Administrator, prior to or at the time of such request, such documents and other evidence as the Administrator shall reason- ably request, showing that such payment was made for eligible expenditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made by the Administrator when either of the following situations first arises: (i) the Administrator shall have determined that all further withdrawals should be made directly by the Borrower from the African Facility Credit Account in accordance with the provisions of paragraph (a) of Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the African Facility Credit allocated to the eligible Cate- gories, minus the amount of any outstanding special commitment entered into by the Admin- istrator 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 African Facility Credit Account of the remaining unwithdrawn amount of the African Facility Credit allocated to the eligible Categories shall follow such procedures as the Administrator shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Administrator shall have been satis- fied 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. - 23 - 6. (a) If the Administrator 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 Administrator, deposit into the Special Account (or, if the Administrator shall so request, refund to the Administrator) an amount equal to the amount of such payment or the portion thereof not so eligible or justi- fied. No further deposit by the Administrator into the Special Account shall be made until the Borrower has made such deposit or refund. (b) If the Administrator 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 Administrator, refund to the Administrator such outstanding amount for crediting to the African Facility Credit 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 3 day of 198FER A FOR SECRETARY