Malawi - First Education Sector Credit : Credit 1767 - Credit Agreement - Conformed

DOCUMNA 'Sl CREDIT NUMBER 1767 MAI Development Credit Agreement (First Education Sector Credit) between REPUBLIC OF MALAWI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 7, 1987 CREDIT NUMBER 1767 MAI DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated &, 1987, between REPUBLIC OF MALAWI (the Borrower) and INTERATIONAL DEVELOPMENT ASSOCIA- TION (the Association). WHEREAS: (A) the Association has received a letter, dated January 13, 1987, from the Borrower describing a program of actions, objectives and policies designed to achieve structural adjustment of the education sector of the Borrower's economy (hereinafter called the Program) and declaring the Borrower's commitment to the execution of the Program; (B) the Borrower, having satisfied itself as to the fea- sibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; and (C) on the basis, inter alia, of the foregoing, the Association has decided, in support of the Program and in order to assist the Borrower in the carrying out of the Project, to provide such assistance to the Borrower by making the Credit as hereinafter provided; 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, with the modifications set forth below (the General Condi- tions) constitute an integral part of this Agreement: (a) Section 9.06 (c) shall be modified to read: "(c) Not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution of the Program referred to in the Preamble to the Development Credit Agreement, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accom- plishment of the purposes of the Credit."; and -2- (b) the last sentence of Section 3.02 is deleted. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Pre- amble to this Agreement have the respective meanings therein set forth and the following additional terms have the following mean- ings: (a) "MOEC" means the Borrower's Ministry of Education and Culture; (b) "PIU" means the Project Implementation Unit, estab- lished within MOE; (c) "MCC" means the Malawi Correspondence College; (d) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement; and (e) "MK" means Malawi kwacha, the currency of the Borrower. 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 twenty one million four hundred thousand Special Drawing Rights (SDR 21,400,000). 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 for expenditures made (or, if the Association shall so agree, to be made) in respect of the reason- able cost of goods and services required for the Project des- cribed in Schedule 2 to this Agreement 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 U.S. dollars a special account in a com- mercial bank on terms and conditions satisfactory to the Associa- tion. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement. -3- Section 2.03. The Closing Date shall be December 15, 1993, 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 percent (1/2 of 1%) per annum on the principal amount of the Credit not with- drawn from time to time. Tho 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 percent (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 February 15 and August 15 commencing August 15, 1997, and end- ing February 15, 2037., Each installment to and including the installment payable on February 15, 2007, shall be one-half of one percent (1/2 of 1%) of such principal amount, and each installment thereafter shall be one and one-half percent (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. -4- ARTICLE III Execution of the Project Section 3.01. (a) The Borrower declares its commitment to the Program and to the objectives of the Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, educa- tional and planning practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. 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 3 to this Agreement. ARTICLE IV Financial Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and accounts adequate to reflect, in accor- dance 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 records and accounts referred to in para- graph (a) of this Section, including those for the Special Account and the university students loan scheme under Part C of the Project, for each fiscal year audited, in accordance with appro- priate auditing principles consistently applied, by independent auditors acceptable to the Associa- tion; -5- (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 records, accounts and the audit thereof as the Association shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Credit Account were made on the basis of statements of expenditure, the Borrower shall: (1) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the com- pletion of the audit for Lhe fiscal year in which the last withdrawal from the Credit Account was made, 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 records and accounts are included in the annual audit referred to in paragraph (b) of this Section, and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the proce- dures 8nd internal controls involved in their preparation, can be relied upon to support the related withdrawals. 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: (a) An event has occurred which shall make it improbable that the Program, or a significant part thereof, will be carried out. (b) The Borrower shall have made changes in its education sector investment program for the period 1985 through 1990, with- out consultation with, and the concurrence of, the Association. (c) The number of new boarding facilities constructed in the period 1985 through 1990, shall have exceeded ten units. ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition of effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that the necessary legislative measures have been taken for the merger of the Borrower's two national examina- tion systems into one consolidated system. 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. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of Finance 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: For the Borrower: Ministry of Finance P.O. Box 30049 Lilongwe 3 Malawi -7- Cable address: Telex: FINANCE 4407 MI Lilongwe 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) -8- 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 MALAWI By / f Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By By 1 Regional Vice President Eastern and Southern Africa -9 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 11,980,000 100% of foreign expenditures and 80% of local expenditures (2) Equipment, 3,780,000 100% of foreign furniture, expenditures, vehicles 100% of local and books expenditures (ex-factory cost) and 80% of local expenditures for other items procured locally (3) Architectural, 400,000 100% of foreign engineering expenditures and and auditing 80% of local consultants' expenditures services (4) Consultants' 1,660,000 100% of foreign services and expenditures and training 80% of local expenditures (5) Project 640,000 80% administration (excluding salaries) - 10 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (6) University 800,000 100% of amounts students loan disbursed by the scheme Borrower to the University of Malawi (7) Unallocated 2,140,000 Total 21,400,000 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. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made: (a) in respect of payments made for expenditures prior to the date of this Agreement; and (b) in respect of Category (6), unless the Association shall have received satisfactory evidence on the establishment of the university students loan scheme under Part C of the Project. - 11 - SCHEDULE 2 Description of the Project The objectives of the Project are to assist the Borrower in carrying out the first five-year phase of the Second Ten-Year Education Plan (1984/5-1994/5) and restructuring its education sector to improve the quality, equity and efficiency of the education system and the overall management of the sector, all in accordance with the Program. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Primary Education: 1. The construction, furnishing and equipping of about 1,500 classrooms and about 750 staff houses. 2. The provision of about two million basic student textbooks. 3. The development and implementation of in-service training courses for primary school teachers. 4. The improvement of primary school supervision through the provision of bicycles and motorcycles for the supervisory officers. Part B: Secondary Education: 1. The construction, furnishing and equipping of two secondary boarding schools, and one secondary day-school, with about 1,440 student places. 2. The expansion and upgrading of three MCC centers to serve as secondary day- and night-schools. 3. The improvement of MCC's organization and operations through the provision of management assistance. Part C: Education Management: 1. The merger of the two national examination systems into one consolidated system, and its support through the provision of - 12 - computing and printing equipment and technical assistance, as well as upgrading of offices. 2. Strengthening of MOEC's capacity to manage and develop the education system through: (a) the provision of consultants' services and fellowships in the fields of financial analysis, education management, planning and evaluation, and training; (b) the establishment of a monitoring and evaluation com- mittee within the Planning Section of MOEC; (C) the upgrading of the research and evaluation unit within the Planning Section; and (d) the strengthening of PIU, including establishment and operation of a preventive school maintenance unit within PIU. 3. (a) Implementation of cost recovery measures at secondary schools and at the University of Malawi; and (b) Establishment of a loan scheme for university students. Part D: Studies 1. A review of the delivery and utilization of school inputs financed under the Project in schools and classrooms. 2. A study on the cost-effectiveness of various educational inpults and instructional methods. 3. A tracer study on the income effects of post primary school- ing. The Project is expected to be completed by December 15, 1992. - 13 - SCHEDULE 3 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A: International Competitive Bidding: 1. Except as provided in Part D 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). 2. Civil works, furniture, equipment and other items shall be bulked together in bidding packages to the maximum extent prac- ticable. Architectural sketch designs for civil works and master lists of furniture and equipment, indicating the proposed group- ing of such items, shall be submitted to the Association for its review and approval, and all the items procured shall be substan- tially in conformity with the designs, lists, specifications and grouping for bulk procurement so approved. Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A.1 hereof, goods manufactured in Malawi 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. Part C: 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 D: Other Procurement Procedures 1. Civil works for the construction of primary school class- rooms under Part A.1 of the Project estimated to cost less than the equivalent of $100,000 per contract may be procured under contracts awarded on the basis of competitive bidding, advertised -14 - locally, in accordance with procedures satisfactory to the Asso- ciation; provided, however, that the aggregate price of contracts so awarded shall not exceed the equivalent of $10,000,000. 2. Civil works, which the Association agrees cannot be grouped due to the small size and nature of the work involved, may be carried out by force account or small contractors under proce- dures acceptable to the Association; provided, however, that the aggregate cost of the works so carried out shall not exceed the equivalent of $500,000. 3. Items or groups of items estimated to cost less than the equivalent of $10,000 per contract, up to an aggregate amount not to exceed the equivalent of $25,000, may be procured under con- tracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association. Part E: Review by the Association of Procurement Decisions: 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract for civil works, estima- ed to cost the equivalent of $300,000 or more, and for furniture equipment estimated to cost the equivalent of $100,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for each 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 Association pursuant to subparagraph (d) of paragraph 2 of Apendix 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. 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 required to be furnished to the Association pursuant to paragraph 3 of Appendix 1 to the Guidelines shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this Agreement. - 15 - (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Associa- tion has authorized withdrawals from the 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 para- graph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants, as referred to in the Implementation Program in Schedule 4 to this Agreement, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Such consultants 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. - 16 - SCHEDULE 4 Implementation Program Program and Project Coordination 1. The coordination of all activities related to the execution of the Program shall be carried out by the Committee on Moni- toring and Evaluation, established within MOEC, with terms of reference satisfactory to the Association, and chaired by the Principal Secretary of MOEC. The Committee shall, in particular: (a) monitor and evaluate the progress in educational quality, cost efficiency and access to improved education on the basis of performance indicators acceptable to the Asso- ciation; and (b) prepare and submit to the Association, not later than March 31 and September 30 of each year, semiannual progress reports. Such reports to form the basis for the annual pro- gram implementation review meetings to be held between the Borrower and the Association not later than November 30 of each year. 2. Within the overall policy guidance and Program supervision by the Committee referred to above, the implementation of the Parts of the Project relating to construction and procurement of goods and consultants' services shall be carried out by PIU, which the Borrower shall continue to maintain with organization, staffing and terms of reference acceptable to the Association. To this end, the Borrower shall, on a timely basis, provide MOEC with adequate operational funds for use by PIU in the carrying out of its assigned responsibilities. PIU shall, in particular: (a) be responsible for the recruitment of consultants and specialists under the Project, including: (i) a management consultancy team for MCC under Part B.3 of the Project; (ii) an expert to develop better test measurements under Pert C.1 of the Project; (iii) economic and research consultants under Parts C.2 and D of the Project; and (iv) architectural and engineering consultants; - 17 - (b) be responsible for ensuring the timely preparation of the audits pursuant to Section 4.01 of this Agreement; and (c) select, in collaboration with other agencies of the Borrower, suitable recipients of fellowships and pre- pare training programs under the Project. 3. In order to carry out Part C (3) (a) of the Project, the Borrower shall: (a) increase user charges for boarding at secondary schools to MK 135 by 1988 and thereafter continue to fully recover the cost of boarding at those schools; and (b) implement a university tuition fee of MK 200 net of living allowances, during the 1988 academic year, and make periodic fee adjustments thereafter. 4. In the carrying out of Part C (3) (b) of the Project, the Borrower shall prepare, by December 1, 1987, a comprehensive plan, acceptable to the Association, for the establishment and administration of a loan scheme for university students, including eligibility criteria, maturity of loans, rates of interest to be charged and other terms and conditions. Mid-term Review 5. Without limitation or restriction upon the generality of the provisions of Sections 9.01 and 9.06 of the General Conditions (relating to exchange of views and reports), the Borrower and the Association shall, not later than June 30, 1989, review the pro- gress achieved in the carrying out of the Program and the Pro- ject and action taken towards achievement of the following targets: (a) Primary Education: (i) Reduction in repetition rate to 5% in all classes except Standard 8 where repetition will be once only. (ii) Revision of primary school curricula in the basic subjects. - 18 - (iii) Provision of three basic textbooks to all students and annual augmentation of the textbooks replace- ment fund by an amount of MK 2.0 per enrolled student. (iv) Achievement of a gross enrollment ratio of 70%. (v) Achievement of a student to teacher/classroom ratio of 55:1. (b) Secondary Education: (i) Achievement of a student to teacher ratio of 25:1. (ii) Revision of secondary school curricula. (iii) Completion of school mapping exercise. (iv) Introduction of a shift system in all urban schools. (v) Replacement of 50% of the MCC tutors with trained teachers. (vi) Full cost recovery of the boarding element in all schools. (c) Teacher Training: Implementation of a teacher retraining program. (d) Vocational/Technical Education Full utilization of existing facilities by achieving a student to staff ratio of 20:1. (e) University Education: (i) Achievement of a student to staff ratio of 10:1 (in Science) and 12:1 (in Arts). (ii) Subject to periodic adjustments, charging of a tuition fee of MK 200 net of all allowances. (f) Level of Recurrent Expenditures Increase in the education share of the government budget to about 11%. - 19 - SCHEDULE 5 Special Account 1. For the purposes of this Schedule: (a) the term "Eligible Categories" means Categories (1) through (5) set forth in the table in paragraph 1 of Schedule 1 to this Agreement; (b) the term "Eligible Expenditures" means expenditures in respect of the reasonable cost of goods and services required for the Project, and to be financed out of the proceeds of the 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 of $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account, pursuant to paragraph 3 (a) of this Schedule. 2. Except as the Association 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 Association has received evidence satisfactory 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 tj the aggregate amount of the Authorized Allocation, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into 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 intervals 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. All such deposits shall be withdrawn by the Asso- ciation from the 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 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 Expendiditures. 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 should be made by the Borrower directly from the Credit Account, in accordance with the provisions of Article V of the General Conditions and paragraph (a) of Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the Credit allo- cated to the Eligible Categories, minus the amount 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 the Eli- gible Categories shall follow such procedures as the Association shall specify by notice to the Borrower. 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 will be utilized in making payments for Eligible Expenditures. 6. (a) If the Association shall have determined at any time that any payment out of the Special Account: (i) was made for any - 21 - expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the evidence fur- nished 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. 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 for crediting to the Credit Account. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY