India - Salandi Irrigation Project : Credit 0014 - Project Agreement - Conformed

CREDIT NUMBER 14 IN Project Agreement (Salandi Irrigation Project) BETWEEN THE STATE OF ORISSA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED NOVEMBER 22, 1961 CREDIT NUMBER 14 IN Project Agreement (Salandi Irrigation Project) BETWEEN THE STATE OF ORISSA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED NOVEMBER 22, 1961 AGREEMENT, dated November 22, 1961, between the STATE OF ORISSA, acting by its Governor (hereinafter called Orissa) and INTERNATIONAL DEVELOPMENT AssocIATIoN (hereinafter called the Association). WHEREAS by a development credit agreement of even date herewith (hereinafter called the Credit Agreement) between India (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower a development credit in various currencies equivalent to eight million dollars ($8,000,000), on the terms and conditions set forth in the Credit Agreement, but only on condition that Orissa agree to undertake certain obligations to the Association as hereinafter in this Project Agreement set forth; and WHEREAS Orissa, in consideration of the Association's entering into the Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; Now THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions SECTION 1.01. Wherever used in this Project Agreement, unless the context shall otherwise require, the several terms defined in the Credit Agreement and in the Regula- tions (as so defined) shall have the respective meanings therein set forth. ARTICLE II Particular Covenants of Orissa SECTION 2.01. (a) Orissa shall carry out and operate the Project with due diligence and efficiency and in conformity 4 with sound engineering, agricultural and financial stand- ards and practices. (b) Orissa shall make available promptly as needed all sums which shall be required for the carrying out and operation of the Project. SECTION 2.02. (a) Orissa shall exercise every right and recourse available to it to cause to be taken all such action as shall be required to assure that no use, other than domestic uses, will reduce the amounts of water available for irrigation purposes on the Project below the amounts needed therefor. (b) Orissa shall take all such action as shall be required to assure that the land included in the Project and the water made available therefor are to the maximum extent possible fully, effectively and promptly utilized for agri- cultural purposes. (c) Orissa shall cause all works and facilities included in the Project to be adequately maintained and repaired in accordance with sound engineering and agricultural practices and standards and shall cause all works and facilities not included in the Project but necessary to the proper and efficient operation thereof to be operated and adequately maintained and repaired in accordance with such practices and standards. SECTION 2.03. (a) Orissa shall, from time to time, make suitable provision for the recovery from the users of irri- gation waters within the area of the Project, on reasonable terms and conditions, of the moneys invested by Orissa in the Project together with reasonable interest thereon. (b) Orissa shall cause the water rates or other similar charge or charges which shall be levied for operation and maintenance of the Project to be set and maintained at 5 levels necessary to provide revenues at least sufficient to cover all operation and maintenance costs of the Project. SECTION 2.04. (a) Upon request from time to time by the Association, Orissa shall promptly furnish or cause to be furnished to the Association the plans, specifications and work schedules for the Project and any material modifica- tions subsequently made therein, in such details as the Association shall request. (b) Orissa shall maintain or cause to be maintained rec- ords adequate to identify the goods financed out of the proceeds of the Credit, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof), to show the results achieved by irrigation of the land included in fte Project and to reflect in accord- ance with consistently maintained sound accounting prac- tices the operations and financial condition with respect to the Project of the agency or agencies of Orissa responsi- ble for the carrying out of the Project or any part thereof; shall enable the Association's representatives to inspect the Project, the goods and any relevant records and docu- ments; and shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concerning the expenditure of the pro- ceeds of the Credit, the Project and the goods, and the operations and financial condition with respect to the Proj- ect of the agency or agencies of Orissa responsible for the carrying out of the Project or any part thereof. SECTION 2.05. (a) Orissa and the Association shall co- operate fully to assure that the purposes of the Credit will be accomplished. To that end, each of them shall furnish to the other all such information as it shall reasonably request. (b) Orissa and the Association shall from time to time exchange views through their representatives with regard to matters relating to the purposes of the Credit. Orissa shall promptly inform the Association of any condition 6 which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit or the per- formance by Orissa of its obligations under this Project Agreement or the obligations to be performed by it pur- suankt to the provisions of the Credit Agreement, or which shall increase or threaten to increase materially the esti- mated cost of the Project. SECTION 2.06. (a) Except as shall be otherwise agreed by Orissa and the Association: (i) Orissa shall cause all goods purchased with the proceeds of the Credit to be used in the territories of the Borrower exclusively in the carry- ing out of the Project and (ii) Orissa shall obtain title to all such goods free and clear of all encumbrances. (b) Orissa shall not, without the prior consent of the Association, sell or otherwise dispose of any goods pur- chased or paid for out of the proceeds of the Credit. SECTION 2.07. Orissa shall satisfy the Association that adequate arrangements have been made to insure the goods financed out of the proceeds of the Credit against risks incident to their purchase and importation into the terri- tories of the Borrower. ARTICLE III Effective Date; Termination SECTION 3.01. This Project Agreement shall come into force and effect on the Effective Date. If, pursuant to Sec- tion 8.04 of the Regulations, the Association shall terminate the Credit Agreement, the Association shall promptly no- tify Orissa thereof and upon the giving of such notice, this Project Agreement and all obligations of the parties hereunder shall forthwith cease and determine. SECTION 3.02. If and when the entire principal amount of the Credit shall have been paid or caused to be paid by the Borrower (or shall have been cancelled), together with I 7 service charges which shall have accrued on the Credit, this Project Agreement and all obligations of Orissa and of the Association hereunder shall TNrthwith terminate. ARTICLE IV Miscellaneous Provisions SECTION 4.01. Any notice or request required or per- mitted to be given or made under this Project Agreement and any agreement between the parties contemplated by this Project Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable or radiogram to the party to which it is required or permitted to be given or made at its address hereinafter specified, or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: (a) For Orissa: Works Department Government of Orissa, P.O. New Capital Bhubaneswar, Orissa, India Alternative address for cablegrams and radiograms: Works Bhubaneswar (b) For the Association: International Development Association 1818 H Street, N.W. Washington 25, D. C. United States of America Alternative address for cablegrams and radiograms: Indevas Washington, D. C. 8 SECTION 4.02. Any action required or permitted to be taken, and any documents required or permitted to be exe- cuted, under this Project Agreement on behalf of Orissa may be taken or executed by a Secretary to the Government of Orissa in the Works Department or such other person or persons as Orissa shall designate in writing. SECTION 4.03. Orissa shall furnish to the Association sufficient evidence of the authority of the person or persons who will, on behalf of Orissa, take any action or execute any documents required or permitted to be taken or exe- cuted by Orissa pursuant to any of the provisions of this Project Agreement and the authenticated specimen sig- nature of each such person. SECTION 4.04. This Project Agreement may be executed in several counterparts, each of which shall be an original and all collectively but one instrument. IN WITNESS WHEREOF, the parties hereto have caused this Project Agreement to be signed in their respective names by their representatives thereunto duly authorized and delivered in the District of Columbia, United States of America, as of the day and year first above written. STATE OF ORISSA By M. R. SACHDEV Authorized Representative INTERNATIONAL DEVELOPMENT AssoCIATION By W. A. B. ILIFF Vice President