Mali - Second Education Project : Credit 0733 - Development Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 733 MLI Development Credit Agreement (Second Education Project) between REPUBLIC OF MALI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated September 30, 1977 CREDIT NUMBER 733 MLI DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated September 30, 1977, between the REPUBLIC OF MALI (hereinafter called the Borrower) and INTERNATIONAL DEVELOP- MENT ASSOCIATION (hereinafter called the Association). -2- ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth, and the following additional terms have the following meanings: (a) "Project Unit" means the Project Unit established by the Borrower pursuant to Section 3.01 (b) of the Development Credit Agreement (Education Project) dated July 11, 1973 between the Borrower and the Association; (b) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement; (c) "DNAFLA" means the National Directorate of Functional Literacy and Applied Linguistics; (d) "OACV" means the Groundnut and Foodcrop Development Scheme; (e) "IPN" means the National Pedagogical Institute; and (f) "IPGP" means the National Institute for Management. -4- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equiva- lent to ten million dollars ($10,000,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, 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 Association shall, promptly after the Effective Date, withdraw on behalf of thG Borrower from the Credit Account and deposit in the Special Account referred to in paragraph (f) of this Section an initial amount in the currency of the Borrower not exceeding $200,000 equivalent and shall thereafter, at the equest of the Borrower, further withdraw from the Credit Account and deposit in the Special Account such amounts as shall be required to reimburse the Borrower for payments made out of the Special -5- Account for expenditures for the Project eligible for financing under the Development Credit Agreement, but only to the extent that the amount of any such deposit, together with any amount on deposit in the Special Account as of the date of such request, shall not exceed in the aggregate the equivalent of $200,000. (c) Notwithstanding the foregoing no further deposit shall be made to the Special Account when the total amount theretofore withdrawn from the Credit Account pursuant to paragraphs (a) and (b) of this Section, together with the amount of any special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions shall have reached in the aggregate the equivalent of $9,800,000. (d) The Borrower shall be entitled to withdraw from the Credit Account pursuant to the provisions of paragraph (a) of this Section the unwithdrawn amount of the Credit in excess of $9,800,000 only to the extent that the Association shall have been satisfied that payments were made by the Borrower out of the Special Account for expenditures eligible for financing by withdrawal from the Credit Account. (e) If the Association shall have determined that payments have been made by the Borrower out of the Special Account for expenditures not eligible for financing by withdrawal from the Credit Account, the Borrower shall, upon notice from the -6- Association, deposit in the Special Account an amount equal to the amount of such payments. (f) The Borrower shall, for the purposes of the Project, open the Special Account in a bank in its territory on terms and conditions satisfactory to the Association. Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods or for civil works to be financed out of the proceeds of the Credit, shall be procured in accordance with the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1983 or such later date as the Asqociation shall establish. The Associa- tion shall promptly notify the Borrower of such later date. 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 with- drawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on April 1 and October 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each April 1 and October 1 commencing October 1, 1987, and ending April 1, 2027, each installment to and including the installment payable on April 1, 1997, to be one-half of one per cent (1/2 of 1%) of -7- such principal amount, and each installment thereafter to 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 Conditions. -8- ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project through the Project Unit with due diligence and efficiency and in conformity with appropriate administrative, financial, technical and educational policies and practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall cause the Project Unit to be strengthened by the recruitment of two additional building engi- neers, three site supervisors, two draftsmen and a senior account- ant, acceptable to the Association and employed under terms and conditions satisfactory to the Association, and shall ensure that the Project Unit exercise at all times the responsibilities set forth in Schedule 4 to this Agreement. (c) In order to ensure cooperation between the Project Unit and the other agencies of the Borrower concerned with the Project, the Borrower shall maintain the committee comprising representa- tives of the National Directorate for Educational Planning and Procurement, the National Directorate for Rural Training and Promotion (DNFAR), the Department of Public Works, the OACV, the DNAFLA, the IPN, the National Pedagogical Institute, the National Directorate for Primary and Lower-Secondary Education, the -9- National Directorate for Higher Education (DNES) and the Malian Office for Livestock and Meat (OMBEVI), as established by Arrete No. 2717/MEN of September 13, 1977. Section 3.02. In order to assist in the carrying out of the Project, the Borrower shall employ specialists, whose qualifications, experience, terms of reference and conditions of employment shall be satisfactory to the Association, for the positions agreed between the Borrower and the Association. Section 3.03. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.04. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and construction - 10 - and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof), to identify the goods and services financed out of the proceeds of the Credit and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.05. Candidates for the fellowships for the IPGP and for the functional literacy program under Part C of the Project, and their programs and places of training, shall be satisfactory to the Association. Section 3.06. For the purposes of carrying out that portion of Part B 2 of the Project concerning the IPGP, the Borrower shall, with the assistance of the specialists assigned thereto, conduct by September 1, 1978 a study of the training requirements - 11 - of employers. Such study will be brought up to date every two years and will evaluate on-going programs and contain recommenda- tions for the Advisory Council (Conseil de perfectionnement). - 12 - 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 consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the Project Unit, of the OACV and of any other department or agency of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall cause the Project Unit and the OACV to: (i) have the accounts referred to in paragraph (a) of this Section and related financial statements (statements of income and expenses and related statements) audited, in accordance with sound auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than three months after the end of each such year, (A) certified copies of their financial statements for such year as so audited and (B) the reports of such audits 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 such accounts and financial statements and the audits thereof as the Association shall from time to time reasonably request. - 13 - Section 4.02. The Borrower shall cause the Project Unit to take out and maintain with responsible insurers, or to make other provision satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with appropriate practice. Section 4.03. In respect of the IPGN established under Part A 5 of the Project, the Borrower shall ensure that at least two- thirds of the places in full-time courses be reserved for employed managers or potential managers selected and sponsored by their employers. Section 4.04. The Borrower shall establish and implement procedures satisfactory to the Association to evaluate the effectiveness of the institutions and programs included in the Project. For the purpose: (a) the IPN will evaluate the urban and rural lower secondary school programs; (b) regular assessment of progress made by the farmers attending the functional literacy centers will be carried out by the DNAFLA and the OACV; and (c) with regard to the basic education programs, the DNAFLA, with the aid of specialists, will evaluate the programs selected for implementation. - 14 - ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that the Special Account has been opened. Section 5.02. The date December 1, 1977 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. - 15 - ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministare de Finances et du Commerce Koulouba Republic of Mali Cable address: Telex: MINIFINANCES 972559 Koulouba 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) - 16 - IN WITNESS WHEREOF, the parties thereto, acting through their representatives thereunto duly authorized, 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 MALI By /s/ Ibrahima Sima Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ R. Chaufournier Regional Vice President Western Africa - 17 - 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 Dollar Equivalent) to be Financed (1) Design and Civil 3,000,000 75% Works under Parts A.1 to A.5 of the Project (2) Furniture, Parts 100,000 75% A.1 to A.5 (3) Equipment, Vehicles 1,310,000 100% and Materials, Parts A.1 to A.5 and B.2 (4) Personnel, except 2,660,000 100% for Part C.3 (5) Fellowships 170,000 100% of for- eign expendi- tures (6) Functional Literacy Program administered by the OACV, Parts A.6, B.1 and C.3 (a) Civil Works 400,000 75% (b) Equipment, 580,000 100% Vehicles and Materials (c) Personnel 80,000 100% - 18 - Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (7) Project Unit: 200,000 100% Equipment, materials and operating costs (8) First deposit, 200,000 Special Account (9) Unallocated 1,300,000 TOTAL 10,000,000 - 19 - 2. For the purposes of this Schedule, the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower. 3. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such tax levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph 1 above and unless the Association shall otherwise agree, no withdrawals shall be made in respect of payments made (i) for expenditures made prior to the date of this Agreement; (ii) for the construction of agricultural and veterinary nursing training centers under Part A of the Project until an Advisory Council (Conseil de perfectionnement) chaired by the Minister of Rural Development or his representative and with terms of reference and membership - 20 - satisfactory to the Association has been established to advise such centers on admissions, programs and placement of trainees; (iii) for the construction of the junior agricultural technician training center at Samanko until adequate technical assistance for such center has been assured by an appropriate agency; or (iv) for the development of programs in basic education until the programs of courses to be developed, their design and their estimated costs have been found satisfactory by the Borrower and the Association. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expendi- tures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. - 21 - 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit, and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 22 - SCHEDULE 2 Description of the Project The Project, to be carried out over the period 1977-1982 comprises the following Parts: Part A Construction, equipping and furnishing of: 1. two science and technology centers, at Gao and Kayes, comprising laboratories, workshops and office space, to serve neighboring lower secondary schools; 2. science rooms and technology workshops for twenty rural lower secondary schools in Sikasso; 3. the annex to the Primary Teacher Training College of Sikasso at Louloumi (renovation) for upgrading courses in science, technology and agriculture; 4. agricultural training centers at Samanko (renovation) and Kita and a school for veterinary nursing at Sotuba, for junior technicians; 5. a National Management Institute at Bamako, to provide about 90 places for full-time students and about 400-500 part-time students per year; and 6. offices and housing for the functional literacy program. Part B 1. The carrying out of a functional literacy program administered by the OACV. - 23 - 2. The development, implementation and evaluation of new programs in basic education, functional literacy and ruralization to be carried out by the DNAFLA and the IPN and of training programs for the IPGP. 3. The procurement of vehicles, equipment and materials for 1 and 2 above and for the Project Unit. Part C 1. The design, development and evaluation of programs for the institutions included in Part A above, and the training of instructors and on-the-job training of students. 2. The training of lecturers for the IPGP and for the functional literacy program through fellowships outside Mali. 3. The expansion of the Borrower's functional literacy program through the establishment and operation of about 1,600 village centers. The Project is expected to be completed by December 31, 1982. - 24 - SCHEDULE 3 Procurement A. International Competitive Bidding Except as provided in Part B hereof, contracts for the purchase of goods shall be procured in accordance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (hereinafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. B. Other Procurement Procedures Contracts for civil works and for the purchase of furniture as well as small equipment contracts which cannot be grouped in lots amounting to at least $50,000 equivalent, shall be procured following receipt of quotations or local invitations to bid. C. Review of Procurement Decisions by the Bank 1. With respect to all contracts for vehicles, equipment or materials estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the - 25 - said documents or procedures as the Assocition shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report by the Project Unit on the evaluation and comparison of the bids received, together with the recommendations for award of the Project Unit and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materialiy differ from those on which bids were asked. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. - 26 - 2. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendation for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. - 27 - SCHEDULE 4 Project Administration and Responsibilities The Project Unit will be responsible, inter alia, for the following: A. Administration 1. coordinating all Project activities with representatives of the ministries and other agencies of the Borrower; 2. preparing a comprehensive Project implementation schedule; 3. coordinating communications with the Association on matters relating to execution of the Project; and 4. ensuring preparation of quarterly reports on the progress of each Project item together with a statement of expenditures and revised calendars of implementation for construction, equipment and the development of educational programs relative to the Project. B. Construction 1. collecting all necessary information relative to the location and conditions of sites of the facilities to be constructed under the Project; 2. preparing architectural designs, plans and specifica- tions with supporting documents; 3. making necessary arrangements for inviting bids, obtaining any required approvals for awards, and awarding of contracts; - 28 - 4. ensuring adherence to the construction timetable of the project implementation schedule and to the norms and standards indicated in contract specifications by: (i) making regular site visits; and (ii) maintaining a journal de chantier for each con- struction item; 5. for Part A.2 of the Project, undertaking timely purchase and delivery to sites of all construction materials, and maintaining an inventory of these materials and a record of their allocation. C. Procurement of Furniture, Equipment and Materials 1. establishing a detailed list of all items of furniture, equipment and materials required for the Project; and 2. making necessary arrangements for inviting bids, obtaining any required approvals for awards and awarding of contracts. D. Development of Programs and Evaluation 1. establishing the terms of reference of the specialists under Part C of the Project and selecting and supervis- ing said specialists; and 2. supervising the design, development, implementation and evaluation of education and training programs relative to the Project, including preparing and collecting data for evaluation of the Project.