Conformed Copy - C2057 - Sixth National Family Welfare Training and Systems Development Project - Project Agreement 2

Page 1 CONFORMED COPY CREDIT NUMBER 2057 IN LOAN NUMBER 3108 IN Project Agreement (Sixth (National Family Welfare Training and Systems Development) Population Project) among INTERNATIONAL DEVELOPMENT ASSOCIATION and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and STATE OF ANDHRA PRADESH and STATE OF MADHYA PRADESH and STATE OF UTTER PRADESH Dated September 11, 1989 CREDIT NUMBER 2057 IN LOAN NUMBER 3108 IN PROJECT AGREEMENT AGREEMENT, dated September 11, 1989, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association), and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and STATE OF ANDHRA PRADESH, STATE OF MADHYA PRADESH and STATE OF UTTAR PRADESH (the States). WHEREAS: (A) by the Development Credit Agreement of even date herewith between India, acting by its President (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to eighty-seven million two hundred thousand Special Drawing Rights (SDR 87,200,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that each of the States agree to undertake such obligations toward the Association as are set forth in this Agreement; (B) by the Loan Agreement of even date herewith between the Borrower and the Bank, the Bank has agreed to Page 2 make available to the Borrower an amount in various currencies equivalent to eleven million three hundred thousand dollars ($11,300,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that each of the States agree to undertake such obligations toward the Bank as are set forth in this Agreement; and WHEREAS each of the States, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Loan Agreement and in the General Conditions (as so defined in the Development Credit Agreement and the Loan Agreement) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) Each of the States declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end: (i) Andhra Pradesh shall carry out such parts of the Project as are located in Andhra Pradesh; (ii) Madhya Pradesh shall carry out such parts of the Project as are located in Madhya Pradesh; and (iii) Uttar Pradesh shall carry out such parts of the Project as are located in Uttar Pradesh with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and health and family welfare practices, and shall provide, or cause to be provided, 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 Association and the Bank shall otherwise agree, each of the States shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association and the Bank 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 and the Loan shall be governed by the provisions of Schedule l to this Agreement. Section 2.03. Each of the States shall carry out the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions applicable to the Development Credit Agreement and in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions applicable to the Loan Agreement (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement. Section 2.04. (a) Each of the States shall, at the request of the Association or the Bank, exchange views Page 3 with the Association or the Bank with regard to the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit and the Loan. (b) Each of the States shall promptly inform the Association or the Bank of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit or the Loan, or the performance by each of the States of its obligations under this Agreement. ARTICLE III Financial Covenants Section 3.01. (a) Each of the States shall maintain records and accounts adequate to monitor and record the progress of the Project and to reflect in accordance with sound accounting practices its operations and financial condition in respect of activities related to its part of the Project. (b) Each of the States shall: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association and the Bank; (ii) furnish to the Association and the Bank as soon as available, but in any case not later than nine months after the end of each such year: (A) certified copies of its financial statements for such year as so audited; and (B) the report of such audit by said auditors, of such scope and in such detail as the Association and the Bank shall have reasonably requested; and (iii) furnish to the Association and the Bank such other information concerning said records, accounts and financial statements as well as the audit thereof, as the Association and the Bank shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which both the Development Credit Agreement and the Loan Agreement become effective. Section 4.02. (a) This Agreement and all obligations of the Association, the Bank and of each of the States thereunder shall terminate on the earlier of the following two dates: (i) the date on which both the Development Credit Agreement and the Loan Agreement shall terminate in accordance with their terms; or (ii) the date twenty (20) years after the date Page 4 of this Agreement. (b) If the Development Credit Agreement or the Loan Agreement terminates, or both of said Agreements terminate, in accordance with their terms before the date specified in paragraph (a) (ii) of this Section, the Association or the Bank or both shall promptly notify each of the States of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions applicable to the Development Credit Agreement or the Loan Agreement. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this 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 telex to the party to which it is required or permitted to be given or made at such party's 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: 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) For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT), Washington, D.C. 248423 (RCA) or 64145 (WUI) For Andhra Pradesh: Chief Secretary to the Government of Andhra Pradesh Hyderabad, Andhra Pradesh, India Telex: 953 1556325 For Madhya Pradesh: Page 5 Chief Secretary of the Government of Madhya Pradesh Bhopal, India For Uttar Pradesh: Chief Secretary of the Government of Uttar Pradesh Vidhan Bhavan Lucknow, Uttar Pradesh, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of either of the States, or by either of the States on behalf of the Borrower under the Development Credit Agreement or the Loan Agreement, may be taken or executed by its Chief Secretary or such other person or persons as the concerned State shall designate in writing, and each of the States shall furnish to the Association and the Bank sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This 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, 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. INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Attila Karaosmanoglu Regional Vice President Asia STATE OF ANDHRA PRADESH STATE OF MADHYA PRADESH STATE OF UTTAR PRADESH By /s/ Anil Kumar Authorized Representative SCHEDULE 1 Procurement and Consultants' Services Section I: Procurement of Goods and Works Part A: International Competitive Bidding 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). Page 6 Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A hereof, goods manufactured in India 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: Other Procurement Procedures Contracts for civil works may be awarded, on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. 2. Equipment and vehicles estimated to cost less than the equivalent of $200,000 per contract up to an aggregate amount not exceeding $21,000,000 equivalent may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. 3. Furniture, off the shelf items or groups of items estimated to cost less than the equivalent of $25,000 per contract, up to an aggregate amount not exceeding $22,000,000 equivalent may be procured under quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures satisfactory to the Association and the Bank. Part D: Review by the Association and the Bank of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract referred to in Part A of this Schedule, each contract for civil works estimated to cost the equivalent of $200,000 or more and each contract for equipment estimated to cost the equivalent of $200,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix l 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 Association pursuant to said paragraph 2 (d) shall be furnished to the Association and the Bank 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 preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix l 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 and the Bank pursuant to said paragraph 3 shall be furnished to the Association and the Bank as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 3 to the Development Credit Agreement. (c) The provisions of the preceding sub-paragraphs (a) and (b) shall not apply to contracts on account of which the Association and the Bank have authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.01 (a) (ii) of the Page 7 Development Credit Agreement. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. Section II: Employment of Consultants In order to assist each of the States in carrying out their respective parts of the Project, each of them shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association and the Bank. Such consultants shall be selected in accordance with principles and procedures satisfactory 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. SCHEDULE 2 Implementation Program 1. Each of the States shall appoint staff to the Administrative Cell, Human Resources Development Cell, SIHFW, Divisional (Regional) Training Centers and District Training Centers/Teams in accordance with an agreed schedule. 2. Each of the States shall prepare and submit to the Association and the Bank by January 31 of each calendar year, commencing in 1990: (a) an annual management information and evaluation plan; and (b) an annual evaluation report which outlines progress in meeting Project objectives. 3. Each of the States shall identify blocks/districts for the operational research program on performance measurement and release these from present target setting procedures not later than December 31, 1989. 4. Each of the States shall submit terms of reference for innovative schemes to the Association and the Bank for review and comment prior to their implementation. 5. Each of the States shall complete baseline surveys not later than December 31, 1990. 6. Each of the States shall ensure that HRDC develops and institutes Personnel Management Information Systems not later than December 31, 1991. 7. Each of the States shall ensure that the PHC and sub-center facilities and equipment financed under the Project are adequately funded and maintained during the period of the Project. 8. Each of the States shall, in conjunction with the Borrower, undertake a formal review of Project progress by December 31, 1993 and shall prepare reports including monitorable benchmarks on which to assess such progress for review with the Association and the Bank.