Conformed Copy - C2108 - Agricultural Services Project - Amendment

Page 1 November 5, 1990 Ministere de L'Economie et des Finances Rue Charles Laine B.P. 6017 Dakar Senegal RE: Credit No. 2108 SE (Agricultural Services Project) Excellency: We refer to the Development Credit Agreement, dated April, 24, 1990 (Agricultural Services Project) between the Republic of Senegal and the International Development Association and to your telex, dated October 10, 1990, requesting certain modifications in such agreement. We are pleased to inform you that the Association agrees to your proposals and proposes the following amendments to the agreement: 1. "Special Accounts", "Special Account A" and "Special Account B" mean the accounts referred to in Section 2.02 (b) of this Agreement Special Account A and Special Account B collectively referred to as Special Accounts. . 2. At the end of Section 1.02 new definition be added to read as follows: " (n) "UPA" means the Unite de Politique Azricole, established by Arrete dated May 16, 1990 within MDR. 3. Section 2.02 (b) be substituted by the following paragraph: "2.02 (b) The Borrower shall, for the purposes of the Project, open and maintain in FCFA two special accounts (Special Account A, Special Account B) in a commercial bank or in commercial banks on terms and conditions satisfactory to the Association. Deposits into, and payments out of the Special Accounts shall be made in accordance with the provisions of Schedule 4 to this Agreement." 4. The table set forth in paragraph 1 of Schedule 1 be amended to read as set forth in Annex I to this letter. 5. Part E of Schedule 2 to the Agreement be substituted by the following paragraph: "Part E. Ministry of Rural Development: Strengthening of the analytical capacity of UPA in the formulation and evaluation of rural development policies, project appraisal and performance monitoring of project execution, provision of training equipment and vehicles therefor and rehabilitation of office space of UPA." 6. Schedule 4 be replaced by Annex II to this letter. Could you indicate your agreement to these amendments by signing the enclosed copy of this letter. and returning it to us. Upon receipt of the duly signed copy by the Association, the amendment shall become effective. INTERNATIONAL DEVELOPMENT ASSOCIATION Page 2 Authorized Representative CONFIRMED: REPUBLIC OF SENEGAL Authorized Representative Date: December 12, 1990 Annexes ANNEX I Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1)(a) Civil works 283,000 100% under Part A of the Project (b) Civil works 17,000 100% under Part E of the Project (2)(a) Equipment for 544,000 100% Parts A through D of the Project (b) Equipment for Part E of the Project 56,000 100% (3)(a) Vehicles for 1,152,000 100% Parts A through D of the Project (b) Vehicles for Part E of the 61,000 100% (4)(a) Training for 2,086,000 100% Part D of the Project (b) Training for 254,000 100% Part E of the Project (5)On-farm research 1,500,000 100% (6)(a) Salaries of 604,000 100% Extension Management Unit (b) Salaries of UPA 207,000 100% (7)(a) Operating Costs 3,133,000 75% up to of DA an aggregate Page 3 amount of SDR 2,400,000 and 50% thereafter (b) Operating costs 88,000 75% up to an of UPA aggregate amount of SDR 70,000 and 50% thereafter (8)(a) Consultants for 242,000 100% through D of the Project (b) Consultants for 473,000 100% Part E of the Project (9)Refunding of Project 1,300,000 Amount due Preparation Advance pursuant to Section 2.02 (c) of this Agreement (10) Unallocated 1,000,000 ANNEX II SCHEDULE 4 Special Accounts 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categories l(a), 2(a), 3(a),4(a),5, 6(a), 7(a) and 8(a) in the case of Special Account A and Categories 1(b), 2(a), 3(b), 4(b), 6(b), 7(b) and 8(b) in the case of Special Account B 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 I to this Agreement; and (c) the term "Authorized Allocation" means an amount of 350 million FCFA in the case of Special Account A and an account of 50 million FCFA in the case of Special Account B. Such amounts to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. 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 to it that the Special Accounts have been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Accounts shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for a deposit or deposits which do not exceed the aggregate amount of the Authorized Allocation. On the basis of such request or requests, 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. Page 4 (b) (i) For replenishment of the Special Accounts, the Borrower shall furnish to the Association requests for deposits into the respective Special Account at such intervals as the Association shall specify. (ii) Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to paragraph 4 of this Schedule for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the respective Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for eligible expenditures. All such deposits shall be withdrawn by the Association from the Credit Account under the respective eligible Categories, and in the respective equivalent amounts, as shall have been justified by said documents and other evidence. 4. For each payment made by the Borrower out of the Special Accounts, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for eligible expenditures. 5. Notwithstanding the provisions of paragraph 3 of this Schedule, the Association shall not be required to make further deposits into the Special Accounts: (a) if, at any time, 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 (b) once the total unwithdrawn amount of the Credit allocated to the eligible Categories, less 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 equal the equivalent of twice the aggregate of the amounts referred to in paragraph 1 (c) of this Schedule. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the eligible 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 Accounts 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 an expenditure or in an amount not eligible pursuant to paragraph 2 of this Schedule; (ii) was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association: (A) provide such additional evidence as the Association may request; or (B) deposit into the respective 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. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association shall have determined at any time that any amount outstanding in the Special Account will not be required Page 5 to cover further payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Accounts. (d) Refunds to the Association made pursuant to paragraphs 6 (a), (b) and (c) of this Schedule shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions.