Conformed Copy - C2223 - Second Technician Education Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2223 IN (Second Technician Education Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH STATE OF ASSAM STATE OF HARYANA STATE OF HIMACHAL PRADESH STATE OF MAHARASHTRA STATE OF PUNJAB STATE OF TAMIL NADU STATE OF WEST BENGAL Dated December 16, 1991 CREDIT NUMBER 2223 IN PROJECT AGREEMENT AGREEMENT, dated December 16, 1991, between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH, STATE OF ASSAM, STATE OF HARYANA, STATE OF HIMACHAL PRADESH, STATE OF MAHARASHTRA, STATE OF PUNJAB, STATE OF TAMIL NADU, and STATE OF WEST BENGAL, each acting by its Governor. WHEREAS by the Development Credit Agreement of even date herewith between India and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to two hundred thirteen million five hundred thousand Special Drawing Rights (SDR 213,500,000) on the terms and conditions set forth in the Development Credit Agreement, but only on condition that the Project States agree to undertake such obligations toward the Association as are set forth in this Agreement; WHEREAS the Project States, in consideration of the Association's entering into the Development Credit Page 2 Agreement with the Borrower, have 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, and in the General Conditions (as so defined in the Development Credit Agreement) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) The Project States declare their commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall carry out the Project with due diligence and efficiency and in conformity with appropri- ate administrative, financial, and educational 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 Associa- tion and the Project States shall otherwise agree, the Project 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 shall otherwise agree, procurement of the goods, works and services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.03. The Project 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 (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition) in respect of the Project Agreement, and their respective portions of the Project. Section 2.04. (a) The Project States shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of their respective obligations under this Agreement, and other matters relating to the purposes of the Credit. (b) The Project States shall promptly inform the Association of any condition which interferes or threat- ens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by the Project States of their respective obligations under this Agreement. ARTICLE III Financial Covenants Section 3.01. (a) The Project States shall maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources Page 3 and expenditures in respect of the Project of the departments or agencies of the Project States responsible for carrying out their respective portions of the Project. (b) The Project States shall: (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consis- tently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than nine 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 Associa- tion shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records, accounts and the audit thereof as the Association shall from time to time reasonably re- quest. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of the Project States thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall have terminated in accor- dance with its terms; or (ii) the date twenty (20) years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify the Project 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 Condi- tions applicable to the Development Credit 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, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address Page 4 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 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) For State of Andhra Pradesh: Commissioner and E.O. Secretary to Government, Technical Education 5th Floor, BRKR Office Complex Building Tank Bund Road Hyderabad 500029 Cable: Telex: EDUCAP or TECHNED 425 6325 For State of Assam: Commissioner and Secretary Government of Assam Education Department Kahilipara 781019 Guwahati, Assam Cable: Telex: ASSAM, DISPUR 235 2237 DIG IN For State of Haryana: Commissioner and Secretary Technical Education Government of Haryana Civil Secretariat Chandigarh For State of Himachal Pradesh: Commissioner cum Secretary (Education and Personnel) Government of Himachal Pradesh Secretariat Shimla (H.P.) Cable: Telex: CARE CHIEFSEC 391219 HP SECTT SHIMLA INDIA For State of Maharashtra: Principal Secretary (Technical and Higher Education) Government of Maharashtra Mantralaya Page 5 Bombay 400021 Telex: 118 2443 DGPR-IN For State of Punjab: Secretary, Technical Education and Industrial Training Punjab Civil Secretariat Chandigarh Telex: 208 For State of Tamil Nadu: Secretary Government of Tamil Nadu Fort St. George Madras 60009 Telex: 041 7400 For State of West Bengal: Secretary, Higher Education Government of West Bengal Writer's Building Calcutta 700001 Cable: EDNBENGAL 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 each of the Project States may be taken or executed by its Chief Secretary or such other person or persons as the con- cerned Project State shall designate in writing, and each of the Project States shall furnish to the Association sufficient evidence of the authority and the authenticat- ed 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 By /s/ Joseph Wood Regional Vice President South Asia Page 6 STATE OF ANDHRA PRADESH STATE OF ASSAM STATE OF HARYANA STATE OF HIMACHAL PRADESH STATE OF MAHARASHTRA STATE OF PUNJAB STATE OF TAMIL NADU STATE OF WEST BENGAL By /s/ Lalit Mansingh Authorized Representative SCHEDULE 1 Procurement and Consultants' Services Section I: Procurement of Goods and Works Part A: International Competitive Bidding 1. Except as provided in Part C hereof, equipment and vehicles 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. To the extent practicable, contracts for equipment and vehicles shall be grouped in bid packages estimated to cost the equivalent of $200,000 or more each. 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 1. (a) Except as provided in sub-paragraph (b) and (c) hereof, contracts for civil works shall be awarded, on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Associa- tion. (b) Except as provided in sub-paragraph (c) hereof, civil works estimated to cost less than the equivalent of $300,000 per contract, up to an aggregate amount not exceeding $46,000,000 equivalent, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three contractors eligible under the Guidelines, in accordance with procedures acceptable to the Association. (c) Civil works estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $15,000,000, may be carried out by force account under the supervision of Public Works Department Construction Units or by contracts directly negotiated with one qualified contractor in accordance with procedures satisfactory to the Association. 2. (a) Except as provided in sub-paragraph (b) and (c) hereof, equipment and vehicles, estimated to cost less Page 7 than the equivalent of $200,000 per contract up to an aggregate amount not exceeding $35,200,000 equivalent, may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. (b) Except as provided in sub-paragraph (c) hereof, equipment, off the shelf items or groups of items estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $16,000,000 equivalent, may be procured locally under quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures satisfactory to the Association. (c) Equipment of a proprietary nature, up to an aggregate amount of $2,300,000 equivalent, may be procured under contracts negotiated directly with the supplier of such equipment in accordance with procedures satisfactory to the Association. 3. (a) Except as provided in sub-paragraph (b) hereof, contracts for furniture and books and instructional materials, shall be awarded, on the basis of competitive bidding, advertised locally, in accordance with proce- dures satisfactory to the Association. (b) Furniture, books and instructional materials, off the shelf items or groups of items estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $7,300,000 equivalent, may be procured locally under quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures satisfactory to the Association. Part D: 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: (i) civil works, estimated to cost $300,000 or more, and (ii) equipment, vehicles, furniture, books and instructional materials, estimated to cost the equivalent of $200,000 or more, the procedures set forth in paragraphs 2 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 required to be furnished to the Association pursuant to said paragraph 2 (d) shall be furnished to the Associa- tion 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 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 said para- graph 3 shall be furnished to the Association 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 subparagraph (b) shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such Page 8 contracts shall be retained in accordance with Section 4.01 (b) (ii) of the 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 the Borrower and the Project States in carrying out their respective portions of the Project, the Borrower and each of the Project States shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfac- tory to the Association. 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. The Project States shall (a) provide additional staff to their respective Boards of Technical Education, Directorates of Technical Education, State Project Implementation Units, polytechnics, and other related institutions in accordance with an agreed Schedule of Deployment of Key Additional Staff, (b) institute, by January 31, 1992, a Faculty Development System for technical teachers in accordance with a plan satisfactory to the Association. 2. The Project States shall develop and expand diploma programs for women and in conjunction therewith make concurrent efforts, including the establishment of a special cell in each women's polytechnic, to identify and obtain suitable employment opportunities for women in new disciplines. 3. The Project States shall introduce in a phased manner the Multi-Point Entry and Credit System in selected disciplines and polytechnics. 4. The Project States shall promote close interaction of polytechnics with industry by (a) developing and implementing Industry-Institute Interaction programs satisfactory to the Association, (b) constituting an Industry-Institute Interaction Cell at each of their respective polytechnics and Directorates of Technical Education, and (c) appointing advisory committees and Industrial Liaison and Placement Officers to head the said Industry-Institute Interaction Cells. 5. The Project States shall, by December 31, 1991, review the current practices and levels of internal revenue generation for their respective polytechnics and develop plans to increase internal revenue generation through various ways and means. 6. The Project States shall cause their respective polytechnics to charge fees to recover the full costs for continuing education programs being administered by them for public and private sector industry. 7. The Project States shall (a) provide adequate resources for their respective polytechnics for the maintenance of buildings and equipment, and (b) delegate appropriate financial powers to polytechnic principals to enable them to undertake annual maintenance programs at their respective polytechnics. Page 9 8. The Project States shall prepare and furnish to the Association by December 31 of each year, draft annual plans for the next fiscal year for (a) the introduction of new technician programs in their respective polytechn- ics, (b) the construction of new and rehabilitation of existing facilities, and (c) training of teachers including local and foreign fellowships. 9. The Project States shall (a) develop and establish a Management Information System (MIS) in the State Project Implementation Units for monitoring and supervi- sion of the Project, (b) implement a supervision plan agreed to by the Association, and (c) undertake, in conjunction with each other and the Association, an annual review of Project progress on the basis of monitorable benchmarks agreed to by the Project States and the Association. 10. The Project States shall, by December 1, 1991, jointly with the Borrower, develop and institute and thereafter maintain fellowship training programs, including study tours, agreed to by the Project States and the Association.