Conformed Copy - C2285 - Agricultural Services Restructuring Project - Amendment

Page 1 December 22, 1992 H.E. Mr. Paul Dossou Minister of Finance Cotonou Republic of Benin Credit No. 2285-BEN (Agricultural Services Restructuring Project) Amendments to the Development Credit Agreemen Excellency, Please refer to the above-mentioned Development Credit Agreement between the Republic of Benin (Borrower) and the International Development Association (the Association) dated July 12, 1991 (the Development Credit Agreement). We are pleased to inform you that the Association accepts your request to increase financing for vehicles and equipment and for operating costs for the Zou, Borgou and Aflantique CARDERs. Consequently, the Association proposes to hereby amend the Development Credit Agreement as follows: 1. Paragraph (E) of the Preamble to the Development Credit Agreement is amended by the deletion of "Category (6)" appearing therein and the substitution therefor of "Category (5)". 2. Section 6.01 (c) of the Development Credit Agreement is amended by the deletion of "Part H. 1 " and the substitution therefor of "Part H". 3. Schedule I to the Development Credit Agreement is amended to read as set out in Attachment I to this letter. 4. Schedule 2 to the Development Credit Agreement is amended to read as set out in Attachment 2 to this letter. Please indicate your agreement to these amendments by signing and dating the enclosed duplicate original of this letter in the space provided therefor and returning it to us. This amendment shall become effective on the date of countersignature by you. Sincerely yours Olivier Lafourcade Director Occidental and Central Africa Department CONFIRMED: REPUBLIC OF BENIN Paul Dossou DATE: January 11, 1993 ATTACHMENT I Page 2 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 SDR Equivalent) to be Financed (1) Civil works under Parts A, D.2 and F of the 1,050,000 100% Project (2) Equipment and vehicles: 100% (a) under Parts A and B. 1 of the project 2,100,000 (b) under Parts D.2, E, and H of the project 360,000 (c) under Part F of the Project 330,000 (3) Technical Assistance under Part H of the Project 440,000 100% (4) Training: 100% (a) under Parts C.1 and F of the Project 740,000 (b) under Part G.1 of the Project 120,000 (5) Credit and Financial Assistance: 100% (a) under Part G.1 of the Project 320,000 (b) under Part F of the Project 240,000 (6) Operation and Maintenance: 80% expenditures (a) under Parts A, B.1, incurred up to D.2, E, G.1 and H 3,060,000 December 31, 1993; of the Project 50% thereafter (b) under Part F of the Project 60,000 (7) Unallocated 480,000 TOTAL 9,300,000 2. For the purposes of this Schedule, the term "Operation and Maintenance" means the costs incremental to the project of office and vehicle maintenance and of supplies, fuel and travel, but excluding salaries, of the agencies of the Borrower involved in carrying out the Project. 3. Notwithstanding the provisions of the paragraph 1 above, no withdrawals shall be made in respect of. (a) payment made for expenditures prior to the date of this Agreement; (b) payments made for expenditures under Categories 2 (c), 5 (b) and 6 (b) until the Borrower has prepared a livestock health services action plan satisfactory to the Association; and (c) payments made by a Financial Intermediary under an Page 3 agreement for a Sub-loan unless a Management and Financing Agreement has been entered into by that Financial Intermediary and the Borrower on the terms and conditions set out in Section 3.01 (b) of this Agreement. ATTACHMENT 2 SCHEDULE 2 Description of the Proiect The objectives of the Project are to assist the Borrower in carrying out a program of rural development activities that adequately copes with the changing balance between supply and demand for agricultural products arising from Benin's increasing urbanization, the degradation of its natural resources and movements in international trade. The Project consists of the following Parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: MDR Completion of MDR's headquarters buildings and acquisition of office equipment, including data processing equipment, and vehicles for use by MDR. Part B: CARDERs Acquisition of vehicles and office equipment for the use of: 1. the Atlantique, Borgou and Zou CARDERs; and 2. the Atacora and Mono CARDERs. Part C: Trainin Training of directors and other management staff, operational training managers, and field staff: 1. for MDR and the Atlantique, Borgou and Zou CARDERs; including establishment of a training center for extension workers in the Zou Department; and 2. for the Atacora and Mono CARDERs. Part D: Research and Developmen Establishing research and development Units, carrying out farm level tests and research and strengthening the existing cotton experimentation centers: 1. the Atacora and Mono Departments; and 2. the AtIantique, Borgou, Ou6me and Zou Departments and strengthening of the Food Technology Laboratory with research equipment and a vehicle. Part E: Seed Production Acquisition of equipment, including seed shelters and dryers, maize shellers, irrigation pumps and equipment for producing pre-base seed for the Alafiarou farm in the Borgou Province; and for the Agbotagon farm in the Atlantique province. Part F: Livestock Services 1. Strengthening the Borrower's central and regional capacity and procedures for surveillance and control of epizootics, veterinary public health, livestock and meat imports and exports, imports of veterinary pharmaceutical and livestock feed and inspection of foodstuffs of animal origin. 2. Acquisition of equipment and vehicles for the Livestock Directorate. 3. Equipment for the central laboratory for epidemiological diagnostic work and routine analyses. 4. Construction and equipment for quarantine and border veterinary posts. Page 4 5. Provision of financing in the form of Sub-loans to Qualifying-Beneficiu.ies intending to carry out private veterinary practice. Part G: Reinsertion of Redundant Personnel A reinsertion program for the personnel of: 1. MDR and the Atlantique, Borgou, Ou6me and Zou CARDE's, including: (a) training and financing assistance of former middle and higher level personnel, subject-matter specialists, repairmen and truckers in simple business management and marketing; and (b) provision of financing in the form of Sub-loans to Qualifying Beneficiaries for Reinsertion Projects; and 2. the Atacora and Mono CARDERs. Part H: Project Management Establishment of selection commissions and restructuring units in MDR and in each CARDER and a national committee and an appeals committee for the purposes of reorganizing MDR and the CARDERs and of carrying out Part G of the Project. Assistance in Project financial management, monitoring and evaluation, audits and technical support missions. Part I: Studies 1. Studies necessary for the reorganization of MDR and the CARDERs. 2. Carrying out of studies on the strategy and programming of agricultural research in Benin, on the traditional cultivars of food crops, and preparation of an analytical and critical assessment of technical messages used in extension activities and on which national research is based and on their consistency with actual field conditions. 3. Further studies relating to the Project as agreed with the Association. The Project is expected to be completed by December 31, 1994.