India - West Bengal Forestry Project : Credit 2341 - Project Agreement - Conformed

D0eCU[CENTS CREDIT NMER 2341 IN Project Agreement (Vest Bengal Forestry Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF VEST BENGAL Dated ( 2 , 1992 CREDIT NUMBER 2341 IN PROJECT AGREEMENT AGREEMENT, dated l4f4 2 , 1992, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and STATE OF WEST BENGAL, acting by its Governor (West Bengal). WHEREAS by the Developm.nt 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 twenty-four million four hundred thousand Special Drawing Rights (SDR 24,400,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that West Bengal agree to undertake such obligations toward the Association as are set forth in this Agreement; and WHEREAS West Bengal, 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 Preamble to this Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) West Bengal declares its 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 Parts A, B, C and D of the Project through FD, and Part E of the Project through ARDD with the participation of FD in accordance with the Resolution, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and forestry practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. -2- (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association shall otherwise agree, West Bengal 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, pzocurement of the goods, works and consultants' 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. West Bengal 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 (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) West Bengal shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) West Bengal shall promptly inform the Association 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 performance by West Bengal of its obligations under this Agreement. ARTICLE III Financial Covenants Section 3.01. (a) West Bengal shall maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agencies of West Bengal respon- sible for carrying out the Project. (b) West Bengal 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 consistently applied, by independent auditors acceptable to the Association; -3- (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 Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning said records and accounts as well as the audit thereof, as the Association 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 the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of West Bengal thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) the date 20 years after the date of this Agree- ment. (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 West Bengal 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. -4- 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 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 West Bengal: Chief Secretary Government of West Bengal Calcutta West Bengal, India Cable address: Telex: CHIEFSEC 021-2222 Calcutta West Bengal 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 West Bengal may be taken or executed2 by its -5- Chief Secretary or such other person or persons as West Bengal shall designate in writing, and West Bengal shall furnish to the Associa- tion 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 collec- tively 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 Regional Vice President South Asia STATE OF WEST BENGAL Authorized Representative -6- SCHEDULE 1 Procurement and Consultantst Services Section I: Procurement of Goods and Works Part A: Procurement Procedures 1. Except as provided in paragraphs 2, 3 and 4 hereof, civil works, computers and other goods shall be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. 2. All forestry plantation, and civil works estimated to cost less than the equivalent of $10,000 per contract up to an aggregate amount not to exceed $3,500,000, may be carried out through force account using labor from local communities. 3. Imported seeds and equipment estimated to cost less than the equivalent of $20,000 per contract, up to an aggregate amount not to exceed the equivalent of $200,000, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers from at least three different countries eligible under the Guidelines, in accordance with procedures acceptable to the Association. 4. Equipment, vehicles, seeds, fertilizers, and field supplies locally available and estimated to cost less than the equivalent of $20,000 per contract, up to an aggregate amount not to exceed the equivalent of $1,500,000 in aggregate, and construction materials estimated to cost less than the equivalent of $20,000 per contract, up to an aggregate amount not to exceed the equivalent of $350,000, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association. Part B: 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 civil works estimated to cost the equivalent of $100,000 or more, all computer contracts and the first five contracts for goods and civil works, the -7- procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Whe-e 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 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 pre- ceding 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 paragraph 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 withdrawals from the Credit Account are to be made on the basis of statements of expenditure. 2. The figure of 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. Section II: Employment of Consultants In order to assist West Bengal in carrying out the Project, West Bengal 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 Consul- tants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. -8- SCHEDULE 2 Implementation Program 1. West Bengal shall: (a) promptly implement the reorganization of the field staff of FD at and below the district level in the districts of Purulia and Kurseong in accordance with the Order dated November 20, 1991 issued by West Bengal and a time-bound action plan to be adopted by West Bengal no later than June 30, 1992, satisfactory to the Association, for such purpose; and (b) no later than January 31, 1994, adopt a time-bound plan of action satisfactory to the Association for the purpose of extending such reorganization of FD to additional districts and implement such plan in accordance with such time schedule. 2. For the purpose of implementing Part C.1 (a) of the Project, West Bengal shall: (a) employ consultants by June 30, 1992 to assist FD in the preparation of the research program to be carried out under such Part of the Project; (b) discuss with the Association by December 31, 1992 such research program, including a timetable for implementing such program, and, taking into account the Association's comments, if any, relating thereto, implement such program in accordance with such timetable; and (c) take steps to ensure that the research staff of FD engaged in such research program remain in their respective positions for at least five years from the commencement of such engagement, except under circumstances acceptable to the Associa- tion. 3. West Bengal shall: (a) select such staff of FD for overseas training under Part C.2 (a) of the Project who have at least five years to retirement; and (b) take steps to ensure that such staff receiving such overseas training are posted for at least three years upon completion of such training in areas in which such training has been received, except under circumstances acceptable to the Association. -9- 4. In carrying out Part A of the Project, West Bengal shall cause FD to: (a) follow such treatment models, including basic soil and moisture conservation treatments and incorporation of fodder and legume species, satisfactory to the Association; and (b) follow improved nursery practices satisfactory to the Association. 5. West Bengal shall: (a) adopt, or cause to be adopted, all appropriate measures as may be necessary or required to promote the development of farm forestry; (b) obtain, or cause to be obtained, in a prompt and efficient manner, all approvals and clearances from the Borrower or its relevant departments or agencies as may be necessary or required for the purpose of implementing the activities under the Project; and (c) provide, or cause to be provided, in a prompt and efficient manner all appropriate extension services as may be necessary or required for the purpose of implementing the activities under the Project. 6. For the purpose of strengthening community participation in forest protection, West Bengal shall maintain, or cause to be maintained, Lenefit sharing arrangements with community members, satisfactory to the Association, in the Sunderbans, the northern and southern areas of West Bengal, and in the buffer zones of protected forests, and shall not change such arrangements without the prior approval of the Association. 7. West Bengal shall: (a) furnish to the Association by June 30, 1992 terms of reference, satisfactory to the Association, for the studies to be carried out under Part C.4 (a) of the Project; and (b) complete such studies in accordance with such terms of reference by July 31, 1994. - 10 - 8. Without limitation to the generality of Section 9.06 of the General Conditions of the Association, West Bengal shall cause FD and ARDD to furnish to the Association by June 30 and December 31 of each year beginning on December 31, 1992, reports on the progress of Parts A, B, C and D, and E of the Project respectively. 9. West Bengal shall adopt appropriate measures, satisfactory to the Association, to ensure that seedlings are not distributed free of charge and to increase seedling pricing each year so as to achieve full cost recovery, in accordance with methodology satisfac- tory to the Association, no later than March 31, 1997. 10. West Bengal shall, in consultation with the Association and in accordance with terms of reference and methodology satisfactory to the Association, undertake and,complete by September 30, 1994 a mid-term review of the Project, and, shall, promptly thereafter, carry out the agreed recommendations of such review in a manner acceptable to the Association. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY