Conformed Copy - C2470 - Second Integrated Child Development Services Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2470 IN Project Agreement (Second Integrated Child Development Services Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF BIHAR and STATE OF MADHYA PRADESH Dated March 23, 1993 CREDIT NUMBER 2470 IN PROJECT AGREEMENT AGREEMENT, dated March 23, 1993, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and THE STATE OF BIHAR and THE STATE OF MADHYA PRADESH (ACTING BY THEIR RESPECTIVE GOVERNORS) (referred to collectively hereinafter as Project States). WHEREAS (A) by the Development Credit Agreement of even date herewith between India, acting by its President (the Borrower) and the Association (the Development Credit Agreement), the Association has agreed to make available to the Borrower an amount in various currencies equivalent to one hundred forty one million six hundred thousand Special Drawing Rights (SDR 141,600,000), 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 Agreement with the Borrower have agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: Page 2 ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Preamble thereto, 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 their respective parts of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, health and nutrition 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 shall otherwise agree, the Project States shall carry out their respective parts of 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. Each of 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, respectively) in respect of the Project Agreement and that part of the Project carried out by each of them respectively. Section 2.04. (a) Each of 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 its obligations under this Agreement, and other matters relating to the purposes of the Credit. (b) Each of the Project States 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 each of the Project States of its 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 their operations, resources and expenditures in respect of activities related to their respective parts of the Project, of the departments or agencies of the Project States responsible for carrying out the Project or any part thereof. (b) Each Project State shall: (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate Page 3 auditing principles consistently applied, by independent auditors acceptable to the Associa- tion; (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, certified copies 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, accounts and 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 the Project States 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 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 Conditions 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 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) Page 4 64145 (WUI) or 82987 (FTCC) For Bihar: Chief Secretary to the Government of Bihar Patna, India For Madhya Pradesh: Chief Secretary to the Government of Madhya Pradesh Bhopal, India Fax: 0705418 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 Project State may be taken or executed by its Chief Secretary or such other person or persons as the respective Project State shall designate in writing and each of the Project States shall furnish to the Association 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 By /s/ D. Joseph Wood Regional Vice President South Asia STATE OF BIHAR STATE OF MADHYA PRADESH By /s/ N. Valluri Authorized Representative SCHEDULE 1 Procurement and Consultants' Services Section I: Procurement of Goods and Works Part A: Local Competitive Bidding 1. Except as provided in paragraph 1 of Part B of this Schedule, contracts for civil works shall be awarded on the basis of competitive bidding advertised locally, in accordance with procedures satisfactory to the Association. 2. Except as provided in paragraph 2 of Part B of this Schedule, contracts for equipment, IEC materials, office supplies, medicines and furniture estimated to cost the equivalent of $50,000 per contract or more, up to an aggregate amount of $30,400,000 Page 5 equivalent, shall be procured on the basis of competitive bidding advertised locally in accordance with procedures satisfactory to the Association. Part B: Other Procurement Procedures 1. Civil works estimated to cost less than $50,000 equivalent each up to an aggregate amount not exceeding $20,400,000 equivalent may be carried out by force account. 2. Equipment, IEC materials, office supplies, medicines, furniture and vehicles estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $22,800,000 equivalent, may be procured under quotations solicited from a list of at least three suppliers, in accordance with procedures satisfactory to the Association. Part C: 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 estimated to cost more than $100,000 equivalent, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in May 1985 (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 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 the Association has 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 Development Credit Agreement. 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 the Project States in carrying out the Project, each of them shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory 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 Part A: Project States Page 6 Project Management and Staffing 1. Each Project State shall establish a Project Management Cell (PMC) with adequate staff, to coordinate Project planning, implementation, monitoring and evaluation. The PMC shall be headed by a Project Coordinator and shall include (a) a core group including at least a nutritionist, a communications specialist, a sociologist/anthropologist with experience in tribal areas and a training specialist; and (b) an adequately staffed ICDS Plus Unit. 2. Each Project State shall establish and thereafter maintain an Empowered Committee chaired by its Chief Secretary and comprising its Secretaries responsible for ICDS, health and finance, as well as the Project Coordinator, to coordinate administrative decision making necessary for timely implementation of the Project. 3. Each Project State shall, in accordance with a staffing plan including a time schedule satisfactory to the Association, fill all vacancies under its ICDS and health programs in Project blocks. 4. Without prejudice to any other provision of this Agreement or the Development Credit Agreement, each Project State shall: (a) every year; (b) mid-way through implementation of the Project; and (c) within six months after Project completion, evaluate Project implementation and shall furnish said evaluation to the Association. Project Planning and Review 5. Each Project State shall prepare and thereafter implement a Plan for the Introduction of Services (PIS) for each block covered under the Project, with content satisfactory to the Association. 6. Each Project State shall furnish to the Association by December 31, 1993 a communication strategy for carrying out Part C of the Project with format and content satisfactory to the Association; and shall thereafter implement such strategy as agreed between the Borrower and the Association. 7. (a) Without prejudice to any other provision of this Agreement or the Development Credit Agreement, each Project State shall review with the Association not later than December 31 of each year the progress in Project implementation during that year. (b) Each Project State shall, taking due account of the results of the review referred to in sub-paragraph (a) above, prepare and discuss with the Association by January 31 each year an annual implementation plan covering activities to be undertaken under the Project during the next fiscal year, and shall thereafter carry out the said plan on a timely basis, as agreed with the Association. 8. Each Project State shall select the location of Anganwadis to be constructed under the Project in accordance with criteria satisfactory to the Association, including adequate prior consultation with the concerned local community. 9. Each State shall furnish to the Association proposals for pilot schemes for carrying out Part D of the Project in accordance with timing and criteria satisfactory to the Association. 10. Each Project State shall carry out a program of operational research in accordance with scope and timing agreed with the Association, discuss with the Borrower and the Association the findings and recommendations of such research, and take necessary steps to incorporate the results of such research in the implementation of the Project, as shall be agreed with the Association. Tribal Peoples 11. Each Project State shall carry out the Project in accordance Page 7 with the Strategies For Strengthening ICDS Among Tribal Populations. Non-Governmental Organizations 12. Each State shall select and engage non-governmental organizations to assist that State in carrying out Part D of the Project in accordance with criteria and procedures satisfactory to the Association. Other 13. Without prejudice to any other provision of this Agreement or the Development Credit Agreement, each State shall take necessary steps to make available to Anganwadis adequate supplemental food as required for the carrying out of the Project. Part B: Madhya Pradesh 14. Madhya Pradesh shall establish a regional directorate in its Department of Women and Child Development, with adequate staff and other facilities to be responsible for implementation of the Project in tribal districts in eastern parts of Madhya Pradesh.