Morocco - Education Project : Credit 0079 - Credit Agreement - Conformed

CREDIT NUMBER 79 MOR Development Credit Agreement (Education Project) BETWEEN KINGDOM OF MOROCCO AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED OCTOBER 11, 1965 CREDIT NUMBER 79 MOR Development Credit Agreement (Education Project) BETWEEN KINGDOM OF MOROCCO AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED OCTOBER 11, 1965 AGREEMENT, dated October 11, 1965, between the KING- DOM oF MOROCCO (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT AssOCIATION (hereinafter called the Associ-tion). ARTICLE I Credit Regulations SECTION 1.01. The parties to this Agreement accept all the provisions of Development Credit Regulations No. 1 of the Association dated June 1, 1961, with the same force and effect as if they were fully set forth herein subject, however, to the following modifications thereof (said Development Credit Regulations No. 1 as so modified being hereinafter called the Regulations): (a) The second sentence of Section 2.02 is amended by deleting the words "at the same rate" and substituting therefor the words "at the rate of one-half of one per cent (1/2 of 17) per annum". (b) Section 3.01 is deleted and the following new Section is substituted therefor: "Section 3.01. Currencies in which Cost of Goods is to be Paid and Proceeds of the Credit are to be Withdrawn. (a) Except as the Borrower and the Association shall otherwise agree, the cost of goods financed out of the proceeds of the Credit shall be paid in the respective currencies of the countries from which such goods are acquired. 4 (b) The proceeds of the Credit shall be withdrawn from the Credit Account: (i) on account of expenditures in currency of the Borrower or for goods produced in (including services supplied from) the territories of the Borrower, in such cur- rency or currencies as the Association shall from time to time reasonably select; (ii) in all other cases, in the currency in which the cost of the goods financed out of such proceeds has been paid or is payable. (c) The Borrower and the Association may from time to time agree on any other currency in which withdrawals shall be made." (c) A new Section 3.04 is inserted after Section 3.03 as follows: " Section 3.04. Purchase of Currency of Withdrawal with Other Currency. If withdrawal shall be made in any currency which the Association shall have purchased with another currency for the purpose of such withdrawal, the portion of the Credit so withdrawn shall be deemed to have been with- drawn from the Credit Account in such other currency for the purposes of Section 3.03." (d) Section 3.04 is renumbered as Section 3.05. (e) Section 8.04 is deleted. ARTICLE II The Credit SECTION 2.01. The Association agrees to make available to the Borrower, on the terms and conditions in the Devel- opment Credit Agreement set forth or referred to, a development credit in an amount in various currencies equivalent to eleven million dollars ($11,000,000). 5 SECTION 2.02. The Association shall open a Credit Account in the name of the Borrower and shall credit to such Credit Account the amount of the Credit. The amount of the Credit may be withdrawn from the Credit Account as provided in, and subject to the rights of cancellation and suspension set forth in, the Development Credit Agreement. SECTION 2.03. Except as the Association shall otherwise agree, the Borrower shall be entitled, subject to the pro- visions of the Development Credit Agreement, to withdraw from the Credit Account: (a) such amounts as shall be the equivalent of 80 per cent (or such other percentage as may from time to time be established by agreement between the Borrower and the Association) of such amounts as shall have been expended for the reasonable cost of goods required for carrying out the Project; and (b) if the Association shall so agree, such amounts as shall be required to meet payments under (a) above; provided, however, that not withdrawals shall be made on account of expenditures prior to September 1, 1965. SECTION 2.04. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (% of 1o) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. SECTION 2.05. Service charges shall be payable semi- annually on March 15 and September 15 in each year. SECTION 2.06. The Borrower shall repay the principal of the Credit withdrawn from the Credit Account in semi- annual instalments payable on each March 15 and Septem- ber 15 commencing March 15, 1976 and ending September 15, 2015, each instalment to and including the instalment 6 payable on September 15, 1985, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each instal- ment thereafter to be one and one-half per cert (1-1/o) of such principal amount. ARTICLE III Use of the Proceeds of the Credit SECTION 3.01. The Borrower shall cause the proceeds of the Credit to be applied exclusively to financing the cost of goods required to carry out the Project described in the Schedule to this Agreement. The spe.ific goods to be financed out of the proceeds of the Credit and the methods and procedures for procurement of such goods shall be determined by agreement between the Borrower and the Association, subject to modification by further agreement between them. SECTIoN 3.02. Except as the Borrower and the Associa- tion shall otherwise agree, the Borrower shall cause all goods financed out of the proceeds of the Credit to be used in the territories of the B:)rrower exclusively in the carry- ing out of the Project. ARTICLE IV Particular Covenants SECTION 4.01. (a) The Borrower shall carry out or cause the Project to be carried out with due diligence and efficiency, in conformity with sound technical standards and with due regard to economy. (b) The Borrower shall cause the schools included in the Project to be operated under sound and qualified admin- istration and to be provided with qualified teachers in adequate numbers. (c) The Borrower shall cause the buildings and equip- ment of the schools included in the Project to be maintained 7 and shall cause all necessary renewals and repairs to be made thereto. (d) Except as the Association shall otherwise agree, in the carrying out of the Project the Borrower shall employ or cause to be employed qualified and experienced archi- tects, engineers and other coisultants acceptable to the Borrower and the Association, upon terms and conditions satisfactory to the Borrower and Association. (e) Except as the Association shall otherwise agree, the Borrower shall cause the Project to be carried out by con- tractors acceptable to the Borrower and the Association employed under contracts satisfactory to the Borrower and the Association. (f) Except as the Association shall otherwise agree, the Borrower shall furnish or cause to be furnished to the Asso- ciation for its approval promptly upon their preparation the plans, specifications, contracts and work schedules for the construction included in the Project and any material modifications subsequently made therein, in such detail as the Association shall request. SECTION 4.02. The Borrower shall at all times make or cause to be made available immediately as needed all funds and other resources, including land, required for the carry- ing out of the Project and for the operation and mainte- nance of the schools included in the Project. SECTION 4.03. The Borrower shall maintain or cause to be maintained records adequate to identify the goods financed out of the proceeds of the Credit, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect in ac- cordance with consistently maintained sound accounting practices the operations and financial condition of the agency or agencies of the Borrower responsible for the carrying out of the Project or any part thereof; shall en- 8 able the Association's representatives to inspect the Proj- ect, the goods and any relevant records Cnd documents; and shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concerning the expenditure of the proceeds of the Credit, the Project, the goods and the administration, operations and financial condition of the agency or agencies of the Borrower responsible for the carrying out of the Project or any part thereof. SECTIoN 4.04. (a) The Borrower and the Association shall cooperate fully to ensure that the purposes of the Credit will be accomplished. To that end, each of them shall furnish to the other all such information as it shall reason- ably request with regard to the general status of the Credit. On the part of the Borrower, such information shall in- clude information with respect to financial and economic conditions in the territories of the Borrower and to the international balance of payments position of the Borrower. (b) The Borrower and the Association shall from time to time exchange views through their representatives with regard to matters relating to the purposes of the Credit and the maintenance of the service thereof. The Borrower shall promptly inform the Association of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit or the main- tenance of the service thereof. (c) The Borrower shall afford all reasonable oppor- tunity for accredited representatives of the Association to visit any part of the territories of the Borrower for purposes related to the Credit. SECTION 4.05. Except as shall be otherwise agreed be- tween the Borrower and the Association, the Borrower shall insure or cause to be insured with responsible in- 0 9 surers all goods financed out of the proceeds of the Credit. Such insurance shall cover such marine, transit and other risks incident to delivery of the goods into the territories of the Borrower and to the site of the Project, and shall be for such amounts, as are consistent with sound com- mercial practice. Indemnity under such insurance shall be payable in freely convertible currencies or in the currency in which the cost of the goods insured thereunder shall be payable. SECTION 4.06. The principal of, and service charges on, the Credit shall be paid without deduction for, and free from, any taxes, and free from all restrictions, imposed under the laws of the Borrower or laws in effect in its territories. SECTION 4.07. The Development Credit Agreement shall be free from any taxes that shall be imposed under the laws of the Borrower or laws in effect in its territories on or in connection with the execution, delivery or registration thereof. ARTICLE V Remedies of the Association SECTION 5.01. (i) If any event specified in paragraph (a) or paragraph (c) of Section 5.02 of the Regulations shall occur and shall continue for a period of thirty days, or (ii) if any event specified in paragraph (b) of Section 5.02 of the Regulations shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower, then at any subsequent time during the continuance thereof the Asso- ciation, at its option, may declare the principal of the Credit then outstanding to be due and payable immediately, and upon any such declaration such principal shall become due and payable immediately, anything in this Agreement to the contrary notwithstanding. 10 ARTICLE VI Effective Date; Termination SECTION 6.01. If this Development Credit Agreement shall not have become effective by December 31, 1965, this Development Credit Agreement and all obligations of the parties hereunder shall terminate, unless the Association, after consideration of the reasons for the delay, estab- lishes a later date for the purposes of this Section. The As- sociation shall promptly notify the Borrower of such later date. ARTICLE VII Miscellaneous SECTION 7.01. The Closing Date shall be June 30, 1971, or such other date as may from time to time be agreed be- tween the Borrower and the Association. SECTION 7.02. The following addresses are specified for the purposes of Section 7.01 of the Regulations: For the Borrower: Ministere des Finances Rabat Morocco Alternative address for cables and radiograms: Ministere Finances Rabat, Morocco For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America 11 Alternative addre-s for cables and radiograms: INDEVAS WASHINGTON, D,.CI. SECTION 7.03. The Minister of Finance of the Borrower is designated for the purposes of Section 7.03 of the Regulations. IN WITNESS WHEREOF, the parties hereto acting through their representatives thereunto duly authorized, have caused this Development Credit Agreement to be signed in their respective names and delivered in the District of Columbia, United States of America, as of the day and year first above written. KINGDOI OF MOROCCO By s/ AHMED LARAKI Authorized Representative INTERNATIONAL DEVELOPMENT AssoCIATIoN By s/ GEORGE D. WOODS President 12 SCHEDULE Description of Project The Project consists of the construction and equip- ment of the following twenty-one multilateral secondary schools: 1. Agadir-Lycee: Buildings to include 30 classrooms, ad- ministration rooms, science laboratories, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 2. Aouamra-Agricultural College-short course-: Build- ings to include 10 classrooms, administration rooms, science laboratories, one workshop, dormitories, dining and auxiliary facilities for 180 boarders, all boys. 3. Beni Mellal-Lycee: Buildings to include 40 classrooms, administration rooms, science laboratories, dormi- tories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 4. Casablanca-Lycee: Buildings to include 40 classrooms, administration rooms and science laboratories. 5. Fes-Lyc'e: Buildings to include 30 classrooms, admin- istration rooms, science laboratories, two workshops, dormitories, dining and auxiliary facilities for 180 boarders, all boys. 6. Kenitra-Lycee: Buildings to include 40 classrooms, ad- ministration rooms, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 7. Khouribga-Lyc6e: Buildings to include 30 classrooms, administration rooms, science laboratories, dormi- tories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 13 8. Ksar-es-Souk-Lycle: Buildings to include 30 class- rooms, administration rooms, science laboratories, one workshop, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 9. Marrakech-Lycee: Buildings to include 40 classrooms, administration rooms, science laboratories, dormi- tories, dining and auxiliary facilities for 180 boarders, all girls. '10. Meknes-Lyede: Buildings to include 40 classrooms, administration rooms, science laboratories, dormitories, dining and auxiliary facilities for 180 boarders, all boys. 11. Midelt-Technical College-short course-: Buildings to include 10 classrooms, administration rooms, science laboratories, one workshop, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 12. Nador-Lycee: Buildings to include 30 classrooms, ad- ministration rooms and science laboratories. 13. Oujda-Lycee: Buildings to include 30 classrooms, ad- ministration rooms, science laboratories, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 14. Quezzane-Lycee: Buildings to include 30 classrooms, administration rooms, science laboratories, dormi- tories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 15. Safi-Lycee: Buildings to include 40 classrooms, admin- istration rooms, science laboratories, dormitories, din- ing and auxiliary facilities for 180 boarders (120 boys and 60 girls). 14 16. Sefron-Lycee: Buildings to include 30 classrooms, ad- ministration rooms, science laboratories, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). 17. Settat-Agricultural College-short course-: Buildings to include 20 classrooms, administration rooms, science laboratories, one workshop, dormitories, dining and auxiliary facilities for 180 boarders, all boys. 18. Sidi-Slimane-Agricultural College - short course -: Buildings to include 20 classrooms, administration rooms, science laboratories, one workshop, dormitories, dining and auxiliary facilities for 180 boarders, all boys. 19. Taroudant-Agricultural College-short course-: Build- ings to include 20 classrooms, administration rooms, science laboratories, one workshop, dormitories, din- ing and auxiliary facilities for 180 boarders, all boys. 20. Taza-Lycee: Buildings to include 40 classrooms, ad- ministration rooms, science laboratories, dormitories, dining and auxiliary facilities for 180 boarders (90 boys and 90 girls). 21. Tetouan-Lycee: Buildings to include 30 classrooms, ad- ministration rooms, science laboratories, two work- shops, dormitories, dining and auxiliary facilities for 180 boarders (120 boys and 60 girls). The Project is expected to be completed by the end of 1970.