Morocco - Second Education Project : Credit 0266 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 266 MOR Development Credit Agreement (Second Education Project) BETWEEN THE KINGDOM OF MOROCCO AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION DATED AUGUST 18, 1971 CONFORMED COPY CREDIT NUMBER 266 MOR Development Credit Agreement (Second Education Project) BETWEEN THE KINGDOM OF MOROCCO AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION DATED AUGUST 18, 1971 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated August 18, 197 1, between the KINGDOM OF MOROCCO (hereinafter called the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated January 31, 1969, with the same force and effect as if they were fully set forth herein, subject, however, to the deletion of Sections 5.01 and 6.02 (h) thereof and to the renumbering of Section 6.02 (i) into 6.02 (h) thereof (said General Conditions Applicable to Development Credit Agreements of the Association, as so modified, being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to eight million five hundred thousand dollars ($8,500,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule shall be amended from time to time, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project, described in Schedule 2 to this Agreement, and to be financed under the Development Credit Agreement; provided, however, that, except as the Association shall otherwise agree. no withdrawal shall 4 be made on account of expenditures in the territories of any country which is not a member of the Bank (other than Switzerland) or for goods produced in, or services supplied from, such territories. Section 2.03. Except as the Association shall otherwise agree, the goods and services (other than services of consultant architects and experts) required for the Project and to be financed out of the proceeds of the Credit, shall be procured on the basis of international competition under procedures consistent with the Guidelines for Procurement under World Bank Loans and IDA Credits, published by the Bank in August 1969, as revised in May 1971, and in accordance with, and subject to, the provisions set forth in Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be April 30, 1976 or such other date as shall be agreed between the Borrower and the Association. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on March 1 5 and September 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 15 and September 15 commencing September 15, 1981 and ending March 15, 2021, each installment to and including the installment payable on March 15, 1991 to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the French Republic is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with sound educational, administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. 5 Section 3.02. In order to assist the Borrower in the planning and supervision of the construction included in the Project, the Borrower shall employ consultant architects acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.03. (a) For the purpose of carrying out the Project, the Borrower shall maintain and operate in its Ministry of Higher, Secondary and Technical Education and Teacher Training a Project Unit with such responsibilities and powers as are specified in Part A of Schedule 4 to this Agreement, shall make appropriate arrangements in its Ministry of Labor and Employment and its Ministry of Agriculture and Agrarian Reform as specified in Part B of such Schedule and shall ensure the assignment to such Unit and Ministries at all times of qualified and experienced personnel. (b) The officials to be designated pursuant to Parts B and C of such Schedule 4 shall be appointed before October 31, 1971. (c) The Borrower shall provide the Project Unit and the personnel of the other Ministries mentioned above chaiged with carrying out parts of the Project with such facilities and other resources as sh,l be required for the efficient operation thereof. Section 3.04. In carrying out Part I of the Project, the Borrower shall employ contractors acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.05. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.06. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, contracts, construction, work and procurement schedules, and master lists of equipment and furniture required for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. 6 (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's representatives to inspect the Project, the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.07. The Borrower shall take all such action as shall be necessary to acquire before January 31, 1972 all such land or rights in respect of land as shall be required for the institutions included in the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land or rights in respect of land are available for purposes related to the Project. Section 3.08. The Borrower shall, before October 31, 1971, establish the National Institute of Pedagogy included in the Project, designate its Director and furnish to the Association a copy of the statutes of said Institute. ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. The Borrower shall cause the institutions and facilities included in the Project to be operated in conformity with sound administrative and educational policies and practices and with due regard to economy, to be provided with qualified instructors and administrators in adequate numbers and to be adequately maintained at all times in accordance with sound technical practices. Section 4.03. The Borrower shall, before October 31, 1972: (i) establish in its Ministry of Higher, Secondary and Technical Education and Teacher Training a special administrative section for the maintenance of its school buildings at secondary and post-secondary levels; and (ii) establish adequate maintenance 7 procedures for such schools, including procedures for preventive maintenance, with the afsistance of the architect referred to in Part II (C) of Schedule 2 to this Agreement. Section 4.04. The Borrower shall (a) prior to the award of any contract for the construction of the National Institute of Pedagogy included in the Project, and before October 31, 1972, submit to the Association for comment an outline of the research, training and staff development programs of such Institute; and (b) before October 31, 1972, (i) submit to the Association for comment a long-term program for meeting the staff requirements of the six Regional Teacher Training Colleges included in the Project and providing for satisfactory external aid arrangements to fill temporary shortages of staff in such Colleges; and (ii) obtain any necessary staff for the Department of Veterinary Medicine of the Institute of Agronomy Hassan II and for the ten Technical Secondary Schools included in Part I (E) of the Project and provide for satisfactory external aid arrangements to fill temporary shortages of staff in such Department. ARTICLE V Consultation, Information and Inspection Section 5.01. The Borrower and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, the Borrower and the Association shall from time to time, at the request of either party: (a) exchange views through their representatives with regard to the performance of their respective obligations under the Development Credit Agreement and with regard to the administration and operations, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof, and other matters relating to the purposes of the Credit; and (b) furnish to the other all such information as it shall reasonably request with regard to the general status of the Credit. On the part of the Borrower, such information shall include information with respect to financial and economic conditions in the territories of the Borrower, including its balance of payments, and the external debt of the Borrower, of any of its political subdivisions and of any agency of the Borrower or of any such political subdivision. Section 5.02. (a) The Borrower shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request 8 concerning the administration and operations, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower and the Association shall promptly inform each other of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit, the maintenance of the service thereof, or the performance by the Borrower of its other obligations under this Agreement. Section 5.03. The Borrower shall afford all reasonable opportunity for accredited representatives of the Association to visit any part of the territories of the Borrower for purposes related to the Credit. ARTICLE VI Taxes and Restrictions Section 6.01. The principal of, and service charges on, the Credit shall be paid without deduction for, and free from, any taxes imposed under the laws of the Borrower or laws in effect in its territories. Section 6.02. The Development Credit Agreement shall be free from any taxes on or in connection with the execution, delivery or registration thereof, imposed under the laws of the Borrower or laws in effect in its territories. Section 6.03. The payment of the principal of, and service charges on, the Credit shall be free from all restrictions, regulations, controls and moratoria of any nature imposed under the laws of the Borrower or laws in effect in its territories. ARTICLE VII Remedies of the Association Section 7.01. If any event specified in Section 7.01 of the General Conditions shall occur and shall continue for the period, if any, therein set forth, then at any subsequent time during the continuance thereof, the Association, at its option, may by notice to the Borrower declare the principal of the Credit then outstanding to be due and payable immediately together with the service charges thereon, and upon any such declaration such principal and service charges shall become due 9 and payable immediately, anything to the contrary in the Development Credit Agreement notwithstanding. ARTICLE VIII Effective Date; Termination Section 8.01. The date November 18, 1971 is hereby specified for the purposes of Section 10.04 of the General Conditions. ARTICLE IX Representative of the Borrower; Addresses Section 9.01. The Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 9.03 of the General Conditions. Section 9.02. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: Minist6re des Finances Rabat, Morocco Cable address: Minist6re Finances Rabat For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Indevas Washington, D.C. 10 IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names and to be delivered in the District of Columbia, United States of America, as of the day and year first above written. KINGDOM OF MOROCCO By /s/ Abdessadeq El Mezouari El Glaoui Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Simon Aldewereld Vice President t 11 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 amounts of the Credit to each category and the percentage of eligible expenditures to be financed in each category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed I. Furniture and equipment 4,000,000 100% of foreign ex- penditures, or if locally procured, 100% of local expendi- tures net of taxes II. Services 45% of total expendi- tures (a) Civil works 3,550,000 (b) Consultan 350,000 architects (c) Services of one ar- 100,000 chitect and one specialist in equip- ment, for the Proj- ect Unit, and of the architect required for Part II (C) of the Project III. Unallocated 500,000 TOTAL 8,500,000 12 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods produced in, or services supplied from, the territories, and in the currency, of any country other than the Borrower; (b) the term "local expenditures" means expenditures in the currency of the Borrower, or for goods purchased in, or services supplied from, the territories of the Borrower; and (c) the term "total expenditures" means the aggregate of foreign and local expenditures. 3. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of: (a) expenditures prior to the date of this Agreement; and (b) payments for taxes imposed under the laws of the Borrower or laws in effect in its territories on goods or services, or on the importation, manufacture, procurement or supply thereof. To the extent that the amount represented by the percentage set forth in the third column of the table in paragraph I above in respect of any Category would exceed the amount payable net of all such taxes, such percentage shall be reduced to ensure that no proceeds of the Credit will be withdrawn on account of payments for such taxes. 4. Notwithstanding the allocation of an amount of the Credit set forth in the second column of the table in paragraph I above: (a) if the estimate of the expenditures under any Category shall decrease, the amount of the Credit then allocated to such Category and no longer required therefor will be reall3cated by the Association by increasing correspondingly the unallocated amount of the Credit; (b) if the estimate of the expenditures under any Category shall increase, the percentage set forth in the third column of the table in paragraph I above in respect of such expenditures shall be applied to the amount of such increase, and a corresponding amount will be allocated by the Association, at the request of the Borrower, to such Category from the unallocated amount of the Credit, subject, however, to the requirements for contingencies, as determined by the Association, in respect of any other expenditures. 13 5. Notwithstanding the percentage set forth in the third column of the table in paragraph I above, if the estimate of total expenditures under Category II shall increase and no proceeds of the Credit are available for reallocation to such Category, the Association may, by notice to the Borrower, adjust the percentage then applicable to such expenditures in order that further withdrawals under such Category continue until all expenditures thereunder shall have been made. 14 SCHEDULE 2 Description of the Project The Project consists generally in the construction, equipping and furnishing of educational institutions and facilities with a view to expanding and improving specific sections of the vocational, secondary and higher educational systems of the Borrower. The Project includes specifically the following Parts: Part I. Construction, extension, equipment and furnishing of educational institutions or facilities as follows: (A) construction, equipment and furnishing of a new National Institute of Pedagogy, which will be located at Rabat; which will be responsible for (1) research into the structure, content and techniques of teaching, with particular attention to the causes of student failures, (2) coordination of training of primary and secondary school teachers, (3) advanced courses for teachers and supervisors, and (4) experimentation with new teaching equipment, production of prototype material and printing of manuals; and which will have a teaching material production center; (B) construction, equipment and furnishing of a new Higher Teacher Training College, which will be located at Rabat; which will provide one-year post-graduate courses for teacher-trainees for second cycle secondary schools, and which, as from 1975, will train approximately 300 senior secondary teachers per year; (C) construction, equipment and furnishing of six new Regional Teacher Training Colleges, which will be located at Oujda, Meknes, Kenitra, Fes, Marrakech and Tangiers; which will have an enrollment of approximately 720 students each; and which will train a total of approximately 1,200 teachers per year; (D) six laboratories, including equipment and furnishing, for the extension of six existing Senior Secondary Schools, which are located as follows: (1) Lyc6e Ali Ben Barr Taza (2) Lycee Moulay Slimane Fes 15 (3) Lyc6e Mohammed V Marrakech (4) Lyc6e Jaber Ibn Hayan Tetouan (5) Lyc6e Tarik Ibn Ziad Azrou (6) Coll*ge Mixte (Ibn Yassin) Mohammedia which, as extended, will have a total of approximately 1,300 science students at upper-secondary level and which will allow a total of approximately 400 students to become science graduates annually; (E) additional workshop, laboratory equipment and furnishing for ten existing Technical Secondary Schools, which are located as follows: (1) Lyc6e Youssef Ben Tachfin Agadir (2) Lycde Al Khaourizmy Casablanca (3) Lyc6e Jaber Ibn Hayan Casablanca (4) Lyc6e Ibn Yassin Khouribga (5) Lyc6e Al Idrissi Safi (6) Lyc6e Moulay Ismail Meknes (7) Lyc6e Omar Ibn Abdelaziz Oujda (8) Lyc6e Al Laymoune Rabat (9) Lyc6e Abdelmalek As Sahdi Kenitra (10) Lycde Hassan II Marrakech which will introduce an advanced course at the level of the second cycle of secondary education leading to a baccalaureat en mathematiques et techniques; and which will complete the education of a total of approximately 450 students per year, of whom approximately 250 are expected to gain the above-mentioned baccalaur6at; (F) new equipment and furnishing for thirteen existing Commercial Secondary Schools, which are located as follows: 16 (1) Lyc6e Youssef Ben Tachfin Agadir (2) Lyc6e Al Khansa Casablanca (3) Lyc6e Mohammed V Casablanca (4) Lyc6e Jaber Ibn Hayan Casablanca (5) Lyc6e Al Idrissi Safi (6) Lyc6e Lalla Amina Meknes (7) Lyc6e Al Laymoune Rabat (8) Lyc6e Omar Khayam Rabat (9) Lyc6e Omar Ibn Abdelaziz Oujda (10) Lyc6e Moulay Slimane Fes (11) Lyc6e Hassan II Marrakech (12) Lyc6e Ibn Al Khatib Tanger (13) Lyc6e Jaber Ibn Hayan Tetouan which will introduce advanced courses leading to a baccalaur6at in economics; and which will complete the secondary education of approximately 1,200 students per year, of whom approximately 700 are expected to gain the baccalaureat; (G) construction, equipment and furnishing of two new Vocational Training Centers: (1) a center for the building trades, which will be located at Casablanca and which will train approximately 105 skilled workers per year; (2) a vocational training center for the engineering trades, which will be located at Kenitra and which will train approximately 93 skilled workers per year; (H) academic and clinical buildings, equipment and furnishing for a new Department of Veterinary Medicine in the existing Institute of Agronomy Hassan II at Rabat, which will train approximately 25 veterinarians per year; 17 (I) academic and communal facilities, equipment and furnishing for an extension of the existing Royal School of Forestry, located at Sale, which will train approximately 40 agricultural field agents per year, in addition to the present training of approximately 25 agricultural field assistants per year. Part II: The employment of the following qualified and experienced experts: (A) two architects employed in the Project Unit; (B) two specialists in educational equipment procurement employed in the Project Unit; (C) an architect experienced in school maintenance employed for two periods of six months each, the costs of whose services are to be financed out of the proceeds of the Credit under Category II (c) of Schedule 1 and whose appointment is subject to the approval of the Association. 18 SCHEDULE 3 Procurement A. Contracts for Civil Works 1. Contractors shall be general contractors and shall be prequalified in accordance with a prequalification procedure satisfactory to the Association. 2. Before inviting bids, the Borrower will send to the Association for its approval the following: (a) list of all contracts for civil works to be awarded in carrying out the Project, indicating the estimated value of each contract and the forecast timetable for obtaining it. The contracts will be grouped in such a way as to encourage international competitive bidding. Such timetable and grouping will take into account the requirements in respect of the National Institute of Pedagogy set forth in Section 4.04 (a) of this Agreement; (b) description of the proposed advertising coverage to ensure international competitive bidding, draft bid notices, prequalification questionnaires and description of the prequalification procedure; (c) the consultant architects' report and recommendation on the prequalification data submitted and the proposed selected tender list; (d) draft bidding documents for each group including draft contracts. The invitations to bid for educational facilities included in the Project will, inter alia, specify that the bidder will submit offers in respect of each institution in the group or of all of them, together with related facilities, or any combination thereof, the bids therefor to be opened simultaneously and the Borrower to have the option of awarding to one contractor one contract in respect of all the educational institutions and facilities, or separate contracts in respect of the various educational institutions and facilities to different contractors in any combination. The Borrower shall make such modifications in such draft bidding documents and draft contracts as the Association shall reasonably request. 3. After bids have been received and evaluated, the Borrower will, before a final decision on the award is made, inform the Association of the name of the bidder to whom it intends to award the contract and the reasons for the intended award, and will furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the 19 recommendation for the award of the consultant architects. The Association will promptly inform the Borrower if it reasonably determines that the intended award is inconsistent with the provisions of the Guidelines referred to in Section 2.03 of this Agreement or with the Development Credit Agreement. 4. Promptly after a contract has been awarded, and before submission to the Association of the first application for withdrawal of funds in respect thereof, a certified conformed copy of the contract will be sent to the Association. A certified conformed copy of any subsequent contract amendment will also be sent to the Association. 5. The Borrower will request the Association's concurrence with any proposed change in a contract involving a price increase of 5%, together with an explanation of the proposed change. B. Contracts for Equipment and Furniture 1. Before inviting bids, the Borrower will send to the Association for its approval the following: (a) lists of all items of equipment and furniture required for the Project, showing the specifications and the estimated unit and total price of each item. Items will be indexed, coded and numbered for identification with the educational institution in question and the space for which they are required. The items to be purchased will be grouped so as to permit such bulk procurement as shall be consistent with sound technical and procurement practices. Insofar as practicable, contracts for such items will be for not less than $50,000 equivalent. Amendments to such lists will also be submitted to the Association for approval; and (b) draft standard documents for inviting tenders, forms of contracts and a description of the method to be used for inviting bids on an international basis. 2. Procurement will be limited to those items of equipment and furniture specified in the approved lists mentioned in subparagraph B.1 (a) above and identified in contract documents by the same indices, codes and numbers as in such lists. 3. For evaluating any competing bids received for imported and for locally manufactured furniture, for the purposes of comparison, the following method will be used: (a) The term "Local Bid" means a bid offering goods manufactured or processed to a substantial extent (as reasonably determined by the Association) 20 in the territories of the Borrower; any bid offering other goods shall be deemed a Foreign Bid. (b) The comparison bid price under a Local Bid shall be the sum of the following amounts: (i) the ex-factory price of such goods; and (ii) inland freight, insurance and other costs of delivery of such goods to the place of their use or installation. (c) For the purpose of comparing any Foreign Bid with any Local Bid the comparison bid price under a Foreign Bid shall be the sum of the following amounts: (i) the c.i.f. price of such goods net of any taxes on their importation; (ii) any such taxes, as generally apply to such goods if imported into the territories of the Borrower by non-exempt importers, or 15% of the amount specified in (c) (i) above, whichever shall be lower; and (iii) inland freight, insurance and other costs of delivery of such goods to the place of their use or installation. 4. If (a) Foreign and Local Bids have been so compared, or (b) a contract is proposed to be awarded to a bidder other than the lowest evaluated bidder (taking into account, if applicable, the foregoing paragraph B.3), or (c) a proposed award involves a difference in price of 10% or more from the original estimate as shown pursuant to paragraph B.1 (a) above, the Borrower will, after the bids have been evaluated and before making the award, send to the Association for its prompt approval, a summary and analysis thereof and a brief justification of the Borrower's proposal for the award. 5. Promptly after bids have been evaluated and a contract has been awarded and before submission to the Association of the first application for withdrawal of funds in respect of such contract, the following will be sent to the Association (if not already furnished under paragraph B.4 above): (a) certificate signed by the Project Director or his deputy, or by the permanent official of the appropriate Ministry, as the case may be, that the goods i 21 covered by the contract are in accordance with the quantities and specifications in the lists approved by the Association; (b) lists of the bids received; (c) brief analysis of the bids and justification for the Borrower's decision in making the award; and (d) certified conformed copy of the contract. 6. After a contract has been awarded, the Borrower shall request the Association's prior approval for any proposed change in a contract involving a price increase of 10% of the original contract price, together with an explanation of the proposed change. 22 SCHEDULE 4 Project Administration A. Parts I (A) through (F) and II of the Project 1. The Project Unit which was created to carry out the project described in the Development Credit Agreement between the Borrower and the Association dated October 11, 1965, shall be reconstituted under the authority of a Project Director with the assistance of the following full-time staff: (a) a Deputy Director; (b) two architects; one to be employed for a period of three years, the cost thereof to be financed out of the proceeds of the Credit under Category II (c) of the table set forth in Schedule 1, and his appointment to be subject to the approval of the Association; (c) two specialists in educational equipment procurement; one to be employed for a period of two years, the cost thereof to be financed out of the proceeds of the Credit under such Category II (c), and his appointment to be subject to the approval of the Association; (d) two accountants; and (e) the necessary clerical and secretarial staff. 2. The Project Unit will be directly responsible to the Director for Administrative Affairs of the Ministry of Higher, Secondary and Technical Education and Teacher Training for the carrying out and supervision of all parts of the Project, in accordance with the provisions of the Development Credit Agreement, except Parts I (G), (H) and (1). 3. Generally speaking, and except as the Borrower and the Association shall otherwise agree, the Project Unit shall have such responsibilities and powers as shall be necessary or incidental to the proper execution and supervision of the parts of the Project for which it is responsible. 4. After completion of the project described in the Development Credit Agreement between the Borrower and the Association dated October 11, 1965, the Borrower may, after due consultation with the Association, reduce the number 23 of full-time staff working in the Project Unit to the level necessary to complete the present Project. 5. The Project Unit will be responsible, inter alia, specifically for the following: (a) arrangements for the selection and employment of the consultant architects and establishment of their terms of reference; (b) administration of agreements with such consultant architects; (c) preparation, with the help of the consultant architects, of a comprehensive implementation schedule based on the Critical Path Method or other satisfactory method, for setting down the planned timetable of coordinated activities and responsibilities on which will be based the carrying out of all aspects of the parts of the Project for which it is responsible; (d) arrangements for the review and approval by appropriate authorities of the reports, specifications and other material submitted to the Borrower by the consultant architects; (e) advice and assistance to the consultant architects, with the help of other specialists as needed, as to the educational needs of the institutions included in the Project; (f) the preparation of (i) lists of all equipment and furniture required for such educational institutions, (ii) specifications, and (iii) estimated unit and total prices of each item: (g) necessary arrangements for inviting bids and awarding contracts relating to the parts of the Project for which it is responsible; (h) keeping of accounts and preparation of interim evaluation and financial statements; (i) preparation of applications for withdrawals from the Credit Account for submission to the Association through the Ministry of Finance; and (j) preparation of quarterly progress reports. B. Parts I (G), (H) and (I) of the Project The functions described under A. 5 above shall be ensured in respect of the carrying out of Part I (G) and of Parts I (H) and (I) by the Ministry of Labor 24 and Employment and by the Ministry of Agriculture and Agrarian Reform, respectively. For the purpose, there shall be designated in each Ministry a permanent official who shall be directly responsible for the supervision of the execution of such Parts of the Project, and who shall be assisted by qualified and experienced architects, experts for educational equipment and accountants. C. Coordination For the purposes of ensuring effective coordination in the carrying out of the Project, the Borrower shall designate an official who will be responsible directly to the Prime Minister. Such official shall, inter alia, assure the establishment of an overall plan for the execution of the Project, the keeping of an overall Project account, and the preparation of quarterly reports on the progress of the entire Project.