Chad - Drought Relief Project : Credit 0445 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 445 CD Development Credit Agreement (Drought Relief Project) BETWEEN REPUBLIC OF CHAD AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED DECEMBER 7, 1973 CONFORMED COPY CREDIT NUMBER 445 CD Development Credit Agreement (Drought Relief Project) BETWEEN REPUBLIC OF CHAD AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED DECEMBER 7, 1973 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated December 7, - /3, between REPUBLIC OF CHAD (hereinafter called the Borrower) and 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 and the following additional terms have the following meanings: (a) "BDT" means the Banque de Diveloppement du Tchad, established under Ordonnaince No. I of the Borrower dated January 13. 1962; (b) "Sub-project" means any project financed out of the proceeds of the Credit or proposed to be so financed; and (c) "DR Account" means the Drought Relief Account to be opened in BDT in accordance with the provisions of Section 2.10 of this Agreement. (d) "National Coordinating Con- mittee" means the Comit National charg des Proble'nes de la Scheresse et de Raitaillement des Zones Sinistrdes established under Decret No. 205,PR/MATH of the Borrower, dated August 3, 1973. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Develoment Credit Agreement set forth or referred to, an amount in various currencies equivalent to two million dollars (S2,000,000). 4 Section 2.02. (a) The Amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule shall be amended.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 or any Sub-project approved in accordance with Section 3.05 of this Agreement and to be financed under the Development Credit Agreement; provided, however, that, except as the Association shall otherwise agree, no withdrawal shall 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. (b) Without limitation on the provisions of paragraph (a) of this Section the Association shall, promptly after the Effective Date, withdraw from the Credit Account and deposit in the DR Account an initial amount in the currency of the Borrower not exceeding $200,000 equivalent and shall thereafter, at the request of BDT, further withdraw from the Credit Account and deposit in the DR Account such amounts as shall be required to reimburse BDT for payments made out of the DR Account for expenditures for the Project or any Sub-project eligible for financing under the Development Credit Agreement but only to the extent that the amount of any such deposit, together with any amount on deposit in the DR Account as of the date of such request, shall not exceed in the aggregate the equivalent of $200,000. (c) Notwithstanding the foregoing no further deposit shall be made to the DR Account and no other withdrawal shall be made from the Credit Account when the total amount theretofore withdrawn from the Credit Account pursuant to paragraphs (a) and (b) of this Section, together with the amount of any special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions shall have reached in the aggregate the equivalent of S 1,800,000. (d) The Borrower shall be entitled to withdraw from the Credit Account pursuant to the provisions of paragraph (a) of this Section the unwithdrawn amount of the Credit in excess of $ 1,800,000, if and only to the extent that the Association shall have been satisfied that all payments were made by BDT out of the DR Account for expenditures eligible for withdrawal from the Credit Account. (e) If the Association shall have determined that payments have been made by BDT out of the DR Account for expenditures not eligible for withdrawal from the Credit Account, the Borrower shall, upon notice from the Association, deposit in the DR Account an amount equal to the amount of such payments. Section 2.03. Except as the Association shall otherwise agree, the goods and services (other than (i) goods and services under any contract the cost of which is expected to be equivalent of less than $100,000 but more than $10,000, for which the local :ompetitive bidding procedures shall be used: (ii) goods and services under any contract the cost of which is expected to be equivalent of $10,000 or less for which the usual government procurement procedures of the Borrower shall apply: and (iii) services of consultants) reqLlired 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 April 1972, as revised in October 1972, and in accordance with, and subJect to, the provisions set forth in Schedule 3 to this Agreerment. Section 2.04. The Closing Date shall be December 3 1, 1975 or such other date as shall be agreecd 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 1V) per annum 011 the principal amount of the Credit withdrawn and outstanding from tie to time. Section 2.06. Service charges shall be payable semi-annually on January 1 and July 1 in cach year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each January I and July I commencing January 1, 1984, and ending Julv 1, 2023, each installmen t to and including the installment payable on July 1, 1993 to be onte-half of onte per cent (1/2 of V(') of such principal amount, and each installnlnt thereafter to be onle ald one-hlalf per cent (1-1'2r) of such principal amount. Section 2.08. The currency of the UJnited States of America is lerebv specified for the purposes of Section 4.02 of the General Conditions. Section 2.09. The Président-Directeur Général of BDT is designated as representative of the 13orrower for the purpose of taking any action required or permiitted to he t-aken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions. Section 2.10. The Borrower shall open and maintnin the DR Account in BDT and shall cause 3DT to credit and debit the DR Account in accorcance with the following provisions: (a Tihere shall be credited to the DR Account: (i) such a1mouintS is shall from time to time be witlidrawn from the Credit AccouIlt and deposited in the DR Account by the Assotiation ptrsumint to paragraph (b) of Section 2.02 of this 6 Agreement; and (ii) such amounts as shall be deposited by the Borrower in the DR Account in accordance with the provisions of paragraph (e) of Section 2.02 of this Agreement. (b) Amounts depositee in the DR Account pursuant to paragraph (a) of this Section shall be used only to make payments for expenditures eligible for withdrawal from the Credit Account. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project or cause the Project to be carried out with due diligence and efficiency and in conformity with sound administrative, agricultural. engineering and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. The Borrower shall maintain the National Coordinating Committee, to be chaired by The Ministre de l'Aine'agement du Territoire et de I'Habitat and which shall: (i) make all necessary arrangements for the timely preparation and analysis of the Sub-projects; (ii) review and approve the Sub-projects according to the criteria set forth in Schedule 2 to this Agreement; (iii) review the progress of the execution of the Sub-projects; and (iv) maintain the records, and furnish all information, referred to in Section 3.10(b) of this Agreement. Section 3.03. The Borrower shall provide the National Coordinating Committee with suitable and appropriately located office accommodations. Section 3.04. The Borrower shall appoint or second to the National Coordinating Committee one full-time secretary and supporting personnel in such numbers and with such qualifications and experience as shall be necessary for the execution of the Project, and as shall be acceptable to the Association. Section 3.05. (a) The Borrower undertakes that all Sub-projects shall be selected by the National Coordinating Committee for financing under the Project in accordance with the criteria set forth in Schedule 2 to this Agreement. 7 (b) The Borrower undertakes that no Sub-project estimated to cost more than 520,000 equivalent shall be selected by the National Coordinating Committee unless it has recommended to the Association, and the Association shall have accepted, the selection of such Sub-projeet. Section 3.06. (a) The Borrower shall take or Cause to be taken all measures necessary to ensure proper maintenance of all Sub-projeets and such neasures shall inc]ude, inter alla, that with regard to Sub-projects involving irrigation or other land development, farmers participating in such Sub-projects shall make an annual payment (in cash or kind) to cover the operation and maintenance costs of the Sub-projects, such payments to include, where appropriate, the supply of unskilled labor needed for the maintenance of the Sub-projects. (b) With regard to all Sub-projeets, the Borrower shall provide or cause to be provided to its beneficiaries all necessary input supplies, processing and marketing facilities under appropriate credit arrangements, and all necessary extension services. Section 3.07. In the event that the Borrower carries out projects of a nature similar to a selected Sub-project, the Borrower shall: (i) ensure that the nost efficient use of resources is made, and, in particular, that there is no duplication of investment between such Sub-project and such other projeets: and (ii) use its best efforts to ensure that comparable terms and conditions, incIuding, without limitation, charges and rates, are specified for beneficiaries of similar projects. Section 3.08. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of' the Credit against hazards incident to the acquisition, transportation and delivery thCreof 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 01 repair such goods. (b) Lcept as the Association shall otherwise agree, the Borrower shall cause all goods and service,s financed out of the proceeds of the Credit to be used exclusivelv for the Project. Section 3.09. (,,) The Borrower shall furnish to the Association, proniptly upon their preparation, the plans, specifications, reports, contract documents and work and prOcurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. 8 (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 accredited representatives to examine 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. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall cause BDT to maintain records adequate to reflect in accordance with consistently maintained sound accounting practices the operations and financial condition of BDT. (b) The Borrower shall cause BDT to: (i) keep separate accounts for each Sub-project and a consolidated account for all DR Account operations; (ii) have such accounts for each fiscal year audited, in accordance with sound auditing principles consistently applied, by independent auditors acceptable to the Association; (iii) furnish to the Associaion as soon as available, but in any case not later than four months after the end of each such year, (A) certified copies of such accounts for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iv) furnish to the Association such other information concerning such accounts of BDT and the audit thereof as the Association shall from time to time reasonably request. 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 repre- utatives with regard to the performance of their respective obligations under the Development Credit Agreement, the administration, operations and financial condition, resources and 9 expenditures of BDT and, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out any part of the Project, 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 in respect of the Project as the Association shall reasonably request concerning the administration, operations and financial condition, resources and expenditures of BDT and of the departments or agencies of the Borrower responsible for carrying out any part of the Project. (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 either of them of its obligations under the Development Credit 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 oi, the Credit shall be free from all restrictions, regulations, controls and moratoria of any nature imposed under the ILws of the Borrower or laws in effect in its territories. 10 ARTICLE VII Remedies of the Association Section 7.01. If any event specified in Section 7.01 of the General Conditions or in Section 7.03 of this Agreement 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 and payable immediately, anything to the contrary in the Development Credit Agreement notwithstanding. Section 7.02. For the purposes of Section 6.02 of the General Conditions, the following additional event is specified, namely that the legislation governing BDT shall have been amended, suspended, terminated or repealed so as to affect adversely the carrying out of the Project. Section 7.03. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified, namely, the event specified in Section 7.02 of this Agreement shall occur. ARTICLE VIII Effective Date; Termination Section 8.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Sction 10.01(b) o' the General Conditions, namely, that the DR Account has been opened in BDT. Section 8.02. The date July 1, 1974 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.03. The obligations of the Borrower under Article IV and Sections 7.02 and 7.03 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date fifteen years after the date of this Agreement, whichever shall be the earlier. 11 ARTICLE IX Representative of the Borrower; Addresses Section 9.01. Subject to the provisions of Section 2.09 of this Agreement, the Ministre d'Etat charge de /'Economie moderne, du Plan, du Commerce et de la Coopration internationale 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 9.0 1 of the General Conditions: For the Borrower: Ministre d'Etat charg6 de l'Economic moderne, du Plan, du Commerce et de la Coop6ration internationale Ndjamena Republic of Chad Cable address: Ministre Econornie et Plan Ndjarnena For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 U.ite.j States of America Cable address: INDEVAS Washington, D.C. 12 IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective narnes and to be delivered in the District of Columbia, United States of America as of the day and year first above written. REPUBLIC OF CHAD By /s / M'Baiasbe Dingaondjikim Abdou Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ R. Chaufournier Regional Vice President Western Aftica 13 SCHEDULE 1 Withdrawal of the Proceeds of the Credit I. 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 so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed 1. Goods and services 2,000,000 100% of total required for the expenditures Project or any Sub-project TOTAL 2,000,000 2. For the purposes of this Schedule, the term "total expenditures" means the aggregate of: (i) expenditures for goods produced in, or services supplied from, the territories of any country other than the Borrower; and (ii) expenditures for goods produced in, or services supplied from, the territories of the Borrower. 3. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of: (a) expenditures prior to October 15, 1973; (b) payments for taxes imposed under the laws of the Borrower or laws in effect in its territories on the importation of goods or services to the extent that any such taxes are levied on goods and services imported directly for purposes of the Project. 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 on the importation of any such goods or services, such percentage shall be reduced to ensure that no proceeds of the Credit will be withdrawn on account of payments for such taxes; and 14 (c) any expenditures in respect of any Sub-project unless the Borrower's request, for authorization to make withdrawals from the Credit Account shall be supported by contract, shipping and other appropriate documents satisfactory to the Association, provided that, in the case of small items, for which presentation to the Association of such documenttion shall not be practical, requests for authorization to make withdrawals from the Credit Account on account of expenditures in respect of any Sub-project shall be supported by statements certified by BDT that such amounts to be withdrawn from the Credit Account have been paid in connection with Sub-projects approved as provided under Section 3.05 of this Agreement. 4. Notwithstanding the amount of the Credit set forth in the second column of the table in paragraph I above, if the Association shall have reasonably determined that the procurement of any item is inconsistent with the procedures set forth or referred to in Section 2.03 of this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. 15 SCHEDULE 2 Description of the Project 1. The Project is part of the Borrower's plans to help people in drought affected areas to reestablish their selfsufficiency, by assisting them to redevelop and improve their farms and herds. 2. The Project is composed of a number of Sub-projects, which shall be selected as follows: (a) Initial selection shall be made according to the following criteria: (1) the Sub-project is such that it will prevent or alleviate drought effects; (2) the Sub-project will help restore the productivity of areas affected by the drought; (3) the Sub-project will generate profits quickly; (4) the Sub-project will benefit a large number of people; and (5) the Sub-project is needed and supported by its intended beneficiaries, who are prepared, where this is feasible, to make contributions to its costs through the provision of labor or local materials. (b) Sub-projects relating to the rehabilitation of water supplies, the construction of new water supplies, the construction of storage facilities for farm inputs and produce to serve the needs of not more than one village, or relating to the improvement of veterinary care of livestock, shall not be selected unless they meet the criteria set forth in sub-paragraph (a) hereto. Other Sub-projects, and, inter alia, those involving production schemes such as the construction, expansion or rehabilitation of irrigation schemes or the development of "bas-foncs" shall not be selected unless (i) they fulfill the criteria set forth in sub-paragraph (a) hereto; and (ii) economic and financial analysis shows that they are economically justified. (c) Sub-projects fulfilling the criteria set forth in sub-paragraphs (a) and (b) hereto shall be put on national priority list and shall be selected by order of such priority. 16 SCHEDULE 3 Procurement A. Contracts governed by Guidelines 1. With respect to any contract for any item included in the table set forth in paragraph I of Schedule I to this Agreement estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedure as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, 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 shall furnish to the . Association, in su fficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the reasons for the intended award. The Association shall, if it determines that the intended award would be inconsistent with the procedures set forth or referred to in Section 2.03 of this Agreement, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the delivery to the Association of the first application for withdrawal of funds from the Credit Account in respect of any such contract. 2. Identical or similar items shall be grouped together to form economic bid packages for purposes of bidding. B. Supplemental Rules on Bid Evaluation and Comparison 1 For the purpose of evaluation and comparison of bids, customs duties and other import taxes on imported goods, and sales and similar taxes on locally 17 supplied goods, shall be excluded, except to the extent hereinafter provided. Bidders shall be required to state in their bid the c.i.f. (port of entry) price for imported goods, or the ex-factory price for locally manufactured goods. The cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be taken into account in the evaluation of bids in accordance with paragraph 4.7 of the Guidelines for Procurement. 2. For goods included in the table set forth in paragraph I of Schedule I to the Development Credit Agreement, the Borrower may grant a margin of preference to goods manufactured in Chad in accordance with, and subject to, the following provisions: (a) After evaluation, responsive bids will be classified in one of the following groups: (I) Group A: bids offering goods manufactured in ('had, if' the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Chad equal to at least 20' of the ex-factory bid price of such goods. (2) Group B: bids offering goods manufactured in ('had, other than bids classified in Group A. (3) Group C: bids offering any other goods. (b) All evaluated bids in each group shall be first compared among themselves. excluding any customs duties and other import taxes in goods to be imported and any sales or similar taxes on goods to be supplied locally, to determine the lowest evaluated bid of each group. The lowest evaluated bids of' each group shall then be compared with each other and if, as a result of this comparison, a bid from Group A or Group B is the lowest. it shall be selected for purposes of award. (c) If, as a result of the comparison under paragraph (b) above, the lowest bid is a bid from Group C, cill Group C bids shall be further compared with the lowest bid from Group A, as determined under paragraph (b) above. after adding to the c.i.f. bid price of goods to be imported offered in each Group C bid, for the purpose of this further comparison only, an amount equal to the smaller of (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of goods offered in such Group C bid, or (ii) 150 of the c.i.f. bid price of such goods. If the Group A bid in 18 such further comparison is the lowest, it shall be selected for purposes of award; if not, the lowest bid from Group C, as determined under paragraph (b) above, shall be selected for purposes of award. 3. The bidding documents shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the methods and stages that will be followed in the evaluation and comparison of bids to give effect to such preference.