Mali - Second Highway Project : Credit 0383 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 383 MLI Development Credit Agreement (Second Highway Project) BETWEEN REPUBLIC OF MALI AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 23, 1973 CONFORMED COPY CREDIT NUMBER 383 MLI Development Credit Agreement (Second Highway Project) BETWEEN REPUBLIC OF MALI AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 23. 1973 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated May 23, 1973, between the REPUBLIC OF MALI (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The Borrower has requested the Association to assist in the financing of the Project, described in Schedule 2 to this Agreement, by extending the Credit as hereinafter provided; (B) The Borrower intends to contract from the United States of America, through its Agency for International Development (USAID), a loan (hereinafter called the USAID Loan) in an amount equivalent to $9,000,000 to assist in financing Parts A and D of the Project on the terms and conditions set forth in an agreement (hereinafter called the USAID Loan Agreement) to be entered into between the Borrower and the United States of America; and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: 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 r. >dified, 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 term "Directorate" means the Directorate of Public Works of the Borrower's Ministry of Industrial Development and Public Works. 4 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 nine million five hundred thousand dollars ($9,500,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 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 Parts B, C and E of the Project 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. Section 2.03. (a) Except as the Association shall otherwise agree, the goods and services (other than services of consultants) 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 April 1972 and revised in October 1972 and in accordance with and subject to the provisions of Schedule 5 to this Agreement. (b) The contract for the carrying out of Part B of the Project shall be a single unit-price contract awarded to a bidder prequalified as set forth in part 2.2 of such Guidelines and in Schedule 5 to this Agreement. Section 2.04. The Closing Date shall be July 15, 1977 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 June 1 and December I in each year. 5 Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each June 1 and December 1 commencing June 1, 1983 and ending December 1, 2022, each installment to and including the installment payable on December 1, 1992 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 through the Directorate with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in supervising the works comprising Parts A and B of the Project and in carrying out Parts C, E and F of the Project, the Borrower shall employ consultants acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.03. In carrying out Part B of the Project, the Borrower shall employ contractors acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.04. (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 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, all goods and services financed out of the proceeds of the Credit shall be used exclusively for the Project until its completion. Section 3.05. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, contract documents and 6 construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (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. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the Directorate and of other departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. The Borrower shall collect and record in accordance with appropriate statistical methods and procedures such data as are required to assess the technical, economic and financial aspects of the Borrower's road network for the proper planning of maintenance, improvements and extensions. Section 4.03. The Borrower shall take such steps as shall be reasonably required to ensure that the dimensions and axle-loads of vehicles using the Borrower's highways system are consistent with the structural and geometric design standards of the roads used. Section 4.04. The Borrower shall cause its road network and its road maintenance equipment to be adequately maintained and shall cause all necessary repairs thereof to be made promptly, all in accordance with sound engineering and economic standards, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section 4.05. The Borrower shall ensure that its Road Fund, held in the Banque de Diveloppement du Mali pursuant to Ordonnance No. 5/CMLN of 7 June 4, 1971, will at all times be efficiently managed; that such Fund will be utilized only for the purposes described in such Ordonnance; that the annual budgetary allocations to such Fund shall be sufficient, as agreed between the Borrower and the Association, to cover the expenditures referred to in Article 3 of such Ordonnance; and that the credits to such account provided for in Article 2 of such Ordonnance shall be promptly made in order to ensure the accomplishment of the purposes of the Road Fund. Section 4.06. The Borrower and the Association shall exchange views on the recommendations resulting from the study carried out under Part F of the Project, and the Borrower shall implement any necessary adjustments in freight rates according to a schedule satisfactory to the Association and with the objective of allowing carriers to cover the costs of their services. 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, the administration, operations, resources and expenditures of the Directorate and, in respect of the Project, of the other 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 infonnation 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 concerning the administration, operations, resources and expenditures of the Directorate and, in respect of the Project, of the other departments or agencies of the Borrower responsible for carrying out any part of the Project. 8 (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 on, the Credit shall be free from all restrictiois, 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 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 events are specified: 9 (a) the right of the Borrower to utilize the proceeds of the USAID Loan shall have been suspended pursuant to the provisions of the USAID Loan Agreement; (b) the USAID shall have demanded repayment of any part of the USAID Loan in advance of maturity pursuant to the provisions of the USAID Loan Agreement. 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 paragraph (b) of Section 7.02 of this Agreement shall occur. ARTICLE VIII Effective Date; Termination Section 8.01. The date August 20, 1973 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.02. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. ARTICLE IX Representative of the Borrower; Addresses Section 9.01. The Minister of the Borrower responsible for finance 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: Ministry of Finance Bamako, Koulouba Republic of Mali Cable address: MINIFINANCES Telex: 522 Bamako 10 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Telex: 440098 (ITT) or Washington, D.C. 24423 (RCA) 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. REPUBLIC OF MALI By /s/ Seydou Traor6 Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / Roger Chaufournier Regional Vice President Western Africa 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 so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed I. Civil Works for 4,815,000 70% of total Part B of the expenditures Project II. Maintenance equipment 830,000 100% of foreign as listed in Schedule 4 expenditures to this Agreement III. Consultants' services 100% of foreign expenditures (a) Supervision of 730,000 works under Parts A and B of the Project (b) Technical 795,000 assistance and training under Part C of the Project (c) Detailed 220,000 engineering under Part E of the Project (d) Study comprising 50,000 Part F of the Project IV. Unallocated 2,060,000 TOTAL 9,500,000 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; and (b) the term "total expenditures" means the aggregate of foreign expenditures and of expenditures for goods produced in, or services supplied from, the territories of the Borrower. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) expenditures prior to the date of this Agreement or (b) payments for taxes imposed directly 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 reallocated 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; and (c) if the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set 13 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. 5. Notwithstanding the percentages set forth in the third column of the table in paragraph I above, if the estimate of total expenditures under Category I 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 may continue until all expenditures thereunder shall have been made. 14 SCHEDULE 2 Description of the Project Part A. Rehabilitation of the Bamako-Faladid-Bougouni road (about 155 km) to design standards satisfactory to the Association; Part B. Rehabilitation of the Faladi-S6gou road (about 223 km), to the design standards set forth in Schedule 3 to this Agreement; Part C. Continuation of the ongoing program of highway maintenance and feeder-road betterment, with supplementary technical assistance and training; Part D. Procurement of equipment for highway maintenance; Part E. Detailed engineering for the improvement of the Bamako-Kolokani road; and Part F. A study of the trucking industry, including freight rates. The Project is expected to be completed by December 31, 1976. 15 SCHEDULE 3 Design Standards: Faladid-Sigou Road Design speed: 100 km/h Horizontal curves: minimum radius 500 m Vertical curves: minimum radius, crest 6,000 m Maximum grade: 6 % Pavement design load: 13 t Roadway width: 9 m Pavement width: 6 m Shoulder width: 1.5 m 16 SCHEDULE 4 Road Maintenance Equipment Dump trucks 12 Tank trucks (10,000 litres) 20 Pick-up trucks, 4-wheel drive 7 Light pick-up trucks 3 17 SCHEDULE 5 Procurement A. Civil Works 1. With respect to the contract described in Section 2.03(b) of this Agreement, the Borrower shall, before qualification is invited, inform the Association in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Association shall reasonably request. 2. The Borrower shall, before a final decision on the award is made, inform the Association of the name of the prequalified bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report, by the consultants referred to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants, and 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. 3. The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. 4. 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. B. Equipment I. With respect to contracts for the procurement of road maintenance equipment, 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. 2. 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 18 bidder to which it intends to award the contract and shall 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 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. 3. The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. 4. 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.