India - Mysore Agricultural Wholesale Markets Project : Credit 0378 - Mysore Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 378 IN Mysore Agreement (Mysore Agricultural Wholesale Markets Project) BETWEEN INTERNATIONAL DEVELOPMENT ASSOCIATION AND STATE OF MYSORE DATED MAY 9, 1973 CONFORMED COPY CREDIT NUMBER 378 IN Mysore Agreement (Mysore Agricultural Wholesale Markets Project) BETWEEN INTERNATIONAL DEVELOPMENT ASSOCIATION AND STATE OF MYSORE DATED MAY 9, 1973 1 MYSORE AGREEMENT AGREEMENT, dated May 9, 1973, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and the STATE OF MYSORE, acting by its Governor, (hereinafter called Mysore). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to eight million dollars ($8,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition inter alia that Mysore agree to undertake such obligations toward the Association as hereinafter set forth; WHEREAS by an agreement of even date herewith between the Association and the Agricultural Refinance Corporation (hereinafter called ARC), ARC has agreed to undertake certain obligations in respect of the carrying out of the Project described in Schedule 2 to the Development Credit Agreement, WHEREAS by a subsidiary loan agreement to be entered into between the Borrower and ARC, the proceeds of the Credit under Category I will be made available to ARC, and ARC in turn will make the said proceeds available to the Participating Commercial Banks (as defined in the Development Credit Agreement) under a Refinance Agreement to be entered into between ARC and each Participating Commercial Bank; WHEREAS the Borrower will make available to Mysore the proceeds of the Credit under Category II; and WHEREAS Mysore, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: 4 ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Particular Covenants Section 2.01. Mysore shall carry out the Project, or cause the Project to be carried out, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and town planning practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 2.02. Except as the Association shall otherwise agree, Mysore shall take all necessary steps to ensure that all goods and services required for the Project and to be financed out of the proceeds of the Credit under Category I shall be procured in accordance with, and subject to, the provisions set forth or referred to in Schedule 3 to the Development Credit Agreement. Section 2.03. (a) Mysore undertakes to insure, or cause to be insured, or make, or cause to be made, 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 to replace or repair such goods. (b) Mysore shall cause each Market Committee and market intermediary beneficiary of a Sub-loan to take out and maintain with responsible insurers, or make other provisions satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with sound practice. (c) Except as the Association may otherwise agree, Mysore shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 2.04. (a) Mysore shall furnish or cause to be furnished to the Association, upon request, the plans, specifications, contract documents and 5 construction and procurement schedules for Part A of the Project, and any material modificiations thereof or additions thereto, in such detail as the Association shall reasonably request. (b) Mysore: (i) shall maintain or cause to be maintained 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, without limitation upon the provisions of Section 4.03 of this Agreement, enable the Association's representatives, or cause them to be enabled, to examine the Project, the goods financed out of such proceeds 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. (c) Mysore shall cause Market Committee beneficiaries of Sub-loans (i) to maintain records adequate to reflect in accordance with consistently maintained sound accounting practices their operations and financial condition; and (ii) to furnish to the Association and each PCB such information concerning such accounts and financial statements as the Association and each PCB, respectively, shall from time to time reasonably request. Section 2.05. (a) Mysore shall, through the SMD, provide all necessary assistance to Market Committees in the preparation of drawings and specifications to support applications for Sub-loans, the preparation of tender documents, calling for tenders, the analysis of bids, and the supervision of construction. (b) Mysore shall cause its PWD and TPD to provide all necessary assistance to SMD in Project planning and supervision. Section. 2.06. Except as the Association shall otherwise agree, Mysore shall, until the Closing Date, make available to SMD, on a full time basis for purposes of the Project, the services of the following qualified specialists: (i) an engineer, and (ii) an architect experienced in designing layouts and structures of the sort proposed to be developed under Part A of the Project, and (iii) an economist, all with experience and qualifications acceptable to the Association. Section 2.07. Except as the Association shall otherwise agree, Mysore shall set, maintain and enforce uniform market fees for all markets in Mysore regulated under the Act and included in the Project, of not less than 1% of the value of the agricultural produce marketed. I 6 Section 2.08. Except as the Association shall otherwise agree, Mysore shall during each of the first five years after the Effective Date: (a) cause at least one senior staff member of the SMD to attend a one-year course in marketing at the institute operated by the Borrower's Directorate of Marketing and Inspection at Nagpur, or other suitable institution; (b) cause not less than ten market secretaries to attend the appropriate training course for market secretaries provided by the Borrower or other suitable institution; and (c) cause not less than 15 agricultural produce graders to attend the appropriate training course for such graders provided by the Borrower or other suitable institution. Section 2.09. Mysore shall, within six months after the Effective Date, cause SMD to enter into a contract with an institution acceptable to the Association, under terms and conditions satisfactory to the Association, to assist Mysore in carrying out Part C of the Project. Section 2.10. Except as the Association shall otherwise agree, Mysore shall restrict, during the period any part of a Sub-loan to a Market Committee is outstanding, and subject to the requirements of the Act, the use by such Market Committee of its available funds as follows: (i) to the Market Committee's contributions to the SMB and SMD as prescribed under Chapter VIII of the Act; (ii) to the Market Committee's ordinary operating and administration expenses, including adequate maintenance, taxes (if any), and debt service requirements; and (iii) only after the items in (i) and (ii) above have been paid or provided for, to development purposes, including expansion of market facilities and building of farm-to-market feeder roads. Section 2.11. Mysore shall take and shall cause all its agencies to take all action which shall be necessary on their part to enable (i) ARC to perform all of its obligations under the Project Agreement and the Subsidiary Loan Agreement, and (ii) ARC and each PCB to perform all of their respective obligations under the Project Agreement and each Refinance Agreement, and shall not take or permit to be taken any action which might interfere with the performance of any such obligations of ARC or any PCB. 7 ARTICLE III Consultation, Information and Inspection Section 3.01. The Association and Mysore shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, the Association and Mysore shall from time to time, at the request of either party, exchange views through their representatives with regard to the performance of their respective obligations under this Agreement, and other matters relating to the purposes of the Credit. Section 3.02. The Association and Mysore 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 performance by either of them of its obligations under this Agreement or the performance by any party to the Project Agreement or any Refinance Agreement, of its obligations thereunder. Section 3.03. Mysore shall enable the Association's representatives to inspect all properties and records and documents relevant to the Project. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. If the Development Credit Agreement shall terminate pursuant to Section 10.04 of the General Conditions, the Association shall promptly notify Mysore of this event. Section 4.02. This Agreement and all obligations of the Association and of Mysore thereunder shall terminate on the date on which the Project Agreement terminates in accordance with its terms. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated 8 by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. For Mysore: The Development Commissioner and Special Secretary to Government for Agricultural Production and Planning Vidhana Soudha Bangalore Cable address: Vikas Bangalore Section 5.02. Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Agreement on behalf of Mysore may be taken or executed by the Secretary to the Government of Mysore or such other person or persons as Mysore shall designate in writing. Section 5.03. Mysore shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of the person or persons who will, on behalf of Mysore, take any action or execute any documents required or permitted to be taken or executed by Mysore pursuant to any of the provisions of this Agreement. I 9 Section 5.04. This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this 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. INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ I.P.M. Cargill Regional Vice President Asia STATE OF MYSORE By /s/ Eric Gonsalves Authorized Representative