Thailand - Third Education Project : Credit 0369 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 369 TH Development Credit Agreement (Third Education Project) BETWEEN KINGDOM OF THAILAND AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED APRIL 11, 1973 CONFORMED COPY CREDIT NUMBER 369 TH Development Credit Agreement (Third Education Project) BETWEEN KINGDOM OF THAILAND AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED APRIL 11, 1973 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated April 11, 1973, between KINGDOM OF THAILAND (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; WHEREAS (B) The Project will be carried out: (i) by the Borrower's departments and agencies; and (ii) by Prince of Songkla University (hereinafter called the University), with the Borrower's assistance. 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 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) "College of Education" means an institution established, pursuant to the Borrower's Act of September 16, 1954, for the purpose of providing training for teachers. 4 (b) "Ministry of Education" means the Borrower's ministry in charge of education. (c) "university" means the Prince of Songkla University established pursuant to the Borrower's Prince of Songkla University Act B.E. 2511, as the same may be amended from time to time. (d) "Ministry of Education Project" means the part of the Project which is to be carried out by the Ministry of Education, as described in Schedule 2 to this Agreement. (e) "University Project" means the part of the Project which is to be carried out by the University, as described in Schedule 2 to this Agreement. (f) "NCDC" means the National Curriculum Development Center, established within the Ministry of Education for educational research, publication and distribution of textbooks and the development and evaluation of curricula. (g) "IPTST" means the Institute for the Promotion of the Teaching of Science and Technology, a corporation established pursuant to an announcement made by the National Executive Council of the Borrower on January 16, 1972. (h) "Ministry of Education Project Unit" means the unit referred to in Section 3.11 of this Agreement. (i) "Ministry of Education Project Director" means the project director referred to in Section 3.11 of this Agreement and whose specific functions and responsibilities are described in paragraph 2(a) of Schedue 4 to this Agreement. (j) "Ministry of Education Project Architect" means the project architect referred to in Section 3.11 of this Agreement and whose specific functions and responsibilities are described in paragraph 2(b) of Schedule 4 to this Agreement. (k) "Ministry of Education Project Procurement Officer" means the procurement officer referred to in Section 3.11 of this Agreement. (1) "University Project Unit" means the unit referred to in Section 3.12 of this Agreement. (m) "University Project Director" means the project director referred to in Section 3.12 of this Agreement and whose functions and responsibilities are described in paragraph 2(a) of Schedule 5 to this Agreement. 5 (n) "Advisor to the University Project Director" means the advisor referred to in Section 3.12 of this Agreement and whose specific functions and responsibilities are described in paragraph 2(b) of Schedule 5 to this Agreement. (o) "University Project Architect" means the project architect referred to in Section 3.12 of this Agreement and whose specific functions and responsibilities are described in paragraph 2(c) of Schedule 5 to this Agreement. (p) "Guidelines for Procurement" means the Guidelines for Procurement under World Bank Loans and IDA Credits, published by the Bank in April 1972, as revised in October 1972. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the tens and conditions in this Agreement set forth or referred to, an amount in various currencies equivalent to nineteen million five hundred thousand dollars ($19,500,000). 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 the Project and to be financed hereunder; 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. Except as the Association shall otherwise agree, the goods and services (other than services of consultants) required for Parts (A)(I, II and III) and (B)I of the Project and to be tinanced out of the proceeds of the Credit, shall be procured on the basis of international competition under procedures consistent with the Guidelines for Procurement, 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 June 30, 1978 or such other date as shall be agreed between the Borrower and the Association. 6 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 January 1 and July 1 in each 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 1 commencing July 1, 1983 and ending January 1, 2023, each installment to and including the installment payable on January 1, 1993 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 United States of America. 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 Ministry of Education Project through the Ministry of Education and cause the University Project to be carried out by the University with due diligence and efficiency and in conformity with appropriate administrative, financial, educational, architectural and engineering practices, and with due regard to economy, and shall provide or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in the preparation of the design of buildings and other facilities included in the Project and in the supervision of the construction works included in the Project, the Borrower shall employ or cause to be employed architects and engineers acceptable to the Association upon terms and conditions satisfactory to the Association. (b) The Borrower shall submit or cause to be submitted to the Association for approval, promptly upon their preparation, the preliminary architectural drawings and the outline of the specifications for the buildings and facilities included in the Project. Section 3.03. In carrying out Parts (A)I and (B)I of the Project, the Borrower shall employ or cause to be employed contractors acceptable to the Association upon terms and conditions satisfactory to the Association. 7 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, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.05. (a) The Borrower shall furnish or cause to be furnished to the Association, promptly upon their preparation, the contract documents, 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 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 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 or cause to be furnished 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 3.06. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire, as and when needed, all such land and rights in respect of land as shall be required for the construction (and operation) of the facilities included in the Project and shall, if requested by the Association, furnish or cause to be furnished to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 3.07. The Borrower shall: (a) within nine months of the date of this Agreement (or such other time limit as the Borrower and the Association shall mutually agree), (i) prepare and commence an accelerated training program for teacher trainers in the College of Education, to provide the elementary teacher training colleges included in the Ministry of Education Project with an adequate number of qualified teachers and, concurrently, submit such training program to the Association for comments, and 8 (ii) prepare and commence, in its university faculties of education and the College of Education, a program of pre-service and in-service courses to train and upgrade science and practical subjects teachers for the secondary schools included in the Ministry of Education Project and, concurrently, submit such program to the Association for comments; and (b) cause the University to submit to the Association for comments, within one year of the date of this Agreement (or such other time limit as the Borrower and the Association shall agree), a plan for the development of the University. Section 3.08. (a) Within one year of the date of this Agreement (or such other time limit as the Borrower and the Association shall agree), the Borrower shall submit to the Association for its comments (i) a plan of operation for NCDC (including inter alia (1) proposals for the publication and distribution of textbooks and (2) a study of the possibility of increasing the number of school days and shortening the primary cycle) and (ii) a plan for combining NCDC and IPTST within the framework of one organization. (b) Not later than December 31, 1977 (or such other date as the Borrower and the Association shall agree), the Borrower shall take all necessary action to combine NCDC and IPTST within the framework of one organization. Section 3.09. (a) Not later than June 1, 1973 (or such other date as the Borrower and the Association shall agree), the Borrower shall, in order to carry out the fellowship programs included in Parts (A)IV and (B)II of the Project, cause the Ministry of Education Project Unit and the University Project Unit respectively to prepare detailed plans of implementation for such programs and submit them to the Association for comments. (b) Prior to the award of fellowships under the fellowship program referred to in the foregoing paragraph, the Borrower shall cause the Ministry of Education Project Unit and the University Project Unit respectively to agree with the Association on (i) the proposed recipients for such felliwships, (ii) the institutions to be used for the training of such recipients and (iii) the timetable for the implementation of the several phases of such training. Section 3.10. (a) In order to assist the Borrower in carrying out Parts (A)IV and (B)II of the Project, the Borrower shall employ or cause to be employed specialists acceptable to the Association upon terms and conditions satisfactory to the Association. 9 (b) During the implementation of the Project, the Borrower shall appoint or cause to be appointed, on a full-time basis, qualified and experienced counterparts to the specialists referred to in the foregoing paragraph. Section 3.11. (a) For the purpose of the Ministry of Education Project the Borrower shall establish within the Ministry of Education and, thereafter, maintain a unit whose responsibilities are set forth in paragraph I of Schedule 4 to this Agreement. (b) For the purpose of staffing the Ministry of Education Project Unit the Borrower shall (i) employ a project director acceptable to the Association, (ii) employ a project architect and a procurement officer, each on a full-time basis and acceptable to the Association and (iii) provide such unit with a qualified and experienced accountant and the technical, administrative and secretarial personnel required for the satisfactory operation of such unit. Section 3.12. (a) For the purpose of the University Project the Borrower shall cause the University to establish and, thereafter, maintain a unit whose responsibilities are set forth in paragraph I of Schedule 5 to this Agreement. (b) For the purpose of staffing the University Project Unit the Borrower shall cause the University to (i) employ a project director, a project architect and an advisor to such project director acceptable to the Association and upon terms and conditions acceptable to the Association and (ii) provide such unit with a qualified and experienced accountant, as and when needed, and the technical, administrative and secretarial personnel required for the satisfactory operation of such unit. (c) The Borrower shall employ the Advisor to the University Project Director within six months of the date of this Agreement (or such other time limit as the Borrower and the Association shall agree). 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 University and the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. 10 Section 4.02. The Borrower shall: (i) cause the buildings and equipment of the educational institutions included in the Project to be adequately maintained, (ii) cause all necessary renewals and repairs to be made thereof and (iii) provide or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section 4.03. The Borrower shall cause the educational institutions included in the Project to be staffed at all times with experienced and qualified personnel in adequate numbers. 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 this Agreement, the administration, operations and financial condition, resources and expenditures in respect of the Project, of the University and 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 concerning the administration, operations and financial condition, resources and expenditures in respect of the Project, of the University and 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 either of them of its obligations under this Agreement. Section 5.03. (a) 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. (b) Without any limitation upon the generality of the foregoing the Borrower shall cause the University to enable the Association's accredited representatives to examine all sites, works, properties and equipment of the University and any relevant records and documents 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. This 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 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 this Agreement notwithstanding. 12 Section 7.02. For the purposes of Section 6.02 of the General Conditions, the following additional event is specified, namely that the Borrower's Prince of Songkla University Act B.E. 2511 shall have been materially amended, suspended, abrogated, repealed or waived, or shall cease to be enforced, so as to materially and adversely affect the carrying out of the University Project. Section 7.03. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified, namely that the event specified in Section 7.02 of this Agreement shall have occurred. ARTICLE VIII Effective Date; Termination Section 8.01. The following events are specified as additional conditions to the effectiveness of this Agreement within the meaning of Section 10.01(b) of the General Conditions, namely, that: (a) the Borrower shall have taken all appropriate measures to establish the Ministry of Education Project Unit; (b) the Borrower shall have appointed the Ministry of Education Project Director, the Ministry of Education Project Achitect and the Ministry of Education Project Procurement Officer; (c) the University shall have taken all appropriate measures to establish the University Project Unit; and (d) the University shall have appointed the University Project Director and the University Project Architect. Section 8.02. The following are specified as additional matters, within the meaning of Section 10.02(b) of the General Conditions, to be included in the' opinion or opinions to be furnished to the Association, namely, that: (a) the Ministry of Education Project Unit has been duly and validly established under the laws of the Borrower; and (b) the University Project Unit has been duly and validly established under the laws of the Borrower, including the relevant provisions of the Borrower's Prince of Songkla University Act B.E. 2511. 13 Section 8.03. The date August 9, 1973 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.04. (a) The obligations of the Borrower under Article IV of this Agreement and the provisions of Section 7.03 of this Agreement shall cease and determine on the date on which this Agreement shall terminate or on a date 30 years after the date of this Agreement, whichever shall be the earlier. (b) The obligations of the Borrower under Sections 3.11 and 3.12 of this Agreement shall case and determine on the date on which this Agreement shall terminate or on a date 6 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 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: Minister of Finance Ministry of Finance Bangkok 2 Thailand Cable address: MINANCE Bangkok For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America 14 Cable address: INDEVAS Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names an6 to be delivered in the District of Columbia, United States of America, as of the day and year first above written. KINGDOM OF THAILAND By /s/ A. Panyarachun Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Mervyn L.. Weiner Director, Regional Projects Department Asia Regional Office 15 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 and 8,650,000 40% of total Professional Fees expenditures (a) Ministry of 8,345,000 Education Project (b) University 305,000 Project II. Equipment and 5,450,000 Furniture (a) Ministry of 4,730,000 Education Project (i) imported 100% of foreign directly expenditures (ii) manufactured 100% of total locally expenditures ex-factory (iii) imported but 65%- of total locally expenditures procured (b) University 720,000 Project (i) imported 100% of foreign directly expenditures Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (ii) manufactured 100% of total locally expenditures ex-factory (iii) imported but 65% of total locally expenditures procured III. Specialists' Services 2,650,000 100% of foreign and Fellowships expenditures (a) Ministry of 2,050,000 Education Project (b) University 600,000 Project IV. Unallocated 2,750,000 TOTAL 19,500,000 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, for goods produced 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: 17 (a) expenditures prior to the date of this Agreement; and (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 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 he Association under this Agreement, by notice to the Borrower, cancel such amount of the Credi 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. 18 SCHEDULE 2 Description of the Project The Project consists of the following two parts: Part (A). Ministry of Education Project I The site development for, and the construction, furnishing and equipping of: (a) 7 new elementary teacher training colleges (including demonstration schools); (b) the National Curriculum Development Center referred to in paragraph (f) of Section 1.02 of this Agreement; and (c) extensions to 21 secondary schools. II The provision of furniture and equipment for the existing part of the 21 secondary schools referred to in Part (A) I (c) above and another 11 secondary schools. III The provision of equipment for 3 elementary teacher training colleges. IV The provision of technical assistance to the Ministry of Education consisting of (i) specialists' services and (ii) fellowships, which shall be as set forth in Annex B to this Schedule, subject to modification by agreement between the Borrower and the Association. Part (B). University Project I The site development for, and the construction, furnishing and equipping of extensions to the Faculty of Science of the University. II The provision of technical assistance to the University consisting of (i) specialists services and (ii) fellowships, which shall be as set forth in Annex B to this Schedule, subject to modification by agreement between the Borrower and the Association. 19 The location and the planned capicities of the institutions included in Parts (A)(I, II and III) and (B)I of this Schedule and the approximate areas of the physical facilities to be constructed at each of the institutions included in Parts (A)I and (B)I of this Schedule, shall be as set forth in Annex A to this Schedule, subject to modification by agreement between the Borrower and the Association. The construction, furnishing and equipping content of the Project is expected to be completed by June 30, 1977, and the specialists' services and fellowships content by December 31, 1977. 20 ANNEX A Physical Facilities in Parts (A)(I, II and III) and (B)I of the Project Approximate Teaching Staff Gross Areas Student Places Boarding Places Housing Units of New Institutions Construction Additional Total Additional Total (sq. meters) Part (A) I Minis- try of Education Project (a) 7 Elementary Teacher Training Colleges (including Demonstra- tion Schools) (1) Chieng Rai 2,000 2,000 1,200 62 62 35,350 (2) Kam Phang Phet 2,000 2,000 1,200 62 62 35,350 (3) Loey 2,000 2,000 1,200 62 62 35,350 (4) Surin 2,000 2,000 1,200 62 62 35,350 (5) Phetchaboon 2,000 2,000 1,200 62 62 35,350 (6) Chantaburi 2,000 2,000 1,200 62 62 35,350 (7) Surat Thani 2,000 2,000 1,200 62 62 35,350 Sub-Total 14,000 14,000 8,400 434 434 247,450 (b) National Curriculum Development Center 150 150 4,900 (c) Extensions to 21 Secondary Schools (1) Satri Nonthaburi 400 2,800 14 18 3,770 (2) Samutprakarn 880 2,640 14 17 6,210 (3) Rayong Wittayakom 760 2,120 13 19 5,460 (4) Chomsurang Upatham 520 1,680 3 13 5,360 (5) Singburi Wittayakom 520 2,240 8 17 4,760 (6) Surat Thani 1,280 2,520 13 19 4,700 (7) Sriyaphai 600 2,000 10 15 5,510 (8) Tung Song 520 1,280 4 11 2,510 (9) Benjamara- chuthit 920 2,440 11 18 5,570 (10) Nari Nukun 560 1,680 8 13 4,130 (11) Mattayom Bangbaw 600 1,200 11 11 5,150 21 Approximate Teaching Staff Gross Areas Student Places Boarding Places Housing Units of New Institutions Constuction Additional Total Additional Total (sq. meters) (12) Benjana- theputhit 600 2,280 12 18 6,510 (13) Satri Kanchanaburi 360 960 4 8 2,500 (14) Srisongrak Wittaya 320 720 2 6 2,440 (15) Rahtborika Nukroh 800 1,840 10 14 6,250 (16) Yangtalad Wittayakom 320 640 2 6 2,440 (17) Phon Thong Pattana Wittaya 560 960 4 8 3,510 (18) Prasert Wittayakarn 320 720 1 6 2,640 (19) Ranode Wittaya 640 1,440 11 13 3,450 (20) Photaram 400 1,440 12 13 3,710 (21) Damnern Saduak 560 1,440 10 13 4,120 Sub-Total 12,440 35,040 177 276 90,700 Part (A) II Ministry of Education Project The existing part of the 21 Secondary Schools listed above in Part (A) I (c) and another 11 Secondary Schools as listed below (1) Wat Khema Pirataram 560 2,720 (2) Bangpakong 280 960 (3) Chumpae Suksa 240 560 (4) Tatun Prachasern Wittaya 240 680 (5) Muangphon Suksa 280 720 (6) Phanphrao 280 720 (7) Pua 280 720 (8) Mae Taeng 280 960 (9) Chae Hom Wittaya 440 960 22 Approximate Teaching Staff Gross Areas Student Places Boarding Places Housing Units of New Institutions Construction Additional Total Additional Total (sq. meters) (10) Ladyao 200 720 (11) Hoiyod 360 960 Sub-Total 3,440 10,680 Part (A) III Ministry of Education Project Three Elementary Teacher Training Colleges (1) Lampang 2,000 (2) Buriram 2,000 (3) Phuket 2,000 Sub-total 6,000 Part (B) I University Project Faculty of Science of the University 1,900 2,500 9,500 23 ANNEX B Specialist Services and Fellowships for Parts (A)IV and (B)II of the Project Part (A)IV Ministry of Education Project Approximate Man-Years 1. Specialists' Services (a) Support for the Ministry of Education Project Unit 3 (b) Educational Radio and Television Study 5-1/2 (c) Teacher Training Specialists 20 (d) Secondary Education Specialists 6 (e) Curriculum Development Group 10-1/2 Total 45 2. Fellowships to be administered by the Ministry of Education for Graduate Studies Overseas in the fields of Curriculum Development, Teacher Training, Secondary Education and Educational Radio and Television 154 Part (B)II University Project 1. Specialists' Services (a) Development Coordinator for 4 the University (b) Specialists for the Faculty 12-1/2 of Science of the University Total 16-1/2 2. Fellowships to be administered by the University for Graduate Studies Overseas in Science 30 24 SCHEDULE 3 Procurement Pursuant to Section 2.03 of this Agreement, the following supplementary provisions shall be applied with respect to the procurement of the goods and services required for the Project: A. Contracts for Civil Works included in Category I of the table set out in paragraph 1 of Schedule 1 to this Agreement. 1. The civil works included in the Project shall be grouped to form economic bid packages, and only prequalified contractors shall be included on the tender lists. 2. Before advertising the procedure for the prequalification of contractors for the tender list, the Borrower shall forward to the Association for its comments details of the procedure and advertising coverage proposed, together with the draft prequalification invitation notices and shall introduce such modifications as the Association shall reasonably request. 3. Before inviting bids, the Borrower shall forward to the Association for its approval: (a) the proposed tender list of prequalified contractors, together with an evaluation of their qualifications and an explanation for the exclusion of any applicant and shall make such additions to or deletions from the list as the Association shall reasonably request; (b) a list of all civil works contracts to be let, indicating the grouping of works proposed, the estimated value of each contract and the forecast timetable for awards; and (c) drafts of bid documents, invitations to bid and contracts. The invitations to bid should state inter alia that the bidder may submit bids in respect of any one civil works item in a group, or in respect of all civil works items, or of any combination thereof, the bids therefor to be opened simultaneously, and that the Borrower shall have the option of awarding separate contracts for individual civil works items or any combination thereof, or one contract for all civil works items in a group. 25 4. After bids have been received and evaluated, and before a final decision on the award is made, the Borrower shall inform the Association of the name of the bidder to whom 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 and justification for any recommended award to other than the lowest qualified bidder. The Association shall promptly inform the Borrower whether it has any objection to the intended award and shall state the reasons for any such objection it may have. 5. If a contract shall be awarded over the Association's reasonable objection, or if it is not consistent with the Guidelines for Procurement or with the provisions of this Schedule, or if its terms and conditions shall, without the Association's concurrence, materially differ from those on which bids were asked, no expenditures thereunder shall be financed out of the Credit. 6. As soon as a contract has been awarded, and before the submission of the first application for withdrawal in respect of such contract, the Borrower shall send a certified copy thereof to the Association. 7. The Borrower shall request the Association's approval for any proposed change in a contract involving a price increase of 10% or more of the original contract price or of US$50,000 equivalent, whichever is less, and shall explain the reasons for the proposed change. B. Contracts for goods included in Category II of the table set out in paragraph I of Schedule 1 to this Agreement 1. Equipment and furniture items included in the Project shall be grouped so as to permit such bulk procurement as shall be consistent with appropriate technical and procurement practices. 2. Before inviting bids the Borrower shall forward to the Association for its approval: (a) lists of all equipment and furniture items required for the Project, incorporating specifications, estimated unit and total prices for each item, coding to identify institutions and locations for which items are required, and indicating the grouping of items proposed in order to permit bulk procurement, as shall be consistent with appropriate technical and procurement practices; and 26 (b) a description of the advertising procedures proposed for obtaining bids on an international basis, together with draft bid invitations, draft bid documents and draft contracts. 3. Modifications to the equipment and furniture lists (paragraph B.2 (a) above) made subsequent to the Association's approval which do not exceed the equivalent of US$1,000 for any one item or in aggregate 10% of the total proceeds of the Credit allocated to equipment and furniture, and which are in accordance with appropriate educational practices, may be made without the prior approval of the Association. All other amendments of the lists should be submitted to the --Association for approval. 4. Financing out of the procevU of the Credit will be limited to those items of equipment and furniture specified in the approved lists mentioned in paragraph B.2 (a) above and identified in contract documents by the same codes and numbers as in the lists. 5. After bids have been received and evaluated: (a) in the case of any contract of US$25,000 or higher value, or one involving an increase of 10% or more above the original estimate submitted in accordance with paragraph B.2 (a) above, or where it is proposed to award a contract to other than the lowest bidder, the Borrower shall obtain the Association's approval before making an award, and to this end shall furnish the Association, in sufficient time for its review, a summary and analysis of the bids received, together with justification (with due regard to conformity with specifications and to price) for the proposed award.. The Association shall promptly inform the Borrower whether it has any objections to the intended award and shall state the reasons for any objections it may have; and (b) in all other cases, the Borrower may defer submission of bid analyses and justification to the Association until contracts have been awarded. 6. If a contract shall be awarded over the Association's reasonable objection, or if it is not consistent with the Guidelines for Procurement or with the provisions of this Schedule, or if its terms and conditions shall, without the Association's concurrence, materially differ from those on which bids were asked, no expenditures thereunder shall be financed out of the proceeds of the Credit. 7. As soon as a contract has been awarded and before the submission of the first application for withdrawal in respect of such contract, the Borrower shall send a certified copy thereof to the Association and, in cases where information 27 on bids has not previously been so communicated, the Borrower shall at the same time also send a summary analysis of the bids received and a justification for the award decision, together with a certificate signed by the director of the project unit concerned that the goods covered by the lowest evaluated bid and the contract awarded conform in specification and quantity to the list approved by the Association. 8. 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 produced goods, shall be excluded, except to the extent hereinafter provided, and bidders shall be required to state in their bid the c.i.f. (Port of Bangkok) price for imported goods, or the ex-factory price for locally produced 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. 9. For purposes of the provisions hereinafter set forth, the following terms shall have the following meanings: (a) Preferred Domestic Bid means a bid offering goods manufactured in the territories of the Borrower 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 the territories of the Borrower of not less than 20% of the ex-factory bid price. (b) Non-preferred Domestic Bid means any other bid offering goods manufactured in the territories of the Borrower. (c) Foreign Bid means any bid other than those specified in (a) or (b) above. 10. A margin of preference may be granted by the Borrower to Preferred Domestic Bids. Such preference shall be granted by adding to each Foreign Bid, for the purpose only of comparison with Preferred Domestic Bids, an amount (hereinafter called "Domestic Preference Margin") 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 goods offered in the bid, or (ii) 15% of the c.i.f. bid price of such goods. 11. If Preferred Domestic Bids are received, the comparison among all evaluated bids for each contract shall be made in the stages and with the preferences indicated below: 28 Stage Bids to be Compared Preference I All Preferred Domestic Bids and Non- None preferred Domestic Bids. II (a) Lowest evaluated bid under Stage I, Add Domestic if Preferred Domestic Bid, with all Preference Foreign Bids; Margin to Foreign Bids or (b) Lowest evaluated bid under Stage I, None if Non-preferred Domestic Bid, with all Foreign Bids. III If lowest evaluated bid under Stage None II is not the lowest evaluated bid under Stage 1, all Foreign Bids only. 12. The bidding documents shall clearly indicate any preference which will be granted to Preferred Domestic Bids, 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. 29 SCHEDULE 4 Responsibilities of the Ministry of Education Project Unit 1. The Ministry of Education Project Unit shall be responsible for the financial and administrative control of the Ministry of Education Project and its proper execution, including inter alia: (a) coordination with the Borrower's departments or agencies concerned with the Ministry of Education Project; (b) liaison with the Association; (c) the preparation of a comprehensive implementation schedule for setting down the planned timetable of coordinated activities and responsibilities on which the carrying out of the Ministry of Education Project will be based; (d) the briefing, coordination and supervision of the Ministry of Education's architectural unit with regard to the design and supervision of all Ministry of Education Project construction work, including the establishment of their terms of reference, and the review and approval of all architectural design work; (e) the preparation of master lists of furniture and instructional equipment; (f) all necessary steps for international competitive bidding for civil works and for the procurement of furniture and instructional equipment, including the preparation of bidding and contract documents, the evaluation of bids and making recommendations regarding the award of contracts; (g) the supervision of construction and procurement and installation procedures for furniture and equipment and the regular inspection of construction work; (h) the selection, briefing, coordination and supervision of the specialists to be employed in carrying out Part (A)IV of the Ministry of Education Project, including the establishment of their terms of reference, the administration of their agreements and arrangements for the review of their work by appropriate authorities; (i) the organization, coordination and control of the fellowship program included in Part (A)IV of the Ministry of Education Project; 30 (j) the maintenance of records, including financial records, and the furnishing of information under Section 3.05 of this Agreement during the carrying out of the Ministry of Education Project; (k) the preparation of applications for withdrawal from the Credit Account; and (1) the evaluation of progress in implementing the Ministry of Education Project and the preparation and presentation of regular reports to the Association. 2. The specific responsibilities and functions of the Ministry of Education Project Director and the Ministry of Education Project Architect shall be respectively as follows: (a) Ministry of Education Project Director: overall guidance, supervision and execution of the Ministry of Education Project, including all such arrangements with the Borrower's ministries and agencies as shall be necessary for the Ministry of Education Project implementation; and (b) Ministry of Education Project Architect: guidance, coordination and supervision of the Ministry of Education Project's civil works and of the architects responsible for the design of Ministry of Education Project constructions, including the establishment of effective methods of cost control and implementation progress schedules, the organization of international competitive bidding procedures and the evaluation of bids. 31 SCHEDULE 5 Responsibilities of the University Project Unit 1. The University Project Unit shall be responsible for the financial and administrative control of the University Project and its proper execution, including inter alia: (a) coordination with the Borrower's departments or agencies concerned with the University Project; (b) liaison with the Association; (c) the preparation of a comprehensive implementation schedule for setting down the planned timetable of coordinated activities and responsibilities on which the carrying out of the University Project will be based; (d) the briefing, coordination, and supervision of the local consultant architect retained by the Borrower for the physical development of the University, including (i) the establishment of his terms of reference for the design and supervision of the University extensions financed under the University Project, (ii) the administration of his agreement and (iii) the review and approval of his work; (e) the preparation of master lists of furniture and instructional equipment; (f) all necessary steps for international competitive bidding for civil works and for the procurement of furniture and instructional equipment, including the preparation of bidding and contract documents, the evaluation of bids and making recommendations regarding the award of contract; (g) the supervision of construction and procurement and installation procedures for furniture and equipment and the regular inspection of construction work; (h) the selection, briefing, coordination and supervision of the specialists to be employed in carrying out Part (B)II of the University Project, including the establishment of their terms of reference, the administration of their agreements and arrangements for the review of their work by appropriate authorities; (i) the organization, coordination and control of the fellowship program included in Part (B)II of the University Project; 32 (j) the maintenance of records, including financial records, and the furnishing of information under Section 3.05 of this Agreement during the carrying out of the University Project; (k) the preparation of applications for withdrawal from the Credit Account; and (1) the evaluation of progress in implementing the University Project and the preparation and presentation of regular reports to the Association. 2. The specific responsibilities and functions of the University Project Director, the Advisor to the University Project Director and the University Project Architect shall be respectively as follows: (a) University Project Director: overall guidance, supervision and execution of the University Project including all such arrangements with the Borrower's ministries and other government agencies as shall be necessary for the University Project implementation; (b) Advisor to the University Project Director: general management of the University Project activities and day to day supervision of the University Project implementation on behalf of the University Project Director, organization and coordination of the preparation of master lists of equipment requirements including international competitive bidding procedures and bid evaluation and advising the University Project Director concerning the services of experts and the organization of the fellowship program; and (c) University Project Architect: guidance, coordination and supervision of the sub-project civil works and of the architects responsible for the design of the University Project construction, including the establishment of effective methods of cost control and implementation progress schedules, the organization of international competitive bidding procedures and the evaluation of bids.