Tanzania - Highway Maintenance Project : Credit 0507 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 507 TA Development Credit Agreement (Highway Maintenance Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED AUGUST 21, 1974 」 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated August 21, 1974, between UNITED REPUBLIC OF TANZANIA (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 March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter --Aled the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several tenus defined in the General Conditions have the respective meanings therein set forth and the following additional ten-n has the following meaning, namely: "Comworks" means the Borrower's Ministry of Communications and Works. ARTICLE H 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 ten million two hundred thousand dollars ($10,200,000) Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule may be amended from time to time, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. 4 Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods or for the carrying out of works or services (other than consultants' services) for the Project to be financed out of the proceeds of the Credit shall be awarded in accordance with the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1979, 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 May 15 and November 15 in each year. I Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each May 15 and November 15 commencing November 15, 1984, and ending May 15, 2024, each installment to and including the installment payable on May 15, 1994, 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 Kingdom of Great Britain and Northern Ireland 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 Comworks 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 carrying out the Project, the Borrower shall employ experts acceptable to the Association upon terms and conditions satisfactory to the Association as follows: (a) to assist the Borrower in carrying out Part A of the Project, such experts, and for such approximate periods of time, as is provided by Schedule 5 4 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association; and (b) transportation experts to assist the Borrower in carrying out Part B of the Project. Section 3.03. In carrying out out Part A.2 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, or if the Association shall so agree, carry out such Part of the Project by force account. 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 for approval, promptly upon their preparation, the plans, specifications, contract documents and work and procurement schedules for Part A of 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 visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.06. The Borrower shall take all such action as shall be necessary to acquire as and when needed all such land and ights in respect of land as shall be required for carrying out the Project. 6 Section 3.07. In carrying out Part A of the Project, the Borrower shall review with the Association annually its schedule for carrying out such Part of the Project. Section 3.08. The Borrower shall ensure that the road maintenance and workshop equipment and vehicles provided under Part A.3 of the Project shall be appropriately maintained, repaired or replaced, as and when necessary. 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 Comworks. Section 4.02. The Borrower shall: (a) discuss with the Association (i) the recommendations of the study included in Part B of the Project with a view to determining any appropriate action, and (ii) the implementation of any reorganization of Comworks affecting the carrying out of Part A of the Project with a view to determining such action as may be required to assure the efficient execution of such Part of the Project; (b) take all action necessary to ensure that the vehicle weight regulations applicable in the Borrower's territories will be rigorously enforced; (c) cause any of Comworks' salvageable road maintenance and workshop equipment to be rehabilitated and to be used for the maintenance of roads in the Borrower's territories; (d) cause a Tanzanian counterpart to be assigned to those of the experts referred to in Section 3.02(a) of this Agreement as the Borrower and the Association shall agree; and (e) collect and record in accordance with appropriate statistical methods and procedures such technical, economic and financial information and road traffic data as shall be reasonably required for proper planning of maintenance, improvements and extensions of its highway system. 7 ARTICLE V Remedies of the Association Section 5.01. The Association may, upon the occurrence of certain events specified in Sections 6.02 or 7.01 of the General Conditions and the continuance thereof for the period, if any, specified for the purpose: (i) suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account or (ii) declare the principal of the Credit then outstanding to be due and payable immediately together with the charges thereon. ARTICLE VI Termination Section 6.01. The date November 19, 1974 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.02. 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 eight years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower at the time responsible for finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Principal Secretary The Treasury P.O. Box 9111 Dar es Salaam United Republic of Tanzania 8 Cable address: TREASURY Dar es Salaam 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. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. UNITED REPUBLIC OF TANZANIA By /s/ Paul Bomani Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / Michael L. Lejeune Director, Country Programs Department Eastern Africa Regional Office 9 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 the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Road maintenance 4,450,000 100% of foreign and workshop expenditures or equipment, 70% of local vehicles and expenditures spare parts and training aids (2) Imported road 950,000 100% of foreign building expenditures or materials (bi- 70% of local tumen, explo- expenditures sives, culverts, etc.) (3) Consultants' and 2,300,000 100% of foreign experts' services expenditures and 70% of local ex- penditures (4) Building construc- 140,000 15% tion and improve- ment (5) Unallocated 2,360,000 TOTAL 10,200,000 10 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods or services supplied from, the territory, and in the currency, of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower, and for goods or services supplied from, the territory of the Borrower. 3. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if any event occurs which shall affect the amount of any such taxes included in the cost of any item to be financed out of the proceeds of the Credit, the Association may, by notice to the Borrower, correspondingly adjust the disbursement percentage then applicable to such item. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of expenditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category to the extent required to meet the estimated shortfall proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures, and (ii), in the case of either Category (2) or (3), if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. 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 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. 11 SCHEDULE 2 Description of the Project The Project (Part A of which is the first stage of the Borrower's program to improve the maintenance of primary roads throughout the Borrower's territories) includes the following parts: Part A: Road Maintenance 1. The maintenance (including, where necessary, the rehabilitation) of about 3,300 kilometers of trunk and territorial main roads in the Regions of Tanga, Coast, Dar es Salaam, Morogoro, Lindi, Mtwara, Ruvuma, Iringa, Mbeya and Rukwa. 2. The construction and/or improvement of about 23 road camps along the roads included in Part A.1 of the Project and of mechanical workshops and offices in the regional centers of Tanga, Dar es Salaam, Morogoro, Mtwara, Songea, Iringa and Mbeya. 3. The provision of road maintenance and workshop equipment, vehicles, spare parts, tools, training aids and materials for the use by (a) the mechanical workshops included in Part A.2 cf the Project, (b) Comworks' training center at Morogoro, and (c) about 30 section crews and six special crews carrying out Part A.1 of the Project. 4. The training of administrative and technical road maintenance personnel. Part B: Study of Road Transport Industry The carrying out of a study of the Tanzanian road transport industry for the purpose of developing recommendations as to pricing and licensing policies and other regulations concerning such industry. The Project is expected to be completed by June 30, 1978. 12 SCHEDULE 3 Procurement A. General Procedures 1. Except as provided in Part A.3 hereof, contracts shall be let under procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in April 1972, as revised in October 1972 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. Identical or similar items of equipment, vehicles, spare parts or materials shall, to the extent possible, be consolidated in a single invitation for the purposes of bidding. 3. (a) Contracts for equipment, vehicles, spare parts, tools, training aids and materials estimated to cost the equivalent of $50,000 or less shall be let on the basis of the Borrower's standard procurement procedures. (b) Building construction and improvement works shall be carried out either under constracts awarded in accordance with the Borrower's standard procurement procedures, or if the Association shall so agree, by force account. B. Evaluation and Comparison of Bids for Goods; Preference for Domestic Manufacturers 1. For the purpose of evaluation and comparison of bids for the supply of goods: (i) 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 domestically-manufactured goods; (ii) customs duties and other import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) 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 included. 2. Goods manufactured in Tanzania may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. 13 (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Tanzania 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 Tanzania equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Tanzania. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. The lowest evaluated bid 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 the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid, or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the lowest evaluated bid from group C shall be selected. C. Review of Procurement Decisions by the Association 1. Review of invitation to bid and of proposed awards and final contracts: With respect to all contracts for equipment, vehicles, spare parts, tools, training aids and materials 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 14 to be followed for the bidding, and shall make such modifications in the said documents or procedures 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 which it intends to award the contract and the reasons for the intended award 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 recommendation for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, 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 or prequalifioation invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 15 SCHEDULE 4 Experts referred to in Section 3.02(a) of the Development Credit Agreement 1. 1 training coordinator for about 36 man-months. 2. 5 instructors for a total of about 150 man-months. 3. 1 maintenance mangement engineer for about 36 man-months. 4. 1 maintenance administrator for about 36 man-months. 5. 1 equipment specialist for about 36 man-months. 6 1 special projects supervisor for about 24 man-months. 7. 1 premix superintendent for about 24 man-months. 8. 1 quarrying and aggregate crushing superintendent for about 24 man-months. 9. 2 road maintenance supervisors for a total of about 60 man-months. 10. 7 workshop managers for a total of about 250 man-months.