Tanzania - Sites And Services Project : Credit 0495 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 495 TA Development Credit Agreement (Sites and Services Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JULY 12, 1974 CONFORMED COPY CREDIT NUMBER 495 TA Development Credit Agreement (Sites and Services Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JULY 12, 1974 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated July 12, 1974, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) fhe 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) Part F of the Project will be carried out by the Tanzania Housing Bank (hereinafter called THB) with the Borrower's assistance and, as part of such assistance, the Borrower will make available to THB the proceeds of the Credit as hereinafter provided; and (C) The Association is willing to make the Credit available upon the terms and conditions set forth hereinafter and in a project agreement of even date herewith between the Association and THB; 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) "Project Agreement" means the agreement between the Association and THB of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement; 4. (b) "Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and THB pursuant to Section 3.01(c) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to the Subsidiary Loan Agreement; (c) "Ardhi" means the Ministry of Lands, Housing and Urban Development of the Borrower; (d) "Sites and Services Section" means the section established within Ardhi which is responsible for planning and implementing the sites and services program of the Borrower; (e) "Ardhi Institute" means the institute established within Ardhi to provide training in surveying, valuation and town planning; (f) "Building Code" means the Township (Building) Rules, Cap. 101 (Revised), 1960, of the Borrower, as such Rules may be amended from time to time, or in the event that such Rules are repealed, such other enactment of the Borrower as may supersede such Rules; (g) "Rights-of-Occupancy" means the rights issued pursuant to the Government Leaseholds (Conversion to Rights of Occupancy) Act, 1969, which entitle the holders thereof to use township land for periods of up to 99 years; (h) "Statutory Ground Rent" means the charge imposed by the Borrower on the holder of a Right-of-Occupancy for the privilege of using land; (i) "Chargeable Ground Rent" means the charge imposed by the Borrower on the holder of a Right-of-Occupancy to recover his pro rata share of the land development cost for the infrastructure constructed in the sites and services area in which he lives; (j) "TSh" means the currency of the Borrower; and (k) "Housing Cooperative" means a cooperative society established or to be established under the Cooperative Societies Act, 1968, of the Borrower, as such Act may be amended from time to time, for the purpose of carrying out housing activities. 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 5 amount in various currencies equivalent to eight million five hundred thousand dollars ($8,500,000). 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 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. 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, as revised in October 1972, and in ac ordance with, and subject to, the provisions set forth in Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 3 1, 1978 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 March I and September 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March I and September 1 commencing September 1, 1984 and ending March 1, 2024, each installment to -,nd including the installment payable on March 1, 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. 6 ARTICLE III Execution of the Project Section 3.01. (a) The Borrower, through Ardhi, shall carry out Parts A through E of the Project with due diligence and efficiency and in conformity with appropriate administrative, engineering, public utility and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause THB to carry out Part F of the Project and to perform in accordance with the provisions of the Project Agreement and the Subsidiary Loan Agreement all the obligations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable THB to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall relend to THB such portion of the proceeds of the Credit as shall be disbursed by the Association for Part F of the Project under a subsidiary loan agreement to be entered into between the Borrower and THB under terms and conditions which shall have been approved by the Association. (d) The Borrower shall exercise its rights under the Subsidiary Loan Agreement in such manner as to protect the interests bf the Borrower and the Association and to accomplish the purposes of the Credit, and except as the Association shall otherwise agree, the Borrower shall not assign, nor amend, abrogate or waive the Subsidiary Loan Agreement or any provision thereof. Section 3.02. The Borrower shall employ consultants acceptable to the Association upon terms and conditions satisfactory to the Association to assist the Borrower in: (i) preparing the design and detailed engineering and in supervising the construction of the basic infrastructure and community facilities included in Part A of the Project and the civil works included in Part B of the Project; (ii) carrying out the training included in Part B of the Project; and (iii) carrying out the studies included in Part D of the Project. 7 Section 3.03. In carrying out the civil works included in Parts A and 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, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to 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 work 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 cause Ardhi to maintain separate records adequate to record the progress of Parts A to E 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 5.03 of this Agreement, enable the Association's representatives to examine the Project, the goods financed out of such proceeds and any relevant records and documents; and (iii) shall cause Ardhi to furnish to the Association all such information as the Association shall reasonably request concerning Parts A to E of the Project, the expenditure of the proceeds of the Credit thereon and the goods and services financed out of such proceeds. Section 3.06. Except as the Association shall otherwise agree, the Borrower shall: (i) construct or improve, or cause to be constnicted or improved, the infrastructure and community facilities included in Part A of the Project substantially in accordance with the design standards set forth or referred to in Schedule 4 to this Agreement; (ii) waive, or cause to be waived, the housing construction standards included in the Building Code which are applicable to residential 8 housing constructed in areas included in the Project by plot occupants who have been issued Rights-of-Occupancy and in place thereof, shall issue such interim housing construction standards as may be agreed between the Borrower and the Association; and (iii) prepare a draft of the revision of the Building Code for review by the Association and make such revision effective by December 31, 1976. Section 3.07. Except as the Association shall otherwise agree, the Borrower shall allocate, or cause to be allocated, the plots to be developed under Part A of the Project in accordance with the provisions set forth or referred to in Schedule 5 to this Agreement. Section 3.08. (a) The Borrower shall cause the Ardhi Institute to restructure its town planning curriculum in order to provide practical training which is relevant to the needs of the urban areas of the Borrower. (b) Except as the Association shall otherwise agree, the Borrower shall: (i) fill all vacancies at professional levels in the Sites and Services Section no later than June 30, 1975; (ii) cause the Sites and Services Section to be staffed at all times by adequate and competent staff; and (iii) give priority to assigning graduates of the Ardhi Institute's training program referred to in Part B(2) of the Project to the sites and services program of the Borrower before assigning such graduates to any other planning 6r housing program. Section 3.09. The Borrower shall cause the infrastructure and community facilities included in Part A of the Project to be maintained, operated and staffed in conformity with appropriate administrative, engineering, public utility, public health and educational practices, as the case may be, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for this purpose. Section 3.10. 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. 9 Section 3.11. By December 31, 1975, or such other date as shall be agreed between the Borrower and the Association, the Borrower shall prepare and implement the pilot nutrition program referred to in Part E of the Project in consultation with the Association. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall cause Ardhi to establish and maintain a separate Project account to be used exclusively for the Project in which Ardhi would record (i) all of Ardhi's receipts and expenditures for or in connection with Parts A to E of the Project and (ii) any payments of Chargeable Ground Rent with respect to the sites included in Part A of the Project. (b) The Borrower shall cause Ardhi to: (i) have the Project account for each fiscal year audited, in accordance with sound auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the Project account for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning the Project account and the audit thereof as the Association shall from time to time reasonably request. Section 4.02. Except as the Association shall otherwise agree: (i) the Borrower shall set, or cause Ardhi to set, Chargeable Ground Rents on plots in each site included in Part A of the Project at levels sufficient to recover seventy-five per cent (75%) of the land development cost of infrastructure constructed in each such site in approximately equal annual installments over a maximum period of twenty-five years at a minimum rate of interest of nine per cent (9/) per annum: (ii) the Borrower shall collect, or cause Ardhi to collect, from each prospective plot occupant before each such occupant takes possession of his plot a charge equal to ten per cent (10%) of the pro rata share assigned to such plot of the total estimated land development cost of the infrastructure constructed in the sites and services area in which he lives; and 10 (iii) the Borrower shall cause Ardhi to take such action as may be necessary to ensure the efficient collection from plot occupants of Statutory Ground Rent and the Chargeable Ground Rent. 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 performance by THB of its obligations under the Project Agreement, the administration, operations, resources and expenditures of THB and, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out any part of the Project, and other matters relating to the purposes of the Credit; and (b) furnish to the other all such information as it shall reasonably request with regard to the general status of the Credit. On the part of the Borrower, such information shall include information with respect to financial and economic conditions in the territories of the Borrower, including its balance of payments, and the external debt of the Borrower, of any of its administrative subdivisions and of any agency of the Borrower or of any such administrative 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 THB and, in respect of the Project, of the departments or agencies of the Borrower responsible for carr'ying out any part of the Project. (b) The Borrower and the Association shall promptly inform each other of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit, the maintenance of the service thereof, the performance by either of them of its obligations under the Development Credit Agreement or the performance by THB of its obligations under the Project Agreement and the Subsidiary Loan 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. 11 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 and the Project 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 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: (a) THB shall have failed to perform any of its obligations under the Project Agreement; (b) the Borrower or THB shall have 'ailed to perform any of their respective obligations under the Subsidiary Loran Agreement; (c) an extraordinary situation shall have arisen which shall make it improbable that THB will be able to perform its obligations under the Project Agreement; and 12 (d) the organization, powers or responsibilities of THB shall have been altered so as to affect adversely the execution of Part F of the Project. Section 7.03. For the purposes of Section 7.01 of the General Conditi(Ins, the following additional event is specified, namely that any event specified in Section 7.02 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower. ARTICLE VIII Effective Date; Termination Section 8.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 10.01(b) of the General Conditions: (a) The execution and delivery of the Project Agreement on behalf of THB have been duly authorized or ratified by all necessary corporate and governmental action. (b) The execution and delivery of the Subsidiary Loan Agreement on behalf of the Borrower and THB, respectively, have been duly authorized or ratified by all necessary corporate and governmental action. 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: (a) That the Project Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, THB, and constitutes a valid and binding obligation of THB in accordance with its terms. (b) That the Subsidiary Loan Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and THB, respectively, and constitutes a valid and binding obligation of the Borrower and THB in accordance with its terms. Section 8.03. The date October 18, 1974 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.04. The obligations of the Borrower under Section 3.09 and Article IV of this Agreement and the provisions of Sections 7.02 and 7.03 of this 13 Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date 20 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 at the time 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: The Principal Secretary The Treasury P.O. Box 9111 Dar es Salaam United Republic of Tanzania 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. 14 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. UNITED REPUBLIC OF TANZANIA By /s / G. M. Chaguza Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ S. Shahid Husain Director, Regional Projects Department Eastern Africa 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 1. Civil works 3,900,000 65% of total expenditures 2. Equipment and 150,000 vehicles (a) Imported goods 100% of foreign expenditures (b) Locally manu- 65% of local factured goods expenditures (ex-factory cost) (c) Imported goods 50% of local procured locally expenditures 3. Consultants' serv- 600,000 100% of foreign ices and training expenditures or 75% of local expenditures 4. THB's disbursements 2,000,00 50% of amounts for house construc- disbursed tion or improvement loans under Part F of the Project 5. Pilot nutrition program (excluding 5000n5%ofloa consultants serv- ices) and Project monitoring 6. Unallocated 1,00,000 TOTAL 8,500,000 16 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, or 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: (a) expenditures prior to the date of this Agreement, except that withdrawals may be made in respect of Category 3 on account of expenditures incurred after December 31, 1973 in an aggregate amount not exceeding the equivalent of $200,000; and (b) payments for taxes imposed 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 17 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 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 1 above, if the estimate of total expenditures under Category I or of local expenditures under Category 5 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 is included in the Borrower's national sites and services program for the years 1974 through 1977 designed to enable lower-income urban households to acquire developed plots and to construct residential houses on such plots. The Project consists of the following parts: Part A (1) The provision of land, its development and the construction and installation of the necessary basic infrastructure and related facilities thereon (including, inter alia, roads, storm water drainage, water supply, sewage disposal and power supply) as follows: (a) In the Dar es Salaam Region: (i) A site of about 230 hectares at Sinza to be developed for about 4,000 plots; (ii) A site of about 160 hectares at Kijitonyama to be developed for about 1,850 plots; and (iii) A site of about 80 hectares at Mikocheni to be developed for about 1,600 plots. (b) A site of about 110 hectares at Nyakato in Mwanza to be developed for about 2,300 plots. (c) A site of about 60 hectares at Mwanjelwa in Mbeya to be developed for about 870 plots. (2) The improvement of the basic infrastructure and related facilities on about 500 hectares of existing squatter settlements at Manzese A and B in Dar es Salaam Region and about 80 hectares of existing squatter settlements at Mwanjelwa in Mbeya, such settlements including an aggregate total of about 8,800 dwellings. (3) The construction of, and the provision of equipment and furniture for, community facilities (about eleven community education centers, 19 one health center, seven dispensaries and eleven markets) on the sites and in the settlements included in paragraphs (1) and (2) of this Part. Part B (1) The expansion of the physical facilities used by the Ardhi Institute for the purpose of providing sub-professional training in surveying, valuation and town planning. (2) The establishment of a program, including the provision of equipment and materials, at the Ardhi Institute for the purpose of training civil and sanitary technical assistants and land administrators. Part C (1) The purchase and utilization of an adequa-e number of vehicles, including inter alia cesspit emptiers and refuse collection trucks, to service the settlements included in Parts A(l) and (2) of the Project. (2) The purchase and utilization by Ardhi of equipment to assist in carrying out the Project. Part D Studies for the preparation of further sites and services and water supply projects, including monitoring of the impact and effect of the Project. Part E The establishment of a pilot nutrition program for the purpose of: (i) investigating the nutritional status of residents of the areas included in Part A of the Project; and (ii) based upon the investigations carried out under paragraph (i) of this Part: (a) developing capabilities for the preparation and dissemination of appropriate nutritic.. information; and (b) taking such other remedial measures as may be appropriate to improve the nutritional status of such residents. 20 Part F The provision by THB of house construction or improvement loans to households having acquired plots included in Part A(1) of the Project or living in the existing squatter settlements included in Part A(2) of the Project. 21 SCHEDULE 3 Procurement A. Contracts Subject to International Competitive Bidding 1. The Borrower shall group the civil works contracts for each site included in Part A of the Project. Bidders shall be permitted to bid on any or all civil works contracts for each such site. 2. With respect to any contract for civil works: (a) Bidders shall be required to prequalify. 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. The list of prequalified bidders, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification, shall be furnished by the Borrower to the Association for its comments before the applicants are notified and the Borrower shall make such additions to or deletions from the said list as the Association shall reasonably request. (b) 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. (c) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to whom it intends to award the contract and shall furnish to the Association, in 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. (d) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. 22 (e) 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. Contracts Not Subject to International Competition With respect to any contract for equipment or vehicles, the Borrower may award such contracts on a competitive basis in accordance with its usual procurement procedures, provided that identical or similar items of equipment or vehicles shall be bulked to the extent possible for the purpose of inviting bids. For any contract awarded in accordance with the provisions of this sub-paragraph, the Borrower shall furnish 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, 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 As,sociation shall, if it determines that the award of the contract is not consistent with the procedures set forth or referred to in Section 2.03 of this Agreement, promptly inform the Borrower and state the reasons for such determination. C. Preference for Domestic Civil Works Contractors 1. With respect to any contract for civil works included under Category 1 of the table set forth in Schedule 1 to the Development Credit Agreement, the Borrower may grant a margin of preference to domestic contractors, as determined by the Borrower, in accordance with, and subject to, the following provisions: (a) Contractors shall be required to prequalify. 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. Applicants applying for preference shall be asked to provide such information, including details of ownership, as the Borrower shall require to determine whether according to the Borrower's established classification a particular firm or group of firms qualifies for a domestic preference. A list of prequalified bidders identifying those eligible for preference, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification or eligibility for preference, shall be furnished by the Borrower to the Association for its comments and the Borrower shall make such additions to or deletions from the said list as the Association shall reasonably request before the applicants are invited to bid. 23 (b) 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. The bidding documents shall clearly indicate any preference which will be granted and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (c) After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. (d) After bids have been evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to whom it intends to award the contract and shall furnish to the Association, in 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. (e) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. (f) 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 any such contract. 24 SCHEDULE 4 Design Standards Services Level I* Level II** Roads Right-of-way/Travelway Class A 33.0 m/6.0 33 m/6.0 m Class B 20.0 m/4.5 20 m/4.5 m Class C 10.0 m/5.0 10 m/5.0 m Class D 6.0 m/6.0 6 m/6.0 m Surface Class A Treated macadam surface on stabilized gravel base. Class B Rolled gravel surface suitable for light vehicular traffic. Class C Compacted ground for pedestrian and emergency vehicle access. Class D Compacted ground for pedestrian and emergency vehicle access. Drainage Storm Drainage Unlined open ditches along the roads, with culverts at vehicular crossings. Ditches will be lined in steep areas. Foul Water Drain- Aqua privies with Common pit age central sewer latrines. system and oxi- dation pond. Water Supply Distribution Sys- Individual plot One water tem connection. kiosk/50 plots. Provision for individual plot connection at a later stage. Electricity House Supply Distribution mains passing through the area. Individual connections to be provided whenever enough buyers are available. Street Lighting Security street lighting along main roads and near public facilities. * Mikocheni (Dar es Salaam). ** Sinza, Kijitonvama Manzese (Dar es Salaam); Nyakato (Mwanza); Mwanjelwa (Mbeya). 25 SCHEDULE 5 Allocation of Plots 1. Information concerning the availability of plots and related Rights-of-Occupancy will be disseminated by the Borrower through the mass media and other appropriate means. 2. Interested persons will submit applications for Rights-of-Occupancy to either Ardhi, Regional Land Offices or the appropriate TANU (Tanganyika African National Union) channel. Such applications will be forwarded to the Land Allocation Committees in the respective regions for selection in accordance with specified criteria, with preference given for inter alia: (i) applicants previously displaced by public works projects; (ii) the applicant's number of immediate dependents residing in his household; (iii) applicants who do not own a house in the proximate area where the sites and services area is located; (iv) the length of time the applicant has spent on waiting lists for housing; (v) applicants whose residence and employment are in Dar es Salaam, Mwanza or Mbeya; and (vi) households with monthly incomes below TSh750, or such other amount as may be agreed between the Borrower and the Association.