India - Ninth Industrial Imports Project : Credit 0474 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 474 IN Development Credit Agreement (Ninth Industrial Imports Project) BETWEEN INDIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 29, 1974 」 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated May 29, 1974, between INDIA, acting by its President (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, subject, however, to the following modification thereof (said Generaj Conditions Applicable to Development Credit Agreements of the Association, as so modified, being hereinafter called the General Conditions), namely that paragraph 5 of Section 2.01 is amended to read as follows: "5. The term Borrower means India, acting by its President". 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) the term "Specified Enterprises" means firms, registered with the Borrower's Directorate General of Technical Development of the Ministry of Industrial Development and others (excluding Hindustan Cables Limited, Hindustan Teleprinters Limited and Indian Telephone Industries Limited), notified from time to time by the Borrower to the Association, in the industrial manufacturing sectors listed in Schedule 3 to this Agreement, as such Schedule may be amended frorn time to time by agreement between the Borrower and the Association; (b) the term "Canalizing Agencies" means the following agencies of' the Borrower: the State Trading Corporation of India Limited, the Minerals and Metals Trading Corporation Limited, the Hindustan Steel Limited and such other agencies as may from time to time be agreed upon between the Borrower and the Association; and (c) the term "Authorized Dealers" ineans suppliers of spare parts for heavy co:istruction equipment authorized by the Chief Controller of Imports and Exports 4 of the Borrower's Ministry of Commerce for the purposes of this Agreement, as notified to the Association. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to one hundred fifty million dollars ($150,000,000). 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. Section 2.03. Except as the Association shall otherwise agree, raw materials, semi-finished goods, components and spare parts required for the Project and to be financed out of the proceeds of the Credit, and to be procured through the Canalizing Agencies, shall be procured in accordance with the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be November 30, 1975 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 15 and September 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 15 and September 15 commencing September 15, 1984, and ending March 15, 2024, each installment to and including the installment payable on March 15, 1994 to be one-half of one per cent (1/2 of I%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. 5 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. (a) The Borrower shall carry out the Project, or cause it to be carried out, with due diligence and efficiency. (b) The Borrower shall: (i) promptly upon receipt of appropriate applications issue, or cause to be issued, such import licenses as shall be required to carry out the Project; (ii) make available, or cause to be made available, promptly as needed all foreign exchange which shall be required to carry out the Project; and (iii) with respect to locally produced materials which are subject to allocation make, or cause to be made, allocations of such materials promptly and in such quantities as shall be required to carry out the Project. Section 3.02. The Borrower shall cause the imported goods to be financed out of the proceeds of the Credit to be insured, or cause adequate provision to be made for the insurance thereof, 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. Section 3.03. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans and programs for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited representatives to examine the Project, the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the program (referred to in Schedule 2 to this Agreement) of which the Project is a part, the Specified Enterprises, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. 6 Section 3.04. The Borrower shall cause the proceeds of the Credit to be used exclusively for the Project. 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 departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. Except as the Borrower and the Association shall otherwise agree, the Specified Enterprises shall not, on the grounds that they are participating in the Project, be subject to any conditions or requirements not imposed on other enterprises conducting business in the territories of the Borrower. 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 service and other charges thereon. ARTICLE VI Termination Section 6.01. The date July 31, 1974 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.02. The obligations of the Borrower under Section 4.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the Closing Date, whichever shall be the earlier. 7 ARTICLE VII Representative of the Borrower; Addresses Section 7.01. Any Secretary, Additional Secretary, Joint Secretary or the Director/Deputy Secretary of the Department of Economic Affairs in the Ministry of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section I 1.03 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 Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address: ECOFAIRS New Delhi 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 8 in their respective names in the District of Columbia, United States of America, as of the day and year first above written. INDIA By /s / T. N. Kaul Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s!/ M. L. Weiner Acting Regional Vice President Asia 9 SCHEDULE I Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of imported items to be financed out of the proceeds of the Credit and the allocation of amounts of the Credit to each Category: Amount of the Credit Allocated (Expressed in Category Dollar Equivalent) Raw materials, semi-finished goods, components and spare parts for the: I. Fertilizer and pesticide 75,000,000 sectors II. Other sectors 75,000,000 TOTAL 150,000,000 2. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of: (a) expenditures in the currency of the Borrower, or for goods or services supplied from, the territory of the Borrower; (b) expenditures prior to the date of this Agreement; and (c) 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. 3. 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 10 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 A. The Project forms part of the program of the Borrower to increase, during the period from April 1, 1974 to March 31, 1975: (i) production for the domestic civilian market and for export by making available foreign exchange for the import of raw materials, semi-finished goods, components, spare parts and miscellaneous items of manufacturing equipment and thereby improving the rate of utilization of existing productive capacity and capital equipment in India; and (ii) availability of spare parts for heavy construction equipment to improve the utilization of this equipment and thereby to aid in the timely completion of construction works. B. The Project consists of provision by the Borrower of foreign exchange and other resources required by the respective Specified Enterprises for production for the domestic civilian market and for export. 12 SCHEDULE 3 Industrial Manufacturing Sectors under the Project* Listed hereunder are the industrial manufacturing sectors of capital equipment and other goods from which the Specified Enterprises are to be selected: Agricultural 1. Tractors and Power Tillers 2. Fertilizers 3. Pesticides Electrical 4. Motors, Transformers, Switchgear, Magnetic Steel Stampings, Cables and Wires (below 33 kv) 5. Aluminum Smelting Transport 6. Commercial Vehicles 7. Automotive Ancillaries Metal Working 8. Machine, Cutting and Small Tools, Abrasives, Ball and Roller Bearings 9. Cast Iron Spun Pipes Construction 10. Heavy construction equipment 11. Authorized Dealers in spare parts for heavy construction equipment * See Section 1.02(a) 13 SCHEDULE 4 Procurement 1. With respect to any contract for the purchase of goods to be financed from the proceeds of the Credit the cost of which is equivalent to $100,000 or more: (a) offers shall be invited from not less than three of the major suppliers from member countries of the Bank and Switzerland; and (b) the contract shall be awarded to the supplier whose offer is the lowest evaluated offer. 2. The Borrower shall cause each Canalizing Agency to retain all relevant documentation relating to contracts financed in whole or in part out of the proceeds of the Credit, including without limitation, the details of the offers sought, the names of the suppliers invited to submit offers, the analysis of offers, recommendations for award and conformed copies of such contract, for review by the Association at its request. 3. Applications for withdrawal in respect of contracts awarded to the lowest evaluated offer shall be submitted to the Association with a certificate indicating that the conditions set forth in paragraph I of this Schedule have been satisfied, and with documentation on evidence of payment and of shipment together with the supplier's invoice. 4. The Borrower shall submit to the Association, together with any application for withdrawal of funds from the Credit Account, two certificates prepared by the appropriate Canalizing Agency stating that (i) the goods (or an equivalent amount of the goods) in respect of which the withdrawal is requested are for the account of, and have been or will be delivered to the Specified Enterprises; and (ii) no withdrawal for these same goods has been or will be made from the proceeds of any other external financing available to the Borrower or the Canalizing Agency. 5. The Borrower shall furnish to the Association, promptly after delivery of the goods financed in whole or in part from the proceeds of the Credit to the Specified Enterprises, such information as the Association shall reasonably request regarding the per unit cost of the goods to the Specified Enterprise.