Burundi - Highway Maintenance Project : Credit 0467 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 467 BU Development Credit Agreement (Highway Maintenance Project) BETWEEN REPUBLIC OF BURUNDI AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MARCH 27, 1974 CONFORMED COPY CREDIT NUMBER 467 BU Development Credit Agreement (Highway Maintenance Project) BETWEEN REPUBLIC OF BURUNDI AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MARCH 27, 1974 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated March 27, 1974, between the REPUBLIC OF BURUNDI (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 cost of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) By a development credit agreement dated June 19, 1970, (hereinafter called the First Development Credit Agreement) between the Borrower and the Association, the Association granted to the Borrower a credit (hereinafter called the First Credit) in various currencies equivalent to three hundred and eighty thousand dollars ($380,000) to assist in financing of detailed highway engineering and of a highway maintenance study; WHEREAS the Association is prepared to refund the First Credit out of the proceeds of the Credit provided for herein; 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) "DPC" means Department of Roads and Bridges of the Borrower's Ministry of Public Works, and any successor thereto; and 4 (b) "Road Fund" means the National Road Fund of the Borrower; and (c) "FBu" means Francs in the currency of the Borrower. 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 five million dollars ($5,000,000). Section 2.02. (a) 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, and provided further that no withdrawal shall be made on account of expenditures under Category I(b) and (c) of Schedule I to this Agreement until the Borrower shall have employed, or otherwise secured the services of, the consultants referred to in Section 3.03(ii) and (iii) of this Agreement. (b) The Association shall withdraw from the Credit Account and pay to itself, on behalf of the Borrower, the amount required to refund the principal amount withdrawn and outstanding, together with the service charges thereon, of the First Credit, on the Effective Date of this Agreement. Any amount remaining unwithdrawn in the Credit Account of the First Credit shall automatically be cancelled on the same date. 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 accordance with, and subject to, the provisions set forth in Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1978 or such other date as shall be agreed between the Borrower and the Association. 5 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 June 15 and December 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each June 15 and December 15 commencing June 15, 1984 and ending December 15, 2023 each installment to and including the installment payable on December 15, 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 3.0 1. (a) The Borrower shall carry out the Project through its Ministry of Public Works with due diligence and effi6iency and in conformity with sound administrative, financial, engineering, and highway maintenance practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall agree with the Association upon the appropriate allocation of funds available for training under Category 11(b) of Schedule I to this Agreement. Section 3.02. Without limitation or restriction upon the provisions of Section 3.01 hereof, the Borrower shall annually allocate and appropriate to DPC funds sufficient to fulfill its obligations under Section 4.02 of this Agreement and shall promptly notify the Association of any such annual allocation and appropriation. Section 3.03. In order to assist the Borrower until completion of the Project in (i) the reorganization of DPC and training of its staff; (ii) the execution of its highway maintenance program; (iii) the preparation of bidding documents and the evaluation of bids for the procurement of road maintenance equipment, spare parts and materials- (iv) the establishment of the highway development master plan under Part C of the Project; and (v) the execution of the feasibility and detailed engineering studies under Part B of the Project, the Borrower shall employ, or 6 otherwise obtain the services of, consultants acceptable to the Borrower and the Association upon terms and conditions satisfactory to the Borrower and 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, 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, promptly upon their preparation, the plans, specifications, training program for local staff, reports, contract documents and construction 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 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 inspect 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 expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. 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 sound 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. The Borrower shall (i) adequately maintain its national road network, or cause said network to be adequately maintained, in accordance with 7 sound engineering and financial practices; (ii) cause all of its highway maintenance equipment to be adequately maintained and all necessary repairs and renewals thereof to be made, all in accordance with sound engineering practices; (iii) cause suitable workshops to be established and maintained for the foregoing; and (iv) provide, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section 4.03. The Borrower shall consult with the Association during the first six months of calendar year 1977 on the definition of the second phase of its road maintenance program and the financing thereof. Section 4.04. The Borrower shall take all measures reasonably required to ensure that the dimensions and axle-loads of vehicles using its national highway network shall not exceed limits consistent with the design standards of such roads. Section 4.05. The Borrower shall collect and record in accordance with appropriate statistical methods and procedures such data as are required to assess the technical, economic and financial aspects of the Borrower's road network for proper planning of maintenance, improvements and extensions of said road network. 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 administration, 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, 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. 8 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, in respect of the Project, of 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 the Development Credit 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. 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 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 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 9 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. ARTICLE VIII Termination Section 8.01. The date June 27, 1974 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.02. The obligations of the Borrower under Sections 4.01, 4.02, 4.04 and 4.05 of this Agreement shall cease and terminate on the date on which the Development Credit Agreement shall terminate or on a date twenty (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 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: Ministry of Finance P.O. Box 1830 Bujumbura, Burundi Cable address: MINIFIN Bujumbura 10 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 and to be delivered in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF BURUNDI By /s/ J. Ndabaniwe Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Bernard R. Bell Regional Vice President Eastern Africa 11 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. Highway main- tenance program: (a) Construction of 150,000 87% of total a workshop annex expenditures at Bujumbura and a maintenance depot at Gitega and equipping of the School of Public Works of Bujumbura (b) Fuel and 750,000 87% of total materials expenditures (c) Equipment and 2,000,000 100% of foreign spare parts expenditures II. Consultants' Services 100% of foreign expenditures (a) Engineering, stud- 10,000 ies and Supervision of Part D of the Project (b) Consultants' serv- 300,000 ices for training including training equipment (c) Highway Master Plan 500,000 and Preinvestment studies under Parts B and C of the Project 12 Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed III. Refunding of the First 380,000 100% of foreign Credit expenditures IV. Unallocated 910,000 TOTAL 5,000,000 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; and (b) the term "total expenditures" means the aggregate of foreign expenditures and of expenditures for goods produced in, or services supplied from, the territories of the Borrower. 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 expenditures incurred under Category 11(a) prior to such date but subsequent to February 1, 1973 in an amount not to exceed the equivalent of $10,000; 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 1 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 1 above: 13 (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 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(a) or I(b) 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. 14 SCHEDULE 2 Description of the Project The Project consists in: Part A: Implementation of a four-year highway maintenance program which provides for: 1. the reorganization and strengthening of road maintenance operations of the Borrower, including the training of maintenance personnel at all levels; 2. the purchase of road maintenance equipment, spare parts, fuel and materials; 3. the construction and equipping of a mechanical workshop and storeroom at Bujumbura and of a small maintenance depot at Gitega; renovation and equipping of the School of Public works of Bujumbura; and 4. the improvement of routine and periodic maintenance operations over the national road network, as specified in Schedule 4 to this Agreement. Part B: Feasibility study and detailed engineering for improvement of the Ngozi-Muyinga-Kobero Road (about 110 km) if the improvement shall be considered economically justified by the Borrower and the Association. Part C: Preparation of a master plan for developing the Borrower's highway network and prcinvestment studies to be carried out during the period January 1, 1974 to June 30, 1978; the specific studies to be undertaken will be determined by agreement from time to time between the Borrower and the Association. Part D: Financing of engineering studies completed before November 1, 1973, for the Bujumbura-Mutambara-Nyanza Lac Road. The Project is expected to be completed by June 30, 1978. 15 SCHEDULE 3 Procurement 1. Whenever practicable, identical or similar items of equipment shall be grouped together to form economic bid packages for purposes of bidding, such grouping to be subject to the approval of the Association. 2. With respect to any contract for goods and services estimated to cost the equivalent of $20,000 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 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. (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 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 3.03 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. (c) The successful bidder in respect of civil works shall, at the Borrower's option, furnish either a performance bond or a bank guarantee in an amount of not less than ten per cent (10%) of the contract price, which bond or guarantee shall remain in effect until six months after completion of the works provided for in the contract. In addition, the contract shall provide for retention of not less than ten per cent (10%) of the cost of works on each monthly invoice. These retentions may cease to be made when the cumulative amount retained reaches about five per cent (5%) of the total contract price. One-half of the retention moneys shall be released when all the work has been substantially completed, and the other half fourteen days after the termination of the contractor's responsibility in respect of defects. The period during which the contractor will remain responsible 16 in respect to defects in the works (fair wear and tear excepted) will extend for one year after acceptance of the works. (d) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. (e) 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 withdrawals of funds from the Credit Account in respect of any such contract. 3. With respect to any other contract for goods and services, 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 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 Association 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 detenrination. However, with respect to any contract for less than $10,000 equivalent bidding may be advertised locally only. 17 SCHEDULE 4 Roads to be Maintained During the Four-Year Maintenance Program 1974-1977 Roads to Receive Regular Maintenance Length (km) Bituminous Paved Roads Existing: Bujumbura - Bugarama - Muramvya - Gitega 102 Airport road 6 Bujumbura - Zaire border 14 122 Under Construction: Bugarama - Rwanda Border 82 Sub-total 204 Earth and Gravel Roads Bujumbura (PK6) - Cibitoke - Rwanda Border 80 Kayanza - Ngozi - Muyinga 1I1 Muyinga - Kobero 28 Gitega - Muyinga 91 Gitega - Ngozi 82 Gitega - Songa - Makebuko 25 Makebuko - Butambara - Gihofi 71 Mutambara - Bururi - Songa 113 Bujumbura - Mutambara - Nyanza Lac 121 Bujumbura - Mwaro - Songa 109 Bujumbura - Muzinda - Bubanza 40 Nyanza Lac - Mabanda 25 RN 6 - Kirundo 30 RIG 8 - Kaninya 27 Ruzira - Kumuyange - RIG 8 59 Bururi - Makamba - Mabanda 70 Various sections to be selected 114 Sub-total 1,196 Total 1,400