Tanzania - Geita Cotton Project : Credit 0454 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 454 TA Development Credit Agreement (Geita Cotton Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 17, 1974 CONFORMED COPY CREDIT NUMBER 454 TA Development Credit Agreement (Geita Cotton Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 17, 1974 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 17, 1974, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) Certain Parts of the Project will be carried out by the Tanzania Rural Development Bank (hereinafter called TRDB) as a financial intermediary and procurement specialist and by the Tanzania Cotton Authority (hereinafter called TCA) with the Borrower's assistance and, as part of such assistance, the Borrower will make available to TRDB and to TCA the equivalent of a portion of 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, TRDB and TCA; 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: 4 (a) "Project Agreement" means the agreement between the Association, TRDB and TCA of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement; (b) "Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and TRDB pursuant to Section 3.01(c) of this Agreement, as tho same may be amended from time to time, and such term includes all schedules to the Subsidiary Loan Agreement; (c) "Subsidiary Loan" means the Loan to be made by the Borrower to TRDB under the Subsidiary Loan Agreement; (d) "Cooperative Society" means a Cooperative Society established or to be established under the Cooperative Societies Act, 1968, of the Borrower; (e) "Cooperative Societies' Credit" means a credit provided or to be provided by TRDB to Participating Cooperative Societies (as hereinafter defined) under Part A.1.(a) of the Project; (f) "Participating Cooperative Society" means a Cooperative Society to which TRDB makes a Cooperative Societies' Credit; (g) "Farmers' Credit" means a credit provided or to be provided by a Participating Cooperative Society to a Participating Farmer (as hereinafter defined) under Part A.2. of the Project; (h) "Participating Farmer" means farmer growing cotton, or cotton and maize, as the case may be, or a group of such farmers, to whom a Participating Cooperative Society makes a "Farmers' Credit"; (i) "Ufamaa Credit" means a credit provided or to be provided by TRDB to a Participating Ujamaa Cooperative (as hereinafter defined) under Part A.1.(b) of the Project; (j) "Participating Ujanaa Cooperative" means a registered Ujamaa Cooperative established or to be established under the Cooperative Societies Act, 1968, of the Borrower to which TRDB makes an Ujamaa Credit; (k) "Project Unit" means the project unit to be established and maintained by TCA under Part B.1. of the Project; and (1) "Soil Laboratory", "Rural Health Cent-r" and "Community Education Center" mean the respective facilities included in Part D. of the Project. 5 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 seventeen million five hundred thousand dollars ($17,500,000). 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 required for the Project and to be financed out of the proceeds of the Credit shall be procured pursuant to the provisions set forth or referred to in Section 2.02 of the Project Agreement. Section 2.04. The Closing Date shall be December 31, 1982 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. 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 May 15, 1984 and ending November 15, 2023, each installment to and including the installment payable on November 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 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 shall carry out, or cause to be carried out, the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, technical, agricultural, educational and public health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required therefor. (b) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower (i) shall cause TRDB and TCA to perform in accordance with the provisions of the Project Agreement and, in the case of TRDB, of the Subsidiary Loan Agreement, all the obligations therein set forth, (ii) shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable TRDB and TCA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without any limitation or restriction upon the provisions of paragraph (b) above, the Borrower shall relend to TRDB under a subsidiary loan agreement such portion of the proceeds of the Credit as shall be disbursed by the Association for the purpose of (i) assisting TRDB in financing the cost of the Procurement Officer included in Part F. of the Project and (ii) enabling TRDB to make the Cooperative Societies' Credits and the Ujamaa Credits included in Part A.1. of the Project. (d) The Borrower shall exercise its rights under the Subsidiary Loan Agreement in such manner as to protect the interests of 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. (e) Without any limitation or restriction upon conditions of paragraph (b) above, the Borrower shall make available to TCA, in the form of yearly grants, such portion of the proceeds of the Credit as shall be disbursed by the Association for the purpose of assisting TCA in financing the carrying out of Parts B., E. and F. of the Project. Section 3.02. Except as the Borrower and the Association shall otherwise agree, the Borrower undertakes: 7 (a) to establish and maintain such incentives as may be necessary, including but not limited to the use of a subsidy program for fertilizers and pesticides, so as to encourage cotton farmer participation in the Project, and to ensure that sufficient funds are made available for this purpose; (b) to make available 25 hectares of unoccupied suitable land near Geita, such land to be used by the Project Unit's Research Unit to carry out agricultural trials; (c) to grant to the Project Unit priority in the use of the services of the Soil Laboratory included in Part D.3. of the Project; (d) to make available appropriate staff and medical supplies to the Rural Health Centers included in Part D.1. of the Project; (e) to make available appropriate teachers and funds for recurrent expenditures to the Community Education Centers included in Part D.2. of the Project; (f) to make available to the Project Unit such graduates of the Ukiriguru Research and Training Center and of the Cooperative College of Moshi as shall be required; (g) to employ a qualified instructor to strengthen the standard of instruction in land planning at the Nyegezi Training Institute; (h) to adequately maintain the roads included in Part C. of the Project; (i) to employ such additional staff at the Western Research Center of the Borrower as shall be agreed between the Borrower and the Association; and (j) to establish and maintain a sub-committee of the Geita District Development Council to ensure coordination at working level of the agencies of the Borrower responsible for the carrying out of the Project. Such sub-committee shall be chaired by the Area Commissioner, Geita and shall include the District Chairman, Tanganyika African National Union (TANU); District Development Director, Geita; General Manager, TCA; General Manager, Nyanza Cooperative Union (NCU); Regional Agricultural Development Officer, Mwanza and the Project Manager or such other members as shall be agreed from time to time between the Borrower and the Association. 8 Section 3.03. Except as the Association shall othrwise agree, in order to assist the Borrower in carrying out Part C.I. of the Project, the Borrower shall employ consultants 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 may 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 construction and procurement schedules for its respective Parts 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, without limitation upon the provisions of Section 4.03 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 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 or cause to be taken all such action as shall be necessary to acquire as and when required 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. Section 3.07. The Borrower shall furnish to the Association the terms and conditions of service and transfer which shall have been established for TCA staff. 9 ARTICLE IV Consultation, Information and Inspection Section 4.01. 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 Ciedit Agreement, the performance by TRDB and TCA of their obligations under the Project Agreement, the performance by TRDB of its obligations under the Subsidiary Loan Agreement, the administration, operations and financial condition of TRDB and TCA 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 4.02. (a) The Borrower shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concerning the administration, operations and financial condition of TRDB and TCA and, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying 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 Linder the Development Credit Agreement, the performance by TRDB and TCA of their obligations under the Project Agreement or the performance by TRDB of its obligations under the Subsidiary Loan Agreement. Section 4.03. 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. 10 ARTICLE V Taxes and Restrictions Section 5.01. 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 5.02. 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 5.03. 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 VI Remedies of the Association Section 6.01. If any event specified in Section 7.01 of the General Conditions or in Section 6.03 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 6.02. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified: (a) TRDB or TCA shall have failed to perform any of their respective obligations under the Project Agreement; (b) an extraordinary situation shall have arisen which shall make it improbable that TRDB or TCA will be able to perform their respective obligationq under the Project Agreement; and 11 (c) the organization, powers or responsibilities of TRDB or of TCA shall have been altered so as to affect adversely the execution of the Project. Section 6.03. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified: any event specified in Section 6.02 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 VII Effective Date; Termination Section 7.01. 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 TRDB and TCA have been duly authorized or ratified by all necessary corporate and governmental action; and (b) The execution and delivery of the Subsidiary Loan Agreement on behalf of the Borrower and TRDB, respectively, have been duly authorized or ratified by all necessary corporate and governmental action. Section 7.02. 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, TRDB and TCA, respectively, and constitutes a valid and binding obligation of i'RDB and TCA, respectively, in accordance with its terms; and (b) That the Subsidiary Loan Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and TRDB, respectively, and constitutes a valid and binding obligation of the Borrower and TRDB in accordance with its terms. Section 7.03. The date April 30, 1974 is hereby specified for the purposes of Section 10.04 of the General Conditions. 12 Section 7.04. The provisions of Sections 6.02 and 6.03 of this 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 VIII Representative of the Borrower; Addresses Section 8.01. 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 8.02. The following addresses are zpecified 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. 13 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/ Paul Bomani Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Bernard R. Bell Regional Vice President Eastern Africa 14 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. Incremental cost 1,900,000 100% of foreign of seasonal inputs expenditures or including fertilizers, 70% of local ex- insecticides, seeds penditures and equipment operat- ing expenditures II. Agricultural equip- 1,700,000 100% of foreign ment including expenditures or sprayers, tractors, 70% of local ex- ploughs, ridgers, penditures tillers and TCA vehicles and equip- ment III. Construction of 5,700,000 70% of total ex- roads, houses, penditures buildings, schools, health centers and water supply IV. Expatriate person- 1,500,000 100% of foreign nel under Part F expenditures of the Project and consultants for Part C.1. of the Project V. Project Unit 1,800,000 70% of local ex- operating expendi- penditures tures VI. Unallocated 4,900,000 TOTAL 17,500,000 15 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; (c) the term "total expenditures" means the aggregate of foreign and local expenditures; and (d) the term "incremental cost of seasonal inputs" means such portion of the expenditures for such inputs included in Part A of the Project and to be financed hereunder as the Association shall reasonably determine from time to time to be required by TRDB to finance the purchase of such inputs, over and above any amounts prev'ously disbursed from the Credit Account for such purpose. 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; 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 16 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 2.02 of the Project 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. 17 SCHEDULE 2 Description of the Project The Project is the Borrower's program to increase the production of cotton and maize in the Borrower's Geita District. Except as the Borrower and the Association may otherwise agree, the Project will be carried out in three Phases in different Divisions of the Geita District as follows: Phase I will be carried out in the Nyang'wale, Kalangalala and Msalala Divisions and in the Bukoli Subdivision of the Busanda Division (beginning of implementation scheduled for the 1974-75 crop season); Phase II will be carried out in the Bugando Division and the Busanda Division less its Bukoli Subdivision (beginning of implementation scheduled for the 1976-77 crop season); and Phase III will be carried out in the Karumo and Nyakalilo Divisions (beginning of implementation scheduled for the 1977-78 crop year). The Project consists of the following Parts: Part A: Agricultural Credits 1. The provision by TRDB (a) of Cooperative Societies' Credits to Participating Cooperative Societies for the purpose of financing their carrying out of the Parts of the Project set forth in paragraph 2. hereinafter, and (b) of Ujamaa Credits to Participating Ujanaa Cooperatives to finance (A) the purchase and operation of tractors, ploughs, ridgers and tillers, (B) the purchase of seasonal inputs for cotton and maize, and (C) the purchase of ultra-low-volume insecticide sprayers and necessary spares. 2. The provision by Participating Cooperative Societies of Farmers' Credits to Participating Farmers to finance (a) the purchase of seasonal inputs for cotton and maize, (b) the purchase of ultra-low-volume insecticide sprayers and necessary spares and (c) the hire of tractor services. Part B: Project Unit, Extension and Ancillary Services The establishing and maintaining by TCA of a Project Unit as a division within TCA with headquarters in the Geita District, such Project Unit to consist of an Extension Section, a Mechanization Section, a Credit Section, a Research Unit, a Land Planning Unit and a Project Evaluation Unit. 2. The construction and equipping by TCA of such workshop, housing, storage, office and laboratory facilities and the provision of such 18 vehicles as shall be required by the Project Unit for the carrying out of the functions set forth or referred to in paragraph 4. below. 3. The construction by TCA of storage facilities for Participating Cooperative Societies and Participating Ujamaa Cooperatives. 4. The carrying out by the Project Unit of such extension and ancillary services in the Geita District as are set forth in Annex A to this Schedule, as such Annex may be amended from time to time by agreement between the Borrower and the Association. 5. The preparation by March I in each year of an annual detailed plan of operations for execution of the Project to be agreed with the Association by May 1 in each year. Part C: Roads The carrying out by the Borrower of the following: 1. A survey for the purpose of establishing recommendations (including detailed estimates of costs and benefits) for the construction, realignment or improvement of about 800 km of secondary roads and spur roads within the Geita District. 2. Such road construction, realignment or improvement works as shall be agreed between the Borrower and the Association based on the recommendations of the survey referred to in paragraph 1. above. Part D: Health, Education and Soil Laboratory Facilities The carrying out by the Borrower of the following: 1. The construction and equipping of Rural Health Centers at Kibingo and at Chinfunfu, or at such other locations in the Geita District as may be agreed between the Borrower and the Association. 2. The construction and equipping of four Community Education Centers in the Geita District, the location of such centers to be agreed upon between the Project Unit and the regional education authorities. 3. The establishing, equipping and staffing, at the Borrower's Ukiriguru Research and Training Center, of a Soil Laboratory and the carrying 19 out by such laboratory of soil tests to enable the Project Unit to improve its fertilizer recommendations. Part E: Water Supply The construction and equipping by TCA of a pumped water supply system to serve the ginnery at Nyamililo and nearby domestic users. Part F: Staff 1. The employment, by the respective agencies or organizations, of such professional, managerial and technical staff members as are listed in Annex B to this Schedule, as such Annex may be amended from time to time by agreement between the Borrower and the Association. 2. The carrying out by the Project Unit of a training program for the staff members of TCA. The Project is expected to be completed by December 31, 1981. 20 Annex A to Schedule 2 EXTENSION AND ANCILLARY SERVICES TO BE CARRIED OUT BY THE PROJECT UNIT (see Part B.4. of the Project) 1. Extension Section The Section responsibilities include the provision of intensive extension coverage for cotton and maize production in the Geita District, assistance with the maintenance of sprayers. 2. Mechanization Section The Section's responsibilities include: (a) training tractor drivers selected by Participating Ujamaa Cooperatives to drive and maintain their tractors, measure plots and keep records; (b) advising and assisting Participating Ujanaa Cooperatives on mechanical cultivation techniques and on care and maintenance of tractors and related equipment; (c) setting hire charges and advising on hire operations; (d) providing for movable workshop or field repairs as appropriate; (e) confirmation that credit conditions are met by Participating Ujamaa Cooperatives applying for credits; and (f) ensuring that tractors, related equipment and spares are available as and when required. 3. Credit Section The Section's responsibilities include the supervision of the consolidation of annual input requirements for Participating Cooperative Societies and Participating Ujanaa Cooperatives and the training of their staff in the distribution of inputs; and helping ensure credit repayments. 21 4. Research Unit The Unit's responsibilities include the development and execution of an adaptive research program designed to improve the efficiency of insecticides and fertilizers on cotton and maize in the Geita District. 5. Land Planning Unit The Unit's responsibilities include the demarcation of physical and soil boundaries on consolidated Ujamaa farms and the larger consolidated holdings and the development of an associated land use program; the planning of farm track alignments, soil conservation layouts and village layouts; and the assessment of water supply needs for Participating Ujamaa Cooperatives. 6. Project Evaluation Unit The Unit's responsibilities include data collection to maintain and evaluate progress of the various components of the Project; farm management research to assist planning; and preparation of future projects. 22 Annex B to Schedule 2 EMPLOYMENT OF STAFF (see Part F.1. of the Project) 1. Project Unit The employment by the Project Unit of, inter alia, the following staff members: (a) Project Management: A Project Manager, a Deputy Project Manager, an Account's Officer, a Chief Extension Officer, a Chief Mechanization Officer and a Chief Credit Officer, provided that such staff members shall be employed after consultation with the Association. (b) Extension Section: One Field Officer to be in charge of each of the three areas of implementation of the Project, each such Field Officer to be assisted by adequate and competent support staff. (c) Mechanization Section: One Field Officer per movable workshop, each such Field Officer assisted by necessary mechanics and drivers. (d) Credit Section: One Credit Officer for an average of each two Participating Cooperative Societies and Participating Ujamaa Cooperatives respectively. (e) Research Unit: One Entomologist, one Agronomist and two Trainee Professional Officers. (f) Land Planning Unit: One Senior Planning and Conservation Officer and one team of four Assistant Field Officers, such team to be supplemented by two more such teams during the course of implementation of the Project. (g) Project Evaluation Unit: One experienced Agricultural Economist, one Statistical Assistant in charge of data processing and one Farm-survey Officer, together with the necessary Data Clerks and Senior Enumerators. 23 2. Soil Laboratory The employment by the Soil Laboratory included in Part D.3. of the Project of one Senior Analytical Chemist, one graduate Chemist and four Laboratory Assistants, such staff to be supplemented in the fourth year of implementation of the Project by the hiring of one additional graduate Chemist and four additional Laboratory Assistants. 3. TRDB The employment by TRDB of a Procurement Officer.