Tanzania - Fifth Education Project : Credit 0607 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 607 TA Development Credit Agreement (Fifth Education Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 29, 1976 CONFORMED COPY CRIT NUMBER 607 TA Development Credit Agreement (Fifth Education Project) BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 29, 1976 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 29, 1976, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter 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 terms have the following meanings: (a) the term "Project Unit" means the unit established within the Borrower's Ministry of National Education pursuant to Section 4.01(d) of the Development Credit Agreement (Second Education Project) dated May 29, 1969, between the Borrower and the Association, with such powers, responsibilities, functions and staff as is provided in Section 3.01 of the Development Credit Agreement (Fourth Education Project) dated April 13, 1973, between the Borrower and the Association, and as further provided in this Agreement; and (b) the term "Project Executive" means the unit established under the Office of the Prime Minister of the Borrower to carry out the functions described in Part A of Schedule 2 to this Agreement. 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 eleven million dollars ($11,000,000). 4 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 The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, 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 out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, the goods, works and services (other than consultants' services) for the Project to be financed out of the proceeds of the Credit, shall be procured in accordance with the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1982 or such later date as shall be established by the Association in consultation with the Borrower. The Association shall promptly notify the Borrower of such later date. 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 IQ/) 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 April 15 and October 15 in each year. Section 2.07. The Borrower shall repay the principal amoULnt of the Credit in semi-annual installments payable on each April 15 and October 15, commencing April 15, 1986, and ending October 15, 2025, each installment to and including the installment payable on October 15, 1995 to be one-half of one per cent (1/2 of 1j) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with Cue diligence and efficiency and in conformity with appropriate technical, educational, fr.incial and administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. 5 Section 3.02. (a) The Borrower shall carry out Part A of the Project through the Project Executive, and Part B of the Project through the Project Unit. (b) The Borrower shall continuously monitor, through the Project Executive, the carrying out of Part A of the Project and the work of the Village Management Technicians trained thereunder with a view to improve the program and to plan subsequent training programs for the same purpose; shall furnish to the Association, every six months during the execution of the Project, a semi-annual report on its evaluation of the program included in Part A; and shall exchange views thereon with the Association. Section 3.03. The Borrower shall, until completion of Part B of the Project, employ in the Project Unit at least the staff indicated in Schedule 4 hereto. Section 3.04. In order to assist the Borrower in carrying out Part C of the Project, the Borrower shall employ the specialists referred to in Schedule 5 hereto; such specialists to have such qualifications and experience as the Borrower shall determine after consultation with the Association, and such terms and conditions of employment as shall be mutually agreed between the Borrower and the Association. Section 3.05. The Borrower shall assign an appropriate number of its adequately qualified and experienced national staff to work with, and as counterpart of, the non-Tanzanian experts working at the Project Executive and at the Project Unit. Section 3.06. The Borrower shall, to the extent possible, take all measures necessary to provide adequate housing to the experts whose servicc, are required for the diligent and efficient execution of the Project. Section 3.07. (a) The 3orrower 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 oLt of the proceeds of the Credit to be used exclusively for the Project. Section 3.08. (a) The Borrower shall furnish to the Association, promptly upon their preparation. the plans, specifications. reports, contract documIents and 6 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 shall submit to the Association for approval, promptly upon their preparation, the plans and specifications relating to the construction of the educational facilities included in the Project. (c) The Borrower: (i) shall maintain records adequate to record the progress and cost of the Project and to identify the goods and services financed out of the proceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.09. 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. ARTICLE IV Other Covenants Section 4.0 1. 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. The Borrower shall cause each entity and institution included in the Project to carry out its operations and manage its affairs in accordance with sound administrative, financial, technical and educational policies and practices, and shall provide, promptly as needed, the funds, facilities, services and other sources required for the purpose. Section 4.03. The Borrower shall: (i) cause the buildings, furniture and equipment of the educational institutions included in the Project to be adequately maintained and shall cause all necessary renewals and repairs thereof to be made 7 and (ii) establish appropriate administrative and financial procedures for the purpose of such maintenance. ARTICLE V Termination Section 5.01. The date April 30, 1976, is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.02. The obligations of the Borrower under Sections 3.08(c), 4.01, 4.02 and 4.03 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 VI Representative of the Borrower; Addresses Section 6.01 The Minister of the Borrower at the time responsible for finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Principal Secretary Ministry of Finance and Planning P. 0. Box 9111 Dar es Salaam United Republic of Tanzania Cable address: Treasury Dar es Salaam 8 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. UNITED REPUBLIC OF TANZANIA By /s / Paul Bomani Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / S. Shahid Husain Regional Vice President Eastern Africa 9 SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Elxpenditures Category Dollar Equivalent) to be Financed (1) Civil works, and 5,300,000 75'/ materials for VMT houses (2) Furniture. 2,000,000 vehicles and equipment (a) imported I000 of foreign expenditures (b) imported but 85' procuIred locally (c) locally 100'/ of ex-factory manufactured cost (3) Project adminis- 550,000 50 tration and opera- tional costs of Parts A and B of the Project* * Includes: limited subsistence and travelling expenses for trainees while attending courses, stationary and office requirements, petrol and spare parts for vehicles. 10 Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (4) Consultants' 750,000 100% of foreign services expenditures or 90% of local expenditures (5) Unallocated 2,400,000 TOTAL 11,000,000 2. For the purposes of this Schedule: (a) the term "foreign cxpenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments fcr taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of expenditures prior to the date of this Agreement, except that withdrawals may be made on account of expenditures incurred after October 1, 1975, in an aggregate amount not exceeding the equivalent of $120,000, for furnishing and equipping the Rural Training Centers, and for operational and office requirements of the Project Executive. 11 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement. no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association Lnder 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. 12 SCHEDULE 2 Description of the Project The Project consists of the following: Part A: A program to train about 1,500 cooperative inspectors and connIunity development workers to become Village Management Technicians, and the provision of essential facilities at local level so as to enable them to operate effectively in the villages. Part A includes equipping, furnishing, and provision of vehicles for, about five Rural Training Centers; provision of about 2,000 pedal-cycles, materials for book keeping and local purposes, construction of about 1,500 modest houses, and provision of about 500 motorcycles for supervisory staff at District headquarters. Part B. Expansion of the capacity of about 15 secondary schools, from an aggregate of about 6,900 students to about 9,000 students, to achieve increased teaching of science and practical subjects. Part B includes construction, equipping and furnishing of the facilities. Part C. (i) A survey of existing training facilities for accountants and auditors; the formulation of a national training plan therefor; and the definition of professional standards to be applied by them. (ii) A survey of educational facilities in all secondary schools and an assessment of their utilization. (iii) A primary education subsector review. The Project is expected to be completed by December 31, 1981. 13 SCHEDULE 3 Procurement A. International C6mpetitive Bidding 1. Except as provided in Part B hereof, goods, works and services shall be procured under contracts to be awarded in accordance with procedures consistent with those set forth in Part A of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. To the extent practicable, the requirements of materials, furniture, vehicles and equipment shall be grouped in lots of a size large enough to attract bidders in international bidding. The Borrower shall decide each case after consulting the Association through the Project Unit. B. Other Procurement Procedures (i) Contracts for materials, furniture, vehicles and/or equipment estimated to cost less than the equivalent of $120,000 shall be awarded in accordance with the Borrower's ordinary procedures for open competitive bidding. (ii) The material for the houses and bicycles included in Part A of the Project shall be procured through ordinary commercial channels. C. Evaluation and Comparison of Bids for Goods 1. For the purpose of evaluation and comparison of bids for the supply of goods: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for imported goods, or the ex-factory price for domestically manufactured goods; (ii) customs duties e,nd other import taxes on imported goods, and sales and similar taxes on domestically supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Tanzania may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish 14 the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Tanzania if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Tanzania equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Tanzania. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid, or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. D. Evaluation and Comparison of Bids fbr Civil Works; Prefrences fbr Domestic Con tractors With respect to any contract for civil works included under Category (I) of the table set forth in Schedule I to the Credit Agreement, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: 15 (a) Contractors shall be required to submit together with their bids such information, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. (b) 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. E. Review of Procurement Decisions by the Association 1. Review of invitation to bid and of proposed awards and final contracts. With respect to all contracts for civil works estimated to cost the equivalent of S200,000 or more, and to all contracts for goods estimated to cost the equivalent of S120,000 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 procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report, by the consultants referred to in Section 3.04 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants and such other information as the Association shall reasonably request. 16 The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determinati. i. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such deternination. 17 SCHEDULE 4 Minimum Full-time Staff of the Project Unit No. Project Coordinator 1 Chief Architect/Deputy Project Coordinator 1 Accountant 1 Architects 2 Assistant Architects 3 Engineers 3 Draughtsmen 5 Furniture Designer I Procurement Officer I Quantity Surveyor 1 Design Administrator I Building Supervisors 3 Administrators 2 Supporting Staff as appropriate (Clerks, Typists, Drivers, Messengers, Cleaners, etc.) 18 SCHEDULE 5 Technical Assistance 1. Part C(i) of the Project (a) Two specialists in curriculum design for acCountants and managenent training, cach for three years. Their terms of reference will incIude (i) surveying all curricula and syllabi of existing accountancy training in Tanzania; (ii) formulation of a plan to harmonize and standardize such curriCUla and syllabi, in view of the standards that are required for Tanzania; and (iii) formulation of standards of knowiedige and experience for accountants and bookkeepers to be registered at various professional grades. (b) One specialist in development of instructional materials, for one year. (c) One specialist in training management, for one year. His or her terms of reference will include (i) surveying existing physical facilities, (ii) assessing current teaching and administrative staffs, and (iii) formulating a plan to expand the facilities so as to be able to meet estimated manpower needs. 2. Parf C(ii) of the Project One general educator and one architect specialized in educational facilities, each for two years. 3. Part (iii) of the Project One general educator specialized in primary education, for two years.