Dahomey - Rural Education Training Project : Credit 0583 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 583 DA Development Credit Agreement (Rural Education and Training Project) BETWEEN REPUBLIC OF DAHOMEY AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED SEPTEMBER 3, 1975 CONFORMED COPY CREDIT NUMBER 583 DA Development Credit Agreement (Rural Education and Training Project) BETWEEN REPUBLIC OF DAHOMEY AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED SEPTEMBER 3, 1975 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated September 3, 1975, between REPUBLIC OF DAHOMEY (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 thi.; Agreement by extending the Credit as hereinafter provided; (B) The Borrower has requested the United Nations Development Programme (hereinafter called UNDP) and the International Labour Organisation (hereinafter called ILO) to provide assistance in respect of the skills upgrading center included under Part A of the Project, and the UNDP and the ILO have agreed to provide such assistance; (C) The Borrower is currently receiving assistance fromn the UNDP and the Food and Agriculture Organisation (hereinafter called FAO) inter alia in respect of a rural youth settlement project, and has requested the United Nations Children's Fund (hereinafter called UNICEF) for assistance inter alia in respect of a project to finance equipment, materials and training for rural women, which projects are complementary to the Borrower's rural youth trai.,ing program inCluded inder Part B of the Project, and are intended to be carried out on a coordinated basis; and WHEREAS the Association has agreed, oii the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; 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 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). 4 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 letters "NSC" mean the National Support Center, to be established under Part B.1(i) of the Project; (b) the letters "RSC" mean any of the Regional Support Centers, to be established under Part B.2(i) of the Project; (c) "4-D Clubs" mean any of the voluntary groups known by that name, established in villages of the Borrower to provide adolescent boys and girls with comprehensive training in functional literacy and numeracy, in improved agricultural techniques and in nutrition, health and hygiene, within the framework of integrated rural development schemes. 4-D stands for Decision, Duty, Development, Dahomey; (d) "Groupement Villageois" means any of the voluntary pre-cooperative or cooperative groups of farmers known by that name, established in the villages of the Borrower; (e) the letters "SONACO" mean the Socih Nationale Agricole pour le Coton, a "Societ* d'Etat" existing under the laws of the Borrower pursuant to Borrower's Decree No. 71-238 of December 6, 1971; (f) the letters "MRD" mean the Borrower's Ministry of Rural Development and Cooperative Action; (g) the letters "ODAA" mean the Operation de Developpement Agricole de l'Atacora, a regional development organization for the Province of Atacora established and existing under MRD, pursuant to Presidential Decree No. 72-22 of February 8, 1972; (h) the letters "ODIZ" mean the Operation pour de Developpenent Integre du Zou, a regional development organization for the Province of Zou, established and existing within SONACO; (i) the term "regional development organization" means an integrated regional development organization of the Borrower, and shall be deemed to refer, unless the context otherwise requires, to ODIZ in relation to the Province of Zou, 5 to ODAA in relation to the Province of Atacora, and to a similar organization established pursuant to Presidential Decree No. 74-273 of October 21, 1974 for the Province of Atlantique; (j) "Chef de Projet for Part A of the Project" means the person appointed to the position referred to by that name in accordance with Section 3.02(a) of and Schedule 4 to this Agreement; (k) "Chef de Projet for Part B of the Project" means the person appointed to the position referred to by that name in accordance with Section 3.02(b) of and Schedule 5 to this Agreement; (1) "Project Account A" and "Project Account B" mean, respectively, the accounts referred to in Section 3.08 of this Agreement; (m) "Skills Center" means the skills upgrading center referred to under Part A.l of the Project; and (n) The letters "CFAF" mean the Franc de la Communaute Financidre Africaine, the common currency of the Borrower and the other members of the West African Monetary Union. 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 four million dollars ($4,000,000), 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 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 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. I 6 Section 2.04. The Closing Date shall be June 30, 1981 or such later date as the Association shall establish. 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 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 April 1 and October 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each April 1 and October 1 commencing October 1, 1985, and ending April 1, 2025, each installment to and including the installment payable on April 1, 1995 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 Republic of France 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 due diligence and efficiency and in conformity with appropriate administrative, financial, educational and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) Except as the Borrower and the Association shall otherwise mutually agree, Part A of the Project shall be carried out under the direction of the Director of Vocational Training of the Borrower's Ministry of Civil Service and Labor, supported by such organization and staff, and in accordance with such operating policies and procedures, as are set forth in Schedule 4 to this Agreement. (b) Except as the Borrower and the Association shall otherwise mutually agree, Part B of the Project shall be carried out under the direction of the "Directeur Gen6ral de l'Action Rurale" of the MRD, supported by such organization and staff, and in accordance with such operating policies and procedures, as are set fortlh in Schedule 5 to this Agreement. 7 Section 3.03. (a) In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants and specialists whose qualifications, experience and terms and conditions of employment shall be mutually satisfactory to the Borrower and the Association. (b) Without limitation upon the provisions of paragraph (a) of this Section 3.03, candidates for appointment to the positions of Chef de Projet for Part A of the Project and Chef de Projet for Part B of the Project, shall have qualifications and experience, and shall be employed upon terms and conditions, mutually satisfactory to the Borrower and the Association. Section 3.04. Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall take all necessary steps to ensure that for each specialist appointed for the National Support Center under Part B. (iii) of the Project, there shall be appointed, prior to the time such specialist shall take up his duties, a Dahomean counterpart with qualifications acceptable to the Association; provided, however, that the counterpart to the Chef de Projet for Part B of the Project shall be appointed not later than one month after the Chef de Projet shall have taken up his duties. Section 3.05. Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall take all necessary steps to ensure that the Regional Support Centers to be established under Part B.2(i) of the Project, will be fully integrated in the respective regional development organizations of the Provinces of Zou, Atacora, and Atlantique, and that in the case of Atlantique, said regional development organization will be mutually acceptable to the Borrower and the Association. Section 3.06. Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall restrict entry in each of the 4-D Clubs participating under Part B.3 of the Project to youths who are normally 13 years of age or over. Section 3.07. Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall take all necessary steps to ensure that each 4-D Club participating under Part B.3 of the Project will have available to it (i) an appropriate area of suitable land on a permanent basis, and (ii) all necessary agricultural inputs (in particular, but not limited to, seeds, fertilizers and insecticides) on terms and conditions not less favorable than such inputs are available to the neighboring "Groupement Villageois". 0 8 Section 3.08. Without limitation upon the Borrower's obligations referred to in Section 3.01 of this Agreement, except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall (i) establish and thereafter maintain in a banking institution or institutions acceptable to the Borrower and the Association, during the implementation period of the Project, two separate revolving accounts, for the purpose of channelling to the respective departments and agencies concerned, the amounts required to be provided by the Borrower from time to time for the purposes of Part A of the Project and Part B of the Project, respectively (said accounts are called hereinafter Project Account "A" and Project Account "B" respectively); and (ii) deposit in Project Account "A" and Project Account "B", on or before January 1, April 1, July 1 and October I in each year until the Project is completed, such amounts as shall have been requested by the Chef de Projet for Part A of the Project and the Chef de Projet for Part B of the Project and approved by the Borrower in consultation with the Association, and as shall be necessary during the next three months for the carrying out respectively of Part A and Part B of the Project including but not limited to the recurrent expenditures to be incurred by the administrative units responsible for implementing respectively Part A and Part B of the Project, exclusive, however, of all such amounts as the Association may from time to time agree to pay during such period out of the proceeds of the Credit directly to suppliers, contractors or consultants employed for purposes of the Project, and except for the initial . deposit required for purposes of Section 6.01(c) of this Development Credit Agreement. Section 3.09. (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 Borrower and the Association shall otherwise mutually agree, all goods and services financed out of the proceeds of the Credit shall be used exclusively for the Project until its completion. Section 3.10. (a) The Borrower shall furnish to the Association, promptly upon their preparation (i) for approval, the plans, specifications, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request; and (ii) the periodic or special reports prepared for the Borrower by the specialists employcd for the purposes of the Project. w 9 (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 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 3.11. 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. Section 3.12. (a) Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall submit to the Association for its approval, on or before June 1, 1978, plans for the establishment of a "tracer system" for Part A of the Project, designed to evaluate the effectiveness of the training programs included under Part A of the Project, by providing, inter alia, data on changes in employers, income, and types of jobs performed, and shall thereafter carry out such plans as shall have been mutually agreed upon between the Borrower and the Association. (b) The Borrower and the Association shall (i) evaluate the progress made under Part B of the Project about 18 months after the date of this Agreement, and (ii) carry out a final evaluation of Part B of the Project in or about January, 1980, each in such scope and detail as shall be mutually agreed between the Borrower and the Association. Section 3.13. Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall within one year of the date of this Agreement, prepare for the Association's review and comment a comprehensive development plan for the Skills Center, including, inter alia, an analysis of the financial implications of such plan and proposals for the financing of the Center's recurrent costs. Section 3.14. Except as the Borrower and the Association shall otherwise mutually agree, the Borrower shall (i) within three years of the date of this Agreement, prepare for the Association's review and comment a study of its "training tax" with a view to determining (A) its role in promoting vocational 10 training in public and private sector enterprises; (B) its impact on employment; and (C) its incidence and its relationship to the benefits provided by the Skills Center; and (ii) thereafter adopt such measures in relation to the foregoing as are suggested by the findings of said study and as shall be mutually agreed between the Borrower and the Association. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall cause the institutions included in the Project to carry out their operations and manage their affairs in accordance with appropriate administrative, financial, technical and educational policies and practices, and so as to promote the Borrower's training objectives, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall: (i) cause the buildings, furniture and equipment of the institutions included in the Project to be adequately maintained and shall cause all necessary renewals and repairs thereof to be made; and (ii) establish appropriate administrative and financial procedures for the purpose of such maintenance. (c) Without limitation of the obligations of the Borrower under paragraph (a) of this Section the Borrower shall ensure that staff in adequate numbers and with appropriate skills are made available to operate the facilities and perform the services required for Parts A and B of this Project. Section 4.02. 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. ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) Any of the laws and/or decrees adopted for purposes of paragraph 4(ii) of Schedule 1 to this Agreement, shall have been amended, suspended, - 11 abrogated, repealed or waived in such a way as to materially and adversely affect the operations of the Skills Center; (b) Any of the laws and/or decrees adopted for purposes of paragraph 4(iii)(A) of Schedule 1 to this Agreement, shall have been amended, suspended, abrogated, repealed or waived in such a way as to materially and adversely affect the operations of the National Support Center established under Part B of the Project, or the Borrower's rural youth training program administered through the NSC; and (c) (i) Subject to subparagraph (ii) of this paragraph: (A) The right of the Borrower to withdraw the proceeds of any grant or loan made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or Jn part, pursuant to the terms of the agreement providing therefor, or (B) any such loan shall have become due and payable prior to the agreed maturity thereof. (ii) Subparagraph (i) of this paragraph shall not apply if the Borrower establishes to the satisfaction of the Association that: (A) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (B) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (d) thereof, namely, any of the events specified in paragraphs (a), (b) or (c)(i)(B) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01(b) of the General Conditions: 12 (a) The Borrower, UNDP and ILO have entered into an agreement, in form and substance acceptable to the Association, providing for the financing by UNDP of specialists under terms of reference acceptable to the Association and equipment required for Part A of the Project; (b) The Borrower has appointed the Chef de Projet for Part A of the Project, with qualifications and experience, and upon terms and conditions, mutually acceptable to the Borrower and the Association; and (c) The Borrower has established Project Account "A" and Project Account "B" referred to in Section 3.08 of this Agreement, and has deposited in each such account at least CFAF2,000,000 and CFAFI,000,000, respectively. Section 6.02. The date January 5, 1976 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Sections 3.05, 3.06, 3.07, 3.10(b), 3.11 and under Article IV of this Agreement and the provisions of paragraphs (a) and (b) of Section 5.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date 25 years after the date of this Agreement, whichever shall be the earlier. ARTICLE VH1 Representative of the Borrower; Addresses Section 7.01. 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 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance Cotonou Da homey Cable address: MINIFINANCES COTONOU 13 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. REPUBLIC OF DAHOMEY By /s / Adjibade Tiamiou Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / Xavier de la Renaudiere Director, Country Programs Departient Western Africa Regional Office 14 w 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 Expenditures Category Dollar Equivalent) to be Financed (1) Skills Upgrading Center - Cotonou (Part A of the Project) (a) Civil Works 360,000 85% (b) Equipment and 55,000 materials (other than furniture) (i) locally 80% procured (ii) imported 100% of foreign expenditures (c.i.f. cost) (c) Furniture 25,000 80% Subtotal 440,000 (2) Rural Youth Train- ing (Part B of the Project) (a) Civil Works 950,000 85% 15 Armount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (b) Equipment and 350,000 materials (other than furniture) (i) locally 80% procured (ii) imported 100% of foreign expenditures (c.i.f. cost) (c) Furniture 45,000 80% (d) Consultants' 770,000 100% of foreign Services expenditures Subtotal 2,115,000 (3) Consultants' Ser- 220,000 100% of foreign vices for Part C expenditures of the Project (4) Unallocated 1,225,000 TOTAL 4,000,000 2. For the purposes of this Schedule, the term "foreign expenditures" 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; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures". 16 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 for 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 1 above, no withdrawals shall be made in respect of: (i) expenditures prior to the date of this Agreement; (ii) expenditures for goods or services included under Category (1) of the allocation of the proceeds of the Credit, until all necessary measures, in form and substance mutually satisfactory to the Borrower and the Association, have been taken: (A) for the establishment of the Skills Center, with an W appropriate administrative structure, including provision for a governing body (Administrative Council) in which the representation of Government, employers and workers will be reasonably assured in a manner satisfactory to the Association, and with adequate autonomy, including the power to establish recruitment standards, programs and testing and certification rules; and (B) to provide that all revenues from the Borrower's "training tax" shall be allocated to support the operations of the Skills Center, to the extent required to enable the Skills Center to carry on its operations. (iii) expenditures for goods or services included under Category (2) of the allocation of the proceeds of the Credit: (A) until all necessary measures, in form and substance mutually satisfactory to the Borrower and the Association, shall have been taken for the establishment of the administrative structure described under Part B. 1(i) of the Project; 17 (B) until the Borrower has appointed the Chef de Projet for Part B of the Project, with qualifications and experience, and upon terms and conditions, mutually satisfactory to the Borrower and the Association; and (C) until an agreement or agreements shall have been concluded, in form and substance mutually satisfactory to the Borrower and the Association, among the Borrower, UNDP, FAO, and UNICEF, by which the National Support Center to be established under Part B.1(i) of the Project shall be designated as the institution having overall responsibility for coordination of rural youth training and settlement programs financed by said agencies in the areas covered by the Project; (iv) expenditures in respect of goods and services for Part B.2 or Part B.3 of the Project, until all necessary measures shall have been taken, to integrate at least one of the three Regional Support Centers to be established under Part B.2(i) of the Project, within its respective regional development organization; or (v) expenditures in respect of goods and services required for the second phase referred to under Part B.3 of the Project, until the Borrower and the Association shall have completed an interim field evaluation of the results achieved during the first phase in each of the three Provinces, and shall have agreed that the results justify proceeding with the second phase in such Province. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph I 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. 18 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 Section 2.03 and Schedule 3 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. Mw 19 SCHEDULE 2 Description of the Project The Project is a part of the Borrower's program to help meet its most fundamentl non-formal training needs. In the urban sector, it includes the establishment of a skills upgrading center which will incorporate existing vocational training programs and provide new programs for employed industrial and clerical workers in the private and public sectors. In the rural sector, it consists of the strengthening of the existing rural youth training program carried out through the Borrower's 4-D Clubs. The Project consists of the following Parts: Part A. Skills Upgrading Center at Cotonou 1. The construction of, and the provision of ai initial stock of, training materials for a skills upgrading center at Cotonou, including workshops, a classroom and administrative offices, and designed for a capacity of about 190 places. 2. The incorporation by the Center of existing programs for training of clerical personnel, and the design and implementation by the Center of new vocational training programs for development of industrial skills, including initially, programs in general mechanics, general metalwork, and business and commerce (mainly bookkeeping, shorthand and typing), and to be followed by programs in auto mechanics, electricity, and the building trades. Following completion of construction, it is estimated the Center will accommodate about 500 workers per week and at full operation will offer training for about 2,200 workers annually. 3. The provision of technical assistance and equipment for Part A.1 and Part A.2 of the Project. Part B. Rural Youth Training The reorganization and strengthening of the rural youth training program of the Borrower carried out through its 4-D Clubs, including: 1. At the national level: (i) the establishment of a new central administrative structure consisting of (A) a national governmental body, with a 20 composition mutually acceptable to the Borrower and the Association, which shall be responsible for setting the policy for rural youth training and approving the recommendations for the implementation thereof of the National Support Center; and (B) a National Support Center to be located in Cotonou, responsible, subject to the general policy directions of such body, inter alia, for the preparation of a phased long-term development plan for the rural youth training program, the design of implementation programs, the preparation of budgets, the supervision of implementation of rural youth training programs, the evaluation of progress achieved, and the provision of supporting services to the Regional Support Centers; (ii) the construction of buildings and other facilities and the provision of equipment for the National Support Center; and (iii) the provision of about 15 man-years of technical assistance for the National Support Center, consisting mainly of specialists in management and administration. agro-pedagogy, veterinary/zoo-technology, functional literacy, rural crafts, health, nutrition and project evaluation. 2. At the provincial level: (i) the establishment of a Regional Support Center, integrated within its respective regional development organization, in, each of the Provinces of Zou, Atlantique and Atacora, to strengthen the regional rural youth services presently provided through the regional development organizations, with responsibilities inter alia for- (A) assisting the NSC in developing specific regional programs, (B) implementing these programs, (C) developing training and budget models for the 4-D Clubs in its respective province, (D) providing the 4-D Clubs with the necessary inputs and specialized technical assistance, (E) assisting youths leaving the 4-1) Clubs in starting their own farms or in joining existing cooperatives, and (F) upgrading the training of extension agents; I 21 (ii) the construction of buildings and other facilities and the provision of equipment for each of the Regionai Support Centers including in the case of Zou, a training annex for "encadreurs" at Logozohe; and (iii) training for the staff of each of the Regional Support Centers and for the "encadreurs" with the assistance of experts of the National Support Center. 3. At the 4-D Club level: A program to consolidate the 4-D Club networks in the provinces of Zou, Atacora and Atlantique, to test the operation of the NSC and the RSCs in relation to the 4-D Clubs, and to test training models. This Part of the Project includes the provision of necessary technical and material inputs to test and apply model training programs in about 45 Clubs in each of the Provinces of Zou, Atacora and Atlantique, involving in the aggregate about 2,000 youths, to be carried out by the respective RSC over a period of about five years, in two phases: the first phase to consist of the testing and application of training programs for about ten 4-D Clubs in each Province, to develop and test complementary programs and staffing and material requirements; the second phase to consist of the testing and application of training programs for about 35 additional 4-D Clubs in each Province, to test logistical and administrative arrangements developed during the first phase and to assess the cost implications (both capital and recurrent) of the rural youth training program as a whole. Part C. Follow-up Project The preparation, with the assistance of consultants, of an education and/or training project, under terms of reference to be agreed between the Borrower and the Association. * * P e r The Project is expected to be completed by December 31, 1980. I 22 W SCHEDULE 3 Procurement A. General Procedures 1. Except as provided in Part A.3 hereof, contracts shall be let under procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in April 1972, as revised in October 1972 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. (i) Bidders for civil works contracts estimated to cost the equivalent of $100,000 or more, or for which it is intended to afford a domestic preference in accordance with Part C of this Schedule, shall be prequalified as described in part 2.2 of the Guidelines; (ii) Civil works contracts for Part B of the Project may be awarded on the basis of local advertising only; and (iii) Contracts for transport, office and instructional equipment shall be grouped insofar as practicable in packages having a value of at least $20,000 equivalent. 3. Notwithstanding the provisions of paragraph 1 under this Part A, contracts for draught animals, and for small agricultural implements required for Part B of the Project and which cannot conveniently be grouped in packages having a value of at least $5,000 equivalent, may be procured locally on the basis of quotations and in accordance with the Borrower's normal procedures; provided, however, that the aggregate value of all items procured in accordance with this paragraph 3 shall not exceed the equivalent of $200,000 over the duration of the implementation period of the Project. B. Evaluation and Comparison of Bids for Goods; Preference for Domestic Manufacturers 1. For the purpose of evaluation and comparison of bids for the supply of goods: (i) bidders shall be required to state in their bids the c.i.f. (port of entry) price for imported goods, or the ex-factory price for domestically-manufactured goods; (ii) customs duties and 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. 23 2. Goods manufactured in Dahomey 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 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 Dahomey 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 Dahomey equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Dahomey. (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. 24 C. Evaluation and Comparison of Bids for Civil Works; Preferences for Domestic Contractors 1. 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: (a) Contractors shall be required to prequalify as provided in Part A of this Schedule and applicants for qualification applying also for such preference shall be asked to provide, as part of the information for qualification, 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 folk ving groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. D. Review of Procurement Decisions by Association 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Association in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Association shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and, where applicable, of their eligibility for domestic preference under Part C. 1 above and of the reasons for the exclusion of any applicant for prequalification and for such eligibility shall be furnished by the Borrower to the Association for its comments before the applicants are notified, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Association shall reasonably request. 2. Review of lists of civil works contracts and items of materials, furniture and equipment. Before bids are invited, the Borrower shall furnish to the 25 Association, for its approval, (i) a list of all contracts for civil works indicating the estimated value of each contract and the forecast timetable for bids and awards of such contracts, (ii) a list of all items of materials, furniture and equipment, indicating their specifications and estimated unit and total prices, indexed, coded and numbered to identify the institutions and spaces for which they are required. 3. Review of invitation to bid and of proposed awards and final contracts: With respect to all contracts for (i) civil works estimated to cost the equivalent of $100,000 or more, and (ii) materials, furniture and equipment 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 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) Procurement of materials, furniture and equipment shall be limited to the items specified in the lists mentioned in paragraph D.2 above and identified in contract documents by such indexes, codes and numbers as appear in such list. (c) Promptly after the bids have been received, the Borrower shall inform the Association of the names of the bidders and the respective amounts of the bids. (d) 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 the reasons for the intended award and shall furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the recommendation for award and such other information as the Association shall reasonably request. 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 determination. (e) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited, provided that any proposed change in a contract involving a price increase of less than 1 0% of the contract sum or less than $20,000 equivalent, whichever is less, shall not be deemed to be a material change for purposes of this paragraph (e). 26 (f) A certificate signed by the Project Director shall be furnished to the Association promptly after the execution of a contract for materials, furniture and equipment confirming that the goods contracted for are in accordance with the quantities and specifications set forth in the list mentioned in paragraph D.2 above. (g) 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. 4. 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 determination. 27 SCHEDULE 4 Organization and Operating Policies and Procedures for Part A of the Project 1. The Director of Vocational Training will be assisted by a group of specialists headed by a Chef de Projet contracted under the technical assistance provided by the International Labor Organization and the United Nations Development Programme for purposes of Part A of the Project. The Director of Vocational Training will be assisted by a full-time administrator/accountant and appropriate clerical and technical staff. In addition to having overall responsibility for the technical assistance and other personnel assigned to Part A of the Project, the Director of Vocational Training will be responsible for all materials and equipment provided for Part A of the Project under agreement with the International Labor Organization and the United Nations Development Programme in conformity with the Plan of Operations between the Borrower and UNDP/ILO. 2. The Chef de Projet will serve as the principal advisor and assistant to the Director of Vocational Training on all matters involving Part A of the Project, including technical assistance, personnel recruitment, the formulation of training programs, the disposition of materials and tools and the layout of paysical plant and equipment. 3. The design and supervision of construction of the facilities included under Part A of the Project will be the responsibility of the Division of "Urbanisme et Habitat" of the Borrower's Ministry of Public Works. 4. The Director of Vocational Training and the Chef de Projet will be responsible more specifically as follows: (a) The Director of Vocational Training The Director of Vocational Training will be responsible for directing all aspects of the implementation of Part A of the Project. He will be responsible to the Minister for Civil Service and Labor, inter alia, for: (i) monitoring the design and construction of facilities in order to ensure that the facilities are in accordance with specifications agreed upon by the Borrower and the Association on the basis of the ILO report dated March, 1974, and that construction schedules are adhered to. 28 (ii) overall supervision of the Chef de Projet; (iii) the timely selection and recruitment of staff to assist in the implementation of Part A of the Project; (iv) liaison with the Association on all technical matters relating to Part A of the Project; (v) coordinating the activities of the Borrower with those of the private sector and of the agencies which are participating in Part A of the Project; (vi) taking whatever administrative actions are necessary for the establishment of an Administrative Council for the Skills Center; (vii) providing the Administrative Council with information, documents and such administrative support as it requires in order to perform its functions; (viii) implementing the policies of the Administrative Council; (ix) preparing a development plan for the Skills Center (referred to in Section 3.13 of this Agreement), organizing and supervising a study of the "training tax" (referred to in Section 3.14 of this Agreement) and ensuring the establishment of a tracer system of the Center's graduates (referred to in Section 3.12 of this Agreement); (x) preparing all reports and documents which are required by the Association, including quarterly progress reports; (xi) preparing for submission to the Association through proper channels of application for withdrawals from the Credit Account; (xii) ensuring that quarterly project expenditure estimates are prepared in time for replenishment of the revolving account which will be established in accordance with Section 3.08 of this Agreement; and (xiii) overall supervision of the administrator/accountant and other support staff. 29 (b) The Chef de Projet The Chef de Projet will be responsible, inter alia, to the Director of Vocational Training for: (i) providing advice and assistance on all matters concerning Part A of the Project and the operation of the Skills Center; (ii) administering the technical assistance provided to the Skills Center; (iii) assisting the division of "Urbanisme et Habitat" of the Borrower's Ministry of Public Works with the design of the Skills Center to ensure that it conforms to sound pedagogical specifications and is reasonable in terms of price; (iv) providing the Director of Vocational Training with assistance for preparing the reports required by the Borrower, the International Labor Organization, the United Nations Development Programme, and the Association; (v) ensuring that procedures acceptable to the Association are followed in the prequalification of contractors, and in preparing master lists of furniture and equipment to be procured for Part A of the Project; (vi) making arrangements for inviting bids and awarding contracts; (vii) taking necessary steps to ensure that items procured are delivered and stored safely at the locations and on the dates specified; and (viii) acting on behalf of the Director of Vocational Training on matters concerning contracts, bidding and disbursements relative to Part A of the Project. 30 SCHEDULE 5 Organization and Operating Policies and Procedures for Part B of the Project 1. The "Directeur General de l'Action Rurale" will be assisted by a group of specialists headed by a Chef de Projet contracted under the technical assistance provided for Part B of the Project. The Directeur General will be assisted by a full-time administrator/accountant and appropriate clerical and technical staff. In addition to having overall responsibility for the technical assistance and other personnel assigned to Part B of the Project, the Directeur General will be responsible for ensuring that the technical assistance, buildings and materials provided for Part B of the Project are coordinated with that provided by the UNDP, FAO, UNICEF and other organizations which provide assistance for purposes of Part B of the Project. 2. The Chef de Projet will serve as the principal advisor and assistant to the Directeur General on all matters involving Part B of the Project, including technical assistance, personnel recruitment, the formulation of training programs, the establishment of lists of materials, furniture, equipment and tools, and the layout of physical plant and equipment. 3. The design and supervision of construction of the facilities included under Part B of the Project will be the responsibility of the "Direction du Genie Rural" of the MRD, assisted in matters of water supply by the "Direction de 1'Hydraulique" of the Borrower s Ministry of Public Works. 4. The Directeur General and the Chef de Projet will be responsible more specifically as follows: (a) The Directeur General The Directeur General will be responsible for directing all aspects of the implementation of Part B of the Project. He will be responsible, inter alia, to the Minister for Rural Development and Cooperative Action for: (i) the recruitment and the supervision of the work of the Director of the National Support Center; (ii) coordination of all project-related activities with the administrators of the integrated regional development organizations in Atacora, Atlantique and Zou; 31 (iii) the selection, recruitment and supervision of the Project Coordinator and other specialists; (iv) ensuring the timely selection of an appropriate site for the NSC in Cotonou; (v) expediting the adoption of appropriate legislation or regulations for the national governmental body referred to in Part B.1(i) of Schedule 2 to this Agreement and the National Support Center and their effective operation; (vi) ensuring the coordination by the NSC director of the assistance and other support received from UNDP, UNICEF, the FAO and the Association; (vii) arrangements for recruiting and training staff for NSC; (viii) preparing a long-term plan for the development of the 4-D Clubs with clearly stated targets, instruments and costs; (ix) ensuring that regional youth services are fuily integrated with regional development organizations acceptable to the Association in the Provinces of Zou, Atlantique and Atacora; (x) ensuring that regional youth services in the areas covered by Part B of the Project are provided with staff in appropriate numbers and of sufficient quality; (xi) supervising the work of the national and regional services in training personnel, selecting 4-D Clubs to be assisted, and in providing services to the 4-D Clubs; (xii) assisting in the performance of field evaluations of the rural youth program in the Provinces of Zou, Atacora and Atlantique; (xiii) liaison with the Association on all technical matters relating to Part B of the Project; (xiv) preparing all reports and documents required by the Association, including quarterly progress reports; 32 (xv) ensuring that quarterly project expenditure estimates are prepared in time for the replenishment of Project Account "B" to be established in accordance with Section 3.08 of this Agreement; (xvi) overall supervision of the administrator/accountant and other support staff; (xvii) the formulation and monitoring of a plan and schedule for implementation of Part B of the Project; (xviii) drawing up, signing and administering of short-term contracts of up to two man-years for the use of specialist services necessary for Part B of the Project, after consultation with the Association and with its approval; and (xix) preparing for submission to the Association through proper channels of applications for withdrawals from the Credit Account. (b) The Chef de Projet The Chef de Projet will be responsible, inter alia, to the Directeur General for: (i) providing advice and assistance on all matters concerning Part B of the Project; (ii) administering the technical assistance provided for Part B of the Project; (iii) assisting the "Direction dut Genie Rural" of the MRD to ensure that the designs of buildings are appropriate for purposes of Part B of the Project; (iv) providing the Directeur Gen6ral with assistance for preparing the reports which are required by the Association; (v) ensuring that procedures acceptable to the Association are followed in the prequalification of contractors; (vi) assisting in the recruitment of technical assistance personnel and in the recruitment and training of other personnel; 33 (vii) ensuring that the technical assistance personnel recruited for Part B of the Project carry out appropriate training for their Dahomean counterparts; (viii) preparing detailed lists of all material, furniture and equipment to be provided for Part B of the Project; (ix) ensuring that bidding procedures followed for civil works, furniture, materials, equipment, tools and transport are in accordance with the requirements set forth or referred to in Schedule 3 to the Development Credit Agreement; making arrangements for inviting bids and awarding contracts relating to Part B of the Project; (x) taking necessary steps to ensure that items procured are delivered and stored safely at the locations and on the dates specified; and (xi) acting on behalf of the Directeur General on matters concerning contracts, bidding and disbursements relative to Part B of the Project.