Morocco - Souss Groundwater Project : Loan 1123 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1123 MOR Loan Agreement (Souss Groundwater Project) BETWEEN KINGDOM OF MOROCCO AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DATED JUNE 11, 1975 CONFORMED COPY LOAN NUMBER 1123 MOR Loan Agreement (Souss Groundwater Project) BETWEEN KINGDOM OF MOROCCO AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DATED JUNE 11, 1975 LOAN AGREEMENT AGREEMENT, dated ,1975, between KINGDOM OF MOROCCO (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "ORMVASM" means Of..ce Regional de Mise en Valeur Agricole du Souss-Massa, established by D6cret No. 2-70-157 of the Borrower, dated October 8, 1970. (b) "ONE" means Office National de l'Electricit', a public authority established Dahir No. 1-63-226 of the Borrower dated August 5, 1963. (c) "Irrigation Perimeters" means the twelve irrigation perimeters, having an aggregate net area of about 7,300 ha, located in the Upper Souss Valley, which are to be rehabilitated or developed under the Project, and known as Tazemmourt (800 ha), El Mhazem (950 ha), R'Baa el Oustani (760 ha), Ida ou Kais (400 ha), Ait Igges (270 ha), Ait Ouarab (800 ha), Ouled Bourious (680 ha), Ouled Abdellah (680 ha) and Rezagna (950 ha) in the modern sector, and Ait Ouarab (320 ha), Rezagna (460 ha) and Tassoukt (190 ha) in the traditional sector. (d) "Project Area" means the Irrigation Perimeters and such surrounding land as is needed to construct the roads, villages and other facilities required for the Project. 4 ARTICLE H The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to eighteen million five hundred thousand dollars ($18,500,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule may be amended from time to time, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Loan. Section 2.03. Except as the Bank shall otherwise agree, the goods, works and services (other than consultants' services) for the Project to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1980 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of eight and one-half per cent (8-1/2%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semi-annually on March 15 and September 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. 5 ARTICLE HI Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project, or cause the Project to be carried out, with due diligence and efficiency and in conformity with appropriate agricultural engineering, financial and administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation or restriction upon the provisions of paragraph (a) hereof, the Borrower shall cause ONE to complete the main transmission lines necessary for Part F of the Project in time to supply power to the Project Area as and when required. Section 3.02. The Borrower shall consult engineering consultants on such technical matters as set forth in Schedule 5 to this Agreement as such Schedule may be amended from time to time. The qualifications, experience and terms and conditions of employment of the said consultants shall be satisfactory to the Bank. Section 3.03. The Borrower shall cause ORMVASM to: (i) establish the sub-regional office of ORMVASM at Taroudant, responsible for the implementation of the Project to the management of ORMVASM and provide it with agricultural development and engineering services needed for the execution of the Project; and (ii) ensure that the post of head of the said sub-regional office is filled at all times by a person with such qualifications and experience as are required for the successful implementation of the Project. Section 3.04. The Borrower shall establish and maintain a Project Coordinating Committee, with composition, powers and terms of reference satisfactory to the Bank; such Committee shall meet not less than once every three months. Section 3.05. The Borrower shall cause each farmer moving to the new villages in the Project Area to be provided with a building lot inside such village. Section 3.06. (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 Loan 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. 6 (b) Except as the Bank shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. Section 3.07. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank 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 Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank'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 Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. (c) For the purpose of paragraph (b) of this Section, the Borrower shall cause ORMVASM to keep separate accounts in respect of the Project. Such accounts shall identify separately the investment costs of the irrigation works constructed under the Project. Reports of the audit of such accounts shall be furnished to the Bank within four months of the close of each fiscal year. ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; 7 provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to she Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdivision thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section 4.02. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.03. (a) The Borrower shall continue to monitor in the Division des Ressources en Eau of its Ministry of Public Works and Communications, surface water flows and groundwater levels in the Upper Souss Valley and shall furnish appropriate yearly analysis of the results of such monitoring to ORMVASM. (b) The Borrower shall cause an inventory of surface water derivation and groundwater extraction in the Upper Souss Valley to be carried out before start of irrigation of the Irrigation Perimeters. (c) Until such time as the inventory referred to in paragraph (b) of this section has been carried out, the Borrower shall limit the issuance of pumping permits in the Upper Souss Valley to a cumulative maximum of ten million cubic meters per year. (d) The Borrower shall ensure that in issuing any new pumping permits in the Upper Souss Valley, ORMVASM gives priority to farmers undertaking rehabilitation of existing traditional irrigation systems. 8 Section 4.04. The Borrower shall cause ORMVASM to: (i) employ such extension staff as shall be required in the Project Area not later than December 31, 1977 or such other date as the Borrower and the Bank shall agree; (ii) train such extension staff in accordance with a program acceptable to the Borrower and the Bank and furnish to the Bank not later than December 31, 1977 or such other date as the Borrower and the Bank shall agree; (iii) prepare an extension and training program for the farmers in the Project Area; and (iv) furnish such extension and training program to the Bank for its comments not later than October 31, 1978, or such other date as the Borrower and the Bank shall agree. Section 4.05. The Borrower shall cause ORMVASM to ensure that a manager is made available to each cooperative formed in the Project Area by article 3 of Dahir No. 1-72-277 of December 29, 1972 until such time as the cooperators are capable of managing their cooperative. Section 4.06. (a) The Borrower shall, through its Ministry of Primary and Secondary Education, provide the staff and equipment required to operate and maintain the schools included in the Project. (b) The Borrower shall, through its Ministry of Public Health, provide the staff and equipment required to operate and maintain the health center and dispensary included in the Project. Section 4.07. The Borrower shall cause the Caisse Re'gionale de Crdit Agricole at Agadir and the Caisse Locale de Credit Agricole at Taroudant to be provided with the funds needed to serve the credit needs of the Project Area. Section 4.08. The Borrower shall ensure that in the event that as a result of the implementation of the Project owners of water rights do not receive their usual supply, such owners receive water from new wells constructed by the Borrower, on which they may be charged a pumping fee. Section 4.09. (a) The Borrower shall levy and collect from the start of irrigation of the Irrigation Perimeters, and thereafter review at its own initiative or at the request of the Bank, the water charge (redevance pour usage de l'eau d'irrigation) and the supplementary pumping charge (redevance supplementaire pour frais de pompage) referred in to Dahir No.1-69-25 dated July 25, 1969 formant code des investissements agricoles and in Deicret No. 2-69-37 dated July 25, 1969 relatif aux conditions de distribution et d'utilisation de l'eau dans les perimJtres d'irrigation, in order to recover from such charges and from the betterment levy (participation directe d la mise en valeur des terres irriguees) referred to in the said Dahir, all actual operating and maintenance costs of the Project and a 9 reasonable portion of the actual capital cost, taking into account the beneficiaries' incentives and capacity to pay. (b) The Borrower shall take such steps as shall be necessary to ensure that: (i) the beneficiaries of the Project be promptly billed and notified for all such water charges and levies; (ii) that all such bills shall be collected within a reasonable time; and (iii) separate accounts be maintained reflecting such revenues as well as the costs of operation and maintenance of the irrigation system. Section 4.10. The Borrower shall ensure that adequate animal slaughtering and milk processing facilities are established at such time as shall be necessary to process the meat and milk to be produced in the Project Area. Section 4.11. (a) The Borrower shall cause ORMVASM at all times to manage its affairs, maintain its financial position and carry out its operations in accordance with sound agricultural development, business and financial practices, under the supervision of experienced and competent management and with the assistance of adequate qualified and experienced staff. (b) The Borrower shall at all times operate and maintain, or cause to be operated and maintained the plants, machinery, equipment and other property required for the Project, and shall make or cause to be made all necessary repairs and renewals thereof, in accordance with sound engineering and economic practices. ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (k) thereof: (a) Dahir No. 1-69-25 of July 25, 1969 of the Borrower, "formant Code des Investissements Agricoles," the Lois particulieres or Dicrets d'application promulgated in connection therewith or any provision thereof, shall have been materially amended, suspended, abrogated, repealed or waived so as to affect the Project adversely. (b) The laws of the Borrower establishing ORMVASM and defining the scope of its powers and activities (including the D&ret Royal No. 2-70-157 of October 8, 1970 and the Dcrets d'Application promulgated in connection therewith) shall have been materially amended, suspended, abrogated, repealed or waived so as to affect the Project adversely. 10 Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, any event specified in paragraph (a) or (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 Loan Agreement within the meaning of Section 12.01(c) of the General Conditions: (a) that the Project Coordinating Committee referred to in Section 3.04 of this Agreement has been established in accordance with the provisions of the said Section; and (b) that the post of sub-regional head and heads of agricultural development and of engineering at Taroudant have been established in accordance with the provisions of Section 3.03 (i) of this Agreement, that such posts have been filled, the post of head of the sub-regional office to be filled in accordance with the provisions of Section 3.03(ii) of this Agreement, and that the persons selected have taken up their duties. Section 6,02. The date September 11, 1975, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of Finance of the Borrower 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: Minist6re des Finances Rabat, Morocco Cable address: MINISTERE DES FINANCES Rabat, Morocco 11 For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INTBAFRAD 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. KINGDOM OF MOROCCO By /s/ Abdelhadi Boutaleb Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ M. P. Bart Acting Vice President EMENA Region 12 SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works (a) under Part F 1,200,000 60% of the Project (b) under Part I 2,000,000 44% of the Project (c) under the other 5,600,000 44% Parts of the Project (2) Equipment 7,000,000 100% of foreign expenditures or 70% of local expenditures (3) Consultants' 200,000 100% of foreign serices expenditures (4) Unallocated 2,500,000 TOTAL 18,500,000 13 2. For the purposes of this Schedule: (a) 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; 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 Bank that no proceeds of the Loan 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 Loan decreases or increases, the Bank 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 Bank. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of expenditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph I above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures, and (ii) with respect to Category (1), 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 Bank 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 Loan and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. 14 SCHEDULE 2 Description of the Project The Project, which is designed to provide irrigation for the production of forage, cereals and fruit in parts of the Souss Valley, consists of the following parts: A. The consolidation, distribution and preparation of land in the Project Area all as required for the timely implementation of the other Parts of the Project. B. The construction of 49 tubewells with electric pumps and related metering, pressure and other regulating equipment and the installation of pumps and equipment for 24 wells. C. The provision of buried pipe water distribution systems including hydrants, valves and related equipment, and mobile sprinkler equipment to serve about 6,300 ha. D. The rehabilitation of an existing gravity distribution system to serve about 1,000 ha. E. The construction of about 36 km of open drains to intercept surface runoff from areas adjacent to the Project Area and to remove excess water from the Irrigation Perimeters. F. The installation of about 80 km of 22 kV power transmission lines for the abovementioned pumps and of the necessary transforming and related equipment. G. General land preparation, including clearing, levelling, soil-treaking, roads and wind-breaks. H. The construction and equipping of: (i) Project headquarters at Taroudant; (ii) offices, stores and staff housing for the Centres de Mise en Valeur at Ait Yaza, Rezagna and R'baa el Oustani including agricultural equipment; (iii) additional buildings for the Borrower's demonstration and training center near Ait Yaza: 15 (iv) seven milk collection centers in the Project Area. The construction of basic village infrastructure for about 11 new villages and the rehabilitation of infrastructure for about 9 existing villages, including: (i) water supply at community taps; (ii) public lighting; (iii) one health center at Ouled Berrhil and two dispensaries; (iv) asphalt paved roads in the said villages; (v) five schools for about 600 students each, including teachers' housing, to be located in five of the largest new villages; and (vi) a community center in each new village. The Project is expected to be completed by December 31, 1979. 16 SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* September 15, 1980 315,000 March 15, 1981 330,000 September 15, 1981 345,000 March 15, 1982 360,000 September 15, 1982 375,000 March 15, 1983 390,000 September 15, 1983 405,000 March 15, 1984 425,000 September 15, 1984 440,000 March 15, 1985 460,000 September 15, 1985 480,000 March 15, 1986 500,000 September 15, 1986 520,000 March 15, 1987 545,000 September 15, 1987 565,000 March 15, 1988 590,000 September 15, 1988 615,000 March 15, 1989 640,000 September 15, 1989 670,000 March 15, 1990 700,000 September 15, 1990 725,000 March 15, 1991 760,000 September 15, 1991 790,000 March 15, 1992 825,000 September 15, 1992 860,000 March 15, 1993 895,000 September 15, 1993 935,000 March 15, 1994 975,000 September 15, 1994 1,015,000 March 15, 1995 1,050,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal. 17 Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05(b) of the General Conditions: Time of Prepayment Premium Not More than three years 1-1/4% before maturity More than three years but 2-1/2% not more than six years before maturity More than six years but not 4-1/2% more than eleven years before maturity More than eleven years but 6-3/4% not more than sixteen years before maturity More than sixteen years but 7-1/2% not more than eighteen years before maturity More than eighteen years 8-1/2% before maturity 18 SCHEDULE 4 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. Tender documents for civil works and equipment for the irrigation network shall be grouped as follows: (i) tubewells; (ii) one transformer and power connecting lines; (iii) irrigation distribution system and associated works; (iv) access roads, irrigation, drainage and protection channels and land preparation; (v) electro-mechanical equipment; (vi) mobile sprinkler equipment and hydrants; and (vii) agricultural equipment. 3. (a) Contracts for the construction of wind-breaks, village infrastructure and project buildings shall be let to Moroccan firms on the basis of the Borrower's local procurement procedures. (b) Contracts for equipment estimated to cost less than the equivalent of $40,000 shall be let in accordance with the Borrower's procedures for such equipment, provided that the amount of such contracts does not exceed in the aggregate $250,000 equivalent. 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 bid 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. 2. Goods manufactured in Morocco may be granted a margin of preference in accordance with, and subject to, the following provisions: 19 (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 Morocco if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in Morocco equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Morocco. (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. C. Review of Procurement Decisions by Bank 1. Review of invitation to bid and of proposed awards and final contracts: 20 With respect to all contracts for civil works relating to the irrigation network, and all contracts for equipment and vehicles estimated to cost the equivalent of $40,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Bank, 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 Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank'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 Bank 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 Bank, 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 Bank shall reasonably request. The Bank 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. (c) The terms and conditions of the contract shall not, without the Bank'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 Bank promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. With respect to each contract to be financed out of the proceeds of the Loan and not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan 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 Bank shall reasonably request. The Bank 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. 21 SCHEDULE 5 Consultants Type of Consultant Duration of Services Starting Date Hydraulic Engineer 12 months July 1, 1975 Electrical Engineer 12 months July 1, 1975 Other Specialists 6 months as required Technical matters to be referred to consultants (a) Final design of electromechanical equipment including automatic regulation; (b) Specifications of tender documents for above equipment; (c) Start-up of pumping stations and irrigation network; and (d) Maintenance program.