Guyana - Second Education Project : Credit 0544 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 544 GUA Development Credit Agreement (Second Education Project) BETWEEN GUYANA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 9, 1975 CONFORMED COPY CREDIT NUMBER 544 GUA Development Credit Agreement (Second Education Project) BETWEEN GUYANA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 9, 1975 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated May 9, 1975, between GUYANA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) The Borrower has also requested the Bank to provide additional financial assistance for the Project and by an agreement of even date herewith between the Borrower and the Bank (hereinafter called the Loan Agreement) the Bank is agreeing to provide such assistance in an aggregate principal amount equivalent to eight million dollars ($8,000,000) (hereinafter called the Loan); (C) The Borrower and the Association intend, to the extent practicable, that the proceeds of the Credit provided for in this Agreement be disbursed on account of expenditures on the Project before disbursements of the proceeds of the Loan provided for in the Loan Agreement are made; and WHEREAS the Association has agreed, on 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). 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 term "Loan Agreement" means the agreement of even date herewith between the Borrower and the Bank for the purpose of 4 the Project, as such agreement may be amended from time to time; and such term includes the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, as made applicable to such agreement, all agreements supplemental to the Loan Agreement and all schedules to the Loan 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 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 I 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; provided, however, that, except as the Association shall otherwise agree, no withdrawal shall be made on account of expenditures for the Caribbean Animal Health Technicians' Training Center referred to in Part B(iv) of the Project until the condition set forth in paragraph 4(b) of said Schedule 1 has been satisfied. 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, 1980 or such later date as the Association shall establish after 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 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on June 1 and December 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each June I and December 1 commencing 5 June 1, 1985, and ending December 1, 2024, each installment to and including the installment payable on December 1, 1994 to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. 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, architectural and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. The Borrower shall perform, or cause to be performed, all its obligations set forth in Sections 3.02 to 3.11 of the Loan Aareement. ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01(b) of the General Conditions, namely, that the conditions precedent to the effectiveness of the Loan Agreement shall have been fulfilled, subject only to the effectiveness of this Agreement. 6 Section 5.02. The date July 8, 1975, is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Section 3.03 of the Loan Agreement shall cease and determine on the date on which this Agreement shall terminate or on a date thirty 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 Finance of the Borrower 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: Minister of Finance Main Street Georgetown, Guyana Cable address: MINFIN Georgetown, Guyana 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. 7 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. GUYANA Bx /s/ P. S. Mittleholzer Authorizec Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Adalbert Krieger Regional Vice President Latin America and the Caribbean 8 SCHEDULE 1 Withdrawal of the Proceeds of the Credit and of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit and of the Loan, the allocation of amounts of such proceeds to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit and of the Loan Allocated % of (Expressed in Expenditures Category (Dollar Equivalent) to be Financed (1) Civil Works 4,500,000 54% of total expenditures (2) Professional 530,000 54% of total Fees for Civil expenditures Works (3) Furniture 440,000 100% of foreign expenditures and 100% of local (ex-factory) ex- penditures (4) Equipment 1,770,000 100% of foreign expenditures and 85% of local ex- penditures (5) Technical Assist- 610,000 100% of foreign ance: Specialists' expenditures and Services and 100% of salaries Fellowships of local special- ists (6) Project Adminis- 550,000 100% of total ex- tration and Study penditures for Project, Part D (7) Unallocated 3,600,000 TOTAL 12,000,000 9 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods or services supplied from the territory, and in the currency, 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 and the Bank that no proceeds of the Credit and 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 any event occurs which shall affect the amount of any such taxes included in the cost of any item to be financed out of the proceeds of the Credit and of the Loan, the Association or the Bank may, by notice to the Borrower, correspondingly adjust the disbursement percentage then applicable to such item. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made: (a) in respect of expenditures prior to the date of this Agreement except that withdrawals may be made in respect of Categories (2), (5) and (6) on account of expenditures for professional services, technical assistance and project administration incurred after July 1, 1974 in an aggregate amount not exceeding the equivalent of $300,000; and (b) in respect of expenditures on account of the Caribbean Animal Health Technicians' Training Center until the Borrower shall have submitted evidence that Caribbean countries, other than the Borrower, undertake to use, and to share the operating costs of, not less than 50 student places at the Caribbean Animal Health Technicians' Training Center. In addition, except as the Borrower, the Association and the Bank shall otherwise agree, and until all amounts of the Credit shall have been withdrawn or committed, no withdrawals shall be made from the Loan Account except under commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions referred to in Section 1.01 of the Loan Agreement. 5. Notwithstanding the allocation of an amount of the Credit and of the Loan or the disbursement percentages set forth in the table in paragraph I above, if 10 the Association and the Bank have, or after full withdrawal of the entire amount of the Credit, the Bank has reasonably estimated that the amount of the Credit and of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association and 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 Credit and of the Loan which are then allocated to another Category and which in the opinion of the Association and of the Bank ar2 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 and the Bank shall ha2 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 of the Loan and the Association and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Association and of the Bank under the Development Credit Agreement and the Loan Agreement, by notice to the Borrower, cancel such amount of the Credit and of the Loan as, in the Association's and 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 Credit and of the Loan. 11 SCHEDULE 2 Description of the Project The Project consists of the following parts: PART A: Secondary Education Facilities. Construction, furnishing and equipping of: (i) 7 new Community High Schools with approximately 44500 student places; (ii) extensions to 10 existing secondary schools to provide practical - subject teaching facilities comprising 19 workshops, 19 laboratories and 19 homecraft rooms, with approximately 1,680 additional student places and 4 staff houses; and (iii) one new Secondary Teachers' Training College (grades 12 - 14) at Turkeyen, with approximately 450 student places. PART B: Vocational and Agricultural Training Facilities. Construction, furnishing and equipping of: (i) extension to the existing Guyana School of AgricultrIe with additional places and boarding facilities for approximately 88 students; (ii) 6 new Rural Training Centers to be operated by the District Agricultural Extension Office with places for approximately 21 trainees, boarding facilities for approximately 152 trainees and 10 staff houses; (iii) an Agricultural Extension in-Service Training and Communications Center to be established within the Ministry responsible for agriculture with )laces for approximately 30 agricultural officers in courses of one or two weeks' duration and boarding facilities for approximately 26 officers and 2 staff houses; and (iv) a Caribbean Animal Health Technicians' Training Center to be established adjacent to the Guyana School of Agriculture with places and boarding facilities for approximately 72 students and one staff house. 12 PART Teclnical Assitance. The provision of: (11 approximately 7-man years of specialists to assist in (a) drawing up a new education law and programming educational reform measures; (b) developing curricula for the technical and agrieultural institutes and strengthening their liaison with enployers; and (e) operating the Rural Training Centers and the Agricultural Extension In-Service Training and Communications Center-, and 011 apiroxiimttely 57-man years of fellowships to support inplemnwntution and operation of the Project. PART D A study to assess the effectivencss of the vocational and technical dution and training system in meeting the Borrower's soitei onomllic objectives and identify priorities for long-term uistwment in education and training. lhe lucatlon1 atpproximate total enrollnient capacities and approximate areas 11 tintton, of the ducattional ilstitutions in Part A and Part B are set forth the Annw to th1 Sehedule, said Annex being subject to modification by 4'inent 1betmen the Borrower and the Bank. 1,he Project f expected to be completed by June 30, 1979. - 13 ANNEX TO SCHEDULE 2 Approximate Approximate Total Area of Enrollment New Construction Code No. Location of Institution Capacity (Sq, ft.j* COMMUNITY HIGH SCHOOLS 4,480 211,400 CO-01 Canje 640 30,200 CO-02 Blairmont 640 30,200 CO-03 Victoria 640 30,200 CO-04 Lodge 640 30,200 CO-05 Grove 640 30,200 CO-06 Stewartville 640 30,200 CO-07 Charity 640 30,200 EXTENSIONS TO SECONDARY SCHOOLS 6,630 89,450 EX-01 Skeldon Line Path 880 13,950 EX-02 Central Correntyne 640 9,200 EX-03 Rosignol 640 9,200 EX-04 Cummings Lodge 880 13,950 EX-05 Annandale 880 13,950 EX-06 North Georgetown 880 4,800 EX-07 South Georgetown 880 4,800 EX-08 Covent Garden 640 9,200 EX-09 Mabaruma 155 4,800 EX-10 Saint Ignatius 155 5,600 'IT SECONDARY TEACHERS' TRAINING COLLEGE 450 31,150 SA EXTENSION TO GUYANA SCHOOL OF AGRICULTURE 216 4,790 RURAL TRAINING CENTERS 216 25,310 RT-01 Black Bush Polder 4,950 RT-02 Onverwagt 4,950 RT-03 Anna Regina 4,950 RT-04 Bartica 4,950 RT-05 Kuru Kuru 560 RT-06 Lethem 4,950 IS AGRICULTURAL EXTENSION IN-SERVICE TRAINING AND COMMUNICATIONS CENTER 30 7,820 AH CARIBBEAN ANIMAL HEALTH TECHNICIANS' TRAINING CENTER 72 13,710 * Boarding and staff housing areas not included. 14 SCHEDULE 3 Procurement A. General Procedures 1. Except as provided in Parts A.2 and 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. Bidders for civil works contracts included in Parts A and B of the Project shall be prequalified as described in part 2.2 of the Guidelines. The civil works contracts may be awarded on the basis of local competitive bidding provided that foreign contractors shall not be precluded from bidding. The tender notices for such contracts shall be widely circulated within Guyana. 3. Items of furniture and equipment required for the Project shall be grouped so as to permit such bulk procurement as shall be consistent with sound technical and procurement practices. Furniture and equipment contracts estimated to amount to less than $5,000 equivalent may be awarded on the basis of the Borrower's regular procurement procedures, provided that the total cost of furniture and equipment so procured shall in the aggregate not exceed the equivalent of $215,000. B. Evaluation and Comparison of Bids for Goods; Preference for Domestic and Regional Malnuifacturers 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. For goods included in Categories (3) and (4) of the table set forth in paragraph I of Schedule I to the Development Credit Agreement and manufactured in Guyana and in member countries of the Caribbean Community (CARICOM), the Borrower may grant a margin of preference in accordance with, and subject to, the following provisions: 15 (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 groups: (1) Group A: bids offering goods manufactured in Guyana if the bidder shall have established to the satisfaction of the Borrower, the Association and the Bank that the manufacturing cost of such goods includes a value added in Guyana equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Guyana. (3) Group C: bids offering goods manufactured in a country other than Guyana which is a party to CARICOM and entitled to preferential tariffs thereunder. (4) Group D: 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. The lowest evaluated bid of each group 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 or group D, all group C and group D 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 and group D bid, for the purpose of this further comparison only, an amount equal to the smaller of (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 or group D 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 or a group C bid is the lowest in such further comparison, it shall be selected for the award. 16 (e) If, as a result of the further comparison under paragraph (d) above, a bid from group D is the lowest, all group D bids shall be finally compared with the lowest bid from group C, as determined under paragraph (c) above, after adding to the c.i.f. bid price of goods to be imported offered in each group D bid, for the purpose of this final comparison only, an amount equal to the smaller of (i) the difference between the amount of customs duties and other import taxes which would actually be payable for the importation of goods offered in such group D bid and for the importation of goods offered in the group C bid, or (ii) 15% of the c.i.f. bid price of goods to be imported offered in such group D bid. If the lowest bid in such comparison is the group C bid, it shall be selected for purposes of award; if not, the lowest bid from group D, as determined under paragraph (c) above, shall be selected for purposes of award. C. Review of Procurement Decisions by the Association and the Bank 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Association and the Bank in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Association and the Bank shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification shall be furnished by the Borrower to the Association and the Bank for their 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 and the Bank shall reasonably request. 2. Review of invitation to bid. Before bids are invited, the Borrower shall furnish to the Association and the Bank, for their 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 and the Bank shall reasonably request. Any further modification to the bidding documents shall require the concurrence of the Association and the Bank before it is issued to the prospective bidders. 3. Review of proposed bid awards and final contracts. With respect to civil works contracts estimated to cost the equivalent of $150,000 or more and furniture and equipment contracts estimated to cost the equivalent of $25,000 or more: (a) Promptly after the bids have been received, the Borrower shall inform the Association and the Bank of the names of the bidders and the respective amounts of the bids. 17 (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association and 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 Association and the Bank in sufficient time for their review, a detailed report, by the consultants referred to in Section 3.02(a) of the Loan Agreement, on the evaluation and comparison of the bids received, together with the recommendation for award of the said consultants and such other information as the Association and the Bank shall reasonably request. The Association and the Bank shall, if they determine 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 Association's and 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 Association and the Bank promptly after its execution and prior to the submission to the Association and the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 4. With respect to each contract to be financed out of the proceeds of the Credit and of the LoAn and not governed by the preceding paragraph, the Borrower shall furnish to the Association and the Bank, promptly after its execution and prior to the submission to the Association and the Bank of the first application for withdrawal of funds from the Credit Account or 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 Association or the Bank shall reasonably request. The Association or 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.