Cameroon - Technical Assistance Project : Credit 0673 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 673 CM DEVELOPMENT CREDIT AGREEMENT (Technical Assistance Project) between UNITED REPUBLIC OF CAMEROON and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 15, 1977 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 15, 1977, between UNITED REPUBLIC OF CAMEROON (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). -2- 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 1pplicable 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 and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Sub-project" means a particular study or project of technical assistance to be financed out of the proceeds of the Credit and selected by agreement between the Borrower and the Association, as described in Section 3.01 of this Agreement; (b) "MINEP" means the Borrower's Ministere de l'Economie et du Plan, or any successor thereto responsible for planning; (c) "Project Coordination Team" means the team to be appointed pursuant to Section 4.02 (a) of this Agreement and "Project Coordi- nator" means the head of said Team provided for under said Section; and -3- (d) "DEP" means the Direction des Etudes et Projets estab- lished within the Borrower's Ministry of Agriculture pursuant to the Decree No. 76/256 of July 1, 1976, of the Borrower, or any successor to DEP. -4- 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 equiva- lent to four million five hundred thousand dollars ($4,500,000). Section 2.02. Subject to the provisions of the Schedule to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, the amount of the Credit may be withdrawn from the Credit Account in accordance with the allocations of the proceeds of the Credit agreed upon be- tween the Borrower and the Association pursuant to Section 3.01 (b) of this Agreement, as such allocations may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) after the date of this Agreement in respect of the reasonable cost of goods and services required to carry out Sub-projects and agreed to be financed out of the proceeds of the Credit. Section 2.03. The Closing Date shall be December 31, 1980, or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. -5- Section 2.04. 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 2.05. Service charges shall be payable semi-annually on March 15 and September 15 in each year. Section 2.06. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 15 and September 15, commencing March 15, 1987, and ending September 15, 2026, each installment to and including the installment payable on September 15, 1996, 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 2.07. The currency of the Republic of France is hereby specified for the purposes of Section 4.02 of the General Condi- tions. -6- ARTICLE III Description of the Project and Use of the Proceeds of the Credit Section 3.01. (a) The Project consists of the carrying out of high-priority Sub-projects selected by agreement between the Borrower and the Association and designed to assist the Borrower in planning, preparing and implementing its investment policies and development projects in the transport, agricultural and urban development sectors and in training its personnel required for said purpose. (b) The purpose and scope of each Sub-project, the method of implementation thereof and the specific allocation thereto of proceeds of the Credit shall be determined by agreement between the Borrower and the Association. Section 3.02. The Borrower shall apply the proceeds of the Credit in accordance with the provisions of this Agreement exclu- sively to expenditures on the Project. Section 3.03. (a) Except as the Association shall otherwise agree, contracts for the purchase of goods to be financed out of the proceeds of the Credit shall be let on the basis of competi- tive bidding advertised locally. (b) Except as the Association shall otherwise agree, all contracts for advisers' or consultants' services required for any Sub-project, including advisers to assist the Project Coordination Team and the DEP in their respective activities under the Project, -7- and which are to be financed out of the proceeds of the Credit shall be subject to the prior concurrence of the Association. Such advisers and consultants shall have qualifications and ex- perience satisfactory to the Association. -8- ARTICLE IV Execution of the Project Section 4.01. (a) The Borrower shall cause each Sub-project to be carried out with due diligence and efficiency and in confor- mity with appropriate administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation to the generality of paragraph (a) of this Section, the Borrower shall establish, for each of its minis- tries and agencies concerned with the implementation of the Project, a R6gie d'avances pursuant to the provisions of Article 126 of its Ordinance No. 62/OF/4 of February 7, 1962, as such Ordinance may be amended from time to time, for the purpose of making available to such ministries and agencies the Borrower's contribution to the financing of the Sub-projects to be carried out by such ministries and agencies. Section 4.02. (a) In order to ensure effective coordination among the ministries and agencies of the Borrower concerned with the implementation of Sub-projects, the Borrower shall: (i) appoint and maintain in the MINEP a Project Coordi- nation Team including, as head of such Team, a Proj- ect Coordinator, qualified and experienced in admini-- strative matters, planning and the preparation of projects and reporting directly to the Secretary -9- General of the MINEP who shall have overall respon- sibility for the coordination of Sub-projects and direct the activities of such Team; and (ii) cause its ministries and agencies concerned with the implementation of Sub-projects to cooperate effectively with such Project Coordination Team in carrying out Sub-projects. (b) For the purpose of carrying out Sub-projects related to training, the Borrower shall employ a team of training consultants. Section 4.03. (a) For the purpose of carrying out Sub-projects related to the agricultural sector, the Borrower shall maintain the DEP and appoint thereto a senior agricultural economist to serve, inter alia, as adviser to the director of the DEP, a general agri- culturist, and a financial analyst. (b) Until the completion of the Project, the Borrower shall furnish to the Associa,ion, not later than April 30 of each year, or such other date as the Association may agree, for its review and comments, the draft work program of the DEP for the next fol- lowing fiscal year. (c) The Borrower shall periodically review the activities and operations of the DEP in consultation with the Association. Section 4.04. The Borro.ier shall provide the Project Coordi- nation Team and the DEP with adequate qualified professional and support staff. - 10 - Section 4.05. (a) The Borrower shall take all reasonable measures to facilitate the work of the advisers and consultants employed for any Sub-project in the performance of their services therefor and make available to them all information required for such work. (b) The Borrower shall not amend or waive any of the terms and conditions of employment of the advisers or consultants employed for any Sub-project, or grant any material extension of time or any approval of sub-contracts or modifications thereof, or agree to any substitution of personnel of such consultants, or suspend payments under, or terminate, any contract with such advisers or consultants without the prior concurrence of the Association. Section 4.06. For each Sub-project, the Borrower shall appoint qualified local counterpart personnel to the advisers and consul- tants referred to in Section 4.05 (a) of this Agreement pursuant to arrangements satisfactory to the Association. Section 4.07. (a) Upon completion of the reports and studies prepared under Sub-projects, including drafts thereof, the Borrower shall furnish to the Association copies thereof in such number as the Association shall reasonably request. (b) The Borrower and the Association shall from time to time exchange views with respect to the evaluation and implementation of the recommendations and other conclusions contained in the documents referred to in paragraph (a) of this Section. - 11. - Section 4.08. (a) For each Sub-project the Borrower shall es- tablish arrangements and procedures satisfactory to the Association, for (i) selecting, subject to the provisions of Section 3.03 of this Agreement, services, equipment and supplies and directing their use for such Sub-project; (ii) directing and supervising the work of the advisers and consultants employed therefor; and (iii) reviewing the reports and recommendations of such advisers and consultants. (b) Except as the Association may otherwise agree, the Bor- rower, in requesting the Association's agreement to any Sub-project, shall furnish to the Association the following supporting documen- tation: (i) a detailed description of the studies and work to be carried out in connection with the pro- posed Sub-project, including the purposes and objectives of the proposed Sub-project and the benefits expected therefrom; (ii) detailed information regarding the qualifi- cations, terms of reference and duration of service for any advisers or consultants to be engaged in carrying out the proposed Sub- project; (iii) a description of the functions of the agency or agencies or personnel of the Borrower to be responsible for the execution of the pro- posed Sub-project; - 12 - (iv) a description of the support services to be provided by the Borrower for the purpose of the proposed Sub-project and of the local counterpart personnel to be assigned to such Sub-project pursuant to Section 4.06 of this Agreement; (v) estimates of foreign and local costs of the proposed Sub-project broken down by major items and show-.ng amounts to be financed by the Borrower and out of the proceeds of the Credit, respectively, and an estimated dis- bursement schedule; and (vi) a description of the measures to be taken to comply with the provisions of Sections 3.03 and 4.05 (a) of this Agreement and paragraph (a) of this Section. Section 4.09. The Borrower: (i) shall maintain or cause to be maintained records adequate to show the use of the proceeds of the Credit and to record the progress of each Sub-project (including the cost thereof); (ii) shall enable the Association's accredited representatives to inspect any records and documents relevant to the Project, including records and documents which the advisers and consultants employed shall be required to keep for purposes of the Project; and (iii) shall furnish or cause to be furnished 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 financed out of such proceeds. - 13 - ARTICLE V Other Covenants Section 5.01. The Borrower shall maintain or cause to be main- tained 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 any Sub- project or any part of a Sub-project. - 14 - ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as additional conditions to the effectiveness of this Agreement within the mean- ing of Section 12.01 (b) of the General Conditions: (a) that the director of DEP referred to in Section 4.03 (a) of this Agreement has been appointed; and (b) that the Project Coordinator and the senior agricultural economist referred to in Section 4.03 (a) of this Agreement have been appointed in accordance with Sections 4.02 (a) (i) and 3.03 (b), respectively, of this Agreement. Section 6.02. The date September 13, 1977, is hereby specified for the purposes of Section 12.04 of the General Conditions. - 15 - ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for planning 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: Ministere de 1'Economie et du Plan Yaound' United Republic of Cameroon Cable address: Telex: MINEP 8268 KN Yaound' For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telext INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (wUI) - 16 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. UNITED REPUBLIC OF CAMEROON By /s/ Benoit Bindzi Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Roger Chaufournier Regional Vice President Western Africa - 17 - SCHEDULE Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items that may be financed out of the proceeds of the Credit allocated to each Sub-project and the percentage of expenditures for items so to be financed in each Category: % of Expenditures Category to be Financed (1) Advisers' services 100% (2) Consultants' ser- 90% vices and training (3) Equipment and vehi- 75% cles (4) Operating costs 50% (other than staff salaries) of minis- tries and agencies of the Borrower in charge of carrying out any Sub-project - 18 - 2. The disbursement percentages have been calculated in compli- ance 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. 3. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of payments made for expenditures in respect of Category (4), unless such expenditures have been made directly for the purpose of carrying out any Sub-project. 4. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expendi- tures 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 reason- able opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the pro- ceeds of the Credit.