Upper Volta - Third Highway Project : Credit 0653 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 653 UV DEVELOPMENT CREDIT AGREEMENT (Third Highway Project) between REPUBLIC OF UPPER VOLTA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated July 15, 1976 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated July 15, 1976, between REPUBLIC OF UPPER VOLTA (hereinafter called the Borrower) and INTERNATIONAL DEVELOP- MENT 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 Applicable to Development Credit Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the- respective meanings therein set forth and the following additional terms have the following meanings: (a) "MPWT" means the Borrower's "Ministry of Public Works, Transport, Urban Development and Architecture" functioning pur- suant to Decree No. 76-036/PRES of Borrower dated February 18, 1976; (b) "DOT" means "Directorate of Transport (Direction des Transports)", a directorate established and operating within MPWT; (c) "DPW" means Directorate of Public Works (Direction des Travaux Publics, a directorate established and operating within MPWT; and (d) "OPEV" means "Office de Promotion de l'Entreprise Voltaique". -3- 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 twenty million dollars ($20,000,000). 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 The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agree- ment and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods or for civil works to be fi- nanced 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. The Associa- tion shall promptly notify the Borrower of such later date. 14 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 15 and October 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each April 15 and October 15 comencing October 15, 1986, and ending April 15, 2026, each installment to and including the installment payable on April 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 2.08. The currency of the Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. * -5- ARTICLE III Execution of the Project Section 3.01. The Borrower shall cause the Project to be car- ried out with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, ser- vices and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in the supervision of the works under Part A of the Project and in the carrying out of Parts C and D of the Project, the Borrower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. (b) Unless the Association shall otherwise agree, consultants under Part C of the Project shall be appointed not later than June 30, 1977, and consultants under Part D of the Project shall be appointed not later than March 31, 1977. (c) The Borrower shall assign a local counterpart to the consultant required in the carrying out of Part D (1) of the Project, with such qualifications as shall be required. Section 3.03. (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 in- cident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any in- demnity shall be payable in a currency freely usable by the Bor- rower to replace or repair such goods. (b) Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.0. (a) The Borrower shall furnish to the Asso- ciation, promptly upon their preparation, the plans, specifica- tions, reports, contract documents and work and procurement sched- ules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall rea- sonably 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 pro- ceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited repre- sentatives to visit the facilities and construction sites in- cluded in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and docu- ments; and (iii) shall rnish.to the-Association all such in- formation as the Association shall reasonably request concern- ing the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.05. 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 carrying out the Project. Section 3.06. The Borrower shall cause DOT inter alia: (i) to carry out an economic and technical evaluation of proposed investments in the transport sector in order to assist the Borrower in deter- mining its transport investment programs; and (ii) to carry out a survey of the structure, efficiency and level of road user taxes, including import duties on vehicles, make recommendations in view of improving the efficiency, determining the appropriate level and ensuring an appropriate distribution of the burden, of such taxes and consult with the Association on such recommendations and on their implementation not later *Chan June 30, 1978 or such other date as the Borrower and the Association shall agree. Section 3.07. The Borrower shall provide staff in such number as shall be required to be trained for the operation of the vehicle weight control equipment referred to under Part B of the Project. -8- ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the de- partments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. (a) The Borrower shall take all actions as may be required to adequately maintain its road network, to make promptly all necessary repairs thereof in accordance with sound engineering practices, and to maintain and renew, as and when needed, the roads network maintenance equipment required for the purpose and shall make adequate arrangements for the timely provision of funds, facil- ities, services and other resources required for that purpose. Promptly upon the completion of the study referred to in Part C (1) of the Project, the Borrower shall, in consultation with the Association, take into account the recommendations of the said study in carrying out the said maintenance, repairs and renewals. (b) Without limitation or restriction upon the provisions of paragraph (a) of this Section and except as the Association shall otherwise agree, the Borrower shall make: (i) an allocation in its national budget for financial year 1977 of not less than CFAF 900 million to meet the maintenance requirements of its national roads network; and (ii) thereafter for each of the financial years 1978 and 1979 an allocation in its budget to meet the maintenance -9- requirements of its national roads network the amount of which shall be increased as compared to the amount so allocated in the preceding year to take into account cost increases during such preceding year, such amount to be determined in consultation with the Association. The Borrower shall furnish to the Association the draft highway maintenance budget for each of the years 1977, 1978 and 1979 not later than July 31 in the preceding year for its review and comments prior to its approval by the Government. Section 4.03. The Borrower shall collect and record in ac- cordance with appropriate statistical methods and procedures such data as are required to assess the technical, economic and finan- cial aspects of the Borrower's road network for the proper plan- ning of maintenance, improvements and extensions. Section 4.04. The Borrower shall take all necessary steps to ensure that the dimensions and ax1eloads of vehicles using the Borrower's road system are consistent with the structural and geometric design standards of the roads used. -10- ARTICLE V Effectiveness; Termination Section 5.01. The following event is specified. as an additional condition to the effectiveness of the Development Credit Agree- ment within the meaning of Section 12.01 (b) of the General Con- ditions, namely, that the consultants to be employed by the Borrower to assist the Borrower in the supervision of the works under Part A of the Project shall have been employed in accordance with the provisions of Section 3.02 (a). Section 5.02. The date October 15, 1976 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. - 11 - ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for finances is designated as representative of the Borrover 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: Ministhre des Finances Ouagadougou, Upper Volta Cable address: MINIFINANCE Ouagadougou 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. - 12 - 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. REPUBLIC OF UPPER VOLTA By /s/ Telesphore Yaguibou Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Roger Chaufournier Regional Vice President Western Africa -13- 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 amount 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 Cateogry Dollar Equivalent) to be Financed (1) Civil works 13,950,000 67% (2) Consultants' and 2,200,000 100% of foreign experts' services expenditures or and vehicles 80% (3) Equipment 250,000 100% of foreign expenditures (4) Unallocated 3,600,000 TOTAL 20,000,000 -14- 2. For the purposes of this Schedule, the term "foreign expen- ditures" 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, how- ever, 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". 3. 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 lev- ied 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 re- spect of any item to be financed out of the proceeds of the Cred- it 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 with- drawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be - 15 - 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 expenditurea; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such ex- penditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with .the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed oout of the proceeds of the Credit and the Association may, without in any way re- stricting 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 financ- ing out of the proceeds of the Credit. -16- SCHEDULE 2 Description of the Project The Project consists of the following: Part A: The reconstruction of the Banfora-Bobo Dioulasso-Hounde road (about 183 km) to two-lane paved standard. Part B: The procurement and utilization of equipment by MPWT for vehicle weight control and traffic counting and the provision of buildings for vehicle weight control. Part C: (1) A study of road maintenance operation. (2) Preinvestment studies of about 150 km of roads to be selected in agreement with the Association. Part D: (1) Assistance to DOT by the provision of experts' services. (2) Assistance to the domestic civil works industry by the provision of experts' services to OPEV. The Project is expected to be completed by December 31, 1979. -17- SCHEDULE 3 Procurement A. General Procedures 1. Except as provided in paragraph 2 hereunder, contracts for the purchase of goods or for civil works shall be procured in accordance with procedures consistent with those set forth in Part A of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guidelines), on the basis of international competitive bidding. -2. Notvithstanding the provisions ofparagraph I above, the Borrower may procure: (a) vehicles for consultants and experts required for the Project on the basis of quotations obtained in accordance with local procedures acceptable to the Association; and (b) civil works for the buildings to be provided under Part B of the Project on the basis of local competitive bidding advertised locally and in accordance with local procedures acceptable to the Association. B. Evaluation and Comparison of Bids for Goods 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; (ii) customs duties and other import taxes on imported goods, and sales -18- and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other ex- penditures incidental to the delivery of goods to the place of their use or installation shall be included. C. Review of Procurement Decisions by the Association 1. Review of prequalification. If prequalification is required, 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, to- gether 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 for- its coments be- fore the applicants are notified of the Borrower's decision, and the Borrower shall make such additions to, deletions from, or mo- difications in, the said list as the Association shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated. to cost the equiva- lent of $50,000 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 -19- 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 re- quest. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in suf- ficient time for its review, a detailed report on the evaluation and comparison of the bids received, 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. (c) The terms and conditions of the contract shall not, with- out the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for with- drawal of funds from the Credit Account in respect of such contract. - 20- 3. With respect to each contract to be financed out of the pro- ceeds 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 the respective bids, recommendations for award and such other information as the Association shall rea- sonably 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.