Senegal - Second Sedhiou Project : Credit 0647 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 647 SE DEVELOPMENT CREDIT AGREEMENT (Second Sedhiou Project) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 25, 1976 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 25, 1976, between REPUBLIC OF SENEGAL (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association),, WHEREAS (A) the Borrower has requested the Association and the Caisse Centrale de CooDration E.onomique, an Agency of the Republic of France (hereinafter called Caisse Centrale) to assist in the financing of the Project described in Schedule 2 to this Agreement; and (B) The Borrower intends to contract from Caisse Centrale a loan (hereinafter called the Caisse Centrale Loan) in an amount of fourteen million two hundred thousand French francs (FF14,200,000) to assist in financing the Project on the terms and conditions set forth in an agreement (hereinafter called the Caisse Centrale Loan Agreement) to be entered into between the Borrower and Caisse Centrale; 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: -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 and in the Preamble to this Agreement have the respective meaning, therein set forth and the following addi- tional terms have the following meanings: (a) "First Credit Agreement" means the Development Credit Agreement (Casamance Rice Project) between the Borrower and the Association dated June 18, 1971; (b) "First Project" means the project described in Schedule 2 to the First Credit Agreement; (c) "Project Area" means the D6partement of Sgdhiou; (d) "Organization" means the unit, defined in Section 1.02 of the First Credit Agreement and responsible to the Minister of E.-3- Rural Development and Hydraulices for carrying out the First Proj- ect and the Project; and (e) "Agence Rggionale de Développement" means the "organisme de mise en valeur de la Casamance" being established by the Bor- rover. -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 six million three hundred thousand dollars ($6,300,000). 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 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, 1981 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. -5- Section 2.06. Service charges shall be payable semi-annually on April 1 and October 1 in each year. Section 2.07. The Borrover shall repay the principal amount of the Credit in semi-annual installments payable on each April 1 and October 1 commencing October 1, 1986, and ending April 1, 2026, each installment to and including the installment payable on April 1, 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. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower, acting through the Organiza- tion, shall carry out the Project with due diligence and efficien- cy 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) The Organization's responsibility under paragraph (a) of this Section and its staff referred to in Section 3.02 (a) shall be respectively transferred to and integrated in the Agence Regionale de Dgveloppement only after such agency shall (i) have been established by instruments providing adequate financial and administrative autonomy and (ii) have been adequately funded and become fully operational. The Borrower and the Association shall exchange views on the details of and the timing for such transfer and integration. To that end the funds required by said agency for the execution of the Project, including the proceeds of the Credit, shall be provided in the form of a grant under an agree- ment satisfactory to the Association between the Borrower and said agency under which said agency is charged with the responsibility for carrying out the Project. (c) The Borrower shall deposit in the Project Account funds which shall cover the Organization's estimate of expenditures under the Project during the following three months. The Borrower shall also credit in said account the proceeds of the Credit .1 -7- withdrawn from the Credit Account which the Association shall not' have paid directly to suppliers of goods or services at the Bor- rower's request and on its behalf. The Borrower shall maintain the Caisse d'Avance of CFAF50,000,000 created for the purpose of the First Project. Section 3.02. (a) In order to provide the Organization with qualified senior and middle-level staff, the Borrower shall: (i) employ or continue to employ experts whose qualifi- cations, experience and terms and conditions of employment shall be satisfactory to the Associa- tion, to fill: (A) the position of project direc- tor, (B) the posts of the agro-economist in charge of the programming and evaluation division, the rural civil works engineer in charge of the civil works division, and the financial analyst in charge of the finance and administration division and the latters' counterparts, the three said posts to be filled not later than December 31, 1976 or such other date as the Association may agree and (C) the posts of inspector of cooperatives in charge of the cooperative's division and of agronomist in charge of the extension division; and (ii) second to the Organization suitably qualified senior and middle-level staff in adequate numbers to meet the Organization's needs for Project staff; the Organization will be entitled to return to their respective administrations those of such staff - 8 - which in the Organization's judgment would be un- suitable for the Project. (b) In order to assist the Borrower in carrying out Parts D (2), J and K of the Project, the Borrower shall employ consul- tants, and with respect to Part K of the Project counterparts to such consultants, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. The consultants required in carrying out Part J of the Project shall be employed not later than December 31, 1976 or such other date as the Association may agree. (c) The Borrower shall ensure that three literacy agents be made available to assist the Organization in carrying out Part F(l) of the Project. Section 3.03. (a) Until the feed mixing plant to be construc- ted under Part C (2) of the Project has come into operation, the Borrower shall cause the Soci4t4 de Dgveloppement et de Vulgari- sation Agricole to supply the animal feed supplements required for the Project. (b) The Borrower shall, not later than June 30, 1981 or such other date as the Association may agree, transfer to a coop- erative union ownership of said feed mixing plant, under terms and conditions which shall be satisfactory to the Association. Section 3.04. The selection of farmers' families to be set- tled under Part E of the Project shall be made in accordance with criteria satisfactory to the Association. -9- Section 3.05. (a) In view of carrying out Part G of the Proj- ect, the Borrower shall (i) study means of decentralizing the pro- curement of farm implements and other agricultural inputs; (ii) transmit the results of such study to the Association for its com- ments not later than June 30, 1977 or such other date as the As- sociation may agree; and (iii) consult with the Association on the measures required for implementing the recommendations result- ing from said study. (b) In carrying out Part G of the Project, the Borrower shall ensure that pesticides, seeds and other inputs required for cotton production shall be supplied by the Sociotg de D6veloppe- ment des Fibres Textiles. Section 3.06. (a) With a view to ensuring adequate assistance to and supervision of cooperatives in the Project Area, the Bor- rower shall, within one year after the date of this Agreement, or such other date as the Association may agree, cause to be defined in detail under arrangements satisfactory to the Borrower and the Association the respective responsibilities of the Organization and ONCAD in the Project Area with respect to extension services and the management of said cooperatives, to the management of stocks of seeds, farm implements and other agricultural inputs, to the marketing of cereals and groundnuts and to the procurement and distribution of farm implements and other agricultural inputs. To that end, the Borrower shall provide to the Organization ade- quate means to enable it to carry out its tasks. -10- Section 3.07. (a) The Borrower shall ensure that part of the cooperatives' funds deposited at the Bangue Nationale de Dgveloppe- ment du S6n@gal (BNDS) be made available for the financing of not less than 10% of the cooperatives' expenditures for equipment, including those under Part H of the Project. (b) The Borrower shall take all necessary steps to cause BNDS to provide short- and medium-term financing to cooperatives and farmers for the purchase of seasonal agricultural inputs, and farm equipment and traction animals, respectively. Short-term credits shall be extended for a term of twelve months to cover the cost of seasonal agricultural inputs and medium-term credits shall be extended for a term of five years to cover the cost of farm equipment and traction animals, both at an interest rate which shall exceed by at least two percentage points the prefer- ential rediscount rate of the Borrower's central bank in effect on the date on which the credits are granted to cooperatives. For the purpose, the limits of cooperatives' indebtedness shall be established on the basis of total production marketed by coopera- tives. Section 3.08. In carrying out Part J of the Project, the Borrower shall cause the evaluation reports to be made available to the Association by June 30, in each year. Section 3.09. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards in- cident to the acquisition, transportation and delivery thereof to 4,- 11- 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 3.10. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably re- quest. (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 Proj- ect; (ii) shall enable the Association's accredited representa- tives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the As- sociation shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and ser- vices financed out of such proceeds. -12- ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall cause the Organization and, after the transfer of the Organization's responsibilities to the agency referred to under Section 3.01 (b) of this Agreement, such agency to maintain records and accounts adequate to reflect in accordance with consistently maintained sound accounting prac- tices the financing of the Project, detailed and itemized accord- ing to purpose and function. (b) The Borrower shall: (i) cause such accounts for each fiscal year to be audited, in accordance with sound auditing prin- ciples consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than four months after the end of each such year, (A) certified copies of said accounts for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonely requested; and (iii) furnish to the Asso- ciation such other information concerning said accounts and the audit thereof as the Association shall from time to time reason- ably request. Section 4.02. The Borrower shall maintain with responsible insurers, or make other provision satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with appropriate practice. -13 - Section 14.03. The Borrower shall ensure that the Organization and, after the transfer of the Organization's responsibilities to the agency referred to under Section 3.01 (b) of this Agreement, said agency be at all times managed and operated in accordance with sound administrative, financial and agricultural practices by qualified and experienced management and staff. - 14 - ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely that: (i) Subject to subparagraph (ii) of this paragraph: (A) The right of the Borrower to withdraw the pro- ceeds of the Caisse Centrale Loan shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the Caisse Centrale Loan Agreement, or (B) the Caisse Centrale Loan shall have become due and payable prior to the agreement matu- rity thereof. (ii) Subparagraph (i) of this paragraph shall not apply if the Borrower establishes to the satisfaction of the Association that: (A) such suspension, cancel- lation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (B) ade- quate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. -15- Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely that the event specified in para- graph (i) (B) of Section 5.01 of this Agreement shall occur. -16- ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that the Caisse Centrale has notified the As- sociation in writing that all conditions precedent to initial dis- bursement, if any, under the Caisse Centrale Loan Agreement have been fulfilled, save only for the effectiveness of the Development Credit Agreement. Section 6.02. The date September 24, 1976, is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. Section 6.03. 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. -17 - 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: Minist re des Finances Rue Charles Laine Boite Postale 4017 Dakar, S6n9gal Cable address: MINIFINANCES Dakar 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. -18 1 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 SENEGAL By /s/ AndrS Coulbary Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION .By /s/ Xavier de la Renaudi4re Acting Regional Vice President Western Africa -19- SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be fi- nanced out of the proceeds of the Credit, the allocation of the amount of the Credit to each Category and the percentage of expen- ditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works under 670,000 50% Parts D (1) and I (3) and construc- tion of wells under Part E of the Proj- ect (2) Civil Works under 330,000 44% Part H and equip- ment under Parts C (2) and H of the Project (3) (a) Vehicles under 85,000 o% Part A of the Project (b) Equipment un- 305,000 53% der Parts A and G of the Project (4) Staff on contract 2,900,000 67% and allowances of public servants - 20 - Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (5) Operating costs 525,000 60% (6) Consultants' ser- 155,000 67% vices for Parts D (2), J and K of the Project (7) Unallocated 1,330,000 TOTAL 6,300,000 po 2. (a) The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments fo:r, taxes levied by, or in the territory of, the Borrower on goods or ser- vices, 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 aW 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. (b) The disbursement percentage under Category (2) has been calculated taking into account estimated cooperatives' participa- tion of 10% in the expenditures included in said Category. If such participation increases or decreases, the Association may, by no- tice to the Borrower, correspondingly decrease or increase said disbursement percentage. 3. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of payments made for expenditures: (i) prior to the date of this Agreement; and (ii) in respect of (A) Categories (4) and (5) on account of Part K of the Project un- til the consultants required for carrying out said Part of the Project have been employed pursuant to Section 3.02 (b) of this Agreement; (B) Categories (4), (5) and (6) for finalizing the mas- ter plan and preparing projects to be included in the plan under Part K of the Project until the Borrower and the Association shall have agreed on the specific terms of reference of the consultants with respect to such tasks; (C) Category (2) on account of the - 22 - construction program in each year under Part H of the Project un- til the Borrower and the Association have agreed on each such con- struction program; and (D) Category (1) on account of the experi- mental polder to be developed under Part D (1) of the Project, until the results of the survey included in Part D (2) of the Proj- ect have become available and relating recommendations have been formulated in agreement between the Borrower and the Association. 4. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insuf- ficient 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 As- sociation are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, re- duce the disbursement percentage thehn applicable to such expendi- tures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 5. 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, can- cel such amount of the Credit as, in the Association's reasonable . - 23 - opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 24 -1 SCHEDULE 2 Description of the Project The Project is a four-year (mid 1976-mid 1980) program of the Barrower to increase and diversify agricultural and livestock pro- duction and raise farmers' income in the Project Area. The Proj- ect will assist about 7,400 farmers' families. The Project consists of the following Parts: Part A: Strengthening of the organization's services by, inter alia, (1) training extension agents and (2) providing vehicles and equipment. Part B: A program for demonstrating and promoting improved man- ual, semi-intensified and intensified farming methods. Part C: (1) A program for demonstrating and promoting improved animal husbandry; and (2) the construction, equipment and operation of a feed mixing plant at Sedhiou. Part D: (1) The construction of water control systems in ap- proximately 14 locations along the Casamance River and its affluents to cover a total area of about 1,650 ha of paddy rice fields; and (2) a soil and hydrological survey of about 15,000 ha of potentially irrigable land. - 25 - Part E: The settling of about 400 farmers' families in the Sefa area, including the construction of wells and the provi- sion of settling allowances. Part F: (1) Organizing annual training sessions for farmers and agricultural extension workers and organizing a continu- ing program of adult literacy. (2) Fellowships for the Organization's staff and selected agricultural extension workers. Part G: The organization of the distribution of agricultural inputs to farmers and the supply of farm implements and tools to farmers and blacksmiths. Part H: The construction, equipment and supervision of operation of about 35 rice mills to be located in the main paddy rice production areas. Part I: (1) The training of agricultural cooperatives' staff in credit management, procurement, accounting and market- ing; (2) the organization of five cooperative unions and a federation of said unions; and (3) the construction and equipment of facilities for agricultural cooperatives. Part J: Monitoring and evaluation of Parts A through I of the Project. Part K: The establishment of a regional planning unit to be resp6nsible for the preparation of a master plan for -26 - agricultural development of Casamance and for the pre- paration of projects which shall be included in said plan. The Project is expected to be completed by June 30, 1980. - 27 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part B hereof, contracts for the pur- chase 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 Guide- lines), on the basis of international competitive bidding. 2. Contracts shall be grouped so as to permit bulk procurement consistent with appropriate technical standards and procurement practices. B. Other Procurement Procedures 1. Any contract or any bulk contract estimated to cost less than $50,000 equivalent, may, up to an aggregate amount of $ 900,000 equivalent to be financed out of the proceeds of the Credit, be awarded on the basis of competitive bidding advertised locally and in accordance with local procedures acceptable to the Associa- tion. 2. Furniture and equipment for staff offices, and equipment for agricultural demonstrations, estimated to amount to less than $10,000 equivalent, may, up to an aggregate amount of $ 200,000 equivalent to be financed out of the proceeds of the Credit, be purchased after having obtained quotations from local suppliers. - 28 - C. 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 except those to be procured in accordance with local procedures: (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 sim- ilar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expen- ditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Senegal may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the infor- mation required to establish the eligibility of a bid for such preference and the following methods and stages that will be fol- lowed 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 Sene- gal if the bidder shall have established to the satisfaction of the Borrower and the Association - 29 - that the manufacturing cost of such goods includes a value added in Senegal equal to at least 20% of the ex-factory bid price of such goods. (2) Group_B: all other bids offering goods manufactured in Senegal. (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 evalu- ated 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. - 30 - D. Review of Procurement Decisions by the Association 1. 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 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, together with the recommenda- tions for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. -31- (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. (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 con- tract. 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.