Liberia - Second Education Project : Loan 1266 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1266 T-LBR LOAN AGREEMENT (Second Education Project) between REPUBLIC OF LIBERIA and INTERN!1'IONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated June 7, 1976 LOAN AGREEMENT AGREEMENT, dated June 7, 1976, between REPUBLIC OF LIBERIA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RE- CONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; (B) the Bank has determined that the Borrower is eligible to receive this Loan as an intermediate term loan, as that term is defined in Resolution No. 75-111 of the Executive Directors of the Bank establishing an Interest Subsidy Fund for the Third Window (hereinafter called the Fund) and upon the terms and con- ditions set forth in such Resolution; (C) the Administrator of the Fund (hereinafter called the Administrator), subject to the terms and conditions set forth in the Resolution referred to in (B) above, is obligated to pay to the Bank semi-annually from the resources of the Fund an amount equal to four per cent (4%) per annum of the outstanding amounts of principal on intermediate term loans, of which this Loan is one; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan 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 Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force 6aid effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth, and the term "PIU" means the Project Implementation Unit established in the Ministry of Educa- tion of the Borrower pursuant to Development Credit Agreement No. 305-LBR (Education Project), dated May 17, 1972, between the Borrower and International Development Association (hereinafter called the Association). - 3 - ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or re- ferred to, an amount in various currencies equivalent to four million dollars ($4,000,000). Section 2.02. (a) The amount of the Loan may be withdrawn from the Loan Account in accordance with the Drovisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Loan. Section 2.03. Except as the Bank shall otherwise agree, con- tracts for the purchase of goods or for civil works to be financed out of the proceeds of the Loan shall be procured in accordance with the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be October 31, 1980 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. -4- Section 2.06. The Borrower shall pay interest at the rate of four and one-half per cent (4-1/2%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time; provided, however, that if the Administrator shall at any time determine that the resources of the Fund shall not be sufficient to pay to the Bank at the next succeeding semi-annual interest payment date of the Loan the amount scheduled to oe paid by the Administrator at that interest payment date as specified in para- graph (C) of the Preamble to this Agreement, the Borrower shall, upon notification by the Administrator of such determination and the amount of the resulting shortfall, pay additional interest on such principal amount of the Loan equal to such shortfall. Section 2.07. Interest and other charges shall be payable semi-annually on January 15 and July 15 in each year. Section 2.08. The Borrower shell repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project through its Ministry of Education with due diligence and efficiency and in conformity with appropriate administrative, financial, en- gineering and educational practices, and shall provide, promptly as needed, the funds, facilities, services and other resources re- quired for the purpose. (b) For the purposes of overall management and coordination of execution of the Project, the Borrower shall, until the Closing Date, maintain PIU within its Ministry of Education. (c) The staff of PIU shall be composed, inter alia, of: (i) a Project Director whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank; (ii) two Deputy Project Directors; (iii) a Project Architect; (iv) a Project Accountant; and (v) a Project Procurement Specialist. (d) Without any restriction or limitation upon the powers and duties of the Project Director pursuant to Development Credit Agreement No. 305-LBR (Education Project), dated May 17, 1972, between the Borrower and the Association, the Project Director shall be responsible, inter alia, for: (i) the general supervision of all aspects of the execution of the Project; -6- (ii) the coordination of all Project activities with the relevant departments, ministries, agencies and units of the Borrower; (iii) the arrangement for the selection and the supervision of consultants and specialists employed for the Proj- ect and the evaluation of their performance; and (iv) the arrangement for the collection and preparation of data for an evaluation of the Project. (e) The Borrower shall provide PIU at all times with such qualified and experienced supporting staff, facilities and other resources as shall be necessary for the efficient operation thereof. (f) For the purpose of effective execution of the Project, the Borrower shall designate a senior officer in each of its Departments, Ministries and Agencies affected by or concerned with the Project or any part thereof to provide liaison with the Project Director. Section 3.02. (a) In order to assist the Borrower in the de- sign and supervision of the construction of the primary school units included in Part A of the Project, the Borrower shall employ an architect whose qualifications, experience and terms and condi- tions of employment shall be satisfactory to the Bank. (b) In order to assist the Borrower in the design and super- vision of the construction of the new buildings at the Zorzor -7- Rural Teacher Training Institute included in Part A of the Project, and in the architectural studies and design work included in Part D of the Project, the Borrower shall employ architectural consultants whose qualifications, experience and terms and conditions of em- ployment shall be satisfactory to the Bank. Section 3.03. Except as the Bank shall otherwise agree, the Borrower shall: (a) employ, for the purposes of Part B of the Project, speci- alists whose qualifications, experience and terms and conditions of employment shall be acceptable to the Bank in accordance with the provisions of Annex 1 to Schedule 2 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank; (b) require all fellowship recipients under Part B of the Project to serve at least two years in positions for which they have been trained, and provide appropriate budget and positions for such purpose; and (c) award fellowships under Part B of the Project only to suitably qualified persons and enroll them in training programs approved by the Bank. Section 3.04. In order to assist the Borrower in the review and strengthening of the structure, organization, procedures and methods of operation of its Ministry of Education, the Borrower shall cause its Institute of Public Administration to provide the said Ministry with services and assistance in accordance with arrangements satisfactory to the Bank. - 8 - Section 3.05. (a) The primary school units included in Part A of the Project shall be constructed in accordance with the archi- tectural designs and drawings satisfactory to the Bank. by a contractor or zcontractors approved by the Bank upon terms and conditions acceptable to the Bank. (b) Except as the Bank shall otherwise agree, the Borrower shall make arrangements with the aforementioned contractor or con- tractors for the training of suitable personnel in the management of the construction of primary school units. Section 3.06. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to re- place or repair such goods. (b) Except as the Bank shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. Section 3.07. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, reports (including the reports of the consultants and specialists financed out of the proceeds of the Loan), contract documents, construction and procurement schedules, work schedule for the Project, and any material modifications thereof or additions thereto, in such de- tail as the Bank shall reasonably request. - 9 - (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 Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. Section 3.08. 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 and shall furnish to the Bank, promptly after such acquisition, evidence satisfactory to the Bank that such land and rights in respect of land are available for purposes related to the Project. - 10 - ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Baik, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of for- eign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or per- mitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or admini- strative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfac- tory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; - 11 - and (ii) any lien, arising in the ordinary course of banking trans- actions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdi- vision thereof and of any entity owned or controlled by, or oper- ating for the accotunt or benefit of, the Borrower or any such subdivision, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section 4.02. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with con- sistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carry- ing out the Project or any part thereof. Section 4.03. The Borrower shall cause the effective utiliza- tion, operation, maintenance and repair of the educational facil- ities included in the Project and of the equipment thereof and shall provide, promptly as needed, the funds, facilities, services (including staffing) and other resources required for the purpose. Section 4.04. (a) Not later than one year after the date of this Agreement, the Borrower shall prepare, and review with the Bank, a plan for the production of textbooks for the succeeding three-year period. - 12 - (b) Not later than December 31, 1976, or such other date as may be agreed upon between the Borrower and the Bank, the Borrower shall make arrangements satisfactory to the Bank for the: (i) opera- tion of a replenishment fund with assured sources of financing for renewal of printing and production supplies and equipment; and (ii) distribution of textbooks. Section 4.05. The Borrower shall exchange views with the Bank on a schedule to strengthen its forest administration, including institutional improvements, and related training of forest rangers. - 13 - ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional event is specified pursuant to paragraph (k) thereof, namely, that a default shall have occurred in the performance of any obligation on the part of the Borrower under Development Credit Agreement No. 305-LBR (Education Project), dated May 17, 1972, between the Borrower and the Association. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (h) thereof, namely, that the event specified in Section 5.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Bank to the Borrower. - 14- ARTICLE VI Termination Section 6.01. The date of September 2, 19T6 is hereby speci- fied 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 Education 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: Ministry of Education Monrovia Liberia Cable address: Ministry of Education Monrovia For the Bank: International Bank for Reconstruction and Development 1818 H Street, N. W. Washington, D.C. 20433 United States of America Cable address: INTBAFRAD Washington, D.C. - 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. REPUBLIC OF LIBERIA By /s/ George Cooper Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ R. Chaufournier Regional Vice President Western Africa - 17 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of ex- penditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works 980,000 45% (2) Furniture 320,000 (a) directly 100% of foreign imported expenditures (b) locally 80% procured (3) Equipment 550,000 (a) directly 100% of foreign imported expenditures (b) locally 75% procured (4) Consultants' Ser- 90,000 70% vices (5) Technica4 Assis- 950,000 80% tance - 18 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (6) Fellowships 410,000 100% of foreign expenditures (7) Unallocated 700,000 TOTAL 4,000,000 - 19 - 2. For the purposes of this Schedule, the term "foreign expendi- tures" 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, however, 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 Bank that no proceeds of the Loan shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Loan decreases or increases, the Bank may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of tie Bank. 4. Notwithstanding the provisions of paragraph L above, no with- drawals shall be made in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals may be made in respect of: (i) Category (4) on account of payments made after April 1, 1976, for consultants services engaged under Parts A (2) and D of the Project in an aggregate amount not exceeding the equivalent of $10,000; (ii) Category (5) on account of payments made after January 1, 1976, for the services of the architectural - 20 - advisor employed under Part A (1) of the Project in an aggregate amount not exceeding the equivs.lent of $30,000; and (iii) Category (5) on account of payments made after March 1, 1976, for spec- ialists services engaged under Part B (vocational training) of the Project in an aggregate amount not exceeding the equivalent of $20,000. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then appli- cable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Bank shall have reasonably determined that the pro- curement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting or lim- iting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the - 21 - Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. - 22 - SCHEDULE 2 Description of the Project The Project consists of the following Part3: Part A: (1) The design, construction, furnishing and equipping of about 100 primary school units in about 50 villages in the Coun- ties of Bong, Lofa, Cape Mount, Grand Bassa, Montserrado and Nimba. (2) Improvement and expansion of a primary teacher training institute at Zorzor. (3) Minor works for the improvement of facilities at the publications unit. Part B: A program to provide a total of about 42 man-years of special- ists services and about 49 man-years of fellowships for teacher training, adult education, administrative improvement, curriculum development, educational testing, educational publications, educational and vocational planning, project management, a feasibility study on educational broadcasting and the training of forest rangers. - 23 - Part C: A program to provide vehicles, equipment and supplies for adult education, central administration, evaluation of the community schools program, curriculum development, education- al testing, textbook production and project administration. Part D, A program to provide funds for architectural studies and design work for a new vocational training center and a new forest ranger training center. The Project is expected to be completed by October 31, 1979. - 2)4 -I ANNEX 1 TO SCHEDULE 2 List of Educational Institutions Approximate Refertnce Approximate Number of undcr Gross Student Part A Area of New Places Estim of the Construction to be Addit Project Location Unitt (oquare feet) Provided Enrol (1) (a) Lofa County - Mondicorn.x*, Foya Kvmwrn+, Zawodamai", Invalamo+, Salbata**, Luyemn*, Fir'sebul, SucromuM* 15 33,750 1,800 5 (b) Bong County -Garnue**, Gburriga Sharquellch*", Yanvquellloh*, Sanoyea+, Prulolih+ 12 27,000 1,440 W4 (c) Mimba County - lho+, Zanbogeo*, Zahnzayee+, Ziatown**, Dourpa*, ZickOpa+, lMeCnlah*, Gbanquoi , Kpaytuo+, Krwe3, Oblah+, Fjuv;pa+, Gipo", Gbediijx, ZuluGcee" , Sarkimpa+, Kpairplay)-, Vayanglay**, 1ohplay**, Garplayll* Unn.located+ 47 105,750 5,640 2,14 (d) Cape Mount Cointy - Junfu", Bendu*, Voniua*, Weilor**, Dtmballa" 1 8 1.8,000 960 1 (e) Montserrado County - Dolostown+, Peterstown+, Bondi-way** 11 24,750 1,320 2 Cf) Grand Bnsa County - Owenrgrovc+; Compound No. 1*, Edina + 7 15,750 840 2 Total 100 225,000 12,000 4,0 * one unit * two units + three or more units Approximate Gross AYea of new Additional Additional Construction Student Student Statf (square feet) Places Boarding Hous, (2) Zorzor Rural Teacher Training, Institute, 12,645 70 70 3 ne% Fissebu 2 rer - 25 - ANNEX 2 TO SCHEDULE 2 Specialist Services and Fellowships A. Technical Assistance 1. Community Schools Program (a) 10 man-years for five specialists to train teachers in Educational Psychology, Language Arts, Mathematics, Science and Adult Education Methods; and (b) 2 man-years for one specialist to assist in developing the adult education program of the Ministry of Education. 2. Strengthening of Central Administrative Services (a) 4 man-years for specialists for the Institute of &ublic Administration to a3sist the Ministry of Education in reform of overall administrative structure procedures, organization and methods; (b) 2 man-years for two specialists to coordinate and finalize revision of curricula and prepare a technology syllabus; (c) 2 man-years for one specialist in Educational Testing and Measurement to assist the Ministry of Education in expanding and improving its system of testing; - 26 - (d) 2 man-years for one specialist in Educational Publications to assist the Ministry of Education in establishing a publications unit and textbook production; (e) 1 man-year for one specialist in educational planning to finalize the long range educational development plan of the Ministry of Education; (f) 1 man-year for one specialist in technical education to plan for the development of technical education in the Ministry of Education; (g) 2 man-years for one specialist in educational architecture for the Educational Facilities Office of the Ministry of Education to provide architectural services for the community schools program and architectural planning services to the Ministry; and (h) 6 man-months for one specialist in project administration to act as Deputy Project Director. 3. Preparatory Work on Future Projects (a) One and one-half (1-1/2) man-years for one specialist in vocational planning to assist the Ministries of Planning and Economic Affairs and Labor, Youth and Sports in establishing a Vocational Training Center and a National Council on Vocational Training. (b) 3 man-months for one specialist to assist the Ministry of Education in assessing the feasibility of educational broad- casting. - 27 - B. Other Specialist Services 1. Research/Evaluation 30 man-months for about six specialists to assist in carrying out research/evaluation of the community schools program. 2. Administrative Reform 2 man-years for one person to assist the Institute of Public Administration in its review of the administration of Education. 3. Syllabus Writing 4 man-years for about four specialists to finalize syllabi. 4. Textbook Preparation 6 man-years for about six specialists to write textbooks. C. Fellowships 1. Community Schools Program (a) 12 man-years for training ten persons to serve as teacher trainers on the staff of Zorzor Rural Teacher Training Institute; and (b) 10 man-years for training ten persons in adult education techniques and supervision to serve in the Adult Education Division of the Ministry of Education. - 28 - 2. Strengthening of Central Administrative Services (a) 3 man-years for two persons to be trained as Accountants to serve in the Ministry of Education (one of whom will serve in the Project Implementation Unit); (b) 10 man-months for two persons to be trained in procure- ment to serve in the Ministry of Education (one of whom will serve in the Project Implementation Unit); (c) 4 man-years for two persons to be trained in the teaching of applied science (technology) particularly at lower secondary level; (d) 3 man-years for three persons to be trained in curriculum development techniques to serve in the Curriculum Development Unit of the Ministry of Education; (e) 3 man-years for three persons to be trained in Educational Testing and Measurement (including one in technical education test- ing and measurement) to serve in the Educational Testing Division of the Ministry of Education; (f) 6 man-years for approximately ten persons to be trained for the Educational Publications Unit in the fields of General Editing (1 man-year for one person), Art Editing (3 man-years for two persons), Maintenance of Equipment (6 man-months for two per- sons), Photography (6 man-months for two persons) and Production Management (5 man-months for one person); and - 29 - (g) 5 man-years for three persons to be trained in educational planning to serve in the Planning Bureau of the Ministry of Education. 3. Preparation for Future Projects 4 man-years for two persons to be trained in the training of forest rangers. - 30 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* January 15, 1983 70,000 July 15, 1983 70,000 January 15, 1984 75,000 July 15, 1984 75,000 January 15, 1985 75,000 July 15, 1985 80,000 January 15, 1986 80,000 July 15, 1986 85,000 January 15, 1987 85,000 July 15, 1987 85,000 January 15, 1988 90,000 July 15, 1988 90,000 January 15, 1989 90,000 July 15, 1989 95,000 January 15, 1990 95,000 July 15, 1990 100,000 January 15, 1991 100,000 July 15, 1991 105,000 January 15, 1992 105,000 July 15, 1992 105,000 January 15, 1993 110,000 July 15, 1993 110,000 January 15, 1994 1 5,0- July 15, 1994 115,000 January 15, 1995 120,000 July 15, 1995 125,000 January 15, 1996 125,000 July 15, 1996 130,000 January 15, 1997 130,000 July 15, 1997 135,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 31 - Payment of Principal Date Payment Due (expressed in dollars)* January 15, 1998 135,000 July 15, 1998 140,000 January 15, 1999 145,000 July 15, 1999 145,000 January 15, 2000 150,000 July 15, 2000 155,000 January 15, 2001 16o,ooo * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 32 -* Premiums on Prepayment The following percentages are specified as the premiums pay- able on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years 1% before maturity More than three years but not 2-1/4% more than six years before maturity More than six years but not more 4% than eleven years before maturity More than eleven years but not 5-1/2% more than sixteen years before maturity More than sixteen years but not 7-1/4% more than twenty-one years before maturity More than twenty-one years but not 8% more than twenty-three years before maturity More than twenty-three years 8-1/2% before maturity - 33 - SCHEDULE 4 Procurement A. International Competitive Bidding 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. B. Other Procurement Procedures 1. Civil works for the renovation of two staff houses at the Zorzor Rural Teacher Training Institute and minor works for the adaptation and air-conditioning of the publications unit shall be undertaken respectively by the staff of the said Teacher Training Institute and the Ministry of Public Works by force account. 2. The primary school units under Part A of the Project shall be constructed by a contractor or contractors approved by the Bank upon terms and conditions acceptable to the Bank. 3. Furniture, equipment, vehicles and other items which cannot be grouped in packages of at least $50,000 equivalent each or which are not suitable for international competitive bidding may be procured on the basis of quotations in accordance with local procedures acceptable to the Bank. -34 - 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: (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 Liberia may be granted a margin of preference in accordance with, and subject to, the following pro- visions: (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 Liberia if the bidder shall have established to the satis- faction of the Borrower and the Bank that the manu- facturing cost of such goods includes a value added - 35 - in Liberia equal to at least 20% of the ex-factory bid pr4ce of such goods. (2) Group B: all other bids offering goods manufactured in Liberia. (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 fur- ther comparison only, an amount equal to (i) the amount of cus- toms 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. - 36 - D. Review of Procurement Decisions by Bank With respect to all contracts for civil works, furniture and equipment estimated to cost the equivalent of $50,000 o-. more: (a) Before bids are invited, the Borrowei shall furnish to the Bank, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said docu- ments or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, with- out the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited. -37 - (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submis- sion to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. With respect to each contract to be financed out of the pro- ceeds of the Loan and not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execu- tion and prior to the submission to the Bank of the first applica- tion for withdrawal of funds from the Loan 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 Bank shall reasonably re- quest. 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 de- termination.