Costa Rica - San Jose Urban Transport Project : Loan 1491 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1491 CR Loan Agreement (San Josf Urban Transport Project) between REPUBLIC OF COSTA RICA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated November 4, 1977 LOAN NUMBER 1491 CR LOAN AGREEMENT AGREEMENT, dated November 4, 1977, between REPUBLIC OF COSTA RICA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the foreign exchange cost of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; 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 1 General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and 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 following additional terms have the following meanings: (a) "MOPT" means the Ministerio de Obras PGblicas y Transportes of the Borrower; (b) "DGTA" means the Direcci6n General de Transporte Automotor, a directorate of MOPT; (c) "DGV" means the Direcci6n General de Vialidad, a directorate of MOPT; (d) "DGT" means the Direcci6n General de Transito, a directorate of MOPT; -2- (e) "OFIPLAN" means the Oficina Nacional de Planificaci6n 7 Politica Econ6mica of the Borrower; (f) "Transmesa" means Transportes Metropolitanos, S.A., a corporation of the Borrower operating in the area of public transport; (g) "Traffic Regulations" means the Ley de Trdnsito of the Borrower, Ley No. 5930 of September 13, 1976, published in Gaceta No. 205 of October 27, 1976, and such term includes any supple- mentary regulations thereto and any amendments thereto; (h) "Consolidated Project Account" and "Subproject Accounts" mean the account or accounts established in accordance with Sections 4.02 (b) and 4.02 (c), respectively; and (i) "Project Committee" means the Comisi6n Ejecutiva del Proyecto de Transporte Urbano, a dependency of MOPT created pursuant to Executive Decree No. 7272-T, dated August 9, 1977, as published in Gaceta No. 160 of August 25, 1977. 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 referred to, an amount in various currencies equivalent to sixteen million five hundred thousand dollars ($16,500,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan 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 Bank, for expendi- tures made (or, if the Bank shall so agree, to be made) in respect of the reasonable coat of goods and services required for the Project described in Schedule 2 to this Agreement 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. -3- Section 2.04. The Closing Date shall be June 30, 1981 or such later date as the Bank shall otherwise establish. The Bank shall promptly notify the Borrower cf such later date. Section 2.05. The Borrower shall phy 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. section 2.06. The Borrower shall pay interest at the rate of seven and nine-tenths per cent (7.9%) per annum on the principal amount of the LoF.n withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.08. The Borrower shall 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, through MOPT, carry out Parts A through D of the Project, and through OFIPLAN carry out Part E of the Project, with due diligence and efficiency and in conformity with appropriate administrative, transport, engineering and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Project Committee shall, under the direction of MOPT, supervise the technical, administrative and financial aspects of Parts A through D of the Project, and shall coordinate the execution of the Project. Section 3.02. (a) In order to assist in carrying out the Project, the Borrower shall employ and assign to MOPT the following experts, whose qualifications, experience, and terms of reference shall be satisfactory to the Bank: (i) a Project Manager, to be employed no later than December 31, 1977; -4- (ii) three Traffic Signal Technicians to assist in carrying out Part B.6 of the Project, all to be employed no later than January 1, 1978; (iii) one Signal Installation and Maintenance Manager to assist in carrying out Part B.6 of the Project, to be employed no later than March 31, 1978; (iv) two Senior Traffic Technicians to assist in carrying out Part C.2 of the Project, one to be employed no later than March 31, 1978, and the other to be employed no later than September 30, 1978; and (v) one Engineer and one Economist for the Transport Policy Studies Unit to be established in accordance with Section 3.03 (a) of this Agreement, both to be employed no later than March 31, 1978. (b) In order to assist in carrying out the Project, the Borrower shall employ and assign to MOPT the following Advisers and Instructors, to be financed out of the proceeds of the Loan, whose qualifications, experience, terms of reference, and terms and conditions of employment shall be satisfactory to the Bank: (i) an Adviser to the Project Committee, to be employed no later than March 1, 1978; (ii) a Road Maintenance Adviser to assist in carrying out Part C.1 of the Project, to be employed no later than June 30, 1978; (iii) four Advisers, two in traffic planning and two in public transport, all, to be employed no later than September 30, 1978; and (iv) three Training Instructors to assist in carrying out Part D of the Project, all to be employed no later than June 30, 1978. (cN For the purpose of carrying out Part E of the Project, the Borrower shall employ and assign to OFIPLAN consultants, to be financed out of the proceeds of the Loan, whose qualifications, experience, terms of reference, and terms and conditions of employment shall be satisfactory to the Bank. -5- Section 3.03. The Borrower shall, no later than September 30, 1978: (a) establish within DGTA a Public Transport Department, a Traffic Engineering Department, and a Transport Policy Studies Unit, and carry out, through such Departments and Unit, work pro- grams satisfactory to the Bank, in public transportation, traffic planning and engineering, and transport policy studies; and (b) establish within DGV a Metropolitan Area Road Main- tenance Unit, the work program and staffing plan of which shall be satisfactory to the Bank. Section 3.04. Prior to the carrying out of Part D of the Project, the Borrower shall furnish to the Bank for its approval a detailed description of the training programs to be carried out under the Project. Section 3.05. (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 replace or repair such goods. (b) Except as the Bank shall otherwise agree, the Borrower shall (i) cause all goods, services and facilities financed out of the proceeds of the Loan to be used exclusively for the Project, and (ii) cause the bus inspection facility included in Part C.4 of the Project to be operated by Transmesa and to be used solely for the purpose of bus inspection. Section 3.06. (a) The Borrower shall furnish to the Bank, through MOPT and OFIPLAN, promptly upon their preparation, the plans, specifications, reports, contract documnts and construc- tion and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) The Borrower: (i) shall maintain, within MOPT and OFIPLAN, records adequate to record the pr6gress of the Project (including the cost thereof) and to identify the goods and s,-vices financed out of the proceeds of the Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank's -6- accredited representatives to visit the facilities and construc- tion 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, through MOPT and OFIPLAN, all such information as the Bank shall reason- ably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. (c) The Borrower shall, through MOPT, establish, no later than December 31, 1978, a monitoring program satisfactory to the Bank for the purpose of collecting, analyzing and evaluating information concerning the Project, and shall cause to be fur- nished to the Bank, in accordance with sub-Sections (a) and (b) of this Section, the information, studies and reports obtained thereby. Section 3.07. 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 avail- able for purposes related to the Project. Section 3.08. Prior to carrying out Parts A and B of the Project, the Borrower shall, through MOPT, furnish to the Bank for its approval detailed engineering plans and designs for the works referred to therein, such plans and designs to be reviewed, prior to transmittal to the Bank, by a senior consulting engineer whose terms of reference, qualifications and experience shall be satis- factory to the Bank. ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, 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 -ts loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such membor. To that end, if any lien shall be created on any public assf-ts (as hereinafter defined), as security for any external -7- 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 ana ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting 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 admin- istrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal ok, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory 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; and (ii) any lien arising in the ordinary course of banking transactions 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 sub- division thereof and of any entity owned or controlled by, or operating for the account 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: (a) maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained sound account- ing practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof; (b) establish and maintain within MOPT a Consolidated Project Account, and record therein all receipts and payments for or in connection with the Project; (c) establish and maintain within DGTA, DGV, DGT and OFIPLAN separate Sub-project Accounts, and record therein all receipts -8- and payments for or in connection with the portion of the Project carried out by each of them. Section 4.03. The Borrower shall: (a) cause the Consolidated Project Account and the Sub- project Accounts to be audited for each fiscal year, in accordance with sound auditing principles and in a manner satisfactory to the Bank; and (b) cause to be furnished to the Bank, not later than six months after the end of such fiscal year, certified copies of the Consolidated Project Account and the Sub-project Accounts for such year as so audited. Section 4.04. The ',0otrower shall take all recessary action to ensure permanent and c-iasstent enforcement of tae Traffic Regula- tions in the metropolI', area of San Jos&, including the enforce- ment of parking prohb tions and regulations limiting the access of cars to certain 1 :r,,s that are reserved for buses during periods of peak trafjL. flow. Section 4.05. The Borrower shall, through MOPT: (a) carry out traffic planning studies, in accordance with terms of reference satisfactory to the Bank, concerning methods to extend further priority to buses and other forms of public trans- portation and to discourage the inefficient use of cars; review such studies with the Bank no later than June 30, 1979; prepare and fur,-nish to the Bank, no later than December 31, 1979, a state- ment of urban transport policies based on such studies; and afford the Bank a reasonable opportunity to exchange views with MOPT concerning such policies, prior to their promulgation; (b) carry out a series of studies on the adequacy of bus services and bus fare levels and structures in San Jose; review with the Bank, no later than June 30, 1979, the results of such studies; prepare and furnish to the Bank, no later than December 31, 1979, proposed modifications to the Borrower's public transport policy, in accordance with the results of such studies; and afford the Bank a reasonable opportunity to comment upon such modifications as well as the timetable for carrying out such policy; (c) carry out a study of the effect on the urban poor of the elimination of bus subsidies in San Jos6; provided, however, that -9- in the event such elimination does not occur prior to June 30, 1978, the Borrower shall, through MOPT: (i) carry out a study of the effectiveness, incidence, and potential fiscal burden of bus subsidies; and (ii) refrain from introducing any new bus sub- sidies, or from increasing existing bus subsidies, during the period of such study. The Borrower shall review with the Bank, no later than June 30, 1979, such study and any new policies result- ing therefrom, as well as a timetable to be established no later than December 31, 1979, for the carrying out of such new policies. ARTICLE V Termination Section 5.01. The date February 2, 1978, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Ministro de Hacienda of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministerio de Hacienda San Jose Costa Rica Cable address: MINIHACIENDA San Jos6, Costa Rica For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America - 10 - Cable address: INTBAFRAD Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF COSTA RICA By Is/ Rodolfo Silva Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Eugenio F. Lari Acting Regional Vice President Latin America and the Caribbean - 11 - 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 expenditures 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 and related services: (a) for Part A of 8,050,000 ) the Project ) 70% (represent- ) ing the esti- ) mated foreign ) expenditure ) component) (b) for Part B of 990,000 ) the Project ) (2) Equipment 2,360,000 100% of foreign expenditures or 85% of local expenditures (3) Consultants' 730,000 100% of foreign services expenditures or 75% of total expenditures (4) Training 550,000 100% of foreign expenditures or 70% of total expenditures (5) Unallocated 3,820,000 TOTAL 16,500,000 - 12 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" 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; and (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in com- pliance 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 the Bank. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals 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 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 Cate- gory, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated short- fall, 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 applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the 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 expendi- tures for such item shall be financed out of the proceeds of the - 13 - Loan and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible f.r financing out of the proceeds of the Loan. - 14 - SCHEDULE 2 Description of the Project The Project consists of the following parts: Part A: 1. Construction of the New Tibas Radial road, of about 2.3 km. in length, to connect with the Siquirres - San Jose highway. 2. Widening of the following existing radial roads over the following distances: (a) San Pedro Radial (Route 2) over a distance of about 3.0 km. (b) Desemparados Radial (Route 4) over a distance of about 4.0 km. (c) San Sebastifn Radial (Route 214) over a distance of about 2.8 km. (d) Guadalupe Radial (Route 6) over a distance of about 2.6 km. (e) Uruca Radial (Route 1) over a distance of about 3.8 km. (f) Avenida 2 over a distance of about 1.0 km. 3. Rehabilitation of the existing Tibas Radial (Route 5) and of the Alajuelita Radial (Route 210). Part B: A Traffic Operations Program to Increase Capacity and Safety in the metropolitan area of San -Josf, consisting of: 1. construction of intersection improvements; 2. development and implementation of improved sub-area traffic circulation schemes; - 15 - 3. development and implementation of vehicle dispersal schemes; 4. installation of pedestrian facilities; 5. development and implementation of a central area bus circulation plan; and 6. installation of a traffic signal system for the central business district. Part C: The development and implementation of the following programs in the metropolitan area of San Jos6, including the purchase of equipment specified in Annex 1 to this Schedule: 1. A road maintenance program. 2. A program of traffic planning and control, including a program of improved signs and road marking. 3. A program to promote the development of public trans- port, including a program of enforcement of traffic regulations designed to give priority to modes of public transport. 4. A program of bus inspection, including the construction of a bus inspection facility to be operated by Transmesa. Part D: A training program for staff members of MOPT and for other persons working in the area of urban transport. Part E: A land use and urban growth study for the San Josf metro- politan area, to be carried out by OFIPLAN. The Project is expected to be completed by December 31, 1980. - 16 - ANNEX 1 Equipment to be provided under the Project Equipment for DGTA Traffic Signing Manufacturing Equipment Welding/Brazing Equipment Paint Sprayers and Accessories Reflective Sign Material Applicator Guillotine for Sheet Metal Silk Screen Printing Equipment Road Pavement Marking Equipment 2 Motorized Sprayers at 100 gallons capacity 2 Motorized Sprayers at 15 gallons capacity 4 Utility Trucks 2 General Purpose Vehicles 1 Machine for Marking Removal Traffic Signal Maintenance 2 Vehicles with telescopic hoists Equipment for DGT Radio Communications Equipment 15 Patrol Jeeps (including spare parts) 25 Patrol Motorcycles (including spare parts) 5 Tow Trucks (including spare parts) Equipment for DGV 1 8/10 Ton Roller 5 12 cu. yd. Dump Trucks 1 Grader (with rip blade) 1 Water Tanker (2,000 gals) & pump 1 Asphalt Spreader 1 Asphalt Tanker 2 Jeeps 1 Pickup Truck 2 Heavy Trucks - 17 - Equipment for DGV (Continued) 1 Lowload Truck 1 Mechanical Sweeper 1 Finisher (smooth wheeled) 1 5-8 Ton Smooth Wheel Roller 1 Self-Propelled Edger Miscellaneous equipment (compressor & road breakers, concrete mixer, vibreting plates) Equipment for Bus Inspection Facility 2 Brake Pressure Dynamometers 5 Headlight Alignment Test Units 10 Wheel Alignment Test Rigs Miscellaneous tools - 18 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each February 15 and August 15 beginning February 15, 1982 through February 15, 1994 635,000 On August 15, 1994 625,000 * 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. - 19 - Premiums on Prepayment The following percentages are specified as the premiums payable 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 before maturity 1.40% More than three years but not more than six years before maturity 2.80% More than six years but not more than eleven years before maturity 5.10% More than eleven years but not more than fifteen years before maturity 6.95% More than fifteen years before maturity 7.90% - 20 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Part B hereof, contracts for the purchase of goods or for civil works shall be procured in accor- dance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (hereinafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For bidding purposes, construction work under Part A and Part B.6 of the Project shall be divided into lots in a manner acceptable to the Bank. The invitation to bid for such work shall, inter alia, specify that: (i) bidders may submit bids for one or more lots; (ii) all bids shall be opened and all awards shall be made simultaneously; (iii) awards shall be made on the basis of the lowest evaluated bid or combination of bids; and (iv) the Borrower shall have the option of awarding to one contractor a single contract in respect of all lots or separate contracts to different contractors in respect of one or more lots. B. Other Procurement Procedures Contracts for civil works and services related to Parts B.1 to B.5 of the Project may be awarded on the basis of local com- petitive bidding procedures satisfactory to the Bank. C. Evaluation and Comparison of Bids for Goods; Preference for Manufacturers Established in the Territories of the Central American Common Market 1. For the purpose of evaluation and comparison of bids for the supply of goods: (a) bidders shall be required to state in their bid the c. and f. (port of entry) price for imported goods, or the ex- factory price for domestically-manufactured goods; (b) customs duties and other import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and - 21 - (c) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use of installation shall be included. 2. Bids shall be compared in accordance with the following rules: (a) the term "Central American Bid" means a bid submitted by a manufacturer established in the territories of the Central American Common Market for goods manufactured or processed to a substantial extent (as reasonably determined by the Bank) in such territories; any other bid will be deemed to be a "Non-Central American Bid"; (b) the bid price under a Central American Bid will be the sum of the following amounts: (i) the ex-factory price of such goods; and (ii) freight, insurance and other costs of delivery of such goods to the site designated in the specifica- tions; and (c) for the purpose of comparing any Non-Central American Bid with any Central American Bid, the price under a Non-Central American Bid will be the sum of the following amounts: (i) the c. and f. (port of entry) price of such goods; (ii) insurance costs to the port of entry; (iii) half the amount of any taxes on the importation of such goods into the territories of the Borrower which generally apply to non-exempt importers, or 15% of the amounts specified in (i) and (ii) above, whichever shall be the lower; and (iv) freight insurance and other costs of delivery of such goods from the port of entry to the site designated in the specifications. 3* The bidding documents shall clearly indicate the margin of preference to be granted. - 22 - D. Review of Procurement Decisions by the Bank 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for civil works estimated to cost the equivalent of $100,000 or more, and with respect to all contracts for equipment estimated to cost the equivalent of $50,000 or more: (a) Before bids are invited, the Borrower 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 documents 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 Borrower 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 com- parison 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, without the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the 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 execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such - 23 - 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 request. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination.