Somali - Third Education Project : Credit 0738 - Development Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 738 SO Development Credit Agreement (Third Education Project) between SOMALI DEMOCRATIC REPUBLIC and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated September 30, 1977 CREDIT NO. 738-SO DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated September 30, 1977, between SOMALI DEMOCRATIC REPUBLIC (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The Borrower has requested the Association to assist in the financing of Part A of the Project tJscribed .in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) The Borrower intends to contract from the African Development Fund (hereinafter called ADF) a loan (hereinafter called the ADF Loan) in an amount in ADF Units of Account equivalent to about one million six hundred fifty thousand dollars ($1,650,000) to assist in financing Part B of the Project on terms and conditions set forth in an agreement (hereinafter called ADF Loan Agreement) to be entered into between the Borrower and ADF; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the "redit t- the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: -2- ARTICLE I General Condition ; 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 Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Project Unit" and "School Design Unit" mean the Project Unit and the School Design Unit, respectively, each established by the Borrower pursuant to the First Education Project (Credit No. 247 SO) and as expanded for the purposes of the Second Education Project (Credit No. 511 SO), and as the same may be further expanded by agreement between the Borrower and the Association. -3- (b) "RAETCs" means the Regional Adult Education and Training Centers included in Part A 1 (v) of the Project. (c) "NABM" means the National Agency for Building Materials of the Borrower, or any successor thereto. -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 equivalent to eight million dollars ($8,000,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project 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 financed 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 ClosI.ng Date shall be September 30, 1983, or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. -5- Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on June 1 and December 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each June 1 and December 1 commencing June 1, 1987, and ending December 1, 2026, each installment to and including the installment payable on December 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 curreny of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. -6- ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project through the Project Unit with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and educational practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in the carrying out of Part A (4) of the Project, the Borrower shall employ specialists .hose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, in accordance with Annex II to Schedule 2 to this Agreement. Section 3.03. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards 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 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. -7- Section 3.04. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents for Part A of the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of Part A of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in Part A of 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 Association shall reasonably request concerning Part A of the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.05. The Borrower shall take 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 Part A of the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. - 8 - Section 3.06. Except as the Association may otherwise agree, the Borrower shall: (a) not later than September 30, 1978, employ a specialist, with terms of reference satisfactory to the Association, to (i) develop courses on training in handicraft, carpentry, simple mecnanical and electrical works, construction and similar skills; and (ii) train village craftsmen to serve as instructors at the RAETCs; (b) not later than October 30, 1977, furnish to the Association for comments a plan for the carrying out of a survey of the training needs in the field of public administration and management in Somalia and shall, not later than April 30, 1978: (i) employ a specialist to assist in the carrying out of the said survey, with terms of refereace satisfactory to the Association; (ii) procure all equipment necessary for the said survey; and (iii) commence the said survey; (c) not later than September 30, 1982, furnish or cause to be furnished to the Association, for review, the proposed terms of reference for a committee to evaluate the benefits accruing to the Borrower from the Project and, after such review, establish the said committee in accordance with terms of reference agreed between the Borrower and the Association; and -9- (d) not later than September 30, 1983, furnish, or cause to be furnished, to the Association, a report on said evaluation of the Project. Section 3.07. Except as the Borrower and the Association may otherwise agree, the Borrower shall prepare, or cause to be prepared, on a continuing basis, six-monthly estimates of building materials required for Part A of the Project and to be procured by the NABM, and shall take all such measures as shall be necessary on its part to ensure timely clearance of the said materials upon arrival in the Borrower's ports. Sectin 3.08. The Borrower shall cause the Project Unit: (i) to maintain a separate account for the amounts expended by the Borrower under Category 5 of paragraph 1 of the table set forth in Schedule 1 to this Agreement, in accordance with consistently maintained appropriate accounting practices; (ii) to have the said account (statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate principles consistently applied, by independent auditors acceptable to the Association; (iii) to make available to the Association, upon its request, (A) certified copies of the account so audited, (B) the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably requested, and (C) such other information concerning - 10 - the said account and the audit thereof as the Association shall from time to time reasonably request. Section 3.09. The Borrower shall: (i) consult with the Association in respect of the program of fellowships provided under Part A (5) of the Project, and (ii) select candidates for the said program and define the terms of reference of their fellowships on the basis of criteria satisfactory to the Association. - 11 - ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintainted appropriate accounting practices the operations, resources and expenditures, in respect of Part A of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. (a) The Borrower shall operate or cause to be operated the educational institutions and facilities included in Part A of the Project in accordance with appropriate educational and administrative policies and practices and with due regard to economy, all as required in order to further the educational objectives of the Borrower. (b) The Borrower shall at all times employ or cause to be employed full-time qualified administrators and teachers in adequate numbers to staff the educational institutions included in Part A of the Project. Section 4,03. The Borrower shall adequately maintain or cause to be miaintained the buildings, equipment and furniture of the educational institutions included in Part A of the Project and - 12 - make or cause to be made all necessary repairs and renewals thereof, all in accordance with appropriate administrative and technical standards. - 13 - ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions the following additional event is specified pursuant to paragraph (h) thereof: (a) Subject to paragraph (b) of this Section: (i) the right of the Borrower to withdraw the proceeds of the ADF Loan, made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the ADF Loan Agreement; or (ii) the ADF Loan shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if the Borrower establishes to the satisfaction of the Association that: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate 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. -14 - 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 paragraph (a) (ii) of Section 5.01 of this Agreement shall occur. - 15 - ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Borrower has selected the sites, satisfactory to the Association, for the construction of each of the RAETCs and has made available such sites for the purposes of the Project; (b) the Borrower has appointed an architect to the School Design Unit and an additional accountant to the Project Unit, with qualifications, experience and terms of reference satisfactory to the Association; and (c) the ADF Loan Agreement has, or will concurrently with this Agreement, become fully effective. Section 6.02. The date January 4, 1978, is hereby specified 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 20 years after the date of this Agreement, whichever shall be the earlier. - 16 - ARTICLE VII Representatives 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: Ministry of Finance Mogadiscio, Somalia Cable address: MINFINANCE Mogadiscio For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) - 17 - 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. SOMALI DEMOCRATIC REPUBLIC By /s/ Abdurahman Nur Herzi Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ W.A. Wapenhans Regional Vice President Eastern Africa - 18 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amount of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 1,850,000 100% of foreign (excluding expenditures and labor for 56% of local RAETCs) expenditures (2) Printing 1,560,000 100% of foreign materials expenditures (3) Furniture, 1,250,000 100% of foreign equipment and expenditures, vehicles (in- 100% of local cluding local expenditures ex- transport ser- factory, and vices) 80% of local expenditures for imported items purchased locally and for local transport services (4) Technical 1,000,000 100% of foreign assistance expenditures and 80% of local expenditures - 19 - Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (5) Project 100,000 50% Adminis tra- tion and Management Survey (6) Unallocated 2,240,000 TOTAL 8,000,000 - 20 - 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 compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. - 21 - 5. 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 insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other 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 Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as,, in th - 22 - Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 23 - SCHEDULE 2 Description of the Project The Project consists of the following parts: Part A: 1. The construction and equipping of: (i) one Curriculum Development Center; (ii) one Livestock and Forestry School; (iii) one Health Personnel Training Institute; (iv) one Nursing School; and (v) seven Regional Adult Education and Training Centers, all as detailed in the Annex I hereto. 2. Improvements and extensions to the Mogadiscio School of Nursing. 3. The equipping of the National Trade Testing and Training Center as detailed in the Annex I hereto. 4. (i) The development of curricula, teaching aids, materials and science kits for primary and secondary education and for teacher training and the evaluation of the educational system; (ii) the development of the trade testing system; (iii) the survey of training needs in public administration and management; - 24 - (iv) the provision of architectural services to the School Design Unit; and (v) the development of village technology in handicraft, carpentry, simple mechanical and electrical works, construction and similar skills. 5. The specialization in academic subjects, industrial arts, science kits production, trade testing system and forestry through fellowships abroad. 6. The provision of about three-year incremental requirements of materials for textbook production. Part B: 1. The additions to and the equipping of the State Printing Agency as detailed in the Annex I hereto. 2. The training of local staff in the operation and repair of printing equipment through technical assistance as detailed in Annex III hereto. The Project is expected to be completed by March 31, 1983. - 25 - ANNEX I Student Places Gross Area of Existing New Total Construction m2 1. Curriculum Development Center - - - 1,045 2. Livestock and Forestry School - 360 360 5,086 3, Health Personnel Training Institute 200 - 200 2,660 4. Kismayo School of - 60 60 1,226 Nursing 5. Mogadiscio School of Nursing 180 - 180 240 6. National Trade Testing and Training Center 30 60 90 - 7. State Printing Agency - - - 1,560 8. Regional Adult Education Centers (a) Baydoha - 120 120 522 (b) Galcayo - 120 120 618 (c) Goryooley - 120 120 522 (d) Gardo - 120 120 618 (e) Kismayo - 120 120 522 (f) Jowhar - 120 120 522 (g) Burao - 120 120 522 - 26 - ANNEX II Technical Assistance 1. Curriculum Development (Part A 4 (i) of the Project) Number Duration of of Specialists for: Specialists Employment General Curriculum/ Education Evaluation 1 24 man/months Teaching Aids/Materials Production 1 12 man/months Science Kits Production 1 12 man/months 2. National Trade Testing and Training Center (Part A 4 (ii) of the Project) Specialist for: Development and Training of Trade Testing System 1 24 man/months 3. Survey of Public Administration (Part A 4 (iii) of the Project) Specialist for: Public Administration and Management Training 1 12 man/months 4. Project Administration (Part A 4 (iv) of the Project) Architectural Services for the School Design Unit 1 60 man/months - 27 - Number Duration of of Specialists for: Specialists Employment 5. Regional Adult Education and Training Centers (Part A 4 (v) of the Project) Specialist for: Village Technology 1 12 man/months Number Duration of of Fellowships Training 6. Fellowships (Part A 5 of the Project) Curriculum Development 1 18 man/months Subject Specialization 8 144 man/months Industrial Arts 1 18 man/months Science Kits Production 2 12 man/minths Development and Training of Trade Testing System 2 6 man/months Forestry Training 3 72 man/months - 28 - ANNEX III Technical Assistance Textbook Printing (Part B 2 of the Project) Number Duration of of Specialists Employment Specialists for: Operations and Repair of Printing Equipment 3 36 man/months - 29 - SCHEDULE 3 Procurement A. Appropriate Procurement Agency Wherever used in this Schedule "appropriate procurement agency" means: (i) with respect to procurement from outside the Borrower's territories of building materials and services associated therewith, NABM; and (ii) with respect to the procurement of all other goods and services to be financed out of the proceeds of the Credit, the Project Unit. B. International Competitive Bidding 1. Except as provided in Parts C and F hereof, contracts for the purchase of goods or for civil works shall be procured in accordance with procedures consistent with those set forth in Part A of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guidelines), on the basis of international competitive bidding. (i) Bidders for the works included in Parts A 1 (excluding Part A 1 (v)) and A 2 of the Project shall be prequalified as described in paragraph 1.3 of Part A of the Guidelines; and - 30 - (ii) the appropriate procurement agency shall furnish to the Association the standardized sketch designs for the civil works, master lists of furniture, equipment (including vehicles) and printing materials, and proposed groupings for tender, indicating the specifications and the estimated unit and total price of the items to be procured, and shall make such modifications in said master lists as the Association shall reasonably request. Said items shall be indexed, coded and numbered for identification with respect to the Project institutions and locations for which they are to be used. To the extent practicable, identical or similar items of furniture, equipment (including vehicles) and printing materials shall be grouped in lots estimated to cost the equivalent of $50,000 or more so as to permit bulk procurement in accordance with appropriate technical and procurement practices. C. Other Procurement Procedures Contracts for (i) construction materials required for RAETCs and not imported by NABM; (ii) equipment (including vehicles) and furniture which cannot be reasonably grouped together in lots - 31 - estimated to cost $50,000 equivalent; and (iii) local transport services, may be procured by advertising locally and in accordance with competitive bidding procedures satisfactory to the Association. b. 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; (ii) customs duties and other import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Somalia 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 information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. - 32 - (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Somalia if the bidder shall have established to the satisfaction of the Borrower and tlhe Association that the manufacturing cost a such goods includes a value added in Somalia equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Somalia. (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 evaluated 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 bids from - 33 - 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 such custom 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. E. Evaluation and Comparison of Bids for Civil Works; Preference for Domestic Contractors With respect to any contract for civil works included under Category 1 of the table set forth in Schedule 1 to the Credit Agreement and to be procured in accordance with the procedures described in Part B.1 of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: (a) Contractors shall be required to prequalify as provided in Part B of this Schedule and applicants for qualification applying also for such preference shall be asked to provide, - 34- as part of the data for qualification, such information, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. (b) After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. F. Procurement Without Contracting The construction of the RAETCs shall be carried out through force account by departmental agencies under the supervision of the Project Unit. - 35 - G. Review of Procurement Decisions by the Association 1. The Borrower shall, before qualification is invited, inform or cause the appropriate procurement agency to inform the Association in detail of the procedure to be followed, and shall introduce such modifications in said procedure as the Association shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and, where applicable, of their eligibility for domestic preference under Part E above and of the reasons for the exclusion of any applicant for prequalification and for such eligibility shall be furnished by the Borrower to the Association for its comments before the applicants are notified of the Borrower's decision, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Association shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for civil works (other than RAETCs) and for furniture, materials and equipment (including vehicles) estimated to cost the equivalent of $50,000 or more: (a) Before bids are invited, the Borrower shall furnish or cause the appropriate procurement agency to furnish to the - 36 - 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 request. 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 Borrower shall, before a final decision on the award is made, inform or cause the appropriate procurement agency to inform the Association of the name of the bidder to which it intends to award the contract and to furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the recommendations 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. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 3. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding paragraph, the Borrower shall furnish or cause the appropriate procurement agency to 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 reasonably 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.