Tanzania - Second National Sites And Services Project : Credit 0732 - Development Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 732 TA Development Credit Agreement (Second National Sites and Services Project) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated November 3, 1977 CREDIT NUMBER 732 TA DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated November 3, 1977, between UNITED REPUBLIC OF TANZANIA (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 the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) Parts E and F of the Project will be carried out by the Tanzania Housing Bank (hereinafter called THB) and the Small Industries Development Organization (hereinafter called SIDO), respectively, with the Borrower's assistance and, as part of such assistance, the Borrower will make available to THB and SIDO, respectively, the proceeds of the Credit as hereinafter provided; and (C) The Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth and in the project agreements of even date herewith between the Association and THB and SIDO, respectively; NOW THEREFORE the parties hereto hereby agree as follows: - 2 - ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit 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 and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Ardhi" means the Ministry of Lands, Housing and Urban Development of the Borrower; (b) "SIDO Project Agreement" means the agreement between the Association and SIDO of even date herewith, as the same may be amended from time to time, and such term includes all schedules to such project agreement; (c) "SIDO Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and SIDO pursuant to Section 3.01 (d) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to such subsidiary loan agreement; -3- (d) "THB Project Agreement" means the agreement between the Association and THB of even date herewith, as the same may be amended from time to time, and such term includes all schedules to such project agreement; (e) "THB Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and THB pursuant to Section 3.01 (c) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to such subsidiary loan agreement; and (f) "TShs" means the currency of the Borrower. -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 twelve million dollars ($12,000,000). 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 set forth or referred to in Schedule 3 to this.Agreement. Section 2.04. The Closing Date shall be June 30, 1982, 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-an ally on March 1 and September 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 1 and September 1 commencing September 1, 1987, and ending March 1, 2027, each installment to and including the installment payable on March 1, 1997, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. -6- ARTICLE III Execution of the Project Section 3.01. (a) The Borrower, through Ardhi, shall carry out Parts A, B, C, D and F (2) of the Project with due diligence and efficiency and in conformity with appropriate administrative, engineering, public utility and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause THB to carry out Part E of the Project and SIDO to carry out Part F (1) of the Project and to perform in accordance with the provisions of the THB Project Agreement and the SIDO Project Agreement, respectively, and the THB Subsidiary Loan Agreement and the SIDO Subsidiary Loan Agreement, respec- tively, all the obligations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable THB and SIDO, respectively, to perform such obligations, and shall not take or permit to be taken any action wbich would prevent or interfere with such performance. (c) The Borrower shall relend such portion of the proceeds of the Credit as shall be disbursed by the Association for Part E -7- of the Project to THB under a subsidiary loan agreement to be entered into between the Borrower and THB on terms and conditions satisfactory to the Association, which shall include the following: with respect to funds for the purchase of imported cement repayment shall be in 20 years inclusive of five years of grace; interest shall be payable at three per cent per annum; and the Borrower shall bear the foreign exchange risk. (d) The Borrower shall relend to SIDO such portion of the proceeds of the Credit as shall be disbursed by the Association for Part F (1) of the Project under a subsidiary loan agreement to be entered into between the Borrower and SIDO on terms and condi- tions satisfactory to the Association, which shall include the following: with respect to funds utilized for the hire-purchase program described in Part F (1) (b) of the Project repayment shall be in ten years inclusive of three years of grace; interest shall be payable at three per cent per annum; and the Borrower shall bear the foreign exchange risk. (e) The Borrower shall exercise its rights under the THB Subsidiary Loan Agreement and the SIDO Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the THB Subsidiary Loan Agreement or the SIDO Subsidiary Loan Agreement or any provision of either. -8- Section 3.02. The Borrower shall employ, or cause to be employed, consultants acceptable to the Association upon terms and conditions satisfactory to the Association to assist the Borrower in carrying out the Project. Section 3.03. (a) The Borrower shall discuss with the Associ- ation the recommendations of the Land Rent and Service Charge Study, including, without limitation, the level and composition of plot charges, and terms and guidelines for collection, and shall agree with the Association by December 31, 1977, on a timetable for implementing the appropriate recommendations of the Study. (b) Until such time as the recommendations referred to in paragraph 3.03 (a) are implemented, the Borrower shall set and collect, or cause Ardhi to set and collect, land rent and service charges (i) on surveyed plots in accordance with the provisions of the Land (Rent and Service Charge) Act, 1974, No. 19 of 1974, as amended from time to time; and (ii) on unsurveyed but registered plots at TShs 100 per house as revised from time to time by the Borrower. Section 3.04. Except as the Association shall otherwise agree, the Borrower shall allocate, or cause to be allocated, the plots to be developed under Part A (2) of the Project in accordance with the provisions set forth or referred to in Schedule 4 to this Agreement. -9- Section 3.05. The Borrower shall provide participants in Part A (1) of the Project with Offers of a Right of a Sdort Term Right of Occupancy the terms and conditions of which shEll be satisfac- tory to the Association. Section 3.06. The Borrower shall ensure that all necessary approvals for the importation of cement for house construction or improvement loans under Part E of the Project shall promptly be granted. Section 3.07. The Borrower shall take all appropriate steps to ensure the continued financial viability of the lending program pursuant to Part A (1) of the Project if the default rate on repayments of loans made by THB to persons living in an area described in said Part A (1) shall exceed 25% of the total amount of such loans outstanding from time to time. Section 3.08. The Borrower shall ensure that the Sites and Services Division of Ardhi is appropriately structured, adequately staffed and provided with sufficient resources to implement the Project effectively. Section 3.09. The Borrower shall prepare, or cause to be prepared, guidelines for the urban mother and child health clinics included in Part A (3) of the Project, by December 31, 1977, or such later date as the Borrower and the Association shall agree. - 10 - Section 3.10. The Borrower shall cause the infrastructure and community facilities included in Part A and F (2) of the Project to be maintained, operated and staffed in conformity with appro- priate administrative, engineering, public utility, public health and educational practices, as the case may be, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for this purpose. Section 3.11. 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 the construction and operation of the facilities included in the Project. Section 3.12. (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 may 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 until its completion. - 11 - Section 3.13. (a) The Borrower shall furnish, or cause to be furnished, to Lhe Association, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower shall: (a) cause Ardhi to maintain separate records adequate to record the progress 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) enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) cause Ardhi to furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.14. The Borrower shall, within three months of the Closing Date, prepare, in consultation with the Association and submit to the Association, a report evaluating the Project. - 12 - ARTICLE IV Other Covenants Section 4.01. Until the completion of the Project: (a) the Borrower shall cause Ardhi to establish and maintain a separate Project account to be used exclusively for the Project in which Ardhi would record all of Ardhi's receipts and expendi- tures for or in connection with the Project; and (b) the Borrower shall cause Ardhi to: (i) have the Project account for each fiscal year audited, in accordance with sound auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the Project account for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning the Project account and the audit thereof as the Association shall from time to time reasonably request. - 13 - ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph (h) thereof: (a) THB or SIDO shall have failed to perform any of its obligations under the THB Project Agreement or SIDO Project Agreement, respectively; (b) the Borrower or THB, or the Borrower or SIDO, shall have failed to perform any of its respective obligations under the THB Subsidiary Loan Agreement or SIDO Subsidiary Loan Agreement, respectively; (c) the organization, powers or responsibilities of THB or SIDO shall have been altered so as to affect adversely the execution of Part E or Part F, respectively, of the Project. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (d) thereof: (a) the events specified in paragraphs (a) and (b) of Section 5.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower and THB and SIDO; and (b) the event specified in paragraph (c) of Section 5.01 of this Agreement shall occur. - 14 - 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 execution of the THB Project Agreement on behalf of THB has been duly authorized or ratified by all necessary corporate and governmental action; (b) the execution of the SIDO Project Agreement on behalf of SIDO has been duly authorized or ratified by all necessary corporate and governmental action; (c) the execution of the THB Subsidiary Loan Agreement on behalf of the Borrower and THB, respectively, has been duly authorized or ratified by all necessary corporate and governmental action; and (d) the execution of the SIDO Subsidiary Loan Agreement on behalf of the Borrower and SIDO, respectively, has been duly authorized or ratified by all necessary corporate and governmental action. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association: - 15 - (a) that the THB Project Agreement has been duly authorized or ratified by THB, and is legally binding upon THB in accordance with its terms; (b) that the SIDO Project Agreement has been duly authorized or ratified by SIDO, and is legally binding upon SIDO in accordance with its terms; (c) that the THB Subsidiary Loan Agreement has been duly authorized or ratified by the Borrower and THB, and is legally binding upon the Borrower and THB in accordance with its terms; and (d) that the SIDO Subsidiary Loan Agreement has been duly authorized or ratified by the Borrower and SIDO, and is legally binding upon the Borrower and SIDO in accordance with its terms. Section 6.03. The date February 2, 1978 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sections 3.08 and 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. - 16 - ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower at the time responsible for Finance 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 purpose of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance and Planning P.O. Box 9111 Dar es Salaam Tanzania Cable address: TREASURY Dar es Salaam 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. UNITED REPUBLIC OF TANZANIA By /s/ Paul Bomani Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Is! W. A. Wapenhans Regional Vice President Eastern Africa - 18 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 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: Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 6,100,000 70% (2) Furniture, equipment, materials and vehicles (a) Imported 1,500,000 100% of foreign goods expenditures (b) Goods pro- 500,000 75% of local cured locally expenditures (3) Consultants' 2,100,000 100% of foreign services expenditures and 75% of local expenditures (4) Unallocated 1,800,000 TOTAL 12,000,000 - 19 - 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 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equivalent - 20 - of $200,000, may be made in respect of Category (3) on account of payments made for such expenditures before that date but after February 1, 1977. 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 insufficent 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 - 21 - any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 22 - SCHEDULE 2 Description of the Project The Project will provide financial and technical support over the years 1977-1981 to assist in the implementation of the Borrower's current national sites and services program. The Project consists of the following parts: Part A: (1) The improvement of the basic infrastructure and related facilities, including, inter alia, roads, water supply, drainage, and power supply, on existing squatter settlements comprising approximately 16,000 houses in ten areas: in Dar es Salaam at Mtoni/Tandika, at Mbagala, and at Hanna Nassif; in Tabora at Isebya and at Kiloleni; in Tanga at Gofu Juu and at Mwakizaro; in Morogoro at Msamvu and at Kichangani; and in Iringa at Kihesa. (2) The provision of surveyed land and installation of basic water supply systems for approximately 19,000 surveyed plots, of which about 75% are in Dar es Salaam, 9% in Iringa, 7% in Tanga, 5% in Tabora and 4% in Morogoro. - 23 - (3) The construction of, and the provision of equipment and furniture for, community facilities (approximately 12 primary schools, one medical outpost, two new, and upgrading of three existing, mother and child health clinics and six markets) in the communities included in paragraph (1) of this Part. Part B: The purchase and utilization of an adequate number of vehicles and equipment to assist in carrying out the Project. Part C: Strengthening the capability of Ardhi to implement the Borrower's national sites and services program by providing technical assistance for detailed design and engineering work, for tendering and supervision of infrastructure, for on-the-job training of engineering assistants, for support in financial management, community development, training and preparing a management manual, for monitoring the impact and effect of the Project, and preparing further urban development projects. - 24 - Part D: Study of land rent and service charge in urban areas. Part E: The provision by THB of (1) house construction and improvement loans to persons living in the existing communities included in Part A (1) of the Project or having acquired plots included in Part A (2) of the Project, and (2) loans for building workshops and sheds included in Part F (2) of the Project. Part F: (1) The provision by SIDO in Tabora and Tanga of: (a) expanded management training and technical assis- tance; and (b) production equipment and critical raw materials to strengthen its on-going hire-purchase program. (2) The provision by Ardhi of infrastructure for industrial clusters. The Project is expected to be completed by December 31, 1981. - 25 - SCHEDULE 3 Procurement A. International Competitive Bidding Except as provided in Part B hereof, contracts for the purchase of goods or for civil works included in Part A (1) and (2) of the Project shall be procured in accordance 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) including the pertinent provisions of the General Introduction thereto, on the basis of international competitive bidding as described in Part A of the Guidelines. B. Other Procurement Procedures 1. Contracts for civil works included in Part A (3) of the Project and for the purchase of equipment and vehicles shall be awarded in accordance with the Borrower's applicable proce- dures. 2. Contracts for hire-purchase equipment and raw materials shall be awarded in accordance with SIDO's applicable procedures. 3. Contracts for the purchase of goods or for civil works estimated to cost less than the equivalent of $100,000 shall be awarded in accordance with the Borrower's ordinary procedures. - 26 - 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 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 Tanzania may be granted a margin of preference jn 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. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Tanzania if the bidder shall have established - 27 - to the satisfaction of the Borrower and the Association that the manufacturing cost of such' goods includes a value added in Tanzania equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Tanzania. (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 bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to (i) the amount of customs duties and other import taxes which a non-exempt importer would - 28 - 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. D. Evaluation and Comparison of Bids for Civil Works; Preference for Domestic Contractors With respect to any contract for civil works to be procured in accordance with the procedures described in Part A 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 A of the Guidelines and applicants for qualification applying also for such preference shall be asked to provide, 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 - 29 - 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. E. Review of Procurement Decisions by the Bank 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Association in detail of the procedure to be followed, and shall introduce such modifications in said procedure as the Bank 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 D 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 - 30 - 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 estimated to cost the equiva- lent of $10,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably 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 the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would - 31 - 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 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 proceeds of the Credit and not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the 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 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. - 32 - SCHEDULE 4 Allocation of Plots 1. Information concerning the availability of plots and terms of occupancy will be disseminated by the Borrower through the mass media and other appropriate means. 2. Interested persons will submit applications for surveyed plots to either Ardhi, Regional Land Offices or District Land Offices, as the case may be, for analysis. The results of this analysis will be forwarded to the Land Allocation Committees in the respective regions or Districts, as the case may be, for selection in accor- dance with specified criteria, with preference given to inter alia: (i) applicants previously displaced by public works projects; (ii) applicants with large numbers of immediate dependents residing in the household; (iii) applicants who do not own a house in the approximate area where the surveyed plots area is located; (iv) applicants who have spent long periods of time on waiting lists for housing; (v) applicants whose residence and employment are in Dar es Salaam, Tabora, Tanga, Iringa or Morogoro; and (vi) households with monthly incomes below TShs 1,000.