India - Orissa Agricultural Development Project : Credit 0682 - Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 682 IN ORISSA PROJECT AGREEMENT (Orissa Agricultural Development Project) between THE STATE OF ORISSA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated April 1, 1977 ORISSA PROJECT AGREEMENT AGREEMENT, dated April 1, 1977, between the STATE OF ORISSA, acting by its Governor (hereinafter called Orissa) and INTERNA- TIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to twenty million dollars ($20,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Orissa agrees to undertake such obligations toward the Association as hereinafter set forth; and WHEREAS Orissa, in consideration of the Association's enter- ing into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: -2- ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "OLIC" means Orissa Lift Irrigation Corporation Limited, a corporation registered under the Companies Act, 1956 of the Borrower, and includes any successor thereof; and (b) "DAFP" means the Directorate of Agriculture and Food Production of Orissa. -3- ARTICLE II Execution of the Project Section 2.01. Orissa shall carry out, or cause to be carried out the Project described in Schedule 2 to the Development Credit Agreement, with due diligence and efficiency and in conformity with appropriate administrative, financial, agricultural and en- gineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other re- sources required for the purpose. Section 2.02. (a) For the purpose of better coordination be- tween the agencies implementing the Project, Orissa shall establish a Policy Planning and Coordination Unit in such detail and with such terms of reference as shall be acceptable to the Association. (b) For the purpose of efficient implementation of the build- ings component under the Project and to expedite disbursements re- lated thereto, Orissa shall, (i) establish a Buildings Implementa- tion Unit (BIU) within the Public Works Department of Orissa or such other Department of Orissa as the Association may agree, and (ii) appoint a Director of BIU with suitable qualifications and experience. 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 1 to this Agreement. Section 2.04. (a) Orissa undertakes to insure, or make ade- quate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or instal- lation, and for such insurance any indemnity shall be payable in a currency freely usable by Orissa to replace or repair such goods. (b) Except as the Association may otherwise agree, Orissa shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the Project. Section 2.05. (a) Orissa shall furnish to the Association, promptly upon their preparation, the plans, specifications, re- ports, 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) Orissa: (i) shall maintain, or cause to be maintained, 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 made available to it by the Bor- rower, and to disclose the use thereof in the Project; (ii) shall, without limitation upon the provisions of paragraph (c) of this Section, enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of such proceeds and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request -5- concerning the Project, the expenditure of the proceeds of the Credit so made available to it and the goods and services financed out of such proceeds. Section 2.06. In order to ensure the mobility of staff engaged in extension work under the Project, Orissa undertakes to make avail- able to all such staff who are in need of credit for the purchase of suitable means of transport, such credit, on terms and conditions which shall be sufficient to create incentive for the purchase of such means of transport. Section 2.07. Orissa shall cause OLIC to: (i) establish promptly and maintain a separate unit to conduct ground water surveys and monitoring with such terms of reference and composition as may be mutually agreed upon between Orissa and the Association; and (ii) implement a three-year program of research, design, installation and field testing of inexpensive shal- low tubewells, together with low-cost alternative systems of irrigation water extraction and distribu- tion, and to appoint adequate staff to conduct said program. Section 2.08. Orissa shall strengthen its Bureau of Statis- tics and Economics with such additional staff as shall be adequate to undertake a statistical data collection and processing System in order to cover annually about 10,400 villages, and shall make -6- arrangements for adequate training of field staff in statistical methodology and practical field work. Section 2.09. (a) Orissa undertakes to provide adequate housing facilities to enable its village level workers engaged in extension services to live in the area assigned for their operations. (b) Except as the Association may otherwise agree, in re- spect of houses for village level workers to be financed from the proceeds of the Credit, Orissa shall, (i) within two months from the date of this Agreement, furnish to the Association for its review the standard design and cost estimates for such houses, and (ii) within six months from the date of this Agreement, com- plete a survey to determine the number and locations of such houses. Section 2.10. For the purpose of carrying out Part B of the Project, Orissa shall, in consultation with the Association, make arrangements with OUAT for the strengthening of applied and adaptive agricultural research and support for farm management data collection and evaluation at OUAT. Such arrangements shall include inter alia the provisions set forth in Schedule 2 to this Agreement. Section 2.11. For the purpose of effective implementation and monitoring of expenditures under Part E of the Project, Orissa shall appoint a Farm Implements Committee consisting of representa- tives of DAFP, OUAT and the Orissa Agro-Industries Corporation, and chaired by the Joint Director Agriculture (Engineering) in DAFP. -7- Section 2.12. (a) Orissa shall, at the request of the Asso- ciation, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) Orissa shall promptly inform the Association of any condition which interferes or threatens to interfere with, the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by Orissa of its obligations under this Agreement. -8- ARTICLE III Financial Covenants Section 3.01. Orissa shall cause its departments and other agencies and authorities responsible for carrying out the Project or any part thereof to maintain separate records adequate to re- flect in accordance with consistently maintained appropriate ac- counting practices their operations and financial condition related to the Project. Section 3.02. Orissa shall cause its departments and other agencies and authorities responsible for carrying out the Proj- ect or any part thereof to: (i) have their accounts and financial statements (balance sheets, statements of income and expenses and related statements) related to the Project for each fiscal year audited, in accordance with appropriate auditing principles con- sistently applied, by independent auditors acceptable to the As- sociation; (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 financial statements 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 Asso- ciation such other information concerning the accounts and fi- nancial statements and the audit thereof as the Association shall from time to time reasonably request. 9 ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of Orissa and the Association thereunder shall terminate on the ear- lier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) a date 20 years after the date of this Agreement. (b) If the Development Credit Agreement terminates in ac- cordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify Orissa of this event. Section 4.03. All the provisions of this Agreement shall con- tinue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. - 10 - ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have des- ignated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. For Orissa: Agricultural Production Commissioner Government of Orissa Bhubaneswar, Orissa India Cable address: AGRISEC Bhubaneswar - 11 - Section 5.02. Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Agreement on behalf of Orissa may be taken or executed by a Sec- retary to the Government of Orissa or such other person or persons as Orissa shall designate in writing. Section 5.03. Orissa shall furnish to the Association suffi- cient evidence of the authority and the authenticated specimen signature of the person or persons who will, on behalf of Orrisa, take any action or execute any documents required or permitted to be taken or executed by Orissa pursuant to any of the provisions of this Agreement. Section 5.04. This Agreement may be executed in several coun- terparts, each of which shall be an original, and all collectively but one instrument. - 12 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. THE STATE OF ORISSA By /s/ Kewal Singh Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s! Ernest Stern Regional Vice President South Asia - 13 - SCHEDULE 1 Procurement A.I. Contracts for equipment, materials and civil works may be let on the basis of competitive bidding advertised locally under pro- cedures satisfactory to the Association. 2. Contracts with respect to scientific equipment and materials estimated to cost less than t50,000 equivalent may be let through normal trade channels. 3. Whenever possible, contracts for vehicles and equipment shall be bulked together. B.1. With respect to all contracts for equipment and civil works estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, Orissa 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. - 114- (b) After bids have been received and evaluated, Orissa shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in suf- ficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsis- tent with this Schedule, promptly inform Orissa and state the reasons for such determination. (c) The terms and conditions of the contract shall not, with- out the Association's concurrence, materially differ from those on which bids were asked 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 with- drawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract to be financed out of the pro- ceeds of the Credit and not governed by the preceding paragraph, Orissa shall furnish to the Association, promptly after its exe- cution 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, reommendations 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 this Schedule, promptly inform Orissa and state the reasons for such determina- tion. - 15 - SCHEDULE 2 Arrangements to be made with OUAT Pursuant to Section 2.10 1. Applied research stations of OUAT at Bhubaneswar, Chiplima, Simliguda and Keonjhar shall be included under the Project. 2. OUAT shall provide permanent professional staff on a full time basis to do research on the DAFP adaptive research farms at 13 agricultural ranges in Orissa. 3. OUAT shall establish a Central Research Coordination Unit at Bhubaneswar. 4. The Farm Management Data Unit of OUAT shall be expanded under a Director and a suitable number of farm management staff shall be appointed at the headquarters and the four zonal basic research stations of OUAT. 5. OUAT shall comply with the provisions of this Agreement as far as they shall relate to OUAT in carrying out Part B of the Project.