India - National Agricultural Research Project : Credit 0855 - Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 855 IN Project Agreement (National Agricultural Research Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and INDIAN COUNCIL OF AGRICULTURAL RESEARCH Dated December 7, 1978 CREDIT NUMBER' 855 IN PROJECT AGREEMENT AGREEMENT, dated December 7, 1978, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and INDIAN COUNCIL OF AGRICULTURAL RESEARCH (hereinafter called ICAR). 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 seven million dollars ($27,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that ICAR agee to undertake such obligations toward the Association as are he..einafter set forth; and WHEREAS ICAR, in consideration of the Association's entering 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: 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. ARTICLE II Execution of the Project Section 2.01. (a) ICAR shall carry out the Project described in the Schedule to the Development Credit Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and agricultural research practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation on the generality of Section 2.01 (a), ICAR shall ensure that its annual budgeting request for - 2 - funds includes adequate provision for Sub-projects expected to be approved by it during the relevant year. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Credit, shall be governed by the provisions of the Schedule to this Agreement. Section 2.03. (a) ICAR undertakes to insure, or make adequate provision for the insurance of, any 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, transpor- tation and delivery thereof to the place of use or installa- tion, and for such insurance any indemnity shall be payable in a currency freely usable by ICAR to replace or repair such goods. (b) Except as the Association may otherwise agree, ICAR 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 2.04. (a) ICAR shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, as the Association shall reasonably request. (b) ICAR: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits, where appropriate, to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditures of such proceeds and the goods and services financed out of such proceeds. (c) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between ICAR and -3- the Association, ICAR shall prepare and furnish to the Associa- tion a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and, where appropriate, the benefits derived and to be derived from it, the performance by ICAR and the Association of their respective obligations under the Credit Agreement and the accomplishment of the purposes of the Credit. Section 2.05. (a) ICAR shall at the request of the Associa- tion, 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) ICAR 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 ICAR of its obligations under this Agreement. Section 2.06. In order to carry out Part C of the Project, ICAR shall furnish, by March 31, 1979, proposals for two Sub- projects for review by the Association. Section 2.07. (a) ICAR shall establish and maintain PFC to carry out the functions specified in Section 2.08 of the Project Agreement. (b) Unless the Association and ICAR shall otherwise agree, PFC shall consist of the following members: (i) the Director General of ICAR, who shall serve as Chairman of PFC; (ii) the Borrower's Agricultural Commissioner; (iii) the Advisor/Chief of Agriculture from the Borrower's Planning Commission; (iv) not exceeding two SAU Vice-Chancellors dosignated by ICAR; (v) the Member, Finance of the Governing Body of ICAR; and (vi) the Project Administrator appointed by ICAR under Section 2.13 (b) of the Project Agreement. Section 2.08. ICAR shall cause PFC to: (a) apply criteria acceptable to the Association in PFC's appraisal of: (i) a SAU's eligibility to participate in a Sub- project; and (ii) a Sub-project to be financed under the Project; and (b) approve a grant to finance a Sub-project on terms and conditions consistent with the Development Credit Agreement and the Project Agreement, and acceptable to the Association. Section 2.09. Unless the Association shall otherwise agree, ICAR shall furnish each Sub-project estimated to cost in excess of the equivalent of $1,400,000, together with the views of its Interdisciplinary Scientific Panel, for review by the Association before such Sub-project is approved by PFC. Section 2.10. ICAR shall, in respect of each of the first five Sub-projects having civil works (excluding housing) in excess of $200,000, furnish its recommendations on the civil works to the Association for comments by the Association with respect to the following features: (a) proposed master plan; (b) proposed final design drawings and initial cost esti- mates; and (c) proposed construction supervision arrangements. Section 2.11. ICAR shall ensure that each Sub-project is reviewed on site at least once a year and completed in accor- dance with an implementation schedule approved by ICAR. Section 2.12. ICAR shall promptly prepare (i) an annual report, and (ii) a six-month report covering the physical pro- gress of Sub-projects in accordance with a proforma mutually agreed between the Association and ICAR, and furnish the said reports to the Association as soon as they are available. Section 2.13. (a) ICAR shall establish and maintain PU through which ICAR shall carry out its obligations under the Project Agreement, including the provision of secretariat and other services to PFC in order to assist PFC to carry out PFC's functions. -5- (b) Unless the Association and ICAR shall otherwise agree, PU shall include the following staff: (i) a Project Administrator who shall be ICAR's Deputy Director General (Education) and who shall be the head of PU; (ii) two project coordinators; (iii) one deputy coordinator; (iv) two agricultural scientists; (v) one architect; and (vi) one accounts officer. (c) The staff enumerated in Section 2.13 (b) (ii) to (vi) above shall be appointed by not later than January 31, 1979 or such later date as the Association and ICAR may agree. ARTICLE III Management and Operations of ICAR Section 3.01. ICAR shall take out and maintain with respon- sible insurers, or make other provisions satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with appropriate practice. ARTICLE IV Financial Covenants Section 4.01. ICAR shall in respect of the Project maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations and financial condition. Section 4.02. ICAR shall: (i) have the accounts and financial statements for each grant and categories of expenditures under each grant, and statements of expenditures under Section 2.02 (d) of the Development Credit Agreement, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; -6- (ii) furnish to the Association as soon as available, but in any case not later than nine 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 Association such other information concerning the said accounts and financial statements and the audit thereof as the Association shall from time to time reasonably request. Section 4.03. ICAR shall cause a SAU in receipt of a grant: (a) to maintain separate accounts which would record in respect of a project for which the said grant is made, amounts receivable or received under the grant and also amounts contri- buted or agreed to be contributed by the SAU for the said Sub- project; and (b) to furnish to ICAR a grant expenditure certificate prepared by independent auditors acceptable to PFC, for each Sub-project for each financial year, as soon as said grant expen- diture certificate is available but not later than nine months after the end of the SAU's financial year. ARTICLE V Effective Date; Termination; Cancellation and Suspension Section 5.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 5.02. (a) This Agreement and all obligations of the Association and of ICAR thereunder shall terminate on the earlier 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 25 years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph -7- (a) (ii) of this Section, the Association shall promptly notify ICAR of this event. Section 5.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any suspension, in whole or in part, or any cancellation in part, under the General Conditions. ARTICLE VI Miscellaneous Provisions Section 6.01. 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 herein- after specified or at such other address as such party shall have designated 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: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For ICAR: Indian Council of Agricultural Research Krishi Bhawan Dr. Rajendra Prasad Road New Delhi 110001 Cable address: Telex: AGRISEC ND 3701 New Delhi -8- Section 6.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of ICAR may be taken or executed by the Secretary of ICAR or such other person or persons as he shall designate in writing, and ICAR shall furnish to the Association sufficient evidence of the authority and the authenticated speci- men signature of each such person. Section 6.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collec- tively but one instrument. 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. INTERNATIONAL DEVELOPMENT ASSOCIATION By Is! W. David Hopper Regional Vice President South Asia INDIAN COUNCIL OF AGRICULTURAL RESEARCH By Is! S. S. Dhanoa Authorized Representative -9- SCHEDULE Procurement A. Civil Works Contracts for civil works shall be awarded on the basis of local competitive bidding in accordance with procedures acceptable to the Association. B. Equipment and Materials Equipment and materials shall be procured in accordance with the local competitive bidding and other procedures of SAUs acceptable to the Association.