Afghanistan - Kabul Water Supply And Sewerage Project : Credit 0836 - Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 836 AF Project Agreement (Kabul Water Supply and Sewerage Project) between 'TERNATIONAL DEVELOPMENT ASSOCIATION and DA AFGHANISTAN DA 00 RASAWALO AOW CANALIZATION MOASSASA Dated August 4, 1978 CREDIT NUMBER 836 AF PROJECT AGREEMENT AGREEMENT, dated August 4, 1978, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and DA AFGHANISTAN DA OBO RASAWALO AOW CANALIZATION MOASSASA (herein- after called Moassasa), a Government enterprise existing under the laws of The Democratic Republic of Afghanistan. WHEREAS by the Development Credit Agreement of even date herewith between The Democratic Republic of Afghanistan (herein- after called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to sixteen million five hundred thousand dollars ($16,500,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Moassasa agrees to undertake such obligations toward the Associa- tion as are hereinafter set forth; WHEREAS by a subsidiary loan agreement to be entered into between the Borrower and Moassasa, part of the proceeds of the credit provided for under the Development Credit Agreement will be made available to Moassasa on the terms and conditions therein set forth; WHEREAS the Borrower has entered into a contract with the Government of Canada, acting through the Canadian International Development Association (hereinafter called CIDA), for a grant (hereinafter called the CIDA Grant) in an amount sufficient to assist the Borrower in financing Parts D and E of the Project on the terms and conditions set forth in an agreement dated March 28, 1978, between the Borrower and CIDA (hereinafter called the CIDA Grant Agreement); and WHEREAS Moassasa, 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 -2- 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. Moassasa shall carry out Parts A, B, D (1) and E of the Project described in Schedule 2 to the Development Credit Agreement with due diligence and efficiency and in con- formity with appropriate administrative, financial and engineering practices. Section 2.02. In order to assist Moassasa in carrying out Parts D (1) and E of the Project, Moassasa shall engage duly qualified, experienced and competent engineering and financial consultants. Section 2.03. Except as the Association may otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of the Schedule to this Agreement. Section 2.04. (a) Moassasa undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit relent or made available to it by the Borrower 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 Moassasa to replace or repair such goods. (b) Except as the Association may otherwise agree, Moassasa shall cause all goods and services financed out of the proceeds of the Credit relent or made available to it by the Borrower to be used exclusively for Parts A, B, D (1) and E of the Project. Section 2.05. (a) Moassasa shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for Patts A, B, D (1) and E of the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. -3- (b) Moassasa shall: (i) maintain records and procedures adequate to record and monitor the progress of Parts A, B, D (1) and E of the Project (including the cost thereof and the benefits to be derived therefrom), to identify the goods and services financed out of the proceeds of the Credit relent or made avail- able to it by the Borrower, and to disclose the use thereof in the said parts of the Project; (ii) enable the Association's repre- sentatives to visit the facilities and construction sites included in the said parts of the Project and to examine the goods financed out of such proceeds and any relevant records and documents; and (iii) furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the said parts of the Project, the cost thereof and, where appro- priate, the benefits to be derived therefrom, the expenditures of the proceeds of the Credit so relent or made available to it 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 the Borrower, Moassasa and the Association, Moassasa shall cause a report to be prepared and furnished to the Association, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of Parts A, B, D (1) and E of the Project, the cost thereof and the benefits derived and to be derived therefrom, the performance by Moassasa and the Association of their respective obligations under this Agreement and the accomplishment of the purposes of the Credit. (d) Moassasa shall enable the Association's representatives to examine all of its plants, installations, sites, works, build- ings, property, equipment, records and documents relevant to Parts A, B, D (1) and E of the Project. Section 2.06. Moassasa shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Association may otherwise agree, Moassasa shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provi- sion thereof. Section 2.07. (a) The Association and Moassasa shall, from time to time at the request of either party, exchange views through their representatives with regard to the progress of Parts -4- A, B, D (1) and E of the Project, the performance of their respec- tive obligations under this Agreement, the performance by Moassasa of its obligations under the Subsidiary Loan Agreement and other matters relating to the purposes of the Credit. (b) Moassasa shall promptly inform the Association of any condition which interferes or threatens to interfere with, the progress of Parts A, B, D (1) and E of the Project, the accom- plishment of the purposes of the Credit, or the performance by Moassasa of its obligations under this Agreement and under the Subsidiary Loan Agreement. Section 2.08. Moassasa shall, in accordance with indicators and a timetable acceptable to the Association, monitor the development of all facets of its systems of water supply and sewerage for Kabul. Section 2.09. (a) By September 30, 1979, or such other date as may be agreeable to the Borrower and the Association, Moassasa shall, pursuant to terms of reference acceptable to the Associa- tion, prepare or cause to be prepared the study referred to in Part D (1) (c) of the Project (hereinafter called the Tariff Study). (b) Following agreement between the Borrower, the Associa- tion and Moassasa on the recommendations of the Tariff Study, Moassasa shall, by March 21, 1980, or such other date as may be agreeable to the Borrower and the Association, take such measures as may be necessary to implement such recommendations. Section 2.10. (a) By March 21, 1981, or such other date as may be agreeable to the Borrower and the Association, Moassasa shall, in accordance with terms of reference acceptable to the Borrower and the Association, prepare or cause to be prepared the study referred to in Part D (1) (d) of the Project (hereinafter called the Sewerage Cost Recovery Study). (b) Following agreement between the Borrower, the Associa- tion and Moassasa on the recommendations of the Sewerage Cost Recovery Study, Moassasa shall, by March 21, 1982, or such other date as may be agreeable to the Borrower and the Association, take such measures as may be necessary to implement such recom- mendations. -5- Section 2.11. Within one year of the date hereof or such other date as may be agreeable to the Borrower and the Associa- tion, Moassasa shall, pursuant to terms of reference acceptable to the Borrower and the Association, prepare or cause to be prepared Lne studies referred to in Part D (1) (e) of the Project. Section 2.12. Moassasa shall, not later than March 31, 1980, or such other date as may be agreeable to the Borrower and the Association, complete the installation of meters for all consumers with private water supply connections in accordance with the implementation program referred to in Section 5.01 (c) of the Development Credit Agreement. Section 2.13. (a) Moassasa shall: (i) not later than March 31, 1979, or by such other date as may be agreed between the Association, the Borrower and Moassasa, and in consultation with the Borrower's Ministry of Planning and Ministry of Public Works, assess the training needs of Moassasa's staff and prepare and furnish to the Association for its agreement an initial training program for its staff; and (ii) thereafter, prepare such further training programs as are necessary, from time to time, in con- sultation with the Borrower and the Association. (b) Following the receipt of comments from the Borrower and the Association on its training programs submitted under paragraph (a) of this Section, Moassasa shall promptly imple- ment such parts of such programs as may be agreed between the Borrower, the Association and Moassasa. ARTICLE III Management and Operations of Moassasa Section 3.01. Moassasa shall take out and maintain with responsible 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. Secion 3.02. (a) Moassasa shall take all steps, within the laws and regulations of the Borrower, necessary to acquire, maintain and renew all rights, powers, privileges and franchises which are necessary or useful in the carrying out of Parts A, B, D (1) and E of the Project or for its operations. (b) Except as the Borrower and the Association may otherwise agree, Moassasa shall not transfer, or permit to be transferred, -6- to any other person or entity any portion of its property the transfer of which would significantly and adversely affect the operations or the financial position of Moassasa. (c) Moassasa shall, in accordance with appropriate business, engineering and administrative practices: (i) operate and maintain its plants, equipment and other property and, in a timely manner, make all repairs and renewals thereof as may be necessary; (ii) at all times carry on its operations in an efficient manner under capable management and with competent staff; and (iii) strive to improve its financial position. Section 3.03. Moassasa shall, at least until December 31, 1980, continue to use the services of a duly qualified, experi- enced and competent financial adviser. ARTICLE IV Financial Covenants Section 4.01. Moassasa shall maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations and financial condition. Moassasa shall maintain separate accounts for: (i) its Kabul water supply operations; (ii) its Kabul sewerage operations; and (iii) its other operations. The said accounts will show Moassasa's overhead costs apportioned as between: (i) its Kabul water supply operations; (ii) its Kabul sewerage operations; and (iii) its other operations, on a basis satisfactory to the Borrower and the Association. Section 4.02. Moassasa shall: (i) have its accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate 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 four months after the end of each such year, (A) certified copies of its 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 Associa- tion such other information concerning the accounts and financial statements of Moassasa and the audit thereof as the Association shall from time to time reasonably request. -7- Section 4.03. From the Effective Date of this Agreement until March 21, 1980, Moassasa shall, in respect of its water supply operations, levy a tariff in an amount equal to 7.50 Afghanis per cubic meter on all consumers receiving metered water supply, or a progressive tariff which will produce an average rate of not less than 7.50 Afghanis per cubic meter of water delivered tc all metered consumers. Section 4.04. (a) Without prejudice to the provisions of Section 4.03 of this Agreement, and except as the Association and Moassasa may otherwise agree, Moassasa shall, commencing March 21, 1980, levy and maintain its water supply and sewerage tariffs at such levels (and make such adjustments thereto as shall be necessary from time to time) as shall provide, separately for its Kabul water supply and sewerage operations and (taking into account any reimbursements under Section 3.05 of the Development Credit Agreement) for its other operations, revenues sufficient, in any fiscal year: (i) to cover all costs of Moassasa's opera- tions, maintenance and administration; (ii) commencing March 21, 1982, to cover also depreciation; and (iii) to provide in addition a rate of return on its capital invested. Such rate of return shall: (A) in respect of its operations as a whole, be established on a basis satisfactory to the Association and Moassasa being in no case less than the rate to enable Moassasa to finance all of its debt service requirements (as defined in Section 4.05 (d) of this Agreement) in that fiscal year (insofar as they exceed depreciation provision) and all capital expendi- tures of Moassasa in that fiscal year not financed from loaas or from additions to Moassasa' s equity, and (B) in respect of its Kabul water supply and sewerage services, be not less than one percent in the Borrower's fiscal year commencing March 21, 1983, three percent in the Borrower's fiscal year commencing March 21, 1984, five percent in the Borrower's fiscal year com- mencing March 21, 1985, and seven percent in subsequent fiscal years of the Borrower, calculated as the return on Moassasa's net value of the fixed Kabul water supply and sewerage assets in operation. (b) For the purposes of this Section: (i) the return on Moassasa's net value of the fixed Kabul water supply and sewerage assets in operation shall be calculated in each fiscal year by using as the numerator the total revenues arising from Moassasa's water supply and sewerage operations -8- in Kabul, less all applicable operating and admin- istrative costs (including adequate maintenance and provision for depreciation and for taxes or pay- ments in lieu of taxes, if any, but excluding interest and other charges on debt) and as the denominator the average between the net current value of fixed water supply and sewerage assets in operation at the beginning and at the end of each year in question; and (ii) "net current value of fixed water supply and sewerage assets" means the gross value of Kabul water supply and sewerage assets established under a method satisfactory to the Borrower and the Association at the time the calculation is made, less accumulated depreciation based on the same gross value. (c) The provisions of Section 4.06 of the 1975 Project Agreement are deleted and the provisions of the foregoing para- graphs (a) and (b) are substituted therefor. (d) Moassasa shall ensure that not less than two-thirds of the revenues forthcoming as a result of its sewerage tariffs pursuant to paragraph (a) of this Section shall be provided from the area served by, and the area adjacent to and capable of being served by, Moassasa's sewerage operations. Section 4.05. Except as the Association may otherwise agree, Moassasa shall not incur any debt unless its net revenues for the fiscal year next preceding such incurrence, or a later twelve- month period ended prior to such incurrence, whichever amount is greater, shall be not less than the maximum debt service require- ment in any succeeding fiscal year on all debt including the debt to be incurred. For the purposes of this Section: (a) "debt" means all indebtedness of Moassasa and debt guaranteed by Moassasa, maturing more than one year after the date on which it is originally incurred; (b) debt shall be deemed to be incurred on the date of execution and deliv2ry of a contract, loan agreement, guarantee agreement or other instrument providing for such debt; (c) "net revenues" means gross revenues from all sources, adjusted to take account of Moassasa's tariff rates in effect at the time of the incurrence of debt even though said rates might not be in effect during all or part of the fiscal year or the twelve-month period to which such revenues relate, less all operating and administrative expenses and provisions for taxes, if any, but before provision covering depreciation, interest and other charges on debt; (d) "debt service requirement" means the aggregate amount of amortization (including sinking fund payments, if any), interest and other charges on debt; and (e) whenever for the purposes of this Section it shall be necessary to value in terms of Afghanis debt payable in another currency, such valuation shall be made on the basis of the pre- vailing rate of exchange at which such other currency is, at the time of such valuation, legally obtainable for the purposes of Fervicing such debt. 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 Moassasa 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 twenty-five 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 (a) (ii) of this Section, the Association shall promptly notify Moassasa of this event. - 10 - Section 5.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. 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 Moassasa: Da Afghanistan Da Obo Rasawalo Aow Canalization Moassasa Mikro Royan Kabul The Democratic Republic of Afghanistan Cable address: AOBO RASAWALO MOASSASA Kabul - 11 - 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 Moassasa may be taken or executed by its President or such other person or persons as the President of Moassasa shall designate in writing, and Moassasa shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 6.03. This Agreement may be executed in several coun- terparts, each of which shall be an original, and all collectively 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 Columtia, United States of America, as of the day and year first abo,re written. INTERNATIONAL DEVELOPMENT ASSOCIATION By Is/ A. David Knox Acting Regional Vice President Europe, Middle East and North Africa DA AFGHANISTAN DA OBO RASAWALO AOW CANALIZATION MOASSASA By /s/ Noor Ahmad Noor Authorized Representative - 12 - SCHEDULE Procurement A. General Procurements of equipment and civil works included under Part C of the Project shall be made by the Municipality under the supervision of the Ministry of Health of the Borrower. B. International Competitive Bidding 1. Except as provided in Part C hereof, goods and civil works 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), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For goods and works to be procured on the basis of inter- national competitive bidding under the Project and in addition to the requirements of paragraph 1.2 of the Guidelines, Moassasa shall prepare and forward to the Association as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procure- ment notice, in such form and detail and containing such informa- tion as the Association shall reasonably request; the Association will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the oppor- tunity to bid for the goods and works in question. Moassasa shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of international competitive bidding. 3. Contracts for similar items shall, to the extent practicable, be grouped into one single bid. 4. Bidders for the civil works included in the Project shall be prequalified as described in paragraph 1.3 of Part A of the Guidelines. C. Other Procurement Procedures 1. All equipment under Part C (2) of the Project shall be procured after inviting quotations from three reliable suppliers. - 13 - 2. All civil works under Part C (2) of the Project shall be procured after inviting quotations from three experienced con- tractors or the same carried out through force account, as appropriate. 3. Civil works included under Parts A and B of the Project estimated to cost not more than $20,000 equivalent each, shall be procured after inviting quotations from three experienced contractors or the same carried out through force account, as appropriate; provided, however, that the total value of contracts under this paragraph shall not, in the aggregate, exceed $100,000 equivalent. D. 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 purchaser 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 Afghanistan 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. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Afghanistan if the bidder shall have established to the satisfaction of Moassasa and the Association that the manufacturing cost of such goods includes a value added in Afghanistan equal to at least 20% of the ex-factory bid price of such goods. - 14 - (2) Group B: all other bids offering goods manufactured in Afghanistan. (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 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. E. 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 Part B of this Schedule, a margin of preference of 7-1/2% may be granted 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, 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 - 15 - 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, 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. Review of Procurement Decisions by the Association 1. Review of prequalification. Moassasa shall, before qualifica- tion is invited, 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 Moassasa to the Association for its comments before the applicants are notified of Moassasa's decision, and Moassasa 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 (under Parts A and B of the Project) for equipment estimated to cost the equivalent of $100,000 or more and all contracts for civil works estimated to cost the equivalent of $200,000 or more: (a) Before bids are invited, Moassasa 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 - 16 - 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, Moassasa 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, by the consul- tants referred to in Section 2.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants 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 Moassasa 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 para- graph, Moassasa 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 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, wherever applicable, copies of the quotations 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 Moassasa and the Borrower and state the reasons for such determination.