India - Second National Seed Project : Credit 0816 - Bihar Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 816 IN Bihar Project Agreement (Second National Seed Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF BIHAR Dated July 17, 1978 CREDIT NUMBER 816 IN BIHAR PROJECT AGREEMENT AGREEMENT, dated July 17, 1978, between INTERNATIONAL DEVEL- OPMENT ASSOCIATION (hereinafter called the Association) and STATE OF BIHAR, acting by its Governor (hereinafter called Bihar). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (her.nafter 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 dollars ($16,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Bihar agrees to undertake such obligations toward the Association as hereinafter set forth; and WHEREAS Bihar, 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. Bihar shall carry out or cause to be carried out those portions of Parts A, B, D, E and F of the Project described in Schedule 2 to the Development Credit Agreement for which Bihar shall be responsible with due diligence and efficiency and in conformity with appropriate administrative, financial, agricultural and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose, including adequate and qualified staff. -2- Section 2.02. Except as the Association shall otherwise agree, contracts for the purchase of goods or civil works to be financed out of the proceeds of the Credit, shall be awarded in accordance with the provisions of Schedule 3 to the Development Credit Agreement. Section 2.03. (a) Bihar 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 Bihar to replace or repair such goods. (b) Except as the Association may otherwise agree, Bihar shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclu- sively for the Project. Section 2.04. (a) Bihar shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modification thereof or additions thereto, in such detail as the Association shall reasonably request. (b) Bihar: (i) shall maintain records and procedures ade- quate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), and to identify the goods and services financed out of the proceeds of the Credit made available to it by the Borrower, and to disclose their use in the Project; (ii) shall 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 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 the proceeds of the Credit so made available to it and the goods and services financed out of such proceeds. Section 2.05. (a) Bihar 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 t'e Credit. -3- (b) Bihar 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 Bihar of its obligations under this Agreement. Section 2.06. Bihar shall make available to Rajendra Agricul- tural University adequate land suitable for the production of foundation seed by June 30, 1979 or such later date as may be agreed by the Association. Section 2.07. In order to carry out Part B of the Project, Bihar.shall cause Rajendra Agricultural University to employ the criteria for farm development to be agreed with the Association. Section 2.08. For the purpose of enforcing minimum seed quality control standards under the applicable laws, Bihar shall carry out adequate seed quality inspection. Section 2.09. Bihar shall cause its SSC to enter into an agreement with NSC satisfactory to the Association. The said agreement shall, inter alia, set out the respective responsibil- ities of NSC and the SSC in the carrying out of the Project. Bihar shall not permit its SSC to assign, amend, abrogate or waive such agreement without prior consultation with the Association. Section 2.10. Bihar shall not make or permit to be made, any change in the memorandum and articles of association or other instrument governing its SSC without prior consultation with the Association. Section 2.11. Unless otherwise agreed with its SSC, Bihar shall not produce or process any seed variety which is also processed by such SSC. Section 2.12. Bihar shall cause its SSC, SSCA and Rajendra Agricultural University to separately prepare and furnish to the Association: (a) an annual work program within two months prior to the commencement of their financial year; and (b) quarterly progress reports within one month of the close of each quarter. -4- ARTICLE III Financial Covenants Section 3.01. Bihar shall maintain and cause its SSC, SSCA and Rajendra Agricultural University to maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices their operations and financial condition. Section 3.02. Bihar shall: (i) have its accounts and finan- cial statements (balance sheets, statements of income and expenses and related statements) and those of its SSC, SSCA and Rajendra Agricultural University, for each fiscal year audited, in accor- dance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) fur- nish and cause its SSC, SSCA and Rajendra Agricultural University to 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 their 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 and cause its SSC, SSCA and Rajendra Agricultural University to furnish to the Associa- tion such other information concerning the accounts and financial statements and the audit thereof as the Association shall from time to time reasonably request. 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 the Association and of Bihar 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 20 years after the date of this Agreement. -5- (b) If the Development Credit Agreement terminates in accor- dance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify Bihar 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. 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: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For Bihar: Agricultural Development Commissioner and Principal Secretary Agriculture Department Government of Bihar New Secretariat Patna 1, Bihar India -6- Cable address: AGRICULTURE SECRETARY Patna, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of Bihar may be taken or executed by Bihar or such other person or persons as Bihar shall designate in writing. Section 5.03. Bihar 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 Bihar, take any action or execute any documents required or permitted to be taken or executed by Bihar 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. 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. INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ W. David Hopper Regional Vice President South Asia STATE OF BIHAR By /s/ N. A. Palkhivala Authorized Representative