Philippines - Second National Irrigation Systems Improvement Project : Loan 1526 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1526 PH Ian Agreement (Second National Irrigation Systems Improvement Project) between REPUBLIC OF THE PHILIPPINES and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated March 15, 1978 LOAN AGREEMENT AGREEMENT, dated March 15, 1978, between REPUBLIC OF THE PHILIPPINES (hereinafter called the Borrover) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank 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 have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "NIA" means the National Irrigation Administration, an agency established by the Republic Act No. 3601 of the Borrover, as amended to the date of this Agreement; (b) "DOH" means the Borrower's Department of Health; (c) "SCRS" means the Schistosomiasis Control and Research Service of DOH; (d) "Project Area A" means the area specified in the Annex to Schedule 2 to this Agreement, in which Part A of the Project as described in Schedule 2 to this Agreement is to be carried out; (e) "Project Area B" means that part of Project Area A which includes the Salug, Libungan, Malasila and Padada irrigation systems, in which Part B of the Project is to be carried out; (f) "Prior Loan Agreement" means the loan agreement (National Irrigation System Improvement Project) between the Borrower and the Bank dated May 13, 1977; and "Prior Project Area" means the area specified in the Annex to Schedule 2 to the Prior Loan Agreement; -2- (g) "Prior Irrigation Project Areas" means the Prior Project Area, and the areas in which projects financed in part with Bank loans under the following loan agreements between the Borrower and the Bank are to be carried out: (i) Upper Pampanga Irrigation Project, dated August 18, 1969, (ii) Aurora-Penaranda Irrigation Project, dated May 14, 1974, (iii) Tarlac Irrigation Systems Improvement Project, dated January 27, 1975, (iv) Rural Development Project, dated April 15, 1975, (v) Magat River Multipurpose Project, dated August 7, 1975, (vi) Chico River Irrigation Project, dated April 8, 1976, and (vii) Jalaur Irrigation Project, dated February 14, 1977; and (h) "ha" means hectares of land. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to sixty- five million dollars ($65,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to zime by agreement between the Borrower and the Bank, for expen- ditures made (or, if the Bank 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 Loan. -3- Section 2.03. Except as the Bank shall otherwise agree, pro- curement of the goods and civil works to be financed out of the proceeds of the Loan, shall be governed by the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1984 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05t The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of seven and forty-five hundredths per cent (7.45%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out Part B.1 of the Project through the SCRS of DOH and the remainder of the Project through NIA, with due diligence and efficiency and in conformity with appropriate financial, administrative, engi- neering, health and agricultural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation to its obligation under sub-paragraph (a) of this Section, the Borrower shall by June 30, 1978 cause NIA and DOH to enter into an agreement acceptable to the Bank for the carrying out of Part B of the Project. Section 3.02. Without limitation of its obligations under Section 3.01 of this Agreement, the Borrower shall cause NIA to -4- establish and maintain, under arrangements satisfactory to the Bank, a special fund from which NIA may draw without restriction to meet expenditures in respect of the Project (except Part B.1 thereof). The Borrower shall adjust and replenish the amount in such special fund at monthly intervals to a level at least equiva- lent to the estimated amount of payments to be made for goods and services required for the Project less the estimated amount of payments to be made directly by the Bank out of the proceeds of the Loan to suppliers, consultants, or contractors, during the next two months' period. Section 3.03. (a) The Borrower shall, by June 30, 1979, cause its Department of Agriculture in cooperation with NIA to prepare and furnish to the Bank, for its review, a plan of action for the provision of effective agricultural supporting services in Project Area A and the Prior Irrigation Project Areas. (b) The Borrower shall, by January 1, 1980, implement or cause to be implemented such plan of action. Section 3.04. (a) The Borrower shall prepare or cause to be prepared, terms of reference satisfactory to t_he Bank for the studies included in Part E of the Project. (b) The Borrower shall employ or cause to be employed consultants to assist in carrying out Part E of the Project, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank. (c) In order to assist NIA in carrying out Part D of the Project, the Borrower shall, if necessary, cause NIA to employ consultants whose qualifications, experience and terms and con- ditions of employment shall be satisfactory to the Bank. Section 3.05. (a) The Borrower shall grant or cause to be granted all water rights required for existing, expanded or new irrigation systems to enable NIA to carry out and operate Part A of the Project, and except as the Bank may otherwise agree, shall take such action as is required to ensure that no other water rights except for domestic use are granted which could adversely affect the water supply required for Part A of the Project. (b) 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 carrying out the Project. -5- Section 3.06. (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 Loan 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 Bank shall otherwise agree, all goods and services financed out of the proceeds of the Loan shall be used exclusively for the Project until its completion. Section 3.07. (a) The Borrower shall cause NIA and SCRS to furnish to the Bank, promptly upon their preparation, the plans, specifications, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) The Borrower: (i) shall cause NIA and SCRS to maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Loan, and to disclose their use in the Project; (ii) shall enable the Bank'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 Loan and any relevant records and documents; and (iii) shall furnish to the Bank at regular intervals all such information as the Bank shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expen- diture of the proceeds of the Loan 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 and the Bank, the Borrower shall cause NIA and SCRS to prepare and furnish to the Bank a report, of such scope and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Bank of their respective obligations under the Loan Agreement and the accomplishment of the purposes of the Loan. -6- ARTICLE IV Other Covenants Section 4.01. (a) It is the mutual intention of the Borrower and the Bank that no other external debt shall enjoy any priority over the Loan by way of a lien on governmental assets. (b) To that end the Borrower: (i) represents that at the date of this Agreement no lien exists on any governmental assets as security for any external debt except as otherwise disclosed in writing by the Borrower to the Bank; and (ii) undertakes that, except as the Bank shall otherwise agree, if any such lien shall be created, it will ipso facto equally and ratably, and at no cost to the Bank, secure the payment of the principal of, and interest and other charges on, the Loan, and in the creation of any such lien express provision will be made to that effect. The Borrower shall promptly inform the Bank of the creation of any such lien. (c) The foregoing representation and undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purcaase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt mateing not more than one year after its date. (d) As used in this Section, the term "governmental assets" means assets of the Borrower or of any agency of the Borrower including the Central Bank of the Philippines or any institution performing the functions of a central bank for the Borrower. (e) The Borrower further undertakes that, within the limits of the laws in force in its territories, it will make the fore- going undertaking effective with respect to liens on the assets of its political subdivisions and their agencies, and to the extent that the Borrower is unable within the limits of the laws in force in its territories to make this undertaking effective, the Borrower will give to the Bank an equivalent lien satisfactory to the Bank. Section 4.02. (a) The Borrower shall cause NIA and SCRS to maintain records adequate to reflect in accordance with con- sistently maintained appropriate accounting practices their operations in respect of the Project. -7- (b) The Borrower shall cause NIA and SCRS to: (i) have their 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 Bank; (ii) furnish to the Bank 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 Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning the accounts and financial statements, and the audit thereof as the Bank shall from time to time reasonably request. Section 4.03. (a) The Borrower shall cause the works and facilities included in Parts A and B of the Project to be operated and maintained in accordance with sound agricultural, engineering, health and financial policies and practices, and shall make avail- able sufficient funds to NIA for such purposes, including the provision to NIA of sufficient funds, on an annual basis, to maintain in good order the anti-schistosomiasis drainage network specified in Part B.2 of the Project. (b) Without limitation on its obligations under paragraph (a) of this Section, the Borrower undertakes to do, or, to the extent required, to cause NIA to do, the following: (i) make adequate budgetary provision to operate and maintain Parts A and B of the Project; and (ii) except as the Bank shall otherwise agree, take all necessary action to ensure that charges for the use of irrigation water are levied and col- lected from the users of the irrigation systems included in Part A of the Project and that such charges will provide NIA with revenues sufficient to cover all operating and maintenance costs of such irrigation systems, and, in addition, to provide for the recovery, within a reasonable period, on terms and conditions satisfactory to the Bank, of a portion of the monies invested in such irrigation systems without impairing the users' incentives and capacity to pay. The Borrower shall consult with the Bank, annually, on the adequacy of water charges and collection thereof. -8- ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an addi- tional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that the special fund referred to in Section 3.02 hereof has been established. Section 5.02. The date June 20, 1978, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Secretary of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Secretary of Finance Department of Finance Manila, Philippines Cable address: Telex: SECFINANCE 7550 CBP-PH Manila 0268 CB-CONF For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America -9- Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) 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. REPUBLIC OF THE PHILIPPINES By /s/ Mario C. Belisario Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By 1sf S. Shahid Husain Regional Vice President East Asia and Pacific - 10 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works (a) Mobilization 3,000,000 100% of foreign and construc- expenditures tion equipment for civil works contractors (b) other civil 32,000,000 35% works (includ- ing materials used in force account work) (2) Equipment and 21,000,000 Materials (a) directly 100% of foreign imported expenditures (b) locally manu- 100% of expen- factured ditures (ex- factory) (c) imported goods 65% procured locally (3) Technical Assistance 5,000,000 100% (4) Unallocated 4,000,000 TOTAL 65,000,000 - 11 - 2. For the purposes of this Schedule, the term "foreign expendi- tures" 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. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Bank that no proceeds of the Loan 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 Loan decreases or increases, the Bank 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 Bank. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expen- ditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Cate- gory, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank 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 Bank shall have reasonably determined that the pro- curement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. - 12 - SCHEDULE 2 Description of the Project The Project consists of the following Parts: A. Irrigation Development in Project Area A 1. Rehabilitation of 26 existing NIA irrigation systems serving a total area of about 53,700 ha. 2. Construction of new irrigation, drainage and road facilities on about 27,200 ha of currently rainfed land adjoining the NIA irrigation systems referred to hereinabove. 3. Construction of a subregional headquarters building, seven new field offices and extension of office, stor- age and staff quarters facilities for eleven existing field offices. 4. Provision of vehicles and equipment. B. Schistosomiasis Control Program in Project Area B 1. (a) Provision of a health education program based in all schools and health centers in eleven disease- affected municipalities. (b) Establishment of a diagnostic screening campaign and chemotherapy for treatment of about 35,000 cases. (c) Strengthening of SCRS headquarters staff and staffing and equipping of field teams to implement Part B.1 (a) and (b) of the Project, and to carry out snail surveys. 2. (a) Survey and design of drainage improvement works covering the drainage basin in Project Area B. (b) Improvement of existing drains and natural creeks, and construction of new secondary and farm drains, on a total area of about 22,000 ha. (c) Provision of vehicles and equipment. - 13 - C. Strengthening of Regional Operation and Maintenance Capability of NIA 1. The provision of equipment to NIA to assist it to operate and maintain the irrigation systems in Annex B to this Schedule. 2. The provision of training to NIA staff in design, construction, operation and maintenance of irrigation systems included in Project Area A and the Prior Proj- ect Area. D. Monitoring Implementation of the monitoring system described in Part E of Schedule 2 to the loan agreement (Chico River Irri- gation Project) between the Borrower and the Bank dated April 8, 1976, to irrigation systems included in Project Area A and the Prior Project Area. E. Feasibility Studies Completion of studies on the feasibility, and detailed engineering design for implementation, of new irrigation projects. The Project is expected to be completed by December 31, 1983. - 14 - ANNEX A TO SCHEDULE 2 Project Area A Irrigation Systems by Sub-Project Area, NIA Region and Province Irrigable area (ha) Sub-Project NIA Irrigation Rehabili- Area Region Province System tation Extension Total Southern Luzon 4 Quezon Agos 1,000 200 1,200 Lagnas 400 600 1,000 Hanagdong 300 - 300 Dumacaa 2,500 - 2,500 Batangas Palico 800 300 1,100 Subtotal 5,000 1,100 62100 5 Camarines Daet-Talisay- 2,600 2,200 4,800 Norte Matogdon Albay Hibiga 300 200 500 Mahaba-Nasisi 1,300 300 1,600 Ogsong 300 300 600 Camarines Cagaycay 1,700 300 2,000 Sur Sorsogon Bulan 400 '200 600 San Francisco 400 200 600 Subtotal 79002 3,700 10,700 Total Sub-Project Area 12,000 49800 16,800 Western Visayas 6 Aklan Aklan 3,000 700 3,700 Antique Sibalom-San Jose 4,300 1,400 5,700 Negros Bago 13,000 2,800 15,800 Occidental Pangiplan 1,600 200 1,800 Total Sub-Project Area 21,900 5,100 271000 - 15 - Irrigable area (ha) Sub-Project NIA Irrigation Rehabili- Area Region Province System tation Extension Total Mindanao 8 Zamboanga Labangan 1,600 800 2,400 del Sur Salug 2,800 4,500 7,300 Subtotal 4400 59300 9 700 9 Bukidnon Roxas 400 1,000 1,400 Subtotal 400 12000 1,400 10 Surigao Cantilan 1,300 1,100 2,400 del Sur South Tinagucan - 1,100 1,100 Cotabato Davao Padada 1,300 1,200 2,500 del Sur Davao Lupon 1,500 500 2,000 Oriental Subtotal 41100 39900 89000 11 North Libungan 6,400 1,600 8,000 Cotabato Kabacan 2,700 3,400 6,100 Malasila 1,800 2,100 3,900 Subtotal 10,900 79100 18,000 Total Sub--Project Area 19,800 179300 37,100 Grand Total 53,700 27,200 80,900 - 16 - ANNEX B TO SCHEDULE 2 Part C.1 of the Project Irrigation Systems Sub-Project NIA Irrigation Area Region Province System Southern Tagalog 4 Laguna Diezmo pump Marinduque Tambangan pump Cavite Kay Akle Bicol 5 Catanduanes Oco Camarines Lalo-Barit Sur Sorsogon Pili Western Visayas 6 Antique Sibalom Iloilot Barotac Viejo Capiz Mambusao Aklan Panakuyan Negros Santa Catalina Oriental Negros Dumaguete Oriental Negros Tanjay Oriental Mindanao 8 Zamboanga Dipolo Sur 10 South Banga Cotabato Souti Marbel Cotabato 11 Lanao del Rugnan Sur Lanao del Maranding Norte North M'lang Cotabato - 17 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each May 1 and November 1 beginning November 1. 1983 through November 1, L997 2,165,000 On May 1, 1998 2,215,000 To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 18 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.10% More than three years but not more than six years before maturity 2.25% More than six years but not more than eleven years before maturity 4.10% More than eleven years but not more than sixteen years before maturity 5.95% More than sixteen years but not more than eighteen years before maturity 6.70% More than eighteen years before maturity 7.45% - 19 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Part B hereof, contracts for the purchase of goods 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 to be procured on the basis of international com- petitive bidding, the Borrower shall prepare and forward to the Bank as soon as possible, and in any event not later than 60 days prior to the proposed date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Bank shall reason- ably request; the Bank will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower 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. B. Other Procurement Procedures 1. Civil works may be carried out either (a) by NIA under force account, or (b) by contracts awarded under the Borrower's normal competitive bidding procedures, provided that the aggregate cost of civil works carried out by force account shall not, without the prior consent of the Bank, exceed 65% of the total cost of all civil works in the Project. 2. Any item of equipment and materials not exceeding the equiva- lent of $10,000 may be awarded on a competitive basis consistent with the Borrower's normal procurement practices without inter- national competitive bidding, provided that the aggregate expendi- ture for such items shall not exceed the equivalent of $300,000. - 20 - 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 except those to be procured in accordance with local procedures: (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 the Republic of the Philippines 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 infor- mation 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 the Republic of the Philippines if the bidder shall have established to the satisfaction of the Bor- rower and the Bank that the manufacturing cost of such goods includes a value added in the Republic of the Philippines equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in the Republic of the Philippines. (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 eval- uated bid of each group. Such lowest evaluated bids shall then - 21 - be compared with each other, and if, as a result of this compari- son, 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. D. Review of Procurement Decisions by the Bank 1. With respect to all contracts for civil works estimated to cost the equivalent of $300,000 or more and all contracts for equipment and vehicles estimated to cost the equivalent of $100,000 or more: (a) Review of prequalification: If bidders are required to prequalify, the Borrower shall, before qualification is invited, inform the Bank in detail of the procedure to be followed, and shall introduce such modifi- cations 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.1 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 Bank for its comments before the applicants are notified of the Borrow- er's decision, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Bank shall reasonably request. (b) Review of invitations to bid and of proposed awards and final contracts: - 22 - (1) Before bids are invited, the Borrower shall furnish to the Bank, 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 docu- ments or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (2) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (3) The terms and conditions of the contract shall not, without the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited. (4) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the sub- mission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 2. With respect to each contract to be financed out of the proceeds of the Loan and not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its exe- cution 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, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the award of the contract was not iconsistent with the Guidelines or this Schedule, promptly inforn the Borrower and state the reasons for such determination.