Mali - Urban Development Project : Credit 0943 - Project Agreement - Conformed

OFICIALS CREDIT NUMBER 943 MLI _DOCUlfENTS Project Agreemént (Urban Development Project) among INTERNATIONAL DEVELOPMENT ASSOCIATION and DISTRICT OF BAMAKO and MUNICIPALITY OF MOPTI j Dited ~,1o< ~7 ,1979 CREDIT NUMBER 943 MLI PROJECT AGREEMENT AGREEMENT, dated , 1979, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and the DISTRICT OF BAMAKO (hereinafter called the District) and the MUNICIPALITY OF MOPTI (hereinafter called Mopti). WHEREAS by the Development Credit Agreement of even date herewith between the Republic of Mali (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equiva- lent to twelve million dollars ($12,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that the District and Mopti agree to undertake such respective obligations toward the Association as are hereinafter set forth; and WHEREAS by Financing Agreements to be entered into between the Borrower and the District and Mopti respectively, portions of the proceeds of the Credit provided for under the Development Credit Agreement will be made available to the District and to Mopti on the terms and conditions therein set forth; and WHEREAS the District and Mopti, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, have 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) The District shall carry out Parts A, B, and C (1) of the Project, and Mopti shall carry out Part D (1) of -2- the Project described in Schedule 2 to the Developmo,t Credit Agreement, with due diligence and efficiency and in conformity with appropriate administrative, financial, economic and engi- neering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) For the purposes of paragraph (a) above, the District shall establish a Housing Directorate and reorganize its Technical Directorate, each headed by qualified and experienced Directors, as described in Schedules"1 and 2 to this Agreement. Section 2.02. The District shall employ such consultants and other experts whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Section 2.03. 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 Schedule 3 to the Development Credit Agreement. Section 2.04. (a) The District and Mopti undertake to insure, or make adequate 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 installation, and for such insurance any indemnity shall be payable in a currency freely usable by the District and Mopti to replace or repair such goods. (b) Except as the Association may otherwise agree, the District and Mopti shall cause all goods and services financed out of the proceeds of the Credit relent and made available to it by the Borrower to be used exclusively for the Project. Section 2.05. (a) The District and Mopti shall furnish to the Association, promptly upon their preparation, the plans, specifi- cations, contract documents and work and procurement schedules for Parts A, B, C, D (1) and G of the Project, and. any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The District and Mopti: (i) shall maintain records and procedures adequate to record and monitor the progress of their respective parts of the Project (including their costs and the -3- benefits to be derived from them), 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 Asso- ciation's accredited representatives to visit the facilities and construction sites included in Parts A, B, C, D (1) and G of 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 all such information as the Association shall reasonably request concerning such parts of the Project, their costs and, where appropriate, the benefits to be derived from them, the expenditures of such proceeds and the goods and services financed out of such proceeds. Section 2.06. The District and Mopti shall duly perform all their obligations under the Financing Agreements. Except as the Association shall otherwise agree, the District and Mopti shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving either of such Financing Agreements or any provision thereof. Section 2.07. (a) The District and Mopti shall, at the request of the Association, exchange views with the Association with regard to the progress of their respective parts of the Proj-. ect, the performance of their respective obligations under this Agreement and under their Financing Agreements, and other matters relating to the purposes of the Credit. (b) The District and Mopti shall promptly inform the Aoso- ciation of any condition which interferes or threatens to inter- fere with the progress of the Project, the accomplishment of the. purposes of the Credit, or the performance by the District or by Mopti of their obligations under this Agreement and under the Financing Agreements. Section 2.08. The reorganization of the District's Technical Directorate included in Part B (4) of the Project shall be car- ried out with the assistance of the municipal engineer and super- vising mechanic employed pursuant to Section 2.02 above, shall conform to the guidelines set forth in Schedule 2 to this Agree- ment and shall be completed by June 30, 1980. Section 2.09. The District and Mopti shall take such steps as are necessary and useful on its part to recover the costs of Parts A (1) and (4), B (1) and (2), C (1), and D (1) of the Project in the manner and to the extent provided for in Schedule 6 to the Development Credit Agreement. Section 2.10. The Housing Directorate of the District shall be strengthened under Part B (4) of the Project as provided in Schedule 1 to this Agreement, and the District shall ensure that such Directorate carry out the responsibilities therein set forth. Section 2.11. The District shall establish and maintain a special depreciation account for the purposes of financing the replacement of vehicles and equipment. ARTICLE III Financial Covenants Section 3.01. (a) The District and Mopti shall maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices their operations and financial condition relating to the Project and shall ensure that: (i) all accounts with respect to the Project be kept separate from their other accounts; and (ii) that there be retained, until one year after the Closing Date, all records (orders, invoices, bills, receipts and other documents) evidencing the expenditures for the Project on account of which withdrawals are requested from the Credit Account on the basis of certificates of expenditures, and shall enable the Association's accredited representatives to examine such records. (b) The District and Mopti shall furnish to the Project Unit promptly following the close of each year copies of the accounts referred to in paragraph (a) above. 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, the District and Mopti thereunder shall terminate on the earlier of the following two dates: -5- (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 (a) (ii) of this Section, the Association shall promptly notify the District and Mopti of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions. 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 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) -6- For.the District: District de Bamako Avenue de la Libertf Bamako R6publique du Mali Cable address: District de Bamako For Mopti: Mairie de Mopti Mopti Rfpubique du Mali Cable address: Mairie de Mopti 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 the District or Mopti may be taken or executed by the Governor of the District and the Mayor of Mopti, as the case may be, or such other person or persons as they shall designate in writing, and the District and Mopti shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. 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 -7- of Columbia, United States of Aierica, as of the day and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa DISTRICT OF BAMAKO By Authorized Representative MUNICIPALITY OF MOPTI By /s auo Authorized Representative -8- SCHEDULE 1 The Housing Directorate 1. The Housing Directorate of the District will be strengthened and staffed with a manager, accounting staff (7), collectors (4) and other personnel to enable it to carry out its tasks under the Project. It will have a separate accounting system for resources and expenditures relating to the Project. The Housing Directorate will be responsible for: (a) compiling and maintaining the indi- vidual files on applicants for and beneficiaries of lots in the upgraded and sites and services areas, as well as shopkeepers and artisans of the market facilities; (b) preselection of beneficia- ries on the basis of eligibility criteria set forth in paragraph 3 below; (c) administration of the lot allocation and the con- struction refinancement programs; and (d) collection, with the help of the Revenue Collection Service, of lot charges and con- struction refinancement repayments of the sites and services and upgrading components as well as of the artisans credit component. 2. Lots will be allocated by a lottery from a list of eligible beneficiaries and the Directorate will provide refinancing and allocat6 lots accordingly under the supervision of the Lot Allo- cation Committee to which it shall be responsible for providing necessary data. The Directorate will cooperate with the Land Registry on matters relating to the establishment of land titles and recognition of occupation rights, which the Housing Direc- torate will transfer to beneficiaries under rental-purchase contracts at the time of signature of the contracts. The financial surpluses of the Housing Directorate of the District will be paid into a special account, the use of which will be reviewed yearly by the Borrower, the District and the Association. 3. For the sites and services area, the eligibility criteria are that any applicant for lots A, A (1), and B: (a) be a head of household residing in the city; (b) not own or occupy, or hold any title, occupancy permit or letter of allocation, for any other lot in the urbanization perimeter of; (c) bind himself to live on the lot; and (d) earn no less than HF 15,000 and no more than HF 55,000 (in 1979 prices), such income levels to be reviewed annually. -9- 4. C lots Will be sold freehold at fairmarket value. 5. Procedures for lot allocations and for refinancing of Mon- stri Ction undei the Project shall include: (a) publicity to inform the public concerning eligibility riteria and of the procedures for obtaining lots and refinancement for constution; (b) setting up of preliminary individual files, which will be completed at the beginning of Project execution; (c) checking eligibility of candidates; and (d) conducting of a lottery to determine winners among those eligible. Such lottery will be supervised by the Lot Allocation Committee. K7 - 10 - SCHEDULE 2 The Technical Directorate The Technical Directorate (Voirie) will be reorganized and strengthened, with suitable vehicle-maintenance facilities, operating procedures and training programs for technical staff. The Directorate will be organized into three principal sections: (a) studies, planning and control; (b) operations, subdivided into: (i) garbage collection and cleaning of public areas; (ii) sanitation; (iii) street maintenance; and (iv) building maintenance; and (c) maintenance and workshops, subdivided into: (i) vehicle maintenance; (ii) general mechanical maintenance; and (iii) woodwork. The Directorate will be responsible for operational and maintenance activities. The reorganization, which would be carried out with the assistance of the municipal engineer and supervising mechanic employed under thh Project, would take place during the first year of project execution in order that the new organization and facilities be operating effectively before delivery of new equip- ment for garbage collection and clearing of drainage ditches, planned to take place at the end of 1980. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the day of 197. FOR SECRETARY INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE 1 hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- ate and affixed the Seal of the Association thereunto the day'of AP , 197. FOR SECRETARY 1