Madagascar - Fifth Highway Project : Credit 0938 - Credit Agreement - 2 - Conformed

CONFORMED COPY SPECIAL ACTION CREDIT NUMBER 22 MAG Special Action Credit Agreement (Fifth Highway Project) between DEMOCRATIC REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY Dated July 30, 1979 SPECIAL ACTION CREDIT NUMBER 22 MAG SPECIAL ACTION CREDIT AGREEMENT AGREEMENT, dated July 30, 1979, between the DEMOCRATIC REPUB- LIC OF MADAGASCAR (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the Special Action Account estab- lished with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY. WHEREAS (A) by the Agreement, dated May 2, 1978, between the International Development Association (hereinafter called IDA) and the European Economic Community and its Member States there has been established by IDA a Special Action Account constituted by the funds which shall be contributed by the Member States of the European Economic Community and administered by IDA, acting as Administrator of such Special Action Account, for the purpose of, and in accordance with, the provisions of said Agreement; (B) the Borrower has requested of the Administrator assis- tance from the resources of the Special Action Account in the financing of a project described in Schedule 2 to this Agreement and the Administrator has determined that such assistance would be in accordance with the provisions of the Agreement of May 2, 1978 referred to above; (C) the Borrower has also requested IDA to provide addi- tional assistance towards the financing of the Project and by an agreement of even date herewith between the Borrower and IDA (hereinafter called the Development Credit Agreement) IDA is agreeing to provide such assistance in an aggregate principal amount equivalent to twenty-four million dollars ($24,000,000) (hereinafter called the IDA Credit); and WHEREAS the Administrator has agreed, on the basis inter alia of the foregoing, to extend the Special Action Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the International Development Association, -2- dated March 15, 1974, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable to Development Credit Agreements of the International Development Association, as so modified, being hereinafter called the General Conditions): (a) the term "Association", wherever used in the General Conditions, means the International Development Association acting as the Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agreement; (b) the terms "Development Credit Agreement" and "Credit", wherever used in the General Conditions are amended to read "Special Action Credit Agreement" and "Special Action Credit", respectively; (c) Sections 4.01, 4.02, 4.03, 4.04 and the second sentence of Section 5.01 are deleted; and (d) in Sections 6.02 and 7.01, the term "Association" shall also include the International Development Association acting in its own capacity. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Member States" means the Member States of the European Economic Community, i.e. Belgium, Denmark, The Federal Republic of Germany, France, Ireland, Italy, Luxembourg, The Netherlands and The United Kingdom; (b)- "Administrator" means the International Development Association acting as Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agree- ment; and (c) "Development Credit Agreement" means the agreement of even date herewith between the Borrower and IDA for the purpose of the Project, as such agreement may be amended from time to time; and such term includes the General Conditions Applicable to Development Credit Agreements of IDA, dated March 15, 1974, as -3- made applicable to such agreement, all agreements supplemental to the Development Credit Agreement and all schedules to the Develop- ment Credit Agreement. ARTICLE II The Special Action Credit Section 2.01. The Administrator agrees to lend to the Bor- rower on the terms and conditions in the Special Action Credit Agreement set forth or referred to, the following currency amounts: twelve million two hundred twenty-nine thousand Belgian francs (BFl2,229,000); one million five hundred twenty-two thousand Danish kroner (DKl,522,000); five million eight hundred seventy-eight thousand Deutsche marks (DM5,878,000); six million two hundred fourteen thousand French francs (FF6,214,000); thirteen thousand six hundred Irish pounds (Irk 13,600); seven hundred twenty-one million one hundred ten thousand Italian lire (ItL721,110,000); three hundred eighty-five thousand Luxembourg francs (LF385,000); eleven million six hundred twenty-five thousand Netherlands guilders (Dfll,625,000); and one million four hundred ninety-eight thousand six hundred Pounds sterling (1, 498,600). Section 2.02. (a) The proceeds of the Special Action Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may -4- be amended from time to time by agreement between the Borrower and the Administrator, for expenditures made (or, if the Administrator 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 Special Action Credit. (b) Withdrawals shall be made only on account of expendi- tures (i) in the currency of the Borrower, or (ii) for goods produced in, or services supplied from, (A) any of the Member States and (B) any developing country which is a member of the International Development Association and could be the recipient of a special action credit, as determined by the Administrator. (c) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Special Action Credit have been paid or are payable or, at the option of the Administrator, in such currency or currencies as the Administrator shall from time to time select. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Special Action Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1983, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Administrator a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum, on each of the various currency amounts with- drawn from the Credit Account and outstanding from time to time. The amounts of service charge in various currencies so found, and additional service charges (if any) payable pursuant to Section 3.02 of the General Conditions, shall be payable in the currency of the United States of America, or in another currency selected by the Administrator in accordance with the provisions of para- graph (b) of this Section, after their conversion into such currency on the basis of exchange rates determined in accordance with the provisions of Section 4.05 of the General Conditions. (b) If the Administrator shall at any time determine that the currency so specified or selected is not freely convertible or freely exchangeable by the International Development Association -5- for currencies of other members of the International Development Association for the purposes of its operations, service charges shall be payable in such other currency as the Administrator may select for such purposes and shall notify in writing to the Borrower, whereupon, commencing thirty days after the date of such notice, service charges shall be payable in such other currency. Section 2.06. Service charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.07. (a) The Borrower shall repay the principal amount of the Special Action Credit in semiannual installments payable on each May 1 and November 1 commencing November 1, 1989 and ending May 1, 2029, each installment to and including the installment payable on May 1, 1999, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment there- after to be one and one-half per cent (1-1/2%) of such principal amount. (b) Each of the installments payable pursuant to paragraph (a) of this Section shall be the aggregate of such amounts in the various currencies withdrawn from the Credit Account as shall be found by multiplying the total amount in each currency so withdrawn by the applicable installment percentage as specified in paragraph (a) of this Section, unless the Administrator shall otherwise specify by notice to the Borrower prior to each payment date for the purpose of avoiding the payment of fractional currency amounts. (c) If withdrawal shall have been made in a currency which the Administrator shall have purchased with one or more other currencies for the purpose of such withdrawal, the portion of the Special Action Credit so withdrawn shall, for the purpose of paragraph (b) of this Section, be deemed to have been withdrawn in the currency or currencies used by the Administrator for such purchase in the amounts of such currency or currencies so used. (d) The Administrator will, at the request of the Borrower and on such terms and conditions as the Administrator shall determine, use its best efforts to purchase any cu.crency needed by the Borrower for payment of principal required under this Agree- ment upon payment by the Borrower of sufficient funds therefor in a currency or currencies to be specified by the Administrator from time to time. In purchasing the currencies required the Adminis- trator shall be acting as agent of the Borrower and the Borrower -6- shall be deemed to have made any payment required under this Agreement only when and to the extent that the Administrator has received such payment in the currency or currencies required. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project through its Ministry responsible for public works with due diligence and efficiency and in conformity with appropriate economic, administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in carrying out the Project, the Borrower shall employ such consultants and experts, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Admini- strator, as shall be agreed to by the Administrator. Section 3.03. (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 Special Action Credit 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 Administrator shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Special Action Credit to be used exclusively for the Project. Section 3.04. (a) The Borrower shall furnish to the Administrator, promptly upon their preparation, the plans, speci- fications, reports, contract documents and construction and procurement schedules for the Project, and any material modifi- cations thereof or additions thereto, in such detail as the Administrator shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (in- cluding its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds -7- of the Special Action Credit, and to disclose their use in the Project; (ii) shall enable the Administrator's accredited repre- sentatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Special Action Credit and any relevant records and documents; and (iii) shall furnish to the Administrator at regular intervals all such information as the Administrator shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the proceeds of the Special Action Credit 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 Administrator, the Borrower shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator 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 Administrator of their rEspective obligations under the Special Action Credit Agreement and the accomplishment of the purposes of the Special Action Credit. Section 3.05. The central administrat.ive unit for road maintenance to be established under Part D of the Project shall be established and shall be headed by a qualified and experienced engineer by January 1, 1980 and shall be provided with adequate supporting staff. Section 3.06. Following completion of the study included in Part G of the Project, the Borrower and the Administrator shall agree, on the basis of the recommendations made in said study, views on the specific works, equipment and materials and on the staff required for the demonstration program included in such Part G. Section 3.07. The number and kinds of fellowships to be provided under Part H of the Project shall be agreed upon by the Borrower and the Administrator. Section 3.08. Sections of roads to be regravelled under Part E of the Project shall be restricted to those having an economic rate of return of at least 12% as evaluated using methods satis- factory to the Administrator. -8- Section 3.09. The bridges and approaches thereto to be constructed under Part B of the Project shall be as described in Schedule 4 to this Agreement. Section 3.10. (a) The Borrower shall prepare and carry out a training program (the training program) on road maintenance for the staff of its Ministry of Public Works. (b) For purposes of preparing and carrying out the training program, the Borrower shall: (i) not later than January 1, 1980, employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Administrator; and (ii) consult with the Administrator on the decisions that the Borrower proposes to take in the light of the recommendations made by such consultants for the execution of the training program. (c) The Borrower shall construct such training facilities as shall be required for purposes of the training program; such construction to start not later than January 1, 1980. ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the Ministry of Public Works and of any other department or agency of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. (a) In order to cover the cost of maintaining the Borrower's primary and secondary road networks in 1980, the Borrower shall: (i) allocate at least 3,000 million FMG, and cause its provinces to allocate at least 960 million FMG, for operating costs; and -9- (ii) allocate at least 1,100 million FMG for equipment renewal, and make its best efforts to obtain such additional amounts as shall be required for this purpose (estimated at 1,100 million FMG). (b) After 1980 and until completion of the Project, the Borrower shall: (i) from time to time, exchange views with the Associ- ation on the adequacy of its budgetary allocation for the maintenance of the Borrower's primary and secondary roads networks taking into consideration cost increases due to inflation and the scope of required maintenance operations; and (ii) ensure that such allocations be made available to the regional district offices of the Ministry of Public Works promptly as needed for uninterrupted maintenance operations. (c) For purposes of this Section, "FMG" means the currency unit of the Borrower. Section 4.03. The Borrower shall ensure that adequate amounts of 1 tumen be made available as and when required for the rehabilitation and maintenance of its roadq. Section 4.04. The Borrower shall take all action as may be required to maintain adequately its road network and bridges in its highway system including without limitation, the workshops related thereto, shall promptly make all necessary repairs thereof in accordance with sound engineering practices, and shall maintain and renew, as and when needed, the road maintenance and other equipment required for the purpose. Section 4.05. The Borrower shall ensure that vehicle dimen- sions, weights and speeds are appropriate to the geometric and structural standards of the Borrower's road system and shall take all necessary action to implement and enforce traffic rules and regulations designed for such purposes. ARTICLE V Remedies of the Association Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional events are specified - 10 - pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section: (i) The right of the Borrower to withdraw the proceeds of any loan or credit made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement providing therefor, or (ii) any such loan or credit shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of s!.tion 7.01 of the General Conditions, the following additiona! event is specified pursuant to paragraph (d) thereof namely, that the event specified in paragraph (a) (ii) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition to the effectiveness of the Special Action Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that all conditions precedent to the effec- tiveness of the Development Credit Agreement, except for the effectiveness of this Agreement, have been fulfilled. Section 6.02. The date October 29, 1979, is hereby specified for the purposes of Section 12.04 of the General Condi- tions. - 11 - Section 6.03. The obligations of the Borrower under Sections 4.03, 4.04 and 4.05 of this Agreement shall cease and determine on the date on which the Special Action Credit Agreement shall terminate or on a date twenty years after the date of this Agree- ment, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere aupres de la Presidence de la Republique Charge des Finances et du Plan Antananarivo Madagascar Cable address: Telex: MINIFINPLAN 22339 Antananarivo For the Administrator: Administrator of the Special Action Account (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) - 12 - 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. DEMOCRATIC REPUBLIC OF MADAGASCAR By /s/ N. Rakotomalala Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY By Is/ Willi A. Wapenhans Regional Vice President Eastern Africa - 13 - SCHEDULE 1 Withdrawals of the Proceeds of the Special Action Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Special Action Credit, the allocation of the amounts of the Special Action Credit to each Category and the percentage for items so to be financed in each Category: Amount of the Special Action Credit % of Allocated (Expressed Expenditures Category in Dollar Equivalents) to be Financed (1) Rehabilitation 5,200,000 70% and resurfacing of roads (2) Consultants' 300,000 100% of foreign services expenditures (3) Construction 4,400,000 62% of bridges and approaches thereto (4) Unallocated 100,000 TOTAL l0,00,000 2. The total dollar amount shown in the foregoing table shall be adjusted from time to time as required to reflect the aggregate dollar equivalent of the unwithdrawn currency amounts in the Credit Account; the unallocated dollar amount shall be adjusted accordingly. 3. For the purposes of this Schedule: the term "foreign expen- ditures" means expenditures in the currency of, and for goods produced in or services supplied from, (i) any of the Member States and (ii) any developing country, other than the Borrower, - 14 - which is a member of the International Development Association and could be the recipient of a Special Action Credit, as determined by the Administrator. 4. The disbursement percentages have been calculated in com- pliance with the policy of the Administrator that no proceeds of the Special Action Credit 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, procure- ment 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 Special Action Credit decreases or increases, the Administrator 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 Administrator. 5. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expendi- tures (i) prior to the date of this Agreetent or (ii) under Category (3) for any Part of the Project except Part A until the Borrower has employed the consultants referred to in Section 3.10 (b) of this Agreement and has given the "ordre de service de commencer les travaux" in respect of the facilities referred to in Section 3.10 (c) of this Agreement. 6. Notwithstanding the allocation of an aount of the Special Action Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Administrator has reasonably estimated that the amount of the Special Action Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Administrator may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Special Action Credit which are then allocated to another Category and which in the opinion of the Administrator are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated short- fall, 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. 7. If the Administrator shall have reasonably determined that the procurement of any item in any Category is inconsistent with - 15 - the procedures set forth or referred to in this Special Action Credit Agreement, no expenditures for such item shall be financed out of the proceeds of the Special Action Credit and the Admin- istrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under the Special Action Credit Agreement, by notice to the Borrower, cancel such currency amounts of the Special Action Credit as, in the Adminis- trator's reasonable opinion, represent the currency amounts which would otherwise have been eligible for withdrawal out of the proceeds of the Special Action Credit in respect of such expendi- tures. - 16 - SCHEDULE 2 Description of the Project The Project is designed to improve and rehabilitate certain roads of the Borrower and to increase its long-run maintenance capacity by strengthening its maintenance organization. The Project includes the following: Part A: Rehabilitation and resurfacing of about 500 km of paved roads as agreed between the Borrower and the Association on the basis of the study being carried out under the Project described in the Development Credit Agreement between the Borrower and the Association dated June 23, 1976. Part B: Construction of bridges and approaches thereto for the Antsohihy-Ambanja road and repair of such road to allow all-year traffic, such repair to be completed upon or prior to the completion of the bridges and approaches. Part C: Purchase of an initial stock of bitumen for road main- tenance. Part D: Establishment of a central unit responsible for road maintenance within the Ministry of Public Works. Part E: Improvement of road maintenance in Mahajanga and Toliara regional districts, including the carrying out of a regravelling program for about 400 km of roads as agreed between the Borrower and the Association on the basis of a list of roads, a list of types and quantities of equipment and the timing of their procurement and a determination of staffing requirements, all as iden- tified by consultants; procurement of equipment, materials, fuel and spare parts for the purpose. Part F: Improvement of the regional mechanical workshops at Antananarivo, Mahajanga, Fianarantsoa, Toamasina and Toliara, including construction and improvement of buildings and procurement of tools and equipment for the purpose. Part G: Conducting a study to determine the most appropriate mix of labor and equipment for road maintenance and - 17 - improvement works taking into account, inter alia, the functions in this respect assigned by the Borrower to local communities and the Borrower's objective to develop cooperatives in charge of road maintenance and improvement; implementation of a two-year demon- stration program based thereon and procurement of equipment, spare parts, fuel and materials for the purpose. Part H: Training, including the provision of fellowships, for personnel and staff of the Ministry of Public Works in road and equipment maintenance and repair under Parts D, E, F and G above. Part I: Feasibility and detailed engineering studies for the section of road RN13 located between road RN7 and the Manandrotsy bridge. The Project is expected to be completed by December 31, 1982. - 18 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Subject to the eligibility restrictions set forth in Section 2.02 (b) of this Agreement and except as provided in Part B hereof, goods and civil works shall be procured under contracts awarded 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, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Administrator as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of Ehe 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 Adminis- trator shall reasonably request; the Administrator 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 &d 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 interna- tional competitive bidding. 3. For the construction of bridges and approaches included in Part B of the Project: (a) bidders shall be prequalified as described in part 1.3 of the Guidelines; (b) works will be divided into three lots as agreed between the Borrower and the Association; and (c) bidders will be invited to bid on any one or more lots. 4. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state - 19 - 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. B. Other Procurement Procedures 1. Construction and improvement of workshop buildings under Part F of the Project may be carried out under force account or under contracts awarded following competitive bidding advertised locally. 2. Contracts for equipment, materials and supplies estimated after grouping to cost less than $50,000 equivalent may be awarded on the basis of competing quotations; provided, however, that the aggregate cost of the contracts so procured does not exceed $500,000 equivalent. 3. Spare parts for which international bidding is inappropriate because of low cost or requirements for standardization, as well as bitumen, may be procured following applicable local procedures. C. Review of Procurement Decisions by the Association 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Administrator in detail of the procedure to be followed, and shall introduce such modifica- tions in said procedure as the Administrator shall reasonably request. The list of prequalified bidders, together with a state- ment of their qualifications and of the reasons for the exclusion of any applicant for prequalification shall be furnished by the Borrower to the Administrator for its comments before the appli- cants are notified of the Borrower's decision, and the Borrower shall make such additions to, deletion from, or modifications in, the said list as the Administrator shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equiva- lent of $50,000 or more: - 20 - (a) Before bids are invited, the Borrower shall furnish to the Administrator, for its comments, the text of the invitations to bid and the specifications and other biddin8 documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Administrator shall reasonably request. Any further modification to the bidding documents shall require the Administrator's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Administrator of the name of the bidder to which it intends to award the contract and shall furnish to the Administrator, in sufficient time for its review, a detailed report on the eva- luation and comparison of the bids received, and such other information as the Administrator shall reasonably request. The Administrator 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. (c) The terms and conditions of the contract shall not, without the Administrator'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 Administrator promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds from the Credit Account in respect of such contract. 3. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Administrator, promptly after its execution and prior to the submission to the Administrator 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 such other infor- mation as the Administrator shall reasonably request. The Adminis- trator shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determina- tion. - 21 - 4. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an exten- sion of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower shall inform the Administrator of the proposed modification, waiver, extension or change order and the reasons therefor. The Administrator, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. - 22 - SCHEDULE 4 Bridges and Approaches Number of River Crossing Station Span Traffic Lanes (km) Andampy 16.229 2 x 30m 1 Anjingo No. 1 17.600 1 x 30m 2 Anjingo No. 2 18.227 2 x 40m 1 Tsilokivary 19.995 26m 2 Sahavalanina 30.001 32m 2 Antsohihely 32.017 17m 2 Maevarana 42.641 8 x 40m 1 Manambaro 59.341 1 x 40m 1 Maropapango 64.403 1 x 30m 2 Antotoro 67.296 21m 2 Mahitsihazo 69.002 2 x 30m 1 Ratsianarana 72.327 1 x 30m 2 Ampanolaka 78.186 1 x 30m 2 Ambahitsivikinini 89.490 1 x 30m 2 Anadroadro 104.718 21m 2 Ankaramihely 110.897 2 x 16m 2 Ankaramibe 115.140 2 x 16m 2 Andaingibe 137.024 26m 2 Ankingameloka 138.690 32m 2 Djangoa 145.749 3 x 30m 1