Yemen - Third Education Project : Credit 0915 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 915 YAR Development Credit Agreement (Third Education Project) between YEMEN ARAB REPUBLIC and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 27, 1979 I 1 4Z~. 4 CREDIT NUMBER 915 YAR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 27, 1979, between YEMEN ARAB REPUBLIC (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). 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 Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association 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) "MOE" means the Ministry of Education of the Borrower; (b) "MOA" means the Ministry of Agriculture of the Borrower; (c) "MOH" means the Ministry of Health of the Borrower; (d) "NIPA" means the National Institute of Public Adminis- tration of the Borrower; (e) "PIU" means the Project Implementation Unit, established under the Development Credit Agreement concluded between the Borrower and the Association on July 19, 1973 for the First Education Project; (f) "SBU" means the School Building Unit, a division of MOE; and (g) "Previous Development Credit Agreements" means the two Development Credit Agreements concluded between the Borrower and the Association on July 19, 1973 and February 13, 1976, for the previous two education projects. -2- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equiva- lent to ten million dollars ($10,000,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Associ- ation, for expenditures made (or, if the Association 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 Credit. 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 this Agreement. Sec:ion 2.04. The Closing Date shall be July 31, 1986 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semiannually on May 15 and November 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each Nay 15 and November 15 commencing May 15, 1989, and ending November 15, 2028, each installment to and including the installment payable on November 15, 1998, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. II - 3- ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project through MOE, MOH, NIPA, PIU and Sana'a University with due diligence and efficiency, substantially in accordance with an implementation schedule acceptable to the Association, and in conformity with appropriate administrative, financial, engineering and educational practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) The Borrower shall cause each of MOE, MOH, NIPA and Sana'a University: (i) to designate one of its senior staff as the Project coordinator for Parts A and E, Part C, Part B and Part D of the Project, respectively; and (ii) to assign to such Project coordinator, under the general supervision of the Minister of Education, the responsibility for (A) the recruit- ment of staff and the nomination of fellowship candidates under the Project, (B) the implementation of the technical assistance programs under the Project, and the cooperation with PIU in the preparation of architectural designs and procurement documents under the Project, (C) the provision of all administrative assis- tance required for the carrying out of the Project, and (D) the preparation, with the assistance of PIU, of all documents required for withdrawing the proceeds of the Credit in regard to the technical assistance under the Project. (b) The Borrower shall cause MOE to assign to PIU the overall responsibility for: (i) the preparation of the plans, specifications, contract documents and construction and procure- ment schedules for Parts A and B of the Project and for the evaluation of bids, award of contracts and supervision of all construction works under said Parts of the Project, and for the preparation of the architectural design under Part C (3) of the Project; and (ii) the preparation and submission, through MOE, of all documents required for withdrawing the proceeds of the Credit. Section 3.03. The Borrower undertakes: (a) to employ teaching experts and qualified teachers in such numbers as shall be required for the initial 3 to 4 years of operation of the agricultural and livestock secondary schools, to be constructed under Part A of the Project; (b) to identify from among the Yemeni students, currently studying abroad on fellowships from MOE and MOA, an adequate number for appointment upon graduation by MOE at such schools as counterparts for such teaching experts; and (c) to ensure that such counterparts holding positions in MOA shall be released for such appointment at MOE at the scheduled commencement of fellowship program of their specialized pedago- gical training. Section 3.04. The Borrower shall enable and cause MOE to provide incentives, including free bo,Rrding facilities and stipends, sufficient to att'act an adequate number of qualified students for enrollment at The agricultural and livestock secon- dary schools to be established under Part A of the Project. Section 3.05. The Borrower shall cause MOA to formulate by December 31, 1980 a program for the staffing needs of the agricul- tural and livestock services at the provincial, district and sub-district levels and the career opportunities available for job holders in said services, and to disseminate the information contained in said program through the education system. Section 3.06. The Borrower shall ensure that MOE will main- tain adequate consultation with local and other appropriate interest groups, including MOA, to ensure and continue the rele- vance of the curricula of the agricultural and livestock secondary schools, to be established under Part A of the Project, to economic needs and to advise said schools on job opportunities for their graduates. Section 3.07. The Borrower shall cause MOE: (a) to establish and operate, not later than September 30, 1981, a tracer system for the continuous monitoring of the employment of graduates of the schools to be established under Part A of the Project and of the Ibb Agricultural Training Center; and (b) to provide the Association, during the three years following immediately the first graduation of students from such schools and Center, with annual reports on the operation of said tracer system. Section 3.08. The Borr wer shall enable and cause NIPA to provide all incentives, including housing facilities or allowances and competitive salaries, required to recruit and to maintain adequate teaching staff for NIPA's training facilities in Taiz and Hodeidah, to be established under Part B of the Project. II -5- Section 3.09. In order to enable the Borrower and the Associ- ation to exchange views on the future staffing needs and scope of operation of the two NIPA's branches in Taiz and Hodeidah, to be provided with training facilities under Part,B of the Project, the Borrower shall keep the Association informed of the projected technical assistance for NIPA, including that projected by the United Nations Development Program, which will affect directly the operation of said branches. Section 3.10. (a) The Borrower shall cause MOH to advise the Association of the qualifications, experience and terms and conditions of employment of the experts selected by MOH in order to assist it in carrying out the studies referred to in Part C of the Project, and to employ such experts as shall be acceptable to the Borrower and the Association at such time as shall permit the commencement of the sociological study, referred to in Part C (1) of the Project, by September 30, 1979 (or such other date as may be agreed between the Borrower and the Association), and the commencement of the feasibility study, referred to in Part C (2) of the Project, by September 30, 1980 (or such other date as may be agreed between the Borrower and the Association). (b) The Borrower shall ensure that MOH: (i) will provide the Association with a copy of each of the studies referred to in the preceding paragraph (a) promptly upon their completion; and (ii) will exchange views with the Association for the purpose of formulating a plan for carrying out such recommendations emanating from said studies as shall be agreed between the Borrower and the Association. Section 3.11. (a) The Borrower shall furnish to the Associa- tion: (i) for its review and comment, the detailed terms of reference for the pre-investment studies to be carried out under Part D (1) of the Project, including the qualifications of specialists referred to in Part D (1) (b) of the Project; and (ii) the reports containing the findings of said studies. (b) The Borrower shall furnish to the Association, for its review and comments, the qualifications of candidates for training under the Project. Section 3.12. In order to strengthen the management of SBU, the Borrower shall ensure that MOE will appoint: (a) not later than September 30, 1979 (or such other date as the Association may agree), a qualified Yemeni engineer/architect to head SBU; and (b) L not later than September 30, 1980 (or such other date as the Association may agree), fifteen technicians to assist such engi- neer in the management and operation of SBU. Section 3.13. (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 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 Association shall otherwise agree, the Borrower shall cause all goods and sci-t-ces financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.14. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall 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 Credit, and to disclose their use in the Project; (ii) shall enable the Association'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 Credit 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 expenditure of the proceeds of the 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 Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to 1,4 be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained separate Project accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall: (i) have said Project accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors accept- able to the Association; (ii) furnish to the Association as soon! as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning said accounts and the audit thereof as the Association shall from time to time reasonably request. Section 4.02. The Borrower shall take or cause to be taken all measures required to ensure the adequate operation, mainten- ance, repair and renewals of buildings and equipment provided under the Project in accordanc with appropriate engineering and financial practices. ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an addi- tional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that the Borrower has made, to the satis- faction of the Association, arrangements for the appointment (or for securing under technical assistance programs) by the commence- ment of the academic year 1979/1980 all specialists required for -8- the operation of all such schools, institutes and centers estab- lished under the previous Development Credit Agreements as shall physically be ready for operation by said academic year. Section 5.02. The date October '30, 1979 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,Minister of Education of the Borrower and such c-ther -person or persons as he shall designate in writing are designated as representatives 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 Geferal Conditions: For the Borrower: Ministry of Education Sana'a -. Yemen Arab Republic Cable address: MINISTRY OF EDUCATION Sana'a For the Association: InternationalZRevelopment Associat'ion 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) N, 9 - IN WýäNESS 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. YEMEN ARAB REPUBLIC By /s/ Yahya Al-Mutawakel Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Munir Benjenk Regiona 1Vice President Europe, Middle East and North Africa 111 - 10 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works under 2,-660,000 24% Parts A and B of the Project (2) Furniture and 1,520,000 100% of foreign equipment under expenditures, Parts A and B of 100% of local the Project expenditures ex- factory and 85% of local expen- ditures for im- ported items procured locally (3) Technical assis- 5 ,260,00, 100% tance and train- ing (4) Unallocated 560,000 TOTAL 10,000,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" 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; and 1A - 11 - (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Association that no proceeds of the 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, 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 Credit decreases or increases, the Association 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 Association. 4. Without limitation upon the provisions of the preceding paragraph, the Borrower has undertaken not to levy customs duties or other similar taxes on the import of goods required for the implementation of the Project. 5. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement. 6. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expendi- tures; 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. 7. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this,Agreement, no expenditures for such item shall be financed out of the proceeds 기 13 SCHEDULE 2 Description of the Project The main ob ectives of the Project are: (a) to assist in the diversification and development of the Borrower's agricultural secondary education with a view to responding to specific manpower demands; (b) to assist MOH in its pre-investment studies of the regional health needs in terms of institutions, facilities and training; (c) to expand and improve the public administration training provided by NIPA in specific regional centers; (d) to assist in developing a post-secondary education system suited to meet future manpower needs; and (e) to improve project implemen- tation, management and construction capabilities of MOE. The Project consists of: Part A: A ricultural Education (1) The design, construction, furnishing and equipping of: (a) an agricultural secondary school at Surdud with a total enrollment capacity of about 200 students; and (b) a livestock secondary school in Sana'a with a total enrollment capacity of about 180 students. (2) Technical assistance comprising the employment of teaching experts for the agricultural and livestock schools provided under (1) above and-specialized pedago- gical training of the Yemeni staff of those schools. Part B: Regional Training on Public Administration (1) The design, construction, furnishing and equipping Of training facilities sufficient to accommodate about 250 trainees at each of NIPA's regional branches in Taiz and Hodeidah. (2) The provision of technical assistance comprising employ- ment of experts and training of the Yemeni staff of said branche's. Part C: Health Care Services and Related Training The carrying out of: - 14 - (1) a sociological survey in about five regions with a view to establishing criteria for the development and management of primary health care; (2) a feasibility study on establishing and managing a regional health care center, together with its primary health care and training units, in each of such regions; (3) a preliminary architectural design of such centers and their units; and (4) Technical assistance program to the Health Manpower Institute in Sana'a, comprising the employment of two health specialist educators and the provision of two training fellowships for Yemeni staff in related fields. Part D: Development of Post-Secondary Education (1) Pre-investment studies consisting of: (a) a two-month study visit by a Yemeni observation team to selected institutions abroad; and (b) a programming study by a team of about 15 special- ists, to assist in the planning and development of post-secondary education. In the context of the Government education policy, the study will, inter alia: (i) recommend objectives and priorities for different types of institutes and specialization in post-secondary education, including medical, agricultural and engineering institutes; (ii) assist in defining appropriate courses and their scopes, and propose model teaching programs appro- priate for local conditions; (iii) propose organi- zation structures for the recommended post-secon- dary institutes and for the academic development of their staff; (iv) propose locations and criteria for establishing recommended institutes; and (v) propose a program for post-secondary education up to 1990, providing for an estimate of such pro- gram's cost. (2) Two fellowships for training university staff in plan- ning and administration of higher education. - 15 - Part E: Strengthening MOE (1) Technical assistance to MOE comprising the employment of short-term consultants in order to assist MOE in its activities related to monitoring and evaluation, educational statistics and school mapping. (2) Ten overseas fellowships for the training of staff of MOE in, inter alia, planning, evaluation, implemen- tation and management of education projects. (3) Technical assistance to SBU, comprising: (a) training by PIU of SBU's staff in designing, procurement and supervision of construction works; (b) implementing training programs in building mainten- ance for SBU's staff, establishing within it a section of norms and standards for education facilities and improving its planning and program- ming management, all with the assistance of short- term consultants' services; and (c) specialized training of a selected number of SBU's staff through fellowships. The Project is expected to be completed by July 31, 1985. 161 - 16 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part D 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 Association as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Association shall reasonably request; the Association will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the 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 compe- titive bidding. 3. 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 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. Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A of this Schedule, goods manufactured in II -17- Yemen Arab Republic may be granted a margin of preference in accordance with, and subject to, the following provisions: 1. 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. 2. After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Yemen Arab Republic if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Yemen Arab Republic equal to at least 20% of the ex-factory bid price of such goods. . (2) Group B: all other bids offering goods manufactured in Yemen Arab Republic. (3) Group C: bids offering any other goods. 3. All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. 4. If, as a result of the comparison under paragraph 3 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 evaluated 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 -18- not, the bid from group C which as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Preference for D' mestic Contractors With respect to the evaluation of bids for any contract for civil works included under Category (1) of the table set forth in Schedule 1 to the Development Credit Agreement and to be pro- cured in accordance with the procedures described in Part A of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: 1. Contractors shall be required to prequalify as provided in Part A of this Schedule and applicants for qualification applying for such preference shall be asked to provide, as part of the data for qualification, such information, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. 2. After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. D. Other Procurement Procedures With respect to contracts for items of equipment and furni- ture which: (i) cannot be grouped in bulk contracts costing the equivalent of $50,000 or more; or (ii) are of such highly specialized nature that international competitive bidding would not be practicable, the Borrower may award such contracts in accordance with its own procurement procedures. Prior to awarding -19- such contracts, the Borrower shall to the extent feasible obtain price quotations from not less than three manufacturers or sup- pliers. The aggregate contract amount of contracts awarded pur- suant to the provisions of this Part D shall not exceed $400,000 equivalent. E. Review of Procurement Decisions by the Association 1. Review of prequalification. If prequalification is required, the Borrower shall, before qualification is invited, inform the Association in detail of the procedure to be followed, and shall introduce such modifications in said procedure as the Association shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and, where applicable, of their eligibility for domestic preference under Part C 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 Association for its comments before the applicants are notified of the Borrower's decision, and the Borrower shall make such additions to, deletions from, or modifi- cations in, the said list as the Association shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equiva- lent of more than $50,000: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report on the evalu- ation and comparison of the bids received, and such other - 20 - information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution. and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 3. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 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 30% of the oviginal price, the Borrower shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, 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.