Niger - Feeder Roads Project : Credit 0886 - Development Credit Agreement - Conformed

 CONFORMED COPY CREDIT NUMBER 886 NIR Development Credit Agreement (Feeder Roads Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated April 27, 1979  CREDIT NUMBER 886 NIR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated April 27, 1979, between REPUBLIC OF NIGER (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) by letter addressed by the Association to the Minister of Planning of the Borrower on December 28, 1976, the Associ- ation granted an advance to the Borrower totalling $200,000 for the preparation of the Project; (C) pursuant to the terms of said advance the aggregate amount thereof is to be refunded to the Association out of the proceeds of the Credit provided for in this Agreement; and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the 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 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) "Ministry" means the Ministry of the Borrower respon- sible for Public Works;  - 2 - (b) "Directorate" means the Directorate of Public Works within the Ministry; (c) "Committee" means le comite inter-minist-riel des pistes rurales to be established pursuant to the provisions of Section 3.06 of this Agreement; and (d) "Technical Section" means the Feeder Road Technical Section to be established within the Directorate pursuant to the provisions of Section 3.07 (a) of this Agreement. 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 curren- cies equivalent to ten million dollars ($10,000,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Associ- ation 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. (b) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the principal amount of the advance referred to in paragraph (B) of the Preamble to this Agreement withdrawn and outstanding as of such date and to pay any unpaid charges thereon. Any unwithdrawn balance of the authorized amount of such advance shall automat- ically be cancelled on the same date. 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. Section 2.04. The Closing Date shall be June 30, 1984 or such later date as the Association shall establish. The Associ- ation shall promptly notify the Borrower of such later date.  -3- 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 January 1 and July 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each January 1 and July 1 commencing July 1, 1989, and ending January 1, 2029, each installment to and including the installment payable on January 1, .999, 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 French Republic is hereby specified for the purposes of Section 4.02 of the General Condi- tions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appro- priate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, ser- vices and other resources required for the purpose. (b) Without limitation upon the provisions of paragraph (a) of this Section and of Section 4.02 of this Agreement, the Borrower specifically undertakes to make arrangements, satis- factory to the Association, to provide such funds as are needed to meet recurrent expenditures required for carrying out the routine and the periodic maintenance operations on the Borrower's feeder road network constructed or improved under the Project. For this purpose, the Borrower shall, inter alia, review, in consultation with the Association, not later than May 31 of each year or such later date as the Association may agree, the budgetary proposals for such maintenance operations in the fiscal year starting on October 1 thereafter. Section 3.02. (a) In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants  who shall have qualifications and experience and be employed on terms and conditions and in accordance with terms of reference which shall be satisfactory to the Association and which shall be selected by April 30, 1979 or such later date as shall be agreed between the Borrower and the Association. (b) The Borrower shall, upon the arrival of each consultant at his post, recruit and assign local personnel to work with such consultants, in such numbers and with such qualifications as shall be satisfactory to the Borrower and the Association. 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 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 i.i a currency freely usable by the Borrower to replace or repair such goods. (b) Except as provided in paragraph (c) of this Section or as the Association shall otherwise agree, all goods and services financed out of the proceeds of the Credit shall be used exclu- sively for the Project until its completion. (c) Equipment purchased under the Project may be used in the maintenance of about 500 km of existing feeder roads. Section 3.04. (a) The Borrower shall furnish to the Associa- tion, 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 Association shall reasonably request. (b) The Borrower shall: (i) 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) enable the Association's accredited representatives to visit the facili- ties 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) furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its  - 5 - 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 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. Section 3.05. 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. Section 3.06. For the purposes of general administrative supervision of the execution of the Project, the Borrower shall establish a Comite inter-ministeriel des pistes rurales (the Committee) chaired by a representative of the Borrower's Ministry of Planning and including a representative from the Ministry and the Borrower's ministries responsible for Rural Development, Interior and Finance, respectively. Section 3.07. (a) For the purposes of carrying out the Project and coordinating and administering the planning, carrying out and monitoring of the Borrower's feeder roads improvement and maintenance programs, the Borrower shall establish within the Directorate a Technical Section for feeder roads. (b) The Borrower shall, promptly as needed, provide the Technical Section with such qualified and experienced staff and other resources as shall be required for the efficient operation thereof. Section 3.08. (a) The feeder roads included in the Project shall be selected pursuant to criteria agreed upon between the Borrower and the Association and, except as the parties hereto shall otherwise agree, shall be constructed, improved, rehabili- tated or maintained in accordance with the design standards set forth in Schedule 4 to this Agreement.  -6- (b) For the purpose of carrying out the Project, the Borrower shall furnish to the Association for its comments, for each fiscal year until completion of the Project, the proposed annual work programs for feeder road construction, improvement, rehabilitation or maintenance to be carried out under the Project during such year, not later than two months before the scheduled start of the works to be undertaken pursuant to such proposed programs. Section 3.09. (a) In order to carry out the program of training included in the Project, the Borrower shall prepare and furnish to the Association for its review, by December 31, 1979 or by such later date as shall be agreed between the Borrower and the Association, and shall thereafter promptly implement such program. (b) The Borrower shall ensure that such training program be coordinated with the training program being carried out pursuant to the Development Credit Agreement (Third Highway Project) between the Borrower and the Association dated March 5, 1976 (Credit Number 612 NIR). ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resourcE, and expenditures, in respect of the Project, of the Ministry and of any other department or agency of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall, through the Ministry, ensure that: (i) all operations and accounts with respect to the feeder road improvement brigades and feeder road maintenance units of the Technical Section be kept separate from the other operations and accounts of the Directorate; and (ii) that the Directorate retain, 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 to enable the Association's accredited represen- tatives to examine such records.  - 7 - Section 4.02. The Borrower shall cause the feeder road network included in the Project and the feeder road maintenance equipment to be promptly and adequately maintained and repaired, all in accordance with sound engineering and economic standards, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section 4.03. Tbe Borrower shall furnish to the Association the sections of its Transport Plan dealing with roads as soon as they are completed. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Committee has been duly established pursuant to Section 3.06 of this Agreement; and (b) the Technical Section has been duly established pursuant to Section 3.07 (a) of this Agreement. Section 5.02. The date July 27, 1979, is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for Planning is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions.  -8- Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere du Plan Niamey Republic of Niger Cable address: Telex: MINISTERE PLAN 5230 Niamey Niamey 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) 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 NIGER By /s/ Andre Joseph Wright Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Roger Chaufournier Regional Vice President Western Africa  -9- 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) Equipment, vehicle, 5,830,000 100% of foreign spare parts material, expenditures or fuel and lubricants 80% of local ex- penditures (2) Construction of 140,000 70% offices for the Technical Section (3) Local labor 400,000 25% (4) Contracts for road 220,000 58% works (5) Consultants' services 1,290,000 85% (6) Refunding of Project 200,000 100% of amount Preparation Advance outstanding at Effective Date (7) Equipment and supplies 10,000 100% for training (8) Unallocated 1,910,000 TOTAL 10,000,000  - 10 - 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 other goods or services supplied from the territory of any country than the Borrower; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures"; and in (b) the term "local expenditures" means expenditures 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- of the pliance with the policy of the Association that no proceeds Credit shall be disbursed on account of payments for taxes levied or by, or in the territory of, the Borrower on goods or services, 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 with the applicable to such item as required to be consistent aforementioned policy of the Association. 4. 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. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- that graph 1 above, if the Association has reasonably estimated to any Category will be the amount of the Credit then allocated insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: to meet (i) reallocate to such Category, to the extent required the Credit which are then the estimated shortfall, proceeds of the opinion of the allocated to another Category and which in Association 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 expen- ditures in order that further withdrawals under such Category may been made. continue until all expenditures thereunder shall have  - 11 - 6. 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 of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Associ- ation's reasonable opinion, represents the amount of such expendi- tures which would otherwise have been eligible for financing out of the proceeds of the Credit.  - 12 - SCHEDULE 2 Description of the Project The Project comprises a four-year program for the improvement and subsequent maintenance of about 1,000 km of feeder roads in rural areas and the creation of the institutions necessary for the purpose and for the subsequent operation of such roads. The Project includes: (1) purchase and repair of equipment, purchase of spare parts and workshop tools; (2) purchase of construction materials, fuel and lubricants; (3) construction and repair of small drainage structures; (4) transportation of materials; (5) construction of offices for the Technical Se-tion; (6) estab- lishment of the Technical Section in order to program, implement and monitor the feeder road program; (7) purchase of training equipment and supplies; (8) training of specialists in the opera- tion of civil and mechanical works; (9) analyzing construc- tion and maintenance costs and methods for feeder roads and establishing a cost-accounting system; and (10) preparing a future feeder roads project. The Project is expected to be completed by December 31, 1983.  - 13 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Parts B and D of this Schedule, goods 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 to be procured on the basis of international 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 documents relating thereto, 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 in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods remain to be procured on the basis of international competitive 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. 4. To the extent practicable, identical or similar items shall be grouped for purposes of bidding so as to permit bulk procure- ment.  - 14 - B. Other Procurement Procedures 1. Subject to Part C.1 of this Schedule, contracts for the purchase of equipment, materials, vehicles and supplies estimated to cost less than the equivalent of $60,000 each may be procured on the basis of competitive bidding advertised locally. 2. Contracts for the construction of offices for the Technical Section and of minor drainage works, and contracts for the trans- portation of materials, may be procured on the basis of competi- tive bidding advertised locally. C. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to: (i) all contracts for equipment, materials, vehicles and supplies estimated to cost the equivalent of $60,000 or more; and (ii) all contracts of any value proposed to be pro- cured under Part B.2 of this Schedule the estimated cost of which, when added to all other contracts so procured, is expected to exceed $400,000 equivalent: (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 evalua- tion and comparison of the bids received, and such other informa- tion 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.  - 15 - (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. 2. 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. 3. 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 10% of the original 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. D. Procurement Without Contracting Road works may be carried out by force account by the Technical Section.  - 16 - SCHEDULE 4 Feeder Road Design Standards Design Standard* Designation III II Vehicles per day more than 10 10 or less Clearing (m) 12 12 Formation width (m) 8** 6 Road width (m) 6 5 Thickness of surface (cm) 15 - 25 12 - 15 Drainage lateral ditches, culverts and fords; bridges only where the size of river or the volume of traffic warrants it. * Where any existing feeder roads have standards that are higher than those set forth in this Schedule, such roads shall be improved and maintained to such higher standards. ** This will be reduced in difficult terrain to limit earth- works.