Jordan - Urban Development Project : Loan 1893 - Project Agreement - Conformed

LOAN NUMBER 1893 JO DOCUMENTS Project Agreement (Urban Development Project) among INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and MUNICIPALITY OF AMMAN and HOUSING BANK and INDUSTRIAL DEVELOPMENT BANK Dated , 1980 LOAN NUMBER 1893 JO PROJECT AGREEMENT AGREEME-I-, dated - k S , 1980, among INTERNATIONAL BANK FOR RECON TRUCTION AND DEVELOPMENT (hereinafter called the Bank), MUNICIPALITY OF AMMAN (hereinafter called the Municipality), HOUSING BANK (hereinafter called HB) and INDUSTRIAL DEVELOPMENT BANK (hereinafter called IDB). WHEREAS (A) by the Loan Agreement of even date herewith between the Hashemite Kingdom of Jordan (hereinafter called the Borrower) and the Bank, the Bank has agreed to make available to the Borrower an amount in various currencies equivalent to twenty-one million dollars ($21,000,000), on the terms and condi- tions set forth in the Loan Agreement, but only on condition that the Municipality, HB and IDB agree to undertake such obligations toward the Bank as are hereinafter set forth; (B) by subsidiary loan agreements to be entered into between, on the one hand, the Borrower and, on the other hand, HB and IDB, the proceeds of the loan provided for under the Loan Agreement will be made available to HB and IDB on the terms and conditions therein set forth and HB will, in turn, make available to the Municipality such amount of the proceeds of the Loan as shall be allocated from time to time to Categories (1), (5) and (6) of the table set forth in paragraph 1 of Schedule 1 to the Loan Agreement; on the terms and conditions hereinafter set forth; and WHEREAS the Municipality, HB and IDB, in consideration of the Bank's entering into the Loan Agreement with the Borrower, have agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Loan Agreement, the Preamble to this Agreement and the General Conditions (as so defined) have the respective meanings therein set forth. -2- ARTICLE II Execution of the Project Section 2.01. (a) the Municipality shall carry out the Project, except Part D thereof, with due diligence and efficiency, in conformity with appropriate administrative, financial, engi- neering and urban development practices and with construction standards acceptable to the Bank and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. To that end, the Municipality shall continue to maintain UDD at all times in operation, which shall: (i) consist of a technical services section, a com- munity development section, a financial control and administration section and an estate management section; (ii) operate under terms and conditions satisfactory to the Bank; (iii) employ a director responsible for all its activi- ties, an engineer, an architect/planner, a commu- nity development officer and an accountant, all to have qualifications and experience satisfac- tory to the Bank; and (iv) employ, as and when necessary to assist the senior personnel referred to in subparagraph (iii) above and, in any event, not later than December 31, 1981 (or such other date as the Bank may agree), quali- fied and experienced technical and clerical person- nel in sufficient numbers. (b) (i) HB shall carry out Part D (1) of the Project and IDB shall carry out Part D (2) of the Project, with due diligence and efficiency and in conformity with appropriate administrative, financial, banking and urban develiment practices, and to that end, shall apply to tne Project beneficiaries pricing and cost recovery principles, eligibility criteria and guidelines for financial assistance accept- able to the Bank including those set out in Sche- dule 2 hereto, as such Schedule may be amended from time to time by agreement among the Bank, HB and IDB. -3- (ii) HB shall, by June 30, 1982 (or such other date as the Bank may agree), exchange views with the Bank on the establishment by HB of a revolving fund for financing future urban development projects. (iii) HB shall, as and when needed for the timely comple- tion of the Project, make available to the Munici- pality, out of its own resources (within a limit equivalent to JD7,300,000) and the proceeds of the Loan relent or made available to it by the Borrower, all funds required for the financing of the Project, (except for Part D thereof) on terms and conditions satisfactory to the Bank. (c) The Municipality shall carry out Part C (c) of the Project in cooperation with the Vocational Training Corporation of the Borrower. Section 2.02. In order to assist the Municipality in carrying out Part E of the Project, the Municipality shall continue to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank. Section 2.03. Except as the Bank shall otherwise agree, procurement of the goods and works to be financed out of the proceeds of the Loan, shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.04. (a) The Municipality undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan made available to it by HB against hazards incident to the acquisition, trans- portation and delivery thereof to the place of use or installa- tion, and for such insurance any indemnity shall be payable in a currency freely usable by the Municipality to replace or repair such goods. (b) Except as the Bank may otherwise agree, the Munici- pality shall cause all goods and services financed out of the proceeds of the Loan made available to it by HB to be used exclu- sively for the Project. Section 2.05. (a) The Municipality shall furnish to the Bank, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement 4- schedules for the Project (except for Part D thereof) and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) The Municipality shall: (i) maintain records and pro- cedures adequate to record and monitor the progress of the Pro- ject, except for Part D thereof, (including its cost and the benefits to be derived therefrom), to identify the goods and services financed out of the proceeds of the Loan made available to it and to disclose their use in the Project; (ii) shall enable the Bank's accredited representatives to visit the facilities and construction sites included in the Project, except for Part D thereof, and to examine the goods financed out of the proceeds of the Loan made available to it and any relevant records and docu- ments; and (iii) shall furnish to the Bank at regular intervals all such information as the Bank shall reasonably request concern- ing the Project, except for Part D thereof, its cost and, where appropriate, the benefits to be derived therefrom, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds, such information shall include quarterly reports on the progress of the Project during the calendar quarter concerned and annual reports on the financial flows pertaining to such Parts of the Project during the calendar year concerned, such reports to be submitted to the Bank within six weeks and six months after the close of the time period concerned, respectively. (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 among the Munici- pality, HB and IDB and the Bank, the Municipality, HB and IDB shall prepare and furnish to the Bank a joint report, of such scope and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Municipality, HB and IDB and the Bank of their respective obligations under the Project Agreement, the HB and IDB Subsidiary Loan Agreements and the accomplishment of the purposes of the Loan. (d) The Municipality shall enable the Bank's representatives to examine all installations, sites, works, buildings, property and equipment of the Municipality and any relevant records and documents. Section 2.06. HB and IDB shall each duly perform all its obligations under the HB Subsidiary Loan Agreement or the IDB -5- Subsidiary Loan Agreement, as the case may be. Except as the Bank shall otherwise agree, neither HB nor IDB shall take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the HB Subsidiary Loan Agreement or the IDB Subsidiary Loan Agreement, as the case may be, or any provision thereof. Section 2.07. (a) The Municipality, HB and IDB shall each, at the request of the Bank, exchange views with the Bank with regard to the progress of the Project, the performance of its obligations under this Agreement and under the HB Subsidiary Loan Agreement or the IDB Subsidiary Loan Agreement, as the case may be, and other matters relating to the purposes of the Loan. (b) The Municipality, HB and IDB shall promptly inform the Bank of any condition which interferes or threatens to inter- fere with the progress of the Project, the accomplishment of the purposes of the Loan, or the performance by the Municipality, HB and IDB of its respective obligations under this Agreement and under the HB Subsidiary Loan Agreement or the IDB Subsidiary Loan Agreement, as the case may be. Section 2.08. The Municipality shall take all such actions as shall be necessary to acquire all such rights in respect of land as shall be required for the carrying out of works under Parts A, B and C of the Project; such actions shall be taken: (a) in respect to -the site of Quweismeh by January 31, 1981; (b) in respect to the site of East Wahdat by February 28, 1981; (c) in respect to the site of Marka by April 30, 1981; (d) in respect to the site of Wadi Umm er Rimam by May 31, 1981; (e) in respect to the site of Wadi Haddadah/Nuzha by June 30, 1981; and (f) in respect to the site of Jofeh by July 31, 1981. The Borrower shall furnish to the Bank, promptly after such acquisition, evidence satisfactory to the Bank that such rights in respect of land are available for the purposes of such works. Section 2.09. (a) HB shall second to UDD on a full-time basis until the completion of the Project one qualified and experienced accountant. (b) HB shall, by June 30, 1981 (or such other date as the Bank may agree), second to UDD on a full-time basis until the completion of the Project one qualified and experienced quantity surveyor. Section 2.10. On or before December 31, 1981 (or such other date as the Bank may agree), HB shall prepare and submit to the -6- Bank, for its approval, model forms of the sale contracts to be entered into between the beneficiaries of the Project and HB and the arrangements required for the administration of such contracts. Thereafter, HB shall not modify the forms of such contracts or arrangements without the Bank's prior consent. ARTICLE III Management and Operations of HB and IDB and Other Covenants Section 3.01. HB and IDB shall each, at all times, manage its affairs, maintain its financial position, plan its future expan- sion and carry on its operations, all in accordance with appro- priate administrative, banking and financial practices and under the supervision of qualified and experienced management assisted by qualified and experienced personnel in sufficient numbers. Section 3.02. The Municipality shall: (i) operate, or cause to be operated by its agencies, the facilities (other than education, health and community facilities), infrastructure and equipment (other than those located at the site of North Ruseifa) included in the Project in accordance with appropriate administra- tive policies and public utility practices and with due regard to economy; (ii) make, or cause to be made by its agencies, arrange- ments satisfactory to the Bank to provide at all times such facilities with experienced and qualified personnel, in such numbers as shall be necessary for their efficient operation, and the funds necessary for the efficient operation, maintenance and repair of said facilities and for providing an adequate renumera- tion to said personnel; and (iii) make, or cause to be made by its agencies, from time to time, all necessary renewals and repairs of the facilities (other than education, health and community facili- ties), infrastructure (including roads) and equipment (other than those located at the site of North Ruseifa) and included in the Project, all in accordance with appropriate engineering, construc- tion and public utility practices. Section 3.03. The Municipality shall make the necessary arrangements in order to ensure that no connection fees (other than those provided for under Parts A (a), B (a) and C (a) of the Project, in addition to the meter installation fees) shall be charged for the provision of water and sewerage services for the lots developed under Parts A, B and C (a) of the Project. -7- ARTICLE IV Financial Covenants Section 4.01. (a) Each of HB (in connection to the Project except Part D (2) thereof), and IDB (in connection to Part D (2) of the Project) shall maintain separate Project accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations, resources and expenditures under the Project. (b) (i) Without any limitation on the generality of the preceding paragraph (a), the Municipality shall maintain records through UDD for all contracts and other documents not submitted to HB for purposes of withdrawal from the Loan Account but pertinent to the Municipality's expenditures under the Project, and shall make such contracts and docu- ments available for review by the Bank's accredited representatives; and (ii) HB shall retain, until one year after the Closing Date, all records (orders, invoices, bills, re- ceipts and other documents) pertaining to the Project, except Part D thereof, and evidencing the expenditures on account of which withdrawals are requested from the Loan Account on the basis of certificates of expenditure, and shall enable the Bank's accredited representatives to review such records. Section 4.02. HB and IDB shall each: (i) have its Project accounts and, only with respect to HB, its records supporting certificates of expenditure referred to in Section 4.01 (b) (ii) hereof for each fiscal year audited, in accordance with appro- priate auditing principles consistently applied, by indepen- dent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested including, with respect to HB only, a separ- ate opinion by said auditors in respect of such certificates of expenditure showing whether such certificates are consistent with the disbursements actually made by HB; and (iii) furnish to the Bank such other information concerning said accounts and the audit thereof as the Bank shall from time to time reasonably request. -8- ARTICLE V Effective Date; Termination; Cancellation and Suspension Section 5.01. This Agreement shall come into force and effect on the date upon which the Loan Agreement becomes effec- tive. Section 5.02. This Agreement and all obligations of the Bank and of the Municipality, HB and IDB thereunder shall termi- nate on the date on which the Loan Agreement shall terminate in accordance with its terms, and the Bank shall promptly so notify the Municipality, HB and IDB thereof. Section 5.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions. ARTICLE VI Miscellaneous Provisions Section 6.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) -9- For the Municipality: Municipality of Amman P.O. Box 132 Amman Jordan Cable address: AMMAN MUNICIPALITY AMMAN For HB: Housing Bank P.O. Box 7693 Amman Jordan Cable address: Telex: ISKAN 21693 JO AMMAN For IDB: Industrial Development Bank P.O. Box 1982 Amman, Jordan Cable address: BANK SINAI AMMAN Section 6.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of the Municipality, HB or IDB or by HB or IDB on behalf of the Borrower under the Loan Agreement, may be taken or executed by the Mayor of Amman, the Chairman of HB and the Chairman of IDB, respectively, or such other person or persons as the Municipality, HB or IDB, as the case may be, shall desig- nate in writing, and the Municipality, HB or IDB shall furnish to - 10 - the Bank sufficient evidence of the authority and the authenti- cated specimen signature of each such person. Section 6.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Regional Vice President Europe, Miile East and North Africa MUNICIPALITY OF AMMAN Authorized Representative HOUSING BANK By f Authorized Representative INDUSTRIAL DEVELOPMENT BANK By/-5- Authorized Representative - 11 - SCHEDULE 1 Procurement A. International Competitive Bidding 1. Except as provided in Part C hereof, goods and works for Part A of the Project and those for the shops and workshops referred to in Part C (a) of the Project and located at the sites of North Ruseifa, Marka and Quweismeh 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 Municipality shall prepare and forward to the Bank 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 there- to, as the case may be, a general procurement notice, in such form and detail and containing such information as the Bank shall reasonably request; the Bank will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Municipality shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of international competitive bidding. 3. Bidders for the works included in Part A of the Project and those for the shops and workshops referred to in Part C (a) of the Project and located at the sites of North Ruseifa, Marka and Quweismeh shall be prequalified as described in paragraph 1.3 of Part A of the Guidelines. 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 in their bid the c.i.f. (port of entry) price for the imported goods, or the ex-factory price or off-the-shelf price of other goods, offered in such bid; and (ii) customs duties and other import taxes levied in connection with the importation, or the - 12 - sales and similar taxes levied in connection with the sale or delivery, pursuant to the bid, of the goods shaiLl not be taken into account in the evaluation of the bids. 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 Jordan 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 information 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 Jordan if the bidder shall have established to the satisfaction of the Municipality and the Bank that the manufacturing cost of such goods includes a value added in Jordan equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other domestic bids. (3) Group C: bids offering any other goods. 3. In order to determine the lowest evaluated bid of each group, all evaluated bids in each group shall first be compared among themselves, without taking into account customs duties and other import taxes levied in connection with the importation, and sales and similar taxes levied in connection with the sale or delivery, pursuant to the bids, of the goods. 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 - 13 - goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to: (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid; or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Other Procurement Procedures (a) Goods and works for Part B of the Project and those for the shops and workshops referred to in Part C (a) of the Project and located at the sites of Jofeh, Wadi Haddadah/Nuzha, East Wahdat and Wadi Umm er Rimam shall be procured under contracts awarded in accordance with local procurement procedures acceptable to the Bank. Contractors and suppliers will be allowed to bid for individual contracts or for a group of similar contracts at their option. (b) Items for the water supply, electricity and refuse collection facilities included in Parts A and B of the Project may be purchased from the original supplier, so that they be compat- ible with the existing equipment installed in such facilities; provided, however, that the number of new items so acquired is less than the existing number of such items. D. Review of Procurement Decisions by the Bank 1. Review of prequalification. The Municipality shall, before qualification is invited, inform the Bank in detail of the pro- cedure to be followed, and shall introduce such modifications in said procedure as the Bank shall reasonably request. The list of prequalified bidders, together with a statement of their qualifi- cations and of the reasons for the exclusion of any applicant for prequalification shall be furnished by the Municipality to the Bank for its comments before the applicants are notified of the Municipality's decision, and the Municipality shall make such additions to, deletions from, or modifications in, the said list as the Bank shall reasonably request. 2. Review of invitations to bid and of proposed awards and final contracts: -14- With respect to all contracts for works and goods estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Municipality shall furnish to the Bank, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Munici- pality shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report, by the consultants referred to in Section 2.02 of this Agreement, on the evaluation and compari- son of the bids received, together with the recommendations for award of the said consultants and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Municipality and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Bank's concurrence,, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. With respect to each contract not governed by the preceding paragraph, the Municipality shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such con- tract, together with the analysis of the respective bids, recom- mendations for award and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Municipality and state the reasons for such determination. - 15 - 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 10% of the original price, the Municipality shall inform the Bank of the proposed modification, waiver, extension or change order and the reasons therefor. The Bank, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Municipality and state the reasons for its determination. - 16 - SCHEDULE 2 Pricing and Cost Recovery Principles; Eligibility Criteria; Guidelines for Financial Assistance A. Pricing In computing the price of plots the following cost elements will be taken into account: (a) land acquisition (including the national price of government land); (b) cadastral survey; (c) preparation of the site concerned; (d) on-site infrastructure (including connections to individual plots); (e) on-plot construction; (f) management costs incurred for the development or up- grading of the site concerned; and (g) design and supervision fees for the 'development or upgrading of the site concerned. B, Cost Recovery (a) Plots included in Parts A and 3 of the Project: (i) the cost of plots, whose surface is 150 m2 or above, shall be recovered in full through a sale at market prices, the surplus over and above the full recovery of such cost to be used wholly or partly to reduce the sale price of plots referred to in subparagraph (ii); and (ii) the cost of plots, whose surface is below 150 m2, shall be recovered in full (after crediting against such cost any allocated surplus arising from the sale of the plots referred to in sub- paragraph (i) above and paragraph (b) below) as follows: - 17 - - an instant cash down-payment of 5% of such cost; and - the rest of the cost shall be recovered over not more than 20 years at an interest rate of not less than 8.5% per annum. (b) Plots included in Part C (a) of the Project. The Municipality may maintain ownership of such plots and make them available for rent to eligible beneficiaries in the Project area. The cost of such plots shall be recovered in full through a sale at market prices, either to the Municipality, if it so desires, or to eligible beneficiaries; the surplus over and above the full recovery of such cost to be used wholly or partly to reduce the sale price of plots referred to in paragraph (a) (ii) above and the sale price to be paid as follows: - an instant cash down-payment of not less than 20% of such cost; and - the rest of. the cost shall be recovered over not more than ten years at an interest rate of not less than 10% per annum if the sale is made to beneficiaries and 8.5% if the Munici- pality retains ownership. C. Eligibility Criteria (a) Part A of the Project For the selection of beneficiaries for the following types of plots the following monthly income ranges in December 1979 prices shall apply: Income Range Type of Plot in JDs 100 m2 (foot path access and sanitary core) 52/68 100 m2 (foot path access, sanitary core, one room and front wall) 69/76 - 18 - 100 m2 (road access, sanitary core, two rooms and front wall) 77/100 (b) Part B of the Project (i) In the case of existing plots the beneficiaries will be the present occupants of such plots. (ii) For the selection of beneficiaries for the follow- ing types of new plots, the following monthly income ranges in December 1979 prices shall apply: Income Range Type of Plot in JDs 100 m2 (foot path access and sanitary core) 58/68 100 m2 (foot path access, sanitary core, one room and front wall) 77/100 100 m2 (foot path access, sanitary core, two rooms and front wall) 78/100 D. Guidelines for Financial Assistance (a) Building material loans made by HB. Except as may be otherwise agreed between the Bank and HB, such loans shall be made on the following condi- tions: - interest rate: not less than 8.5% per annum; - term: not more than 20 years; and - maximum amount: JD175 (except in the case of new plots where the maximum shall be JD270 for a 100 m2 plot with one room and sanitary core and JD365 for plots with sanitary core only); no loans shall be made for other plots. - 19 - (b) Small business development loans made by IDB. Such loans shall be made on the following condi- tions: - interest rate: not less than 8% per annum; - term: not more than 5 years (including six to nine months of grace); and - maximum amount: JD4,000; - management fee: JD15 per loan per annum; and - the beneficiary of the loan shall employ not more than 5 persons or less and utilize simple machinery or handtools. (c) Small business construction loans made by HB. Such loans shall be made as the following condi- tions: - interest rate: not less than 10% per annum for Project beneficiaries and 8.5% per annum for the Municipality. - term: not more than 10 years. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ament. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this r* day of , 198 L. FOR SECRETARY