Cameroon - Second Livestock Development Project : Credit 1010 - Development Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 1010 CM Development Credit Agreement (Second Livestock Development Project) between UNITED REPUBLIC OF CAMEROON and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 20, 1980 CREDIT NUMBER 1010 CM DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 20, 1980, between UNITED REPUBLIC OF CAMEROON (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) the Borrower intends to contract: (i) from the Kreditan- stalt fUr Wiederaufbau, an agency of the Federal Republic of Germany, a loan (hereinafter called the KfW Loan) in an aggregate amount of fourteen million Deutsche Mark (DM 14,000,000) to assist in financing Parts A (i) and C of the Project on the terms and conditions set forth in an agreement (hereinafter called the KfW Loan Agreement) to be entered into between the Borrower and the Kreditanstalt fUr Wiederaufbau; and (ii) from the Gesellschaft fUr technische Zusammenarbeit GmbH, Eschborn, Federal Republic of Germany, technical assistance services to assist in the execu- tion of Part C of the Project, to be provided on the terms and conditions set forth in an agreement (hereinafter called the GtZ Agreement) to be entered into between the Borrower and the Gesellschaft fUr technische Zusammenarbeit; (C) pursuant to a loan agreement dated May 14, 1974, the International Bank for Reconstruction and Development has extended a loan (No. 983 CM) to the Borrower for the purpose of assisting in financing a prior livestock development project (hereinafter called the First Project); 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 -2- 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 [evelopment 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 and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "MINEL" means the Ministry of the Borrower responsible for livestock and animal industries; (b) "FONADER" means the Fonds National de Developpement Rural of the Borrower, established and operating pursuant to the Borrower's Ordinance No. 73/24, dated May 29, 1973, as amended by the Borrower's Law No. 77/05, dated July 13, 1977, and Decree No. 73/496, dated August 28, 1973, as such Ordinance, Law and Decree may be amended from time to time; (c) "SODEPA" means the Societ6 de D6veloppement et d'Exploitation des Productions Animales, a development corporation of the Borrower, established and operating pursuant to Law No. 68/LF/9 of June 11, 1968, Decree No. 68/DF/275 of July 15, 1968 and Decrees No. 74/182 of March 8, 1974 and No. 74/413 (Cahier des Charges of SODEPA) of April 24, 1974, as such Law and Decrees may be amended from time to time; (d) "FONADER Project Agreement" means the agreement between the Association and FONADER of even date herewith, as the same may be amended from time to time and such term includes all agree- ments supplemental to the FONADER Project Agreement; (e) "SODEPA Project Agreement" means the agreement between the Association and SODEPA of even date herewith, as the same may be amended from time to time; (f) "FONADER Financing Agreement" means the agreement to be entered into between the Borrower and FONADER pursuant to Section 3.01 (c) of this Agreement, as the same may be amended from time to time, and such term includes any schedule to the FONADER Financing Agreement; -3- (g) "Special Mission" means MINEL's Special Mission for the Eradication of Glossines, established and operating pursuant to Decree No. 298/CAB/PR of October 28, 1974, as the same may be amended from time to time; (h) "PCU" means the project coordination unit provided for under Part E (i) of the Project; (i) "sub-loan" means a credit made or proposed to be made by FONADER under Part A (i) of the Project and financed, in part, out of the proceeds of the Credit made available to FONADER under the FONADER Financing Agreement; and (j) "IGERA" means the Inspection Generale de l'Etat et de la R6forme Administrative of the Borrower, or any successor thereto. 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 sixteen million dollars.($16,000,000). 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 Associa- tion, 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, other than those to be financed out of the proceeds of a sub-loan, shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1984 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 -4- (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 April 1 and October 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 1 and October 1 commencing October 1, 1990, and ending April 1, 2030, each installment to and including the installment payable on April 1, 2000, 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 Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out Parts C, D and E of the Project through MINEL with due diligence and effi- ciency and in conformity with appropriate administrative, econo- mic, financial, agricultural extension and livestock develop- ment practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. The Special Mission shall be responsible for the physical execution of Part C of the Project in accordance with the fore- going. (b) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause FONADER and SODEPA to perform in accordance with the provisions of the FONADER Project Agreement and the SODEPA Project Agreement all their respective obligations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FONADER and SODEPA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall make the funds required for Part A of the Project, including the proceeds of the Credit allocated thereto, available to FONADER under a financing agreement to be entered into between the Borrower and FONADER on terms and condi- tions which shall have been approved by the Association (including inter alia those specified in paragraph (f) of this Section). -5- (d) The Borrower shall exercise its rights under the FONADER Financing Agreement in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the FONADER Financing Agreement or any provision thereof. (e) The Borrower shall make available to SODEPA on a grant basis the funds required for Part B of the Project, including the proceeds of the Credit allocated thereto. (f) The Borrower shall provide the funds to be made avail- able pursuant to this Section to MINEL (including the Special Mission), FONADER and SODEPA, respectively, in semi-annual advances based on the approved Project budgets of said entities so as to ensure that, at the beginning of each half year, each of them has available sufficient liquid funds to cover Project expenditures during such half year (except those expected to be covered through application to the Association for direct payment to suppliers or contractors from the Credit Account.) Section 3.02. (a) In order to assist MINEL in carrying out Part C of the Project, the Borrower shall employ, or otherwise secure the services of, the following specialists and consultants whose qualifications, experience and terms of reference shall be satisfactory to the Borrower and the Association and whose services shall be made available to the Special Mission: (i) an operations controller; (ii) a veterinarian; and (iii) a tsetse fly ecologist, an insecticide spraying consultant and a fixed-wing spraying consultant. (b) In order to assist MINEL in carrying out Parts D and E of the Project, the Borrower shall employ the following spe- cialists and consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Borrower and the Association: (i) a livestock production/training specialist for the Jakiri training center included in Part D (ii) of the Project; -6- (ii) a land use planning specialist assigned to the division of pasture management and pastoral hydraulics of MINEL at Ngaoundere; (iii) a Project coordinator and a training specialist for the PCU; and (iv) consultants for assisting in the preparation work under Part E (ii) of the Project. 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 allocated to Parts C, D and E of the Project 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 services financed out of the proceeds of the Credit allocated to Parts C, D and E of the Project to be used exclusively for the Project. Section 3.04. In respect of Part C of the Project, the Borrower shall cause the proposed work program, including esti- mates of the cost thereof, of the Special Mission for each fiscal. year to be furnished to the Association, for review and approval, not later than three months before the beginning of such fiscal year. Section 3.05. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for Parts C, D and E of 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 Parts C, D and E of the Project (including their cost and the benefits to be derived from them), to identify the goods and services financed out of the proceeds of the Credit allocated thereto, and to disclose their use in said Parts of the Project; (ii) shall enable the Associa- tion's accredited representatives to visit the facilities and -7- construction sites included in said Parts of the Project and to examine the goods financed out of the proceeds of the Credit allocated thereto 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 said Parts of the Project, their cost and, where appropriate, the benefits to be derived from them, the expenditure of the proceeds of the Credit allocated thereto 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, the Asso- ciation, FONADER and SODEPA of their respective obligations under the Development Credit Agreement, the FONADER Project Agreement and the SODEPA Project Agreement, and the accomplishment of the purposes of the Credit. Section 3.06. The Borrower shall second to FONADER, for purposes of Part A of the Project, nine technical agents with adequate qualifications and experience in the livestock sector. Section 3.07. The Borrower shall take all action necessary to ensure that FONADER has the opportunity to procure, if neces- sary by direct importation from abroad, vaccines, drugs and other veterinary suDplies in the quantities and at the times required for purposes of Part A (i) of the Project. Section 3.08. In order to assist SODEPA in carrying out Part B of the Project, the Borrower shall prepare, not later than June 30, 1980, a detailed program, including a timetable for its execution, acceptable to the Association for a more economic and efficient use of the resources of the three SODEPA ranches included in the First Project. Section 3.09. (a) In order to carry out Part C (i) of the Project, the Borrower shall: (i) cause the Special Mission to prepare a detailed plan for the prevention of tsetse fly reinfestation - 8 - of the area reclaimed under the First Project and the Project and for the further eradication of flies and, as soon as possible but not later than September 30, 1980, to furnish such proposed plan to the Association for review and approval; and (ii) make available MINEL veterinary field service staff and facilities as required for establishing and operating, in cooperation with the Special Mission, the four entry control posts to the reclaimed area of the Adamaoua plateau included in said Part of the Project. (b) The Borrower shall cause the Special Mission to prepare and to furnish to the Association, not later than September 30, 1980, a detailed program of the training to be carried out under Part C (ii) of the Project, for review and approval by the Association. Section 3.10. The Borrower shall undertake the execution of Part E (ii) of the Project: (a) following an evaluation of the progress of the other Parts of the Project, to be carried out jointly by the Borrower and the Association during the first semester of 1982; and (b) with the assistance of the consultants referred to in subparagraph (b) (iv) of Section 3.02 of this Agreement whose terms of reference shall be prepared not later than June 30, 1982. 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, resources and expenditures, in respect of Parts D and E of the Project, of the departments or agencies of the Borrower responsible for carrying out said Parts of the Project or any part thereof. (b) The Borrower shall cause the Special Mission to: (i) maintain records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices its operations and financial condition; (ii) have its accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by IGERA or any other independent auditors acceptable to the Borrower and the Association; (iii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of its statements of accounts for such year as so audited and (B) the report of such audit by IGERA or said other auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iv) furnish to the Association such other information concerning the accounts of the Special Mission and the audit thereof as the Association shall from time to time reasonably request. Section 4.02. The Borrower shall make available, promptly as needed, the funds and support services necessary to maintain the areas cleared from tsetse flies under the Project and the First Project tsetse free. ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) FONADER shall have failed to perform any covenant, agreement or obligation of FONADER under the FONADER Project Agreement; (b) SODEPA shall have failed to perform any covenant, agreement or obligation of SODEPA under the SODEPA Project Agree- ment; (c) an extraordinary situation shall have arisen which shall make it improbable: (i) that FONADER will be able to perform its obligations under the FONADER Project Agreement; or (ii) that SODEPA will be able to perform its obligations under the SODEPA Project Agreement; (d) any Law, Ordinance or Decree of the Borrower referred to in paragraphs (b) or (c), respectively, of Section 1.02 of this Agreement, or any provision of such Law, Ordinance or Decree, shall have been amended, suspended, abrogated, repealed or waived in such a way as to affect materially and adversely the ability of FONADER to carry out the covenants, agreements and obligations set - 10 - forth in the FONADER Project Agreement or the ability of SODEPA to carry out the covenants, agreements and obligations set forth in the SODEPA Project Agreement; (e) the Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of FONADER or SODEPA, as the case may be, or for the suspen- sion of the operations of either of them, without making arrange- ments satisfactory to the Association for the transfer to another agency or entity of the Borrower of their respective functions regarding the execution and operation of Parts A and B of the Project; (f) a representation made by FONADER in or pursuant to the FONADER Project Agreement, or any statement furnished in connection therewith, and intended to be relied upon by the Association in making the Credit, shall have been incorrect in any material respect; (g) a representation made by SODEPA in or pursuant to the SODEPA Project Agreement, or any statement furnished in connection therewith, and intended to be relied upon by the Association in making the Credit, shall have been incorrect in any material respect; and (h) (i) subject to subparagraph (ii) of this paragraph: (A) the right of the Borrower to withdraw the proceeds of the KfW Loan made to the Borrower for the financing of Parts A (i) and C of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the KfW Loan Agreement; (B) the technical assistance services to be provided under the GtZ Agreement shall have been suspended or terminated prior to the agreed term thereof; or (C) any portion of the KfW Loan shall have become due and payable prior to the agreed maturity thereof; (ii) subparagraph (i) of this paragraph shall not apply if: - 11 - (A) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such Agreements; and (B) adequate funds for Parts A (i) and C of the Project or technical assistance services for Part C thereof, as the case may require, are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agree- ment. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (d) thereof: (a) any event specified in paragraphs (a) or (b) of Section 5.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower and FONADER or SODEPA, as the case may require; and (b) any event specified in paragraphs (d), (e) or (h) (i) (C) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 16.01. 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 Project coordinator referred to in Section 3.02 (b), subparagraph (iii), of this Agreement has been recruited in accordance with the provisions of said Section and has assumed his functions; and (b) the FONADER Financing Agreement has been executed on behalf of the Borrower and FONADER. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (b) of the General - 12 - Conditions, to be included in the opinion or opinions to be furnished to the Association: (a) that the FONADER Project Agreement has been duly autho- rized or ratified by FONADER, and is legally binding upon FONADER in accordance with its terms; (b) that the FONADER Financing Agreement has been duly authorized or ratified by the Borrower and FONADER, and is legally binding upon the Borrower and FONADER in accordance with its terms; and (c) that the SODEPA Project Agreement has been duly autho- rized or ratified by SODEPA, and is legally binding upon SODEPA in accordance with its terms. Section 6.03. The date September 22, 1980 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sections 4.01 (b) and 4.02 of this Agreement and the provisions of para- graph (b) of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date eighteen years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. 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. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Economic Affairs an6 Planning Yaoundg United Republic of Cameroon - 13 - Cable address: Telex: MINEP 8268KN or Yaoundf 8203KN 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. UNITED REPUBLIC OF CAMEROON By /s/ Benott Bindzi Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Wilfred Thalwitz Acting Regional Vice President Western Africa - 14 - 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) Sub-loans under Part 2,300,000 25% of amounts A (i) of the disbursed Project (2) Vehicles, equip- 900,000 80% ment and specialists' services for Part A of the Project (3) Civil works under 650,000 60% Part B of the Project (4) Vehicles, equipment, 2,350,000 80% vaccines, medicines and specialists' services for Part B of the Project (5) Insecticides for Part C 3,900,000 100% of foreign of the Project expenditures (6) Vehicles, equip- 300,000 50% ment and fixed- wing aircraft rental under Part C of the Project (7) Civil works under 100,000 60% Part C (i) of the Project - 15 - Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (8) Vehicles, equipment 900,000 80% and specialists' services for Part D of the Project (9) Civil works under 1,500,000 60% Part D of the Project (10) Vehicles, equipment 1,650,000 80% and specialists and consultants' services, for Part E of the Project (11) Unallocated 1,450,000 TOTAL 16,000,000 2. For the purposes of this Schedule the term "foreign expendi- tures" 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; 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". 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. - 16 - 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made: (a) in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggre- gate amount not exceeding the equivalent of $1,300,000, may be made in respect of Category (5) on account of payments made for such expenditures before that date but after October 1, 1979; (b) in respect of expenditures for Parts A and C of the Project, until the KfW Loan Agreement has been duly executed and all conditions (if any) precedent to initial disbursements under the KfW Loan Agreement have been met; and (c) in respect of expenditures for Part C of the Project, until arrangements satisfactory to the Association have been made between the Borrower and the Gesellschaft fUr technische Zusammen- arbeit for the provision of the technical assistance services referred to in Recital (B) of the Preamble to this Agreement. 5. 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. 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 restric- ting or limiting any other right, power or remedy of the Associa- tion under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Associa- tion'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. - 17 - SCHEDULE 2 Description of the Project The Project forms part of the second phase of the Borrower's long-term program to increase and improve meat production in its territory and to advance the economic well-being of its livestock producers ("Plan Viande"). It consists of the following Parts: Part A: Livestock and Agricultural Credit Program (i) Provision of credit and related technical assist- ance to about 1,900 livestock producers and farmers for pig breeding and fattening, broiler production, egg and cockerel production, cattle production on small mixed farms; for the establishment of private cattle breeding and fattening ranches; and for the further agricultural utilization of the tsetse fly barrier areas; all to be selected in accordance with guidelines and criteria agreed upon with the Association, and on terms and conditions acceptable to the Association. (ii) In-service training of qualified agents seconded to FONADER for purposes of Part A (i) of the Project. Part B: Strengthening of SODEPA Strengthening of SODEPA management, financial control systems and operations (including in-service training of SODEPA staff), completion of the SODEPA slaughterhouses in Douala and Yaounde included in the First Project, and a program acceptable to the Borrower and the Association for achieving a more economic and efficient use of the resources of the three SODEPA ranches at Dumbo, Faro and Ndokayo included in the First Project, including provision of additional equipment, vehicles, vaccines and medi- cines for such ranches. Part C: Tsetse Fly Eradication (i) Continuation of the tsetse fly eradication campaign on the Adapaoua plateau initiated under the First Project thror1.a clearing from fly infestation of a further area of about 436,000 ha (including about 273,000 ha remaining to be cleared under the First - 18 - Project), maintenance of a tsetse barrier and establishment and initial operation of four posts for the control of animals entering the freed zone to prevent fly reinfestation of the reclaimed area and surveys to provide additional information on tsetse fly distribution and habitat, including expansion of Special Mission facilities and con- struction of access roads and fences. (ii) In-service training of Special Mission staff for purposes of Part C (i) of the Project, including training visits abroad to other tsetse eradication sites in Africa by senior Special Mission personnel. Part D: Extension and Veterinary Field Services (i) Strengthening of MINEL's extension and veterinary field services on the Adamaoua plateau through: (A) refurbishing and initial operation of 5 subsectors and 20 veterinary zootechnical centers, each of said centers to provide veterinary and animal husbandry extension services for about 4,500 cattle, including rehabilitation or construction of physical facilities and provision of equipment, veterinary supplies, vaccines and medicines; and (B) equipping and support of the division of pasture management and pastoral hydraulics which shall provide advice on the management of grazing resources to beneficiaries of the credit program under Part A of the Project on the Adamaoua pla- teau. (ii) Formal training or upgrading of MINEL veterinary field services staff, including introduction of an improved training curriculum, a program to provide practical field experience, and construction or rehabilitation, equipping, staffing and initial operation of a MINEL training center to be estab- lished at the SODEPA ranch at Faro, and of the existing MINEL training center and the SODEPA station at Jakiri. Part E: Project Coordination (i) Staffing of the Secretariate General of MINEL with personnel serving as Project Coordination Unit - 19 - (PCU) responsible for coordinating, monitor- ing and evaluating the execution of the Project, including provision of related equipment. (ii) Preparation of a follow-up livestock development project. The Project is expected to be completed by June 30, 1984. - 20 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part C hereof, goods (other than those to be financed out of a sub-loan) shall be procured under con- tracts 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 (here- inafter 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 and in addition to the requirements of para- graph 1.2 of the Guidelines, the Borrower, FONADER or SODEPA, as the case may require, 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 in question. The Borrower, FONADER or SODEPA, as the case may require, 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. To the extent feasible, contracts for vehicles and equipment shall be grouped for purposes of bidding so as to permit bulk procurement. 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 sales and similar taxes levied in connection with the sale or delivery, pursuant to the bid, of the goods shall not be taken into account in the evaluation of the bids. - 21 - 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 Cameroon 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 Cameroon if the bidder shall have established to the satisfaction of the Borrower, FONADER or SODEPA, as the case may be, and the Association that the manufacturing cost of such goods includes a value added in Cameroon 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 eva- luated 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 - 22 - 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 1. Civil works (other than those to be financed out of a sub- loan) shall be carried out under contracts procured on the basis of competitive bidding advertised locally, in accordance with local procedures acceptable to the Association. 2. Contracts for the purchase of goods estimated to cost less than the equivalent of $100,000 each may be procured on the basis of competitive bidding advertised locally, in accordance with local procedures acceptable to the Association. 3. Contracts for the purchase of goods estimated to cost less than the equivalent of $30,000 each may be awarded on the basis of price quotations from at least three suppliers. 4. Slaugtherhouse equipment may be procured on the basis of contracts negotiated with the original supplier. 5. Insecticides for the 1980/81 and 1981/82 spraying campaigns may be procured on the basis of price quotations from established suppliers; for the subsequent campaigns, price quotations shall also be solicited from any new suppliers offering acceptable products. D. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts with respect to all contracts estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, 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, shall be furnished to the Association, for its comments, and such modifications shall be made in the said documents or procedures as the Association shall reasonably - 23 - 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 and before a final decision on the award is made, the Association shall be informed of the name of the bidder to which the award of the contract is intended to be made, and a detailed report on the evaluation and comparison of the bids received, together with such other information as the Association shall reasonably re- quest, shall be furnished to the Association in sufficient time for its review. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower, FONADER OR SODEPA, as the case shall require, 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. (d) One original and one copy of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first applica- tion 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, one original and one copy of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Association shall reason- ably request, shall be furnished to the Association promptly after the execution of such contract 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. 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,. FONADER or SODEPA, as the case shall require, 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 a material extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower, FONADER - 24 - or SODEPA, as the case may be, 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 Agree- ment, shall promptly inform the Borrower, FONADER or SODEPA, as the case shall require, and state the reasons for its deter- mination.