India - Tamil Nadu Nutrition Project : Credit 1003 - Credit Agreement - Conformed

OFFICIAL DOCUMENTS CREDIT NUMBER 1003 IN Development Credit Agreement (Tamil Nadu Nutrition Project) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 1980 CREDIT NUMBER 1003 IN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated t/af /40, 1980, between INDIA, acting by its President (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 Project will be carried out by the State of Tamil Nadu with the Borrower's assistance and, as part of such assis- tance, the Borrower will make available to the State of Tamil Nadu the proceeds of the Credit as hereinafter provided; 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 and in the Project Agreement of even date herewith between the Association and the State of Tamil Nadu; 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) "Tamil Nadu" means the State of Tamil Nadu, a State of India, or any successor thereof; - 2 - (b) "Project Agreement" means the agreement between the Association and Tamil Nadu of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement and all agreements supplemental to the Project Agreement; (c) "Project Area" means the area comprising all 170 rural blocks in the following districts of Tamil Nadu: Chengalpattu, Madurai, North Arcot, Pudukottai, Ramanathapuram and Tirunelveli; (d) "CNCs" means community nutrition centers to be set up under the Project; (e) "CNWs" means community nutrition workers to be deployed under the Project; (f) "MPHWs" means multipurpose health workers to be deployed under the Project; and (g) "Project Management Fund" means the fund to be estab- lished under Part E of the Project. 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 thirty two million dollars ($32,000,000). 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, civil works and services to be financed out of the proceeds of the Credit, shall be governed by the provisions set forth or referred to in Section 2.02 of the Project Agreement. - 3 - Section 2.04. The Closing Date shall be March 31, 1987 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semiannually on February 1 and August 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each February 1 and August 1 commencing August 1, 1990 and ending February 1, 2030 each installment to and including the installment payable on February 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 United Kingdom of Great Britain and Northern .reland is hereby specified for the purposes of Section 4.02 of thE. General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause Tamil Nadu to perform in accordance with the provisions of the Project Agreement all the 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 Tamil Nadu to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Credit available to Tamil Nadu in accordance with the Borrower's standard arrangements for development assistance to the States of India. ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph (h) thereof: (a) Tamil Nadu shall have failed to perform any of its obligations under the Project Agreement; and (b) an extraordinary situation shall have arisen which shall make it improbable that Tamil Nadu will be able to perform its obligations under the Project Agreement. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that the event specified in paragraph (a) of Section 4.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower and Tamil Nadu. ARTICLE V Effective Date; Termination Section 5.01. The following is specified as an additional matter, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association, namely, that the Project Agreement has been duly authorized or ratified by Tamil Nadu, and is legally binding upon Tamil Nadu in accordance with its terms. Section 5.02. The date 1q" 1A I9e0 is hereby specified for the purposes of ection 12.04 of the General Conditions. Secion 5.03. The provisions of Section 4.02 of this Agree- ment shall cease and determine on the date on which the Develop- ment Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. - 5 - ARTICLE VI Representative of the Borrower; Addresses Section 6.01. Any Secretary, Additional Secretary, Joint Secretary, Director or Deputy Secretary in the Ministry of Finance, Department of Economic Affairs of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purpose of Section 11.01 of the General Conditions: For the Borrower: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address: ECOFAIRS New Delhi For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. 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 -6- of Columbia, United States of America, as of the day and year first above written. INDIA By / Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By (5f Regional Vice President South Asia - 7 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works 10,600,000 80% (2) Vehicles, equipment 7,500,000 80% and furniture (3) Training 3,300,000 80% (4) Contract services 2,600,000 80% and technical assistance (5) Project Management 500,000 80% Fund (6) Drugs and supplies 6,300,000 80% (7) Unallocated 1,200,000 TOTAL 32,000,000 2. 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 -8- Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 3. 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, except that with- drawals, in an aggregate amount not exceeding the equivalent of $300,000 may be made in respect of Categories 3 and 4 on account of payments made for such expenditures before that date but after September 1, 1979. 4. 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. 5. 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 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. - 9 - SCHEDULE 2 Description of the Project The Project is designed to increase the efficiency and coverage of Tamil Nadu's rural nutrition and complementary health efforts. The Project consists of the following parts to be carried out in the Project Area: Part A: Nutrition Delivery Services Strengthening of Tamil Nadu's capacity to identify and improve the nutritional status of pre-school children (with emphasis on those aged 6-36 months) and pregnant and nursing women, through the establishment of a network of about 9,000 CNCs, each staffed by a CNW and helper. This Part of the Project shall be carried out by the Social Welfare Department of Tamil Nadu and shall include, inter alia, the development of a nutrition sur- veillance system for pre-school children (with emphasis on those aged 6-36 months), the provision of short-term food supplements for selected children and pregnant and nursing women, the provi- sion of incremental staff salaries and training for CNWs, helpers and supervisors to the State level and the provision of vehicles, equipment and supplies. Part B: Rural Health Services Strengthening of rural health care coverage in Tamil Nadu through the establishment of a multipurpose health worker system. This Part of the Project shall be carried out by the Department of Health and Family Welfare of Tamil Nadu and shall include the construction, equipping, staffing and operation of about 1,600 health sub-centers and training for the operating and supervisory staff thereof, the construction, equipping, staffing and operation of health training facilities, and the provision of vehicles, furniture and equipment, drugs and medical supplies. Part C: Nutrition Communications Improvement of the quality of training of CNWs, MPHWs and other staff involved in the Project, promotion of local com- munities' participation in Project activities and promotion of improved family food and child care practices, through the provi- sion of pre- and in-service training materials, films and film strips, posters and wall paintings, radio ads and other mass media - 10 - communications materials. This Part of the Project shall be carried out by Tamil Nadu's Department of Social Welfare through its Project Coordination Office. Part D: Monitoring and Evaluation The carrying out of continuing monitoring of Project activi- ties and evaluation of the impact of the Project on the nutrition and health status of the target groups. This Part of the Project shall be carried out by Tamil Nadu's Departments of Social Welfare (through its Project Coordination Office and other Units), Health and Family Welfare, and Finance, and shall include, inter alia, a baseline and annual follow-up sample surveys of nutrition and health conditions of target groups, periodic studies to assess the validity of information generated through the carrying out of Parts A, B and C of the Project, periodic reviews of Project implementation, including the effectiveness of nutrition and health worker training, special studies relating to the costs and impact of the Project as compared to other nutrition efforts by Tamil Nadu aimed at similar target groups, and a final evaluation study, to be undertaken in the last year of Project execution, of Project costs and achievements in relation to Tamil Nadu's nutri- tion and rural health policies and modes of delivering nutrition and health services, their impact and managerial and budgetary implications. Part E: Project Management Fund Establishment and operation of a fund to support innovative studies and pilot activities designed to test ways of furthering the objectives of the Project. The Project is expected to be completed by June 30, 1986. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the (2 day of 19FO S E FOR SECRETARY