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

1 CREDIT NUMBER 1003 IN Project Agreement (Tamil Nadu Nutrition Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE 'F TAMIL NADU Dated , 1980 CREDIT NUMBER 1003 IN PROJECT AGREEMENT AGREEMENT, dated /Ly4 1A , 1980, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and STATE OF TAMIL NADU, acting by its Governor (hereinafter called Tamil Nadu). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to thirty two million dollars ($32,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Tamil Nadu agree to undertake such obligations toward the Association as are hereinafter set forth; and WHEREAS Tamil Nadu, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has 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 Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. Tamil Nadu shall carry out or cause to be carried out the Project described in Schedule 2 to the Development Credit Agreement with due diligence and efficiency and in con- formity with appropriate administrative, financial and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, civil works and services to be -2- financed out of the proceeds of the Credit, shall be governed by the provisions of the Schedule to this Agreement. Section 2.03. In order to assist Tamil Nadu in the carrying out of the Project, Tamil Nadu shall, wherever necessary, employ consultants whose qualifications, experience and terms and condi- tions of employment shall be satisfactory to Tamil Nadu and to the Association. Section 2.04. (a) Tamil Nadu undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or instal- lation, and for such insurance any indemnity shall be payable in a currency freely usable by Tamil Nadu to replace or repair such goods. (b) Except as the Association may otherwise agree, Tamil Nadu shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the Project. Section 2.05. (a) Tamil Nadu shall firnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) Tamil Nadu: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditures of such proceeds and the goods and services financed out of such proceeds. - 3 - (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 Tamil Nadu and the Association, Tamil Nadu 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 Tamil Nadu and the Association of their respective obligations under this Agreement and the accomplishment of the purposes of the Credit. Section 2.06. (a) Tamil Nadu shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) Tamil Nadu shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by Tamil Nadu of its obligations under this Agreement. Section 2.07. Tamil Nadu 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 and, if requested by the Association, shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 2.08. Tamil Nadu shall: (a) carry out reviews of Project execution (i) one year after Project services have been introduced in Kottampatti block; and (ii) after Project services have been introduced in about 70 blocks, but not later than March 31, 1983, such reviews to be under terms of reference satisfactory to Tamil Nadu and the Association, and shall furnish the Association with the results of such reviews; (b) take into account in the review to be carried out under paragraph (a) (ii) above the evaluation of mobile medical teams in Tamil Nadu being undertaken by the National Institute -4- of Health and Family Welfare and the results of other pilot projects and studies with respect to ways to introduce community health and nutrition services in Tamil Nadu; and (c) adjust, wherever feasible, the design and the implemen- tation schedule of the Project in accordance with the results of the reviews referred to in paragraph (a) above, taking into account the comments thereon made by the Association. a Section 2.09. Tamil Nadu undertakes that, should Tamil Nadu during the Project period make changes in the rural health system in the Project Area, Tamil Nadu shall, after consultation with the Association, take all such measures as may be necessary to: (i) maintain the efficiency, quality and level of nutrition and health services and (ii) ensure appropriate utilization of CNWs in order to avoid duplication of said services. Section 2.10. Tamil Nadu shall, not later than December 31, 1980, establish an Advisory Panel on Evaluation, such Panel (i) to include representatives from concerned agencies of Tamil Nadu and the Borrower and appropriate research institutions; and (ii) to meet as frequently as necessary throughout the Project period in order to review and comment on the evaluation of the Project. Section 2.11. Tamil Nadu shall, not later than August 31, 1980, prepare and furnish to the Association for its comments curricula for the training of staff under the Project, and shall thereafter carry out said training in accordance with such curricula, taking into account the comments thereon made by the Association. Section 2.12. Tamil Nadu shall, not later than June 30, 1981, carry out and furnish to the Association for its comments, under terms of reference satisfactory to Tamil Nadu and the Association, a study designed to identify ways of improving selection, procurement and delivery of drugs and medicines for primary health centers and health sub-centers. Section 2.13. Tamil Nadu shall, not later than August 31, 1980, (i) establish within the Directorate of Public Health, Madras, a post of Deputy Director (Training), with special responsibility for ensuring appropriateness and timeliness of training under the Project, and (ii) appoint thereto an officer with suitable qualifications and experience. - 5 - Section 2.14. Tamil Nadu undertakes that it will seek and obtain the approval of the Association for each expenditure in excess of $50,000 equivalent to be made out of the proceeds of the Project Management Fund. Section 2.15. Tamil Nadu undertakes to apply selection criteria satisfactory to Tamil Nadu and the Association for beneficiaries of the food supplement program under Part A of the Project. Section 2.16. Tamil Nadu undertakes to carry out the final evaluation study under Part D of the Project under terms of reference satisfactory to Tamil Nadu and the Association. ARTICLE III Financial Covenants Section 3.01. Tamil Nadu shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of Tamil Nadu responsible for carrying out the Project or any part thereof. Section 3.02. Tamil Nadu shall: (i) have its accounts and financial statements in respect of the Project for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than nine months after the end of each such year, (A) certified copies of said accounts for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning the said accounts and financial statements and the audit thereof as the Association shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. -6- Section 4.02. (a) This Agreement and all obligations of the Association and of Tamil Nadu thereunder shall terminate on the earlier of the following two dates: (i) a date 20 years after the date of this Agreement; or (ii) the date on which the Development Credit Agreement shall terminate in accordance with its terms. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (i) of this Section, the Association shall promptly notify Tamil Nadu of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. ARTICLE V Miscellaneous Provisions Section 5.01. 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 herein- after 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 Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. -7- For Tamil Nadu: Chief Secretary to Government of Tamil Nadu Fort St. George Madras 600009 INDIA Cable address: CHIEFSEC MADRAS INDIA Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of Tamil Nadu may be taken or executed by the Chief Secretary to Government of Tamil Nadu or such other person or persons as Tamil Nadu shall designate in writing, and Tamil Nadu shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collec- tively 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 DEVELOPMENT ASSOCIATION By Regional Vice President South Asia STATE OF TAMIL NADU By Authorized Representative -8- SCHEDULE Procurement A. General Procedures 1. Contracts for civil works shall be procured on the basis of competitive bidding advertised locally under procedures satis- factory to the Association. 2. Contracts for equipment, furniture, drugs and supplies shall be bulked wherever possible and (i) if the value of such equip- ment, furniture, drugs and supplies is estimated to cost $50,000 or more, it shall be procured on the basis of competitive bidding advertised locally under procedures satisfactory to the Asso- ciation; and (ii) if the value of such equipment, furniture, drugs and supplies is estimated to cost less than $50,000 equivalent it may be procured by prudent shopping through normal commercial channels under procedures satisfactory to the Association. 3. Contracts for vehicles shall be procured on the basis of competitive bidding advertised locally under procedures satis- factory to the Association, except that bicycles may be procured by individual staff through the provision of loans made by Tamil Nadu out of the proceeds of the Credit. 4. Contracts for services shall be procured at a reasonable price taking into account the quality of such services and the competence of the parties rendering them. B. 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 for goods and civil works estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, Tamil Nadu 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, Tamil Nadu 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 sl-rll reasonably request. The Association shall, if it determines that the intended award would be inconsis- tent with this Schedule, promptly inform Tamil Nadu 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) 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 t3 contracts for services exceeding $100,000 equivalent, Tamil Nadu shall furnish to the Association for its comments prior to their execution, copies of the proposed con- tracts, and shall make such modifications in said contracts as the Association shall reasonably request. 3. With respect to each contract not governed by the preceding paragraphs, Tamil Nadu 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 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 this Schedule, promptly inform Tamil Nadu a-d state the reasons for such determination. 4. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme - 30 - urgency) which would increase the cost of the cont:act by more than 15% of the original price, Tamil Nadu shall inform t1re 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 Tamil Nadu and state the reasons for its determination. INTERNATIONAL E WELOPMENT 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 day of , 1 912.. FOR SECRETARY