Niger - Education Project : Credit 1151 - Credit Agreement - Conformed

CREDIT NUMBER 1151 NIR Development Credit Agreement (Education Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 1981 CREDIT NUMBER 1151 NIR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1981, between REPUBLIC OF NIGER (hereinafter ca ed the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) by letters addressed by the Association to the Minister of Planning of the Borrower dated July 19, 1979 and December 11, 1980, respectively, the Association granted advances to the Borrower of, in the aggregate, $700,000, to assist in the financing of the preparation of the Project; and (C) pursuant to the terms of said advance the amount thereof is to be refunded to the Association out of the proceeds of the Credit provided for in this Agreement; and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, 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 and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "ECE" means "Ecole des cadres de 'elevage", the school included in Part D of the Project; and -2- (b) "IPDR" means "Institut pratique pour le d6veloppement rural". 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 seventeen million three hundred thousand Special Drawing Rights (SDR17,300,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the 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. (b) As of the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the principal amount of the advance referred to in the preamble to this Agreement withdrawn and outstanding as of such date and to pay any unpaid charges thereon. Any unwithdrawn balance of the authorized amount of such advance shall be automatically cancelled as of the same date. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods and civil works to lie financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 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. -3- 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, 1991, and ending February 1, 2031, each installment to and including the install- ment payable on February 1, 2001, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment there- after to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the French Republic is hereby specified for the purposes of Section 4.02 of the General Condi- tions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and educational policies and practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. For purposes of carrying out Parts C, D and E of the Project, the Borrower shall employ at its Ministry of Rural Development a Project Director and an Assistant Project Accountant, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Section 3.03. In order to assist the Borrower in the carry- ing out of the Project, the Borrower shall employ consultants and experts whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Section 3.04. The Borrower shall furnish to the Association: (a) not later than December 31, 1982, an interim status report on the execution of Part A of the Project, and exchange views with the Association thereon; and (b) not later than July 31, 1984, a final report on the execution of Part A of the Project, and exchange views with the Association thereon. Section 3.05. The Borrower shall, not later than September 30, 1982, furnish to the Association a summary report -4- on the execution of Part B of the Project, and exchange views with the Association thereon. Section 3.06. The Borrower shall, for purposes of carrying out Parts A.5, C.2 and D.3 of the Project, prepare and furnish to the Association, not later than September 30, 1981, a list of candidates, whose qualifications and experience shall be satisfactory to the Association, together with a description of their proposed training programs. Section 3.07. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable 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 to be used exclusively for the Project. Section 3.08. (a) The Borrower shall furnish 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) The Borrower shall: (i) maintain records and procedures -adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) enable the Association's accredited representatives to visit the 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) 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 expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the -5- Credit, the Association may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (d) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. Section 3.09. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for the construction (and operation) of the facilities included in the Project and 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 3.10. The Borrower shall, in respect of Parts C and D of the Project, furnish to the Association, not later than four months after the end of each calendar year, any report evaluating the performance of ECE and IPDR prepared during each such year, and exchange views with the Association thereon. ARTICLE IV Other Covenants Section 4.01. The Borrower shall cause its departments or agencies responsible for carrying out the Project or any part thereof: (a) to maintain separate accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices their operations, resources and expenditures in respect of the Project, including separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of certificates of expenditures; and -6- (b) to retain, until one year after the Closing Date, all records (orders, invoices, bills, receipts and other documents) evidencing the expenditures on account of which withdrawals are requested from the Credit Account on the basis of certificates of expenditures and shall enable the Association's accredited representatives to examine such records. Section 4.02. The Borrower shall: (i) have the accounts referred to in Section 4.01 of this Agreement 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 four months after the end of each such year, (A) certified copies of such 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 rea- sonably requested, including, without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in Section 4.01 (b) of this Agreement as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of certificates of expenditure have been used to make payments for goods received, or works or services per- formed, and that such goods, works and services were eligible for financing under this Agreement and were used in the carrying out of the Project; and (iii) furnish to the Association such other information concerning such accounts and the audit thereof as the Association shall from time to time reasonably request. Section 4.03. The Borrower shall, not later than Septem- ber 30, 1981, employ qualified and experienced persons as Assistant Director and Chief Accountant of IPDR. Section 4.04. (a) The Borrower shall operate the educational institutions included in the Project in accordance with appro- priate administrative and educatinal policies and practices and with due regard to economy. (b) The Borrower shall cause the buildings, equipment and furniture of such institutions to be adequately inspected and maintained, cause all necessary repairs and renewals thereof to be made in accordance with sound administrative and technical standards, and provide, promptly as needed, the funds, facilities and services and other resources required for the purpose. (c) The Borrower shall, not later than October 31 in each year, furnish to the Association the proposed budget allocation -7- for the following year for purposes of paragraph (b) of this Section, and exchange views with the Association thereon. ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additLonal event is specified pursuant to paragraph (h) thereof, namely, that any of the Decrees referred to in Section 6.01 (a) and (b) of this Agreement shall have been amended, suspended, abrogated, repealed, waived or shall cease to be enforced, so as to affect materially and adversely the carrying out by the Borrower of its covenants, agreements and obligations set forth in this Agreement, or the operation of ECE and IPDR. Section 5.02. 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 speci- fied in Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. 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) that the Decree of the Borrower which establishes ECE is in full force and effect and in substance satisfactory to the Association; (b) that the Decree of the Borrower which reorganizes IPDR is in full force and effect and in substance satisfactory to the Association; and (c) that the Project Director and Assistant Project Accountant referred to in Section 3.02 of this Agreement have been employed. Section 6.02. The dat4 b 7; /q i, is hereby specified for the purposes of Sec i 12.04 of the General Conditions. -8- Section 6.03. The obligzations of the Borrower under Article IV of this Agreement and the provisions 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 20 years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The Minister of Planning of the Borrower 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: Minist&re du Plan B.P. 862 Niamey, Niger Cable address: Telex: MINIPLAN 5230 CND Niamey For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District -9- of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF NIGER By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa - 10 - 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 SDR Equivalent) to be Financed (1) Civil works 11,200,000 85% (2) Professional 500,000 90% fees (3) Furniture 900,000 90% (4) Equipment 900,000 90% (5) Consultants' 700,000 100% services (6) Fellowship 400,000 100% (7) Operating costs, 500,000 90% including local salaries (8) Refunding of 600,000 Amount due advance for at Effective preparation Date under of the Section 2.02 Project (b) of this Agreement (9) Unallocated 1,600,000 TOTAL 17,300,000 - 11 - 2. To the extent that the amount allocated under Category (8) above is insufficient, or excessive, adjustment shall be made by reallocation to or from Category (9). 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. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 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 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 Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 12 - SCHEDULE 2 Description of the Project The purpose of the Project is: (a) to improve the capability of the Borrower to plan the development of education and training and to prepare future education projects; (b) to establish pro- fessional training and upgrading programs; and (c) to upgrade the quality and increase the output of middle-level technicians in agriculture and animal production. The Project consists of the following parts: Part A: Educational Planning and Project Preparation 1. Preparation of an educational development plan. 2. Development of strategies for educational development. 3. Identification and preparation of education projects. 4. Development of syllabi for the introduction of educa- tional planning and school mapping in the training programs for educational planning personnel. 5. Training of nationals of the Borrower in educational planning and school mapping techniques and provision of fellowships therefor. Part B: Public Administration and Labor 1. Review of the professional training needs of the Borrower. 2. Formulation and execution of upgrading programs result- ing from such review. 3. Identification and preparation of future professional training and upgrading projects. Part C: Agricultural Technician Training 1. Construction, furnishing and equipping for the final phase of the IPDR at Kolo. - 13 - 2. Provision of fellowships for upgrading IPDR's teaching staff. 3. On-the-job training and training courses in basic sciences and mathematics for IPDR's teaching staff. 4. Re-orientation and upgrading of IPDR's curriculum. Part D: Training of Animal Production Technicians 1. Construction, furnishing and equipping of a school at Kolo for training technicians and extension workers in animal production. 2. Development of curricula for the school included in Part D.1 above. 3. Provision of fellowships for such school. 4. On-the-job training for ECE's staff. Part E: Acquisition and utilization by the Ministry of Rural Development of the Borrower of equipment and furniture for purposes of carrying out Parts C and D of the Project. The Project is expected to be completed by June 30, 1987. - 14 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part D hereof, goods and civil works 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 Borrower shall prepare and forward to the Association as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender 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 and works in question. The Borrower 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 compe- titive bidding. 3. Equipment and furniture items shall be grouped so as to permit such bulk procurement as shall be consistent with sound technical and procurement practices. Insofar as practicable, contracts for such groups shall be for not less than $50,000 equivalent. 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. - 15 - 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 Niger 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 Niger if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Niger 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 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 - 16 - 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. Preference for Domestic Contractors With respect to the evaluation of bids for any contract for civil works included under Category (1) of the table set forth in Schedule 1 to the Development Credit Agreement and to be pro- cured in accordance with the procedures described in Part A of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: . 1. Contractors applying for such preference shall be asked to provide, as part of the data for qualification, such informa- tion, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. 2. After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. D. Other Procurement Procedures 1. Contracts for the purchase of equipment and furniture items which cannot be grouped in packages costing at least $50,000 equivalent may be procured on the basis of local competitive - 17 - procurement piocedures in effect on the date of this Agreement acceptable to the Association. In addition, contracts for furni- ture or equipment costing less than $10,000 equivalent for which there is a small number of potential suppliers may be procured through negotiated purchase after solicitation of quotations from at least three suppliers. 2. The total cost of the goods procured in accordance with the provisions of paragraph 1 of this Part shall not exceed $200,000 equivalent. E. 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 equiva- lent of $50,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower 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 Associa- tion, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to - 18 - the delivery to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph 1, the Borrower shall furnish to the Association, promptly after its execution and prior to the delivery 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 res- pective bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an 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 10% of the original price, the Borrower shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. 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 day of 1981. FOR SECRETARY