Mali - Road Maintenance Project : Credit 1104 - Credit Agreement - Conformed

; OFFICIM DCUM!ENTS CREDIT NUMBER 1104 MLI Development Credit Agreement (Road Maintenance Project) between REPUBLIC OF MALI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 1981 CREDIT NUMBER 1104 MLI DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated '2CL,-"/, / / , 1981, between the REPUBLIC OF MALI (hereinafter called the Borrower) and the 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 expects to receive from Switzerland a non-reimbursable contribution (hereinafter called the Swiss Contribution) in an amount of eighteen million Swiss Francs, also to assist in financing such Project, on the terms and conditions set forth in an agreement (hereinafter called the Swiss-Malian Agreement) to be entered into between the Borrower and Switzerland; (C) Switzerland and the Association have agreed by exchange of letters of even date herewith that subject to the rights reserved by Switzerland under the Swiss-Malian Agreement, the proceeds of the Swiss Contribution will be disbursed on instruc- tion by the Association acting on behalf of Switzerland pursuant to the procedures set forth in Article III of 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). -2- 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) "Directorate" means the National Directorate of Public Works of the Borrower's Ministry of Transport and Public Works; (b) "Equipment Service" means the Public Works Equipment Service, an agency of the Directorate; (c) "Special Account" means the account referred to in Section 3.02 (a) of this Agreement; (d) "Training Center" means the Centre de Perfectionnement des Transports et des Travaux Publics, an agency of the Borrower's Ministry of Transport and Public Works; and (e) "Swiss Account" means the account established by Switzerland under the Swiss-Malian Agreement. 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 thirteen million four hundred thousand Special Drawing Rights (SDR 13,400,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Article III of this Agreement. Section 2.03. The Closing Date shall be June 30, 1984 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. -3- Section 2.04. 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 2.05. Service charges shall be payable semiannually on January 1 and July 1 in each year. Section 2.06. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each January 1 and July 1 commencing July 1, 1991, and ending January 1, 2031, each installment to and including the installment payable on January 1, 2001, 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 2.0/. The currency of the French Republic is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Allocation and Withdrawal of Proceeds of Credit and Swiss Contribution Section 3.01. Subject to the rights of suspension and can- cellation set forth in the Development Credit Agreement and the Swiss-Malian Agreement, the amount of the Credit and the amount of the Swiss Contribution may be withdrawn from the Credit Account and the Swiss Account, respectively, in accordance with the pro- visions of this Article and with the allocation of the proceeds of the Credit and the Swiss Contribution set forth in Schedule 1 to this Agreement, as such allocation may be modified from time to time pursuant to the provisions of such Schedule or by further agreement between the, Borrower, Switzerland and the Association. Section 3.02. (a) The Borrower shall, for the purposes of the Project, cause the Directorate to open a Special Account in the Development Bank of Mali on terms and conditions satisfactory to the Association. Payments out of the Special Account shall be made exclusively to pay the costs of goods and services required to carry out the Project and to be financed under this Agreement and under the Swiss-Malian Agreement; provided, however, that under Category (7) of the table set forth in paragraph 1 of Schedule 1 to this Agreement, only the cost of imported spare parts and supplies for equipment maintenance, construction materials and replacement equipment shall be eligible for payments out of the Special Account. -4- (b) The Association shall, as of the Effective Date, with- draw on behalf of the Borrower from the Credit Account, shall request a disbursement from the Swiss Account and shall deposit in the Special Account a total initial amount in the currency of the Borrower equivalent to SDR 400,000 plus SwF 530,000, as provided in Category 8 of the table set forth in paragraph 1 of Schedule 1 of this Agreement. Thereafter, at the request of the Borrower, the Association on behalf of the Borrower shall further withdraw from the Credit Account, request disbursement from the Swiss Account and deposit in the Special Account such amounts as shall be required to replenish the Special Account with amounts equal to payments made out of the Special Account for expenditures for the Project eligible for financing under this Agreement and the Swiss-Malian Agreement, but only to the extent that the amount of any such deposit, together with any amount remaining on deposit in the Special Account as of the date of such request, shall not exceed in the aggregate the equivalent of SDR 400,000 plus SwF 530,000. Except as the Association and Switzerland shall otherwise determine, each such deposit after the initial deposit shall be withdrawn from the Credit Account and from the Swiss Account under the same Categories set forth in the table in paragraph 1 of Schedule 1 to this Agreement, and in the same respective amounts, as have been justified by the evidence supporting the request for such deposits furnished pursuant to paragraph (c) of this Section. (c) Prior to or at the time of each request by the Borrower for a deposit into the Special Account, the Borrower shall furnish to the Association in respect of each payment out of the Special Account such documents and other evidence as the Association or Switzerland shall reasonably request, showing that such payment was made to pay the reasonable cost of goods or services required for the Project and to be financed out of the proceeds of the Credit and the Swiss Coutribution in accordance with Schedule 1 to this Agreement. (d) If the Association shall have determined that any pay- ment out of the Special Account: (i) was made for any expenditure or in any amount not eligible for financing by withdrawal from the Credit Account or the Swiss Account; or (ii) was not justified by the evidence furnished pursuant to paragraph (c) of this Section, the Borrower shall, promptly upon notice from the Association and, unless otherwise agreed by the Association, prior to any further deposit in the Special Account, deposit in the Special Account or refund to the Association and to Switzerland an amount equal to the amount of such payment or of the portion thereof not so eligible or justified. -5- (e) Notwithstanding the provision of paragraph (b) of this Section, no further deposit in the Special Account shall be made when the Association shall have determined that all further withdrawals can be made directly by the Borrower from the Credit Account and from the Swiss Account under Section 3.04 of this Agreement or when the total amount withdrawn from the Credit Account and the Swiss Account, plus the amount of any qualified agreement to reimburse made by the Association and of any special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions, shall have reached the equivalent of SDR 13,000,000 plus SwF 17,470,000, whichever shall be sooner. Withdrawal from the Credit Account and the Swiss Account of the remaining amounts of the Credit and of the Swiss Contribution for the Project shall follow such procedures as shall be agreed between the Borrower and the Association and shall be made only to the extent that the Association shall be satisfied by the evidence submitted in support of the applications for such withdrawals that all payments by the Borrower out of the Special Account and out of the proceeds of the Credit and of the Swiss Contribution were made on account of the reasonable cost of goods or servi.es required for the Project and to be financed out of the proceeds of the Credit and the Swiss Contribution in accordancett with Schedule 1 to this Agreement. Section 3.03. (a) The Borrower shall be entitled to make direct withdrawals from the Credit Account and from the Swiss Account for expenditures made (or, if Switzerland and the Association shall so agree, to be made) in respect of the reason- able cost of goods and services required for the Project and to be financed out of the proceeds of the Credit and the Swiss Contribution. (b) When the Borrower shall desire directly to withdraw any amount of the Credit or of the Swiss Contribution, the Borrower shall deliver to the Association a written application in such form and containing such statements and agreements as the Associa- tion or Switzerland shall reasonably request. Applications for withdrawal, with the necessary documentation as hereinafter provided shall, except as the Borrower, Switzerland and the Association shall otherwise agree, be made promptly in relation to expenditures for the Project. (c) The Borrower shall furnish to the Association such documents and other evidence in support of the application as Switzerland or the Association shall reasonably request, whether - 6 - before or after the Association shall have approved any withdrawal requested in the application. (d) Each application and the accompanying documents and other evidence must be sufficient in form and substance to satisfy Switzerland and the Association that the Borrower is entitled to withdraw from the Credit Account or the Swiss Account the amount applied for and that such amount is to be used only for the purposes of the Project. Section 3.04. Each application by the Borrower for replenish- ment of the Special Account or for direct withdrawal shall be deemed to be a request to withdraw funds from both the Credit Account and the Swiss Account, and the funds to be withdrawn pursuant to such application shall be apportioned by the Associa- tion, as nearly as practicable in the circumstances, between the Credit and the Swiss Contribution in the ratio of 63:37, or such other ratio as shall be agreed between Switzerland and the Association. Section 3.05. When the Association shall have approved an application by the Borrower for replenishment of the Special Account or for direct withdrawal, the Association shall: (i) deposit into the Special Account, or pay to or on the order of the Borrower, as the case may be, the amount, if any, to which the Borrower is entitled from the Credit Account in accordance with the provisions of the Development Credit Agreement; and (ii) promptly, on behalf of Switzerland, notify the holder of the Swiss Account that it has received such application for replenishment or withdrawal from the Swiss Account in the aggregate amount specified in such notice, that it has approved the payment or deposit of the portion, if any, to be withdrawn from the Credit Account in the amount set forth in such notice, and that the portion to be withdrawn from the Swiss Account in the amount set forth in such notice is eligible for payment or deposit into the Special Account by Switzerland, and instruct such holder to make such payment or deposit. -7- Section 3.06. If at any time the amount of the Credit or of the Swiss Contribution shall have been fully withdrawn or can- celled, any application by the Borrower for further replenishment of the Special Account or for direct withdrawal shall be deemed to be a request for withdrawal of the full amount applied for from the Credit Account or the Swiss Account only, as the case may be, and the provisions of this Article III, except for Section 3.04 hereof, shall continue to apply mutatis mutandis until the full amount credited to such remaining Account shall have been withdrawn or cancelled. Section 3.07. Upon the Borrower's request and upon such terms as shall be agreed between the Borrower and the Association, the Association may, on behalf and for the account of Switzerland, enter into special commitments to pay amounts out of the proceeds of the Swiss Contribution in respect of the cost of goods required by the Project, subject to the provisions of this Agreement concerning the allocation and apportionment of the proceeds of the Swiss Contribution. Switzerland has agreed with the Association that any such special commitment shall, once it has been notified to Switzerland, constitute an obligation on the part of Switzer- land to pay, notwithstanding any subsequent suspension or cancellation of the Swiss Contribution, the amount to be disbursed out of the Swiss Account in fulfillment of such special commitment. Section 3.08. Except as Switzerland and the Association shall otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit or the Swiss Contribution shall be governed by the provi- sions of Schedule 3 to this Agreement. ARTICLE IV Execution of the Project Section 4.01. (a) The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appro- priate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Pursuant to paragraph (a) of this Section, the Borrower shall: (i) provide such minimum allocations for routine road maintenance as shall be agreed between the Borrower and the -8- Association; and (ii) furnish to the Association for its comments by October 31 of each year the proposed budget for routine road maintenance for the following year. (c) The Borrower and the Association shall exchange views annually on the Borrowers' program for investments in the highways sector with a view to determining the impact of such investments on available resources. Section 4.02. In order to assist the Borrower in carrying out the Project, the Borrower shall establish within the Dirictorate by May 31, 1981, a Project Coordinating Unit and shall employ such consultants, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, as shall be agreed between the Borrower and the Association. Section 4.03. (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 or of the Swiss Contribution 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, all goods and services financed out of the proceeds of the Credit and of the Swiss Contribution shall be used exclusively for the Project until its completion. Section 4.04. (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 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 of the Swiss Contribution, 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 -9- the proceeds of the Credit and the Swiss Contribution and any relevant records and documents; and (iii) furnish to the Associa- tion 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 of the Swiss Contribution 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 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 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 Associa- tion of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. . Section 4.05. In connection with Part B of the Project, the Borrower shall review with the Association every six months beginning in January, 1982, the output of the bituminous brigade of the Borrower working on such Part B. Should such output fall below current estimates agreed by the Borrower and the Associa- tion, the use of contractors in the carrying out of such Part of the Project will be increased as necessary. Section 4.06. The Borrower shall furnish to the Association by October 31 of each year for its comments a detailed work program of periodic road maintenance. Section 4.07. The Borrower shall exchange views with the Association on the requirements for expert services in the carry- ing out of Part C of the Project and shall furnish to the Associa- tion by January 31, 1982 an assessment of such requirements. Section 4.08. The Borrower shall cause the data collection unit established under Part E of the Project to collect and - 10 - analyse transport data and to prepare annually and furnish to the Association a report of its activities. ARTICLE V Other Covenants Section 5.01. (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 the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall ensure that: (i) all operations and accounts with respect to the Project be kept separate from the other operations and accounts of the Borrower's Ministry of Transport and Public Works; and (ii) that the Directorate retain, until two years after the Closing Date, all records (orders, invoices, bills, receipts and other documents) evidencing the expenditures for the Project on account of which withdrawals are requested from the Credit Account or from the Swiss Account on the basis of certificates of expenditures and enable the Association's accredited representatives to examine such records. Section 5.02. The Borrower shall: (a) have the accounts in respect of periodic maintenance under the Project, the Special Account and the accounts of the Road Fund related to maintenance audited for each fiscal year in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (b) furnish to the Association as soon as available, but in any case not later than three months after the end of each such year, the report of such audits by said auditors, of such scope and in such detail as the Association shall have reasonably requested, including, without limitation to the fore- going, separate opinions by said auditors: (i) on the periodic maintenance accounts referred to in Section 5.02 (a) of this Agreement; (ii) on the Special Account; (iii) on the accounts of the Road Fund related to maintenance; and (iv) in respect of the expenditures and records referred to in Section 5.01 (b) (ii) of this Agreement as to whether the proceeds of the Credit withdrawn from the Credit Account and the Swiss Account on the basis of certificates of expenditure were used to make payments for goods - 11 - received, or works or services performed, and that such goods, works and services were eligible for financing under this Agree- ment and were used in the carrying out of the Project; and (c) furnish to the Association such other information concerning the accounts and financial statements with respect to the Project and the audits thereof as the Association shall from time to time reasonably request. Section 5.03. The Borrower shall collect and record in accordance with appropriate statistical methods and procedures such data as are required to assess the technical, economic and financial aspects of the Borrower's road network for the proper planning of maintenance, improvements and extensions. Section 5.04. The Borrower shall cause its road network and its road maintenance equipment to be adequately maintained and shall cause all necessary repairs thereof to be made promptly, all in accordance with appropriate engineering and economic standards, and shall provide, promptly as needed, the funds, facilities, services and other resources for the foregoing. Section 5.05. The Borrower shall take all necessary steps to ensure that the dimensions and axleloads of vehicles using the Borrower's road system are consistent with the structural and geometric design standards of the roads used. ARTICLE VI Remedies of the Association Section 6.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that the right of the Borrower to withdraw the proceeds of the Swiss Contribution shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the Swiss-Malian Agreement. ARTICLE VII Effective Date; Termination Section 7.01. 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: - 12 - (a) the Special Account has been opened; and (b) the Swiss-Malian Agreement has become effective, or will become effective simultaneously with the effectiveness of this Agreement. Section 7.02. The date is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 7.03. The obligations of the Borrower under Article V of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. ARTICLE VIII Representatives of the Borrower; Addresses Section 8.01. The Minister responsible for finances of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 8.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere des Finances et du Commerce Bamako Republic of Mali Cable address: Telex: MINIFINANCES 972-559 Bamako For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America - 13 - 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. REPUBLIC OF MALI By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By 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 and of the Swiss Contribution, the allocation of the amounts of the Credit and of the Swiss Contribution to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of Amount of the Swiss Contri- Credit Allocated bution Allocated % of (Expressed in (Expressed in Expenditures Category SDR Equivalent) Swiss Francs) to be Financed (1) Equipment, 2,860,000 3,900,000 100% tools, fur- niture and spare parts (2) Building and 140,000 280,000 84% workshop construction and improve- ment (3) Periodic road mainte- nance works (a) by con- 1,880,000 2,500,000 84% tractors (b) by force 1,800,000 2,400,000 90% account (exclud- ing de- precia- tion) (4) Consul- tants' 610,000 830,000 100% services; auditors - 15 - Amount of Amount of the Swiss Contri- Credit Allocated bution Allocated % of (Expressed in (Expressed in Expenditures Category SDR Equivalent) Swiss Francs) to be Financed (5) Field expend- 30,000 40,000 96% itures of the Training Center's instructors and monitors (6) Fellowships 100,000 150,000 100% (7) Recurrent 3,050,000 4,100,000 40% prior to costs of January 1, routine 1982, 30% maintenance during 1982 and 25% thereafter (8) Initial 400,000 530,000 deposit in Special Account (9) Unallocated 2,530,000 3,270,000 TOTALS 13,400,000 18,000,000 2. The disbursement percentages have been calculated in com- pliance with the policies of the Association and of Switzerland that no proceeds of the Credit or of the Swiss Contribution 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 im- portation, 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 or the Swiss Contribution 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 con- sistent with the aforementioned policies of the Association and Switzerland. - 16 - 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. 4. Notwithstanding the allocation of an amount of the Credit or of the Swiss Contribution 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 or of the Swiss Contribution 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 or of the Swiss Contribution which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further with- drawals 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 or of the Swiss Contribution 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 or of Switzerland under the Swiss-Malian Agreement, by notice to the Borrower, cancel such amount of the Credit and of the Swiss Contribution 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 or of the Swiss Contribution. - 17 - SCHEDULE 2 Description of the Project The purposes of the Project are to improve road maintenance in Mali over the period from 1981 to 1983 and to improve the means for ensuring the availability of funds for such maintenance. The Project includes the following: Part A: Executing routine maintenance works on about 6,600 km of national, regional and feeder roads under a two and one-half year program (1981-1983). Part B: Executing periodic maintenance of about 680 km of bituminous roads as indicated in Schedule 4 to this Agreement and about 220 km of gravel roads following the standards set forth in Schedule 5 to this Agreement. Part C: Strengthening the maintenance capacity of the Equipment Service by: (i) overhauling equipment and procurement of additional equipment; (ii) making improvements in its central workshop; and (iii) providing training and fellowships for its personnel. Part D: Strengthening the operation of the Training Center, including the expansion of its facilities and the provision of fellowships for road maintenance personnel. Part E: Establishing and maintaining a transport data collection unit within the National Transport Office of the Ministry of Transport and Public Works. Part F: Carrying out a program of control of truck axle loads through the procurement and use of four portable scales. Part G: Updating the engineering and economic studies of the Bamako-Bougouni road. The Project is expected to be completed by December 31, 1983. - 18 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Parts C and E 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 in question. The Borrower 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. 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. The costs to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. B. Procurement for Equipment Service and Training Center Prior to any construction or purchase of goods for the Equipment Service included in Part C of the Project or for - 19 - the training program included in Part D of the Project, the Borrower shall furnish to the Association for its approval a description of the proposed facilities and of the furniture, equipment and vehicles to be procured. C. Other Procurement Procedures 1. With the exception of those items referred to in paragraph 2 of this part, contracts for goods estimated to cost less than the equivalent of $50,000 may be awarded on the basis of local competitive bidding procedures; provided, however, that unless otherwise agreed by the Association, the aggregate amount of the contracts for spare parts so awarded shall not exceed $1,500,000. 2. Contracts for fuel, bitumen, cement and other construction materials for periodic maintenance may be awarded on the basis of the Borrower's standard procurement procedures for such items, and contracts for the purchase of proprietary spare parts avail- able only from the manufacturer of the principal equipment or its sales agents may be negotiated with the suppliers thereof, provided that the aggregate value of contracts for such spare parts shall not, unless otherwise agreed by the Association, exceed $1,000,000. 3. Contracts for the construction or improvement of buildings or workshops and contracts for civil works for periodic main- tenance of roads may be awarded on the basis of local competitive bidding procedures. 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 purchases 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. - 20 - (b) After bids have been received and evaluated, the Bor- rower 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, where appro- priate by the consultants referred to in Section 4.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said con- sultants, 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 the delivery to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. Contracts to be awarded which are of a value of less than the equivalent of $50,000 but more than the equivalent of $7,500 shall be subject to the procedures described in paragraphs D.1 (b), (c) and (d) above. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an exten- sion of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 10% of the original price, the 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. E. Procurement Without Contracting Periodic maintenance of bituminous and gravelled roads may be undertaken by force account by the Borrower. - 21 - SCHEDULE 4 Periodic Maintenance of Bituminous Roads Single Surface Double Surface Total Patching Seal Coat Treatment Treatment Length F.A. Contractor F.A. Contractor F.A. Contractor F.A. Contractor (km) (m2) (km) (km) (km) 1. Sikasso-Zegouai 100 - - 17.0 - 16.7 - - - 2. Sikasso-Bagoe 105 - - - - 30.0 - 2.5 - 3. Bagoe-Bougouni 108 6,000 - 16.8 - 60.0 - 1.2 - 4. Segou-Bla 76 - 57,000 - 15.8 - 23.5 - 1.9 5. Segou-Markala 35 - 2,650 - 34.0 - 0.2 - 0.1 6. Bla-Koutiala 79 - 1,850 - 30.0 - 46.0 - 2.6 7. Koutiala-Faramana 106 - - - 100.0 - 5.9 - - 8. Bamako-Kati 15 15,100 - 15.0 - - - - 9. Bamako-Koulikoro 57 7,550 - 47.0 - 10.0 - - - 681 28,650 61,500 95.8 179.8 116.7 75.6 3.7 4.6 10. Regravelling of shoulders: 80,000 m3 by force account. 1/ Works started under the Third Highway Project. F.A. = Force Account. - 22 - SCHEDULE 5 Design Standards for Road Regravelling Clearing Roadway Gravel Base Road Length Width Width Thickness (km) (M) (M) (cm) Bamako-Kangaba 90 12.0 6.0 18 Koulikoro-Banamba 90 10.0 5.0 15 Fana-Dioila 40 10.0 5.0 15 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 A 198 L. FOR SECRETARY