Mali - Economic Management And Training Program : Credit 1307 - Credit Agreement - 2 - Conformed

Cn M å N 08 CREDIT NUMBER 1307 MLI Development Credit Agreement (Economic Management and Training Project) between REPUBLIC OF MALI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated ,1982 CREDIT NUMEER 1307 MLI DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated C0 < ) , 1982, between the REPUBLIC OF MALI (hereinafter called the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). ARTICLE I General Conditions; Definitions Section 101. 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 Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, che several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Project Preparation Advance" means the two project preparation advances granted by the Association to the Borrower pursuant to exchange of letters dated February 2, 1981 and February 26, 1981, and June 15, 1981 and April 8, 1982 between the Borrower and the Association; (b) "Project Coordinating Unit" means the unit described in Section 3.01 (b) of this Agreement, established by Law No. 8219/PRM and operating under Decree No. 149/PG-RM of the Borrower, dated July 5, 1982; and (c) "IPGP" means the Institut de Productivite et de Gestion Previsionnelle established by the Borrower in 1971. 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 -2- currencies equivalent to nine million seven hundred thousand Special Drawing Rights (SDR 9,700,000). 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 (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to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 Associa- tion 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) Promptly after 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 prin- cipal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the Project Preparation Advance shall thereupon be cancelled. Section 2.03. Except as 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 shall be governed by the provisions of Schedule 3 to this Agree- ment. Section 2.04. The Closing Date shall be June 30, 1987 or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not with- drawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. - 3 - Section 2.06. 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 out3tanding from time to time. Section 2.07. Commitment charges and service charges shall be payable semiannually on February 1 and August 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments paVable on each February 1 and August 1 commencing February 1, 1993, and ending August 1, 2032, each installment to and including the installment payable on August 1, 2002, to be one-half of one pec 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 2.09. 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. (a) The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appro- priate financial, economic, administrative and technical prac- tices, and shall provide, promptly as needed, the funds, facili- ties, services and other resources required for the purpose. (b) In order to ensure the efficient carrying out of the Project, the Borrower shall maintain in its Ministry of Planning a Project Coordinating Unit consisting of a Coordinating Commit- tee comprising representatives of the ministerial departments benefitting from the Project and a Secretariat. The Secretariat shall be headed by a qualified and experienced Project Coordina- tor and shall function under terms of reference, and in accor- dance with operating procedures, satisfactory to the Association. (c) The Borrower: (i) shall assign to the Project Coordi- nating Unit an adequate number of staff with qualifications and experience satisfactory to the Association including at least one technical advisor and a training specialist, each to be appointed no later than June 30, 1983; (ii) shall, during the execution of the Project, exchange views with the Association -4- before it makes any change affecting the membership of the Coordinating Committee or of the Secretariat, or the office of Project Coordinator; and (iii) shall prepare procedures satisfac- tory to the Association for the use by the Project Coordinating Unit in requesting any reallocation of the proceeds of the Credit. Section 3.02. In order to assist the Borrower in carrying out the Project, the Borrower shall employ such consultants, experts and specialists as shall be agreed between the Borrower and the Association and, in the case of services costing the equivalent of $25,000 or more or such other figure as the Asso- ciation may stipulate, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Asso- ciation. Such consultants, experts and specialists shall be selected in accordance with principles and procedures satisfac- tory to the Association on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. Section 3.03. (a) The Borrover 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) The Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Section 3.04. (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. For the purposes of this Section the term "plan" shall include the training programs and lists of participants of such programs required for the Project. (b) The Borrower: (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 -5- the Credit, and to disclose their use in the Project; (ii) shall enable the Association's 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 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 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 ini- tial 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 Devel- opment Credit Agreement and the accomplishment of the purposes of the Credit. Section 3.05. The Borrower shall, not later than June 30, 1983, furnish to the Association terms of reference showing the details of how proceeds of the Credit are to be used for the consultants', experts' and specialists' services and training included in the Project, and for such other matters as may be necessary to follow up the diagnostic studies provided for in Parts B (2) and C (2) of the Project. Section 3.06. The Borrower shall: (i) continue to assign to IPGP, during the period of executing the Project, an adequate number of staff, including its Director, with qualifications and experience satisfactory to the Association; and (ii) provide IPGP with amounts sufficient to meet any operating deficit. Section 3.07. The Borrower shall by June 30, 1983 furnish to the Association proposed terms of reference for the consultants, -6- experts and specialists to be retained to assist in carrying out Part D (1) of the Project. Section 3.08. (a) The Borrower shall assign an adequate number of qualified and experienced counterpart personnel to work with the consultants, experts and specialists to be employed under the Project. (b) The Borrower: (i) shall appoint officials who have successfully completed training under the Project to appropriate positions; and (ii) shall require every person undergoing such training abroad to be employed in the service of the Government or other public agency, on completing such training, for a period of five years or a period twice the period of training, whichever shall be the lesser. Section 3.09. The program for all training and fellowships included in the Project, including the criteria for the selection of candidates and of locations, shall be approved by the Associa- tion prior to confirmation by the Borrower. Section 3.10. Prior to March 31, 1983 the Borrower shall furnish to the Association draft terms of reference for consul- tants' services to support the reform in cereals marketing under Part A of the Project. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain, or cause to be maintained by the Project Coordinating Unit, 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) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to be maintained separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of statements of expenditure; (ii) retain, until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing the expenditures on account of which -7- withdrawals are requested from the Credit Account on the basis of statements of expenditure; and (iii) enable the Association's representatives to examine such records. Section 4.02. The Borrower shall: (i) have the accounts referred to in paragraph (b) of Section 4.01 for each fiscal year audited, in accordance with appropriate auditing principles con- sistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as avail- able, but in any case not later than four months after the end of each such year, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Associa- tion shall have reasonably requested, including without limita- tion to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of Section 4.01 as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of statements of expenditure have been used to make payments for goods received, or works or services performed, and that such goods, works and services were eligible for financing under this Agreement and were used in carrying out the Project; and (iii) furnish to the Association such other information concerning said separate accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably request. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) that the Project Coordinating Unit has been duly staffed, as provided in Section 3.01 (b) of this Agreement; and (b) that terms of reference and operating procedures for the Project Coordinating Unit, as provided in Section 3.01 (b) of this Agreement, have been adopted by the Borrower. Section 5.02. The date ( L -', .' is hereby specified for the purposes of Section 12.04 of the General Conditions. -8- ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for finance 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 purposes of Section 11.01 of the General Conditions: For the Borrower: Minist're des Finances 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 Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 197688 (TRT) -9- IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caus.!d 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 - 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 490,000 80% (2) Equipment and 440,000 95% vehicles (3) Consultants', 4,000,000 100% of foreign experts' and expenditures specialists' and 85% of local services expenditures (4) Training and 890,000 100% fellowships (5) Operating expenses 450,000 75% of local other than salaries; expenditures supplies and mate- rials (6) Salaries and allow- 140,000 100% ances of local con- tractual personnel, except those under Category (3) (7) Refunding of Project 950,000 Amount due under Preparation Advance Section 2.02 (b) (8) Unallocated 2,340,000 TOTAL 9,700,000 - 11 - 2. To the extent that the amount allocated to Category (7) is insufficient or in excess of the amount required, adjustment will be made by allocations from or to Category (8). 3. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures". 4. The disbursement percentages have been calculated in compli- ance 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. 5. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made: (a) in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equivalent of $750,000, may be made in respect to Categories 1 to 6 on account of payments made for such expenditures before that date but after September 1, 1982. (b) in respect of payments made for Part G of the Project under Categories (1) through (6), until the Association has been furnished with evidence that: (i) IPGP has put into effect a reorganization plan satisfactory to the Association; and (ii) an - 12 - experienced and qualified administrative and financial director of IPGP has been appointed and all IPGP's staff vacancies have been filled. 6. 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 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 withdrawals under such Category may continue until all expenditures thereunder shall have been made. 7. 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 expend- itures 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 Bor- rower, -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. - 13 - SCHEDULE 2 Description of the Project The Project is designed to help the Borrower: (i) in the identification of improved public financial and economic poli- cies; (ii) in the strengthening and improvement of the Government institutions responsible for the elaboration and execution of the said policies; and (iii) in the training of Malian civil servants responsible for the better functioning of the improved institu- tions, all with the assistance of consultants, experts and specialists. The Project consists of the following: Part A: Cereals marketing (1) Strengthening the agencies of the Borrower responsible for commerce on cereals marketing policy, especially the Cereals Marketing Board (OPAM). (2) The carrying out of studies relating to cereals market- ing and training of civil servants and private merchants in matters relating to cereals marketing. Part B: Rural Development Agencies (ODRs) (1) The carrying out of a diagnostic study of the rural development agencies of the Borrower with a view to: (a) analyz- ing the policies and institutions operating in the rural devel- opment sector; and (b) recommending changes that would help increase the efficiency and the economic and financial viability of the sector. (2) Carrying out of such studies and training programs for staff of the agencies concerned with rural development as would facilitate the carrying out of a program to follow up such diagnostic study. Part C: Public Company and State Enterprises Sector (1) The carrying out of a diagnostic study of the Bor- rowerts State enterprises sector with a view to examining the internal and external constraints to increased effectiveness of state enterprises. (2) Carrying out of such studies and training programs for staff of the governmental agencies and enterprises concerned with -14 - the said sector as would facilitate the carrying out of a program to follow up such diagnostic study. Part D: Economic Policy Analysis and Data Management (1) Conducting an analysis of financial and economic policies, by the National Planning Office (DNP). (2) Training, procurement of equipment and operational improvements in the National Office of Statistics and Data Processing (DNSI), for the purpose of (i) helping the Borrower to expand and improve its data-processing covering production, prices, employment and other economic statistics and (ii) improving national accounts. (3) The design and establishment of a management informa- tion system to improve the Borrower's data-processing operations, and training of staff responsible for such operations. Part E: Personnel Management The establishment by the National Office of Civil Service and Personnel (DNFPP), of an efficient management information system to ensure sound personnel management in government ser- vices; purchase of necessary equipment; and training of staff in such system and in the operation of equipment utilized therein. Part F: Public Debt Management The improvement of communications between the Public Debt Agency of the Borrower (Caisse Autonome d'Amortissement), lenders and beneficiaries of external public debt; acquisition of equipment and its use in debt management; and provision of a staff fellowship and short-term training for public debt management staff of the Borrower in such a system and in the operation of such equipment. Part G: Management Training Institute (IPGP) The improvement of the curricula and teaching methods of the IPGP; provision of fellowships for the staff of the IPGP; and construction and furnishing of classrooms and office space. - 15 - Part H: Related Activities Carrying out of such additional studies and activities as the Association and the Borrower shall agree are necessary for the achievement of the purposes of the Project. - 16 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part B hereof, goods shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the current edition of 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 to be procured on the basis -of international 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 notifica- tion to prospective bidders of the opprrtunity to bid for the goods and works in question. The >wer shall provide the necessary information to update sut .ktice annually so long as any goods or works remain to be procured on the basis of inter- national 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; (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; and (iii) the cost of inland freight and other expenditures incidental to the delivery of the goods to the place of their use or installation shall be included. - 17 - B. Other Procurement Procedures 1. Equipment, vehicles, supplies and furnishings, which after grouping for the purpose of inviting bids, are estimated to cost less than $100,000 equivalent, and contracts for civil works, may be procured on the basis of the competitive bidding procedures of the Borrower. 2. All contracts for data and information processing equipment shall be awarded after direct competitive shopping including the solicitation in each case of quotations from at least three suppliers. C. Review of Procurement Decisions by the Association Review of invitations to bid and of proposed awards and final contracts: 1. With respect to all contracts estimated to cost the equivalent of $10,000 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 cequest. 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 was invited. - 18 - (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 with- drawal of funds from the Credit Account in respect of such con- tract. 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 respective bids, recommendations for award and such other infor- mation as the Association shall reasonably request. The Associa- tion 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 pro- visions 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 198 . FOR SECRETARY