Mauritania - Second Technical Assistance Project : Credit 1292 - Credit Agreement - Conformed

CREDIT NUMBER 1292 MAU Development Credit Agreement (Second Technical Assistance Project) between ISLAMIC REPUBLIC OF MAURITANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 1982 CREDIT NUMBER 1292 MAU DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated TA 6 , c, 1982, between ISLAMIC REPUBLIC OF MAURITANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). 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 Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Project Preparation Advance" means the project prep- aration advance granted- to the Borrower by the Association pursuant to the letter dated June 21, 1982; (b) "MP" means the Ministry of the Borrower responsible for planning; (c) "DEP" means Direction des Etudes et de la Programmation within MP; (d) "DP" means Direction des Projets within MP; and (e) "Para-Public Sector" means all 6tablissements publics as defined in paragraph 1 of Article 1 of the Borrower's Loi No. 77046, dated February 21, 1967 and all societes d'6conomie mixtes established under the laws of the Borrower. -2- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various cur- rencies equivalent to four million one hundred thousand Special Drawing Rights (SDR 4,100,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the 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) 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 there- on. The unwithdrawn balance of the authorized amount of the Proj- ect Preparation Advance shall thereupon be cancelled. (c) The Borrower shall, for the purposes of the Project, open a separate treasury account (the Special Account) on terms and conditions satisfactory to the Association. Payments out of the Special Account shall be made exclusively to pay the reasonable cost of goods and services required to carry out the Project and to be financed under Categories (2) through (4) of the table set forth in paragraph 1 of the Schedule hereto in accordance with the provisions of Schedule 1 hereto, but no such payments shall be made after the Closing Date. (d) The Association shall, promptly after the Effective Date, withdraw on behalf of the Borrower from the Credit Account and deposit in the Special Account an initial amount in the cur- rency of the Borrower equivalent to one hundred thousand dollars ($100,000). Thereafter, at the request of the Borrower, the Association shall further so withdraw from the Credit Account and deposit in the Special Account, such amounts as shall be required to replenish the Special Account with amounts equal to payments -3- made out of the Special Account for expenditures for the Project under Categories (2) through (4) of the table set forth in paragraph 1 of Schedule 1 hereto. Except as the Association shall otherwise determine, each such deposit after the initial deposits shall be withdrawn by the Association from the Credit Account, in the same respective amounts as have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph (e) of this Section. (e) Prior to or at the time of each request for a deposit by the Association into the Special Account, the Borrower shall furnish to the Association in respect of each payment made by the Borrower out of the Special Account such documentsT statements of expenditure as referred to in Section 4.01 (b) of this Agreement and other evidence as the Association shall reasonably request, showing that the payment was made on account of the reasonable cost of goods or services required for the Project under Catego- ries (2) through (4) of the table in paragraph I of Schedule 1 hereto in accordance with the provisions of Schedule 1 to this Agreement. (f) 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 (ii) was not justified by the evidence furnished pursuant to paragraph (g) of this Section, the Borrower shall, promptly upon notice from the Association and, unless otherwise determined by the Association, prior to any further deposit in the Special Account by the Association deposit in the Special Account an amount equal to the amount of such payment or the portion thereof not so eligible or justified. (g) Notwithstanding the provisions of paragraphs (d) and (f) of this Section, no further deposit in the Special Account shall be made by the Association if the Association shall have notified the Borrower that it has determined that all further withdrawals from the Credit Account can be made directly by the Borrower from the Credit Account under paragraph (a) of this Section. (h) If the Association shall not have received, within ninety days after the Closing Date or within ninety days of the date of a notification as referred to in paragraph (f) of this Section, whichever date shall be the earlier, the evidence required pursuant to paragraph (e) of this Section in respect of -4- any amount deposited in the Special Account in accordance with the provisions of this Section, or if any amount is to be paid by the Borrower after the Closing Date or the date of such notifica- tion pursuant to paragraph (f) of this Section, the Borrower shall, promptly upon notice from the Association, repay to the Association, the equivalent of such amount, as of the date of such notice, in the currency specified in Section 2.09 of this Agreement (or the currency designated or selected instead thereof pursuant to paragraph (c) or (e) of Section 4.02 of the General Conditions); any such repayment to the Association shall be credited to the Credit Account. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods 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 Agreement. Section 2.04. The Closing Date shall be June 30, 1987 or such later date as the Association shall establish. The Association 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 th- 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. 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 outstanding from time to time. - 5 - Section 2.07. Commitment and service charges shall be payable semiannually on March 15 and September 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 15 and September 15 commencing March 15, 1993, and ending Septem- ber 15, 2032, each installment to and including the installment payable on September 15, 2002, 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 2.09. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project through MP with due diligence and efficiency and in conformity with appropriate administrative and financial praccices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall take all measures necessary to ensure that all of its ministries including those responsible for education, equipment, mides and energy, and rural development cooperate fully in the carrying out of Part B.3 of the Project. Section 3.02. Without* any limitation on the generality of Section 3.01 of this Agreement, the Borrower shall: (i) open a separate treasury account (the Borrower's Account) on terms and conditions satisfactory to the Association; and (ii) make at least quarterly deposits into the Bor- rower's Account on the basis of cash forecasts regarding expenditures for the immediately follow- ing quarterly period and documentation for expenditures incurred during the immediately preceeding quarterly period, such deposits shall be sufficient to meet the Borrower's contribution for the carrying out of the Project. - 6- Section 3.03. (a) In order to assist the Borrower in carry- ing out the Project, the Borrower shall employ consultants and experts including a general economist, two sectoral economists and a financial analyst, whose selection, qualifications, expe- rience and terms and conditions of employment shall be satisfac- tory to the Association in accordance with the principles and procedures described in the "Guidelines for the Use of Consul- tants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. (b) The Borrower shall ensure: (i) that the general econo- mist, the two sectoral economists and the financial analyst referred to in paragraph (a) of this Section shall, as a team, be attached to MP; (ii) that one of such experts shall be selected to act as leader of such team; and (iii) that such team leader shall, at all times, exercise appropriate power and authority to carry out his or her obligations as set forth in his or her terms of reference. Section 3.04. (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 inci- dent 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 fi- nanced out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Section 3.05. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents 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 representatives to examine the goods financed out of the proceeds of the Credit and any relevant records and - 7 - documents; and (iii) furnish to the Association at semiannual intervals progress reports and 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 ouc of such proceeds. (c) Upon the award by the Borrower of any contract for goods 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 3.06. By January 31, 1983, or such other date as the Association may ag:ee, the Borrower shall, in carrying out Part D.1 of the Project, employ four Mauritanian professionals, whose terms of reference, qualifications and experience shall be satisfactory to the Association. Section 3.07. (a) By December 31 of each year during implementation of the Project, the Borrower shall prepare an annual work program for each professional staff member within DP and DEP. (b) The Borrower shall review, annually and on the basis of said work programs, the performance of the staff members referred to in paragraph (a) of this Section. Section 3.08. The Borrower shall ensure that, at all times, the responsibilities and authority of each department within MP are clearly defined. -8- Section 3.09. The Borrower shall prepare a reward system offering adequate incentives to the staff of DP and DEP and exchange views on such reward system with the Association by December 31, 1984, and the Borrower shall carry out such reward system by October 31, 1986 and thereafter. Section 3.10. (a) In carrying out Part D.2 of the Project the Borrower shall grqnt scholarships for training programs acceptable to the Association to individuals whose qualifications and experience shall be satisfactory to the Association. (b) The Borrower shall submit to the Association for its approval detaiied proposals for the training programs to be carried out under Part D.3 of the Project. Section 3.11. By June 30 of each year or such other date as the Association may reasonably request during execution of the Project, the Borrower shall prepare an annual work program satisfactory to the Association, including, a detailed forecast of expenditures therefor, setting forth all activities, including training, to be undertaken by the Borrower in the carrying out cf the Project during the immediately following year. Section 3.12. (a) By June 30, 1983, the Borrower shall, in carrying out Part B.6 of the Project, submit to the Association for its comments a proposal for the procedure to review public investments. (b) The Borrower shall establish the procedure referred to in paragraph (a) of this Section by December 31, 1983. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and separate accounts 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 under Categories (3) and (4) (b) on -9- 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 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. (c) The Borrower shall: (i) have the separate accounts referred to in paragraphs (a) and (b) of this Section, the Special Account and the Borrower's Account 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 copy of the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably requested, including without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of this Section as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of statements of expenditure have been used for the purpose for which they were provided; 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 followfirg--ev-ents 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) the Borrower has opened the Special Account referred to in Section 2.02 (c) of this Agreement; and (b) the Borrower has deposited the initial amount of fifty thousand dollars equivalent into the Borrower's Account. - 10 - Section 5.02. The date is hereby specified for the purposes of Section 12.04 of te General Conditions. Section 5.03. The obligations of the Borrower under Sections 3.08 and 3.09 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date 15 years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for planning is designated as representative of the Borrower for the purpose. 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: Ministere du Plan et de l'Amenagement du Territoire B. P. 238 Nouakchott Islamic Republic of Mauritania Cable address: Telex: MPDI 540 MTN Nouakchott For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America - 11 - 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. ISLAMIC REPUBLIC OF MAURITANIA By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /-/ Regional Vice President Western AFrica - 12 - 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) Consultants' 2,650,000 100% services under Parts A, B and C of the Project, including the auditing required under Section 4.01 (c) of this Agreement (2) Equipment and 100,000 100% vehicles (3) Operating costs under Parts A, B and C of the Project (a) office supplies 50,000 54% (b) special staff 70,000 100% allowances (c) fuel and main- 35,000 54% tenance costs (d) secretarial 150,000 89% services - 13 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (4) Training (a) Consultants' 30,000 100% services, under Part D of the Project (b) operating costs 60,000 54% including office supplies under Part D of the Project (c) scholarships 175,000 100% (5) Initial deposit 90,000 into the Special Account (6) Refunding of Project 445,000 Amount due Preparation Advance (7) Unallocated 245,000 TOTAL 4,100,000 2. 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. - 14 - 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made prior to the date of this Agreement. 4. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other 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 CPte- gory 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 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 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. - 15 - SCHEDULE 2 Description of the Project The Project consists of an integrated program of technical assistance to help the Borrower to strengthen its economic planning and project preparation and implementation capability. The Project consists of the following Parts: Part A: National Macroeconomic Policy Strengthening of MP's capability to monitor the macro- economic situation and identification of structural reforms to be undertaken to improve the financial and economic basis of the Borrower. Part B: National Development Planning 1. Assistance for the annual review of the Fourth Five- year National Investment Plan and for the implementa- tion thereof. 2. Carrying out of studies to formulate institutional and administrative reforms, necessary to establish improved development planning and improved supervision of the execution of public investment projects estimated to cost three million dollars equivalent or more. 3. Carrying out of feasibility studies for investment projects. 4. Coordination of the national development planning and the sectoral investment planning being undertaken by planning units within the Borrower's ministries including the ministries rebponsible for education, equipment, mines and energy and rural development. 5. Improvement of DP's capacity to monitor and analyze investment projects, including the improvement of DP's data collection and processing system. 6. Establishment of a procedure to review the economic viability of each public investment estimated to cost three million dollars equivalent or more. -1.6 - Part C Para-Public Sector 1. Assistance to implement an accounting system for enterprises in the Para-Public Sector. 2. Preparation of contrats-programme to be entered into between the Borrower and enterprises of the Para-Public Sector and monitoring of the execution of such contrats-programme; said contrats-programme to specify, inter alia, the management's objectives of the enter- prises and the Borrower's financial obligations vis-a- vis said enterprises. Part D Training 1. On-the-job training of four qualified professionals within DP and DEP. 2. Scholarships not exceeding two years to be granted to individuals having participated successfully in the training to be carried out under Part D.1 of the Project or having been at least one year staff members of a ministry of the Borrower. 3. Carrying out of seminars dealing with planning, preparation and management of projects. The Project is expected to be completed by December 31, 1986. - 17 - SCHEDULE 3 Procurement A. All contracts for the supply of goods except as provided in paragraph B of this Schedule shall be procured on the basis of competitive bidding advertised locally, in accordance with local procurement procedures acceptable to the Association. B. Contracts for the supply of goods estimated to cost the equivalent of less than $10,000 may be awarded on the basis of local shopping in accordance with procedures acceptable to the Association. C. 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 equivalent of $100,000 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 was invited. - 18 - (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for with- drawal of funds from the Credit Account in respect of such con- tract. 3. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, 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 determinati n. 4. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% 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 BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this 022 day of2 , 198 Z. FOR SECRETARY