Benin - Second Education Project : Credit 1246 - Credit Agreement - Conformed

CAEDIT NUMBER 1246 BEN Development Credit Agreement (Second Education Project) between PEOPLE'S REPUBLIC OF BENIN and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1982 CREDIT NUMBER 1246 BEN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated - ,1982, between the PEOPLE'S REPUBLIC OF BE N (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to thiL Agreement by extending the Credit as hereinafter provided; (B) the Borrower expects to receive from Switzerland a noa-reimbursable contribution (hereinafter called the Swiss Contribution) in an amox,nt of seven million Swiss Francs (approxi- mately equivalent to three million five hundred thousand dollars ($3,500,000)), to assist in financing Parts A and C of the Proj- ect, on the terms and conditions set forth in an agreement (here- inafter called the Swiss-Beninese Agreement) to be entered into between the Borrower and Switzerland; (C) Switzerland intends to appoint the Association as Administrator of the Swiss Contribution in accordance with the provisions of this Agreement and a letter of understanding to be entered into between the Association and Switzerland; (D) the Borrower expects to receive from the Deutsche Gesellschaft fUr Technische Zusammenarbeit (tereinafter called GTZ), an agency for technical cooperation of the Federal Republic of Germany, a grant (hereinafter called the GTZ Grant), in an amount approximately equivalent to four million seven hundred and ten thousand dollars ($4,710,000)) to assist in financing Part B of the Project, on terms and conditions set forth in an agreement (hereinafter called the GTZ Grant Agreement) to be entered into between the Borrower and the Federal Republic of Germany; 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: -2- ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "ENI" means Ecole Normale Int6gr6e, a college at which primary and lower secondary school teachers are to be trained; (b) "INFRE" means the Institut National de la Formation et dc la Recherche en Education, the Borrower's national institute of education responsible for curriculum development, teacher educa- tion and the production and distribution of educational materials; (c) "MEMGTP" means the Ministere des Enseignements Moyen G6n6ral, Technique et Professionnel, the Borrower's ministry responsible for general secondary, technical and vocational education; (d) "Swiss Account" means the account to be established for the Swiss Contribution; (e) "Project Unit" means the unit establisned withii MEMGTP to supervise and coordinate all activities under the Projec+; (f) "Project Preparation Advances" means the project preparation advances granted by the Association to the Borrower pursuant to an exchange of letters dated October 1, 1980 and October 9, 1980, and a further exchange of letters dated May 5, 1982 and May 14, 1982 between the Borrower and the Association; and -3- (g) "CFA Franc" and the letters "CFAF" mean the Franc de la CommunautS Financi&re Africaine, the common currency of the Borrower and the other members of the West African Monetary Union. 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 equivalent to twelve million two hundred thousand Special Drawing Rights (SDR 12,200,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Article III hereof. Section 2.03. The Closing Date shall be June 30, 1988 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. 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. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one percent (1/2 of 1%) per annum on the principal amount of the Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (u) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restric- tions of any kind imposed by, or in the territory of, the Bor- rower; 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. -4- Section 2.06. Commitment and service charges shall be payable semiannually on April 1 and October 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 1 and October 1 commencing October 1, 1992, and ending April 1, 2032, each installment to and including the installment payable on April 1, 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 2.08. The currency of the Republic of France 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. 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 provisions of this Agreement 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 agree- ment between the Borrower, Switzerland and the Association. Section 3.02. (a) The Borrower shall be entitled to make withdrawals from the Credit Account and from the Swiss Account for expenditures made (or, if the Association and Switzerland shall so agree, to be made) in respect of tha reasonable 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) 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 total principal amount of the Project Preparation Advances 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 Advances shall thereupon be cancelled. -5- Section 3.03. (a) When the Borrower shall desire to withdraw any amount of the Credit or of the Swiss Contribution, the Bor- rower shall deliver to the Association a written application in such form and containing such statements and agreements as the Association 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. (b) 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 such application by the Borrower for 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 Association, as nearly as practicable in the circumstances, between the Credit and the Swiss Contribution in the ratio of 80:20, 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 withdrawal, the Association shall: (i) pay the amount, if any, which the Borrower is entitled to withdraw from the Credit Account to or on the order of the Borrower in accordance with the provisions of the Development Credit Agreement; and (ii) promptly notify Switzerland that it has received such application for withdrawal from the Swiss Account in the aggregate amount specified in such notice, that it has approved the payment 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 by Switzerland, and instruct Switzerland to make such payment. -6- Section 3.06. If at any time the amount of the Credit or of the Swiss Contribution shall have been fully withdrawn or cancelled, applications by the Borrower for further withdrawals shall be deemed to be requested 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 Agreem.ent 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 can- cellation of the Swiss Contribution, the amount to be disbursed out of the Swiss Account in fulfillment of such special commit- ment. 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 provision of Schedule 3 to this Agreement. ARTICLE IV Execution of the Project Section 4.01. (a) The Borrower shall carry out the Project through its MEMGTP, together with the assistance of other ministries as appropriate, with due diligence and efficiency and in conformity with appropriate educational, administrative, financial and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation on the obligations of the Borrower under paragraph (a) of this Section, the Borrower shall establish -7 - at a bank acceptable to the Association by July 1, 1982, a re- volving fund of five million C'A Francs (CFA 5,000,000) to pre-finance the operating costs of the Project Unit and to finance part of the Borrower's local cost contribution to the Project, and shall replenish such fund as and when required to ensure that on the first day of each calendar quarter the aforementioned amount is credited to the fund. (c) The Borro.er shall cause the Project Unit to exercise overall management and coordination in the carrying out of the Project with such responsibilities, powers, services and facili- ties as are specified in Schedule 4 to this Agreement. (d) The Borrower shall employ at all times during the execution of the Project the personnel identified in paragraph 2 of Schedule 4 to this Agreement. (e) For the efficient operation of the Project Unit, the Borrower shall employ or continue to employ consultants and specialists as specified in Schedule 5 to this Agreement; the selection, qualifications, experience and terms and conditions of employment of said consultants and specialists shall be satisfac- tory to the Association in accordance with the principles and procedures described in 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 4.02. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) 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 4.03. (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. -8- (b) The Borrower shall: (i) maintain records and procedures adequate to record and monitor the progress of the Project (in- cluding 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 visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the Credit, the Association may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (d) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derivefA and to be derived from it, the performance by the Borrower Rnd the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. (e) Without limitation on or restriction to its other obligations under this Section, the Borrower shall, not later than December 31, 1986, furnish to the Association a study of Part B of the Project carried out in accordance with a research design satisfactory to the Association and shall exchange views with the Association on the findings, conclusions and recommendations resulting from said study. Section 4.04. The Borrower shall take all such action as shall be necessary to ensure that all land and rights in respect of land as shall be required for carrying out the Project shall continue to be available for purposes related to the Project. -9- Section 4.05. Prior to commencing construction of any one of the ENIs referred to in Part A of the Project the Borrower shall furnish evidence satisfactory to the Association that an adequate number of residences for ENI administrative and teaching staff are available near to the site on which the ENI concerned is to be constructed. Section 4.06. The Borrower shall: (a) ensure that fellowships under Parts A (3), C (1) (d) and B (4) of the Project are awarded to suitably qualified candidates; (b) furnish to the Association for its review and approval detpls of the training programs (and their costs) to be followed by said candidates; and (c) receive the guarantees necessary to ensure that all recipients of fellowships under the Project take up employment in positions consistent with their training for a minimum period of two years after completion of said training. Section 4.07. (a) As soon as construction of each ENI referred to under Part A (1) of the Project has been substantially completed the Borrower shall transfer from existing programs for training primary and lower secondary teachers sufficient staff, equipment and students to the ENI concerned and shall ensure that thereafter said ENI operates at full capacity. (b) As soon as the ENIs referred to under Part A (1) of the Project are operational the Borrower shall discontinue the train- ing of primary school teachers at the six temporary primary teacher training colleges. Section 4.08. The Borrower shall: (a) take all steps neces- sary to substantially carry out, not later than June 30, 1987, its program for increasing the enrollment and for the upgrading of the upper secondary agricultural school in Sekou and for the develop- ment of three new lower secondary agricultural schools in order to ensure that a sufficient number of qualified students will be available for the agricultural teacher training programs; and (b) shall exchange views from time to time with the Association on the progress being made in the implementation of such program. Section 4.09. The Borrower shall, not later than December 31, 1982, or such later date as the Borrower and the Association shall otherwise agree, furnish to the Association for its approval, the - 10 - documents establishing a separate printing unit within MEMGTP for purposes of textbook production and distribution; said docu- ments shall include the operational rules for said unit. 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 (hereinafter called the Project Accounts). (b) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to be maintained as pert of the Project Accounts referred to in paragraph (a) of this Section, sub- accounts reflecting all expenditures on account of which with- drawals are requested from the Credit Account or the Swiss Account on the basis of statements of expenditure; (ii) retain or cause to be retained, until one year after the Closing Date, all records (contracts, 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 the Swiss Account on the basis of statements of expenditure; and (iii) enable the Association's representatives to examine such records. (c) The Borrower shall: (i) for each fiscal year have an audit carried out on the Project Accounts and the sub-accounts referred to in paragraphs (a) and (b) of this Section respec- tively, in accordance with appropriate auditing principles con- sistently applied, by independent auditors acceptable to the Assoziation; (ii) furnish to the Association, as soon as avail- able, but in any case not later than six 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 or the Swiss Account on the basis of statements of expenditure have been used for the purpose for which they were - 11 - provided; and (iii) furnish to the Association such other informa- tion concerning the Project Accounts, sub-accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably request. Section 5.02. (a) The Borrower shall cause the buildings constructed for purposes of the Project to be operated in accordance with the objectives of said Project and shall provide or cause to be provided, promptly as needed, the funds, facili- ties, services and other resources as well as qualified teachers and administrators in adequate numbers required for the effective utilization, staffing and operation of such institutions. (b) The Borrower shall cause the buildings and equipment of the buildings constructed for purposes of the Project to be adequately maintained and cause all necessary renewals and repairs thereof to be made promptly as required, all in accordance with appropriate technical, administrative and economic practices, and shall provide or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for this purpose. (c) Without limitation to or restriction on its obligations under paragraph (b) of this Section, the Borrower shall, not later than December 31, 1983, furnish to the Association for its review and comments a plan setting out in detail its proposals for ensur- ing that: (i) adequate funds will be allocated annually for the operation and maintenance of the facilities constructed under the Project; and (ii) personnel are readily available in adequate numbers to carry out the operation and maintenance required for such facilities pursuant to said plan. ARTICLE VI Remedies of the Association Section 6.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section: (i) the right of the Borrower to withdraw the proceeds of any grant, contribution or loan made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in - 12 - whole or in part, pursuant to the terms of the agreement providing therefor; or (ii) any such loan shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if the Borrower establishes to the satisfaction of the Association that: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 6.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof namely, that the event specified in paragraph (a) (ii) of Section 6.01 of this Agreement shall occur, subject to the proviso of paragraph (b) of that Section. 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 Gonditions: (a) the Swiss-Beninese Agreement and the letter of under- standing referred to in paragraph (C) of the Preamble to this Agreement have been executed and delivered and such execution and delivery have been duly nothorized and ratified by the com- petent authorities of the Borrower and the other conditions precedent to the effectiveness of said Agreement, subject only to the effectiveness of this Agreement, have been fulfilled; (b) the GTZ Grant Agreement between the Borrower and the Federal Republic of Germany has been duly executed by and delivered to the appropriate authorities; and (c) the assistant to the Project Director, the coordinator of works, the maintenance specialist and the independent auditor, included amongst the specialists referred to in Section 4.01 (e), have taken up their positions. - 13 - Section 7.02. The date 03Qt\) M is hereby specified for the purposes of Section 12.04 of tfe General Conditions. Section 7.03. The obligations of the Borrower under Article V of this Agreement and the provisions of Section 6.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty-five years after the date of this Agreement, whichever shall be the earlier. ARTICLE VIII Representatives of the Borrower; Addresses Section 8.01. The Minister of the Borrower at the time responsible for finance 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: Ministry of Finance P.O. Box 302 Cotonou People's Republic of Benin Cable address: Telex: MINIFINANCES 5009 or Cotonou 5289 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) -14 - 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. PEOPLE'S REPUBLIC OF BENIN By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa - 15 - 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 the Swiss Contri- bution, the allocation of the amounts of the Credit and of the Swiss Contribution to each Category and the percentage of expen- ditures for items so to be financed in each Category: Amount of Amount of the Swiss Contri- Credit Allocated bution Allocated % of Expen- (Expressed in (Expressed in ditures to Category SDR Equivalent) Swiss Francs) be Financed (1) Civil works 5,580,000 3,200,000 50% (2) Furniture 1,540,000 880,000 80% and equipment (3) Professional 490,000 280,000 80% fees for local specialists (4) Consul- 1,400,000 800,000 100% tants' and specialists' services (5) Fellowships 350,000 200,000 100% (6) Operating 110,000 60,000 80% costs (7) Refunding 890,000 Amount due of Project Preparation Advances (8) Unallocated 1,840,000 1,580,000 TOTAL 12,200,000 7,000,000 I__________ - 16 q 2. The disbursement percentages have been calculated in com- pliance with the policy of the Association and of Switzerland that no proceeds of the Credit or 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 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 or the Swiss Contribution decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disburse- ment percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association and Switzerland. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) payments made for expenditures prior to the date of May 13, 1982; and (b) payments made for such expenditures under Category (1) above with respect to any one of the three ENIs to be constructed under the Project unless with respect to the ENI for which the withdrawal application is made the Borrower has made adequate arrangements to ensure road access and water and electri- city connections to the site on which the ENI concerned is to be constructed. 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. - 17 - 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-Beninese 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. - 18 - SCHEDULE 2 Description of the Project The objective of the Project is to improve the quality of primary and lower secondary education and establish a sound basis for its expansion, in particular, in rural areas. The Project consists of the following Parts: Part A: Primary and Lower Secondary Education (1) Construction, furnishing and equipping of three colleges (ENIs) with an annual output of about 675 primary school teachers and about 260 lower secondary school teachers; these colleges will be located in Lokossa, Parakou and Natitingou. (2) Development of training programs to be followed by students at the ENIs with a focus on general subjects at the primary level and general and vocational subjects at the lower secondary level. (3) About 14 fellowships equivalent to about 168 man-months to train Beninese staff to operate and maintain the ENIs. Part B: Textbook Production and Distribution (1) Construction, furnishing and equipping of a print shop in Porto Novo. (2) Construction, furnishing and equipping of a central warehouse located next to the print shop to be constructed under Part B (1) of the Project and six regional warehouses at loca- tions acceptable to the Association. (3) Establishment and initial operation of a program for printing and distributing approximately 470,000 textbooks and teaching guides per annum. (4) About 3 overseas fellowships equivalent to 85 man-months for print shop personnel. Part C: Project Management, Evaluation and Planning (1) Strengthening of the Project Unit: (a) improvement of its management, procurement and accounting procedures; (b) provi- sion of complementary furniture and equipment; (c) financial - 19 - assistance in its initial operations; and (d) about 5 fellow- ships equivalent to 60 man-months to train personnel in matters related to Project management. (2) Establishment of a project monitoring system and the evaluation of Project activities. (3) Planning and preparation of proposed projects in the educational sector. The Project is expected to be completed by December 31, 1987. - 20 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part D hereof, goods and civil works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the 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 and works to be procured on the basis of inter- national competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Association as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Association shall reasonably request; the Association will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of international compe- titive bidding. 3. To the extent practical, items of furniture and equipment shall be grouped so as to permit bulk procurement in accordance with appropriate technical and procurement practices. 4. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for the imported goods, or the ex-factory price or off-the-shelf price of other goods, offered in such bid; (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. - 21 - B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A of this Schedule, goods manufactured in Benin may be granted a margin of preference in accordance with, and subject to, the following provisions: 1. All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. 2. After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Benin if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Benin equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other domestic bids. (3) Group C: bids offering any other goods. 3. In order to determine the lowest evaluated bid of each group, all evaluated bids in each group shall first be compared among themselves, without taking into account customs duties and other import taxes levied in connection with the importation, and sales and similar taxes levied in connection with the sale or delivery, pursuant to the bids, of the goods. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. 4. If, as a result of the comparison under paragraph 3 above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the evaluated bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to: (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such - 22 - group C bid; or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which, as result of the comparison under paragraph 3 is the lowest evaluated bid, shall be selected. C. Preference for Domestic Contractors With respect to the evaluation of bids for any contract for civil works included under Category (1) of the table set forth in Schedule 1 to the Development Credit Agreement and to be pro- cured in accordance with the procedures described in Part A of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: 1. Contractors applying for such preference shall be asked to provide, as part of the data for qualification, such informa- tion, including details of -wnership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. 2. After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. D. Other Procurement Procedures 1. Contracts for goods which cannot be grouped into packages costing at least $50,000 equivalent or which are not suitable for international competitive bidding may be procured in accordance - 23 - with local competitive bidding procedures acceptable to the Associat'on, subject, however, to paragraph D.3 of this Schedule. 2. Contracts for goods estimated to cost less than $20,000 equivalent which are available from a limited number of suppliers may be procured by inviting quotations from at least three reli- able suppliers, subject, however, to paragraph D.3 of this Schedule. 3. The aggregate cost of contracts awarded pursuant to paragraph D.1 and D.2 of this Schedule shall not exceed $300,000 equivalent. E. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equi- valent 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, to- gether 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 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 on the evaluation and comparison of the bids received, together with the recommendations for award 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. - 24 - (d) Two signed or 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 applica- tion for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, 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 signed or conformed copies of such contract, together with the analysis of the respective bids, recoumendations for award and such other informa- tion as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an 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. - 25 - SCHEDULE 4 The Project Unit (Section 4.01 (c) and (d) of the Development Credit Agreement) 1. The Project Unit shall be headed by a full-time Project Director acceptable to the Association who shall be responsible to the Minister of MEMGTP. 2. The Project Unit shall include, in addition to the Project Director: (a) a full-time accountant; (b) a deputy director responsible for programming and budgeting; and (c) a deputy director responsible for technical services under the Project. 3. The Project Unit shall have the necessary powers for the execution of the Project, including, inter alia: (a) coordinating of all Project activities with the assist- ance of INFRE and of the appropriate ministries; (b) preparing for submission through proper channels of applications for withdrawals from the Credit Account and the Swiss Account; (c) preparing and maintaining accounts for the Project and preparing statements of expenditur, for withdrawals under Category (6) of Schedule 1 to this Agreement; (d) ensuring that quarterly project expenditure estimates are prepared for timely replenishment of the revolving fund provided for in Section 4.01 (b); (e) ensuring that quarterly progress reports relative to the Project are prepared and sent to the Association; (f) ensuring that all evaluation reports and financial reports provided for in this Agreement are regularly prepared; - 26 - (g) ensuring that construction work under the Project is carried out substantially in conformity with the archi- tectural designs approved by the Association; and (h) ensuring that the furniture and equipment procured under the Project is substantially in conformity with detailed lists and specifications approved by the Association. 4. The staff of the Project Unit shall cooperate fully with the specialists identified in Schedule 5 to this Agreement. - 27 - SCHEDULE 5 Consultants' and Specialists' Services (Section 4.01 (e) of the Development Credit Agreement) Part A: Specialists to prepare equipment and furniture lists and specialists to train the teachers at the three ENIs (about 46 staff-months). Maintenance specialists to prepare, in conjunction with architectural consultants and MEMGTP staff, a plan for the maintenance of the ENI buildings and equipment (about 6 staff-months). Part B: Specialists to provide on-the-job training of local personnel employed at the print shop and to assist INFRE in curriculum development and textbook editing (about 166 staff-months). Part C: Specialists in project management and in the coordina- tion of the architectural program and civil works (about 150 staff-months). Accountants who will: (i) assist in establishing a Project accounting system; (ii) provide periodic on-the-job training to Project Unit staff; and (iii) carry out annual audits (about 12 staff-months). Architectural and education specialists to assist the Borrower in carrying out Part C (3) of the Project (about 12 staff-months). Evaluation specialist(s) who will be primarily responsible for assisting MEMGTP in establishing systems for data collec- tion, analyses and related reports and who will also assist in evaluating Part B of the Project and in preparing the Project completion report. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original ini 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 2k. day of 51)X 198 2. FOR SECRETARY