Rwanda - Technical Assistance Project : Credit 1217 - Credit Agreement - Conformed

CREDIT NUMBER 1217 RW DOCUMaTS Development Credit Agrement (Technical Assistance Project) between RWANDESE REPUBLIC and INTERNATIONAL DEVELOPHENT ASSOCIATION Dated , 1982 C1EDIT NUMBER 1217 RW DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1982, between RWANDESE REPUBLIC (hereinafter called the Borrower) and INTERNA- TIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Associa- tion). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; and (B) by agreement signed by the-Government of Rwanda on December 4, 1981, by the World Bank as executing agency on Jan- uary 8, 1982 and by UNDP on March 19, 1982 (hejeinafter called the UNDP Agreement), the United Nations Developm\ nt Programme has agreed to assist the Borrower in financing Pait5 A and Part D of the Project on the terms and conditons therein set forth; WHEREAS the Association has agreed, on the b4sis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter saet forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following terms have the following meaning: (a) "BUNEP" means the National Bureau for the Study of Projects, a state enterprise under the supervision of the Bor- rower's Ministry of Planning, created by Presidential Decree of September 5, 1978; -2- (b) "Documentation Center" means the documentation center, to be strengthened by the Borrower under the Project for the benefit of all Government agencies, which would collect relevant social and economic documentation on Rwanda's deve1opment and would maintain a complete file of feasibility and sector studies; (c) "Programs Directorate" means the Department of the Borrower's Ministry of Planning responsible for investment programming; and (d) "Consultants" means both consulting firms and private consultatts. 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 four million three hundred thousand Special Drawing Rights (SDR 4,300,000). Section 2.02. 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. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods, civil works and services require"d for the Project shall be governed by the provisions of Schedules 3 and 5 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1986 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent -3- (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. 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 April 1, 1992, and ending October 1, 2031, each installment to and including the installment payable on October 1, 2001, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. 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.' The Borrower shall carry out the Project through its Ministi!y of Planning and through BUNEP with due diligence and efficiency, in conformity with appropriate planning, administrative and financial practices, and in accordance with guidelines described in Schedule 6, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in carrying out Parts A and D of the Project, the Borrower shall cause to be employed, within the framework of the UNDP Agreement, a project economist in the Ministry of Planning by March 31, 1982, a finan- cial analyst in BUNEP, by May 31, 1982, and a documentalist in the Documentation Center by September 30, 1983. Except as the Association shall otherwise agree, the Project economist will be assigned to the Programs Directorate and assist in carrying out the activities described in Schedule 4 of this Agreement. The qualifications, experience and terms and conditions of employment of these advisers shall be satisfactory to the Association. (b) In order to assist the Borrower in carrying out Part A of the project, the Borrower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. -4- (c) The employment of experts and consultants as specified in paragraphs (a) and (b) of this Section shall be made in accordance with principles and procedures satisfactory 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 World Bank in August, 1981 and Schedules 5 and 6 hereto. (d) The Borrower shall employ counterpart personnel to the specialists to be employed pursuant to paragraph (a) of this Section as soon as such specialists shall have commenced their work. Section 3.03 (a). The Borrower shall take all measures necessary to facilitate the work of the consultants to be employed pursuant to Section 3.02 hereof, cooperate fully with them in the performance of their services, and make available to them all such information 'as shall be necessary or useful to the successful execution of the Project. (b) With regard to the consultants to be employed pursuant to Section 3.02 hereof the Borrower shall not, without prior consultation with the Association: (i) amend or waive any of their terms and conditions of employment (including the terms of refer- ence); (ii) consent to a material extension of the time specified for the performance of their tasks or modification the:ceof, or substitution of their personnel; or (iii) suspend payments under, or terminate any contract with such consultants. Section 3.04. The Borrower shall furnish to the Association for its review, updating and approval, twice yearly, not later than January 31 and June 30, detailed proposals for annual programs of studies, prepared in accordance with the procedure described in Schedule 4 hereof. The proposals shall include the terms of reference for each study. Section 3.05. The Borrower shall:' (a) supervise construction of the new building for the Documentation Center which will be completed no later than September 30, 1983; (b) place the Documen- tation Center under the management of the Ministry of Planning's Directorate General for Statistics; (c) cause suitable staff in adequate numbers to be appointed to operate the Center; and (d) make the Center accessible to all Ministries and Government agencies. -5- Section 3.06. Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.07. (a) The Borrower shall furnish or cause to be furnished to the Association, promptly upon their preparation, an agreed upon number of copies of the studies prepared with the assistance of the consultants to be employed pursuant to Section 3.02 of this Agreement, including reports and drafts thereof, as well as contracts, construction and procurement documents for the Project, and any material modifications thereof or additions thereto, in such number and detail as the Association shall reasonably request. (b) The Borrower and the Association shall from time to time exchange views with respect to the evaluation and implemen- tation of the recommendations and other con4lusions contained in the dotuments referred to in paragraph (a) of this Section. (c) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (in- cliding 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) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents, including the records and documents which the consultants, employed by the Borrower for purposes of the Project, shall be required to keep; 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 Cre4it and the goods and services financed out of such proceeds. (d) Upon the award by the Borrower of any contract for goods, civil 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. (e) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such -6- later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish and cause BUNEP to prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, reso,urces and expenditures, in respect of the Project, of the Ministries and agencies of the Borrower respons- ible for carrying out the Project or any part thereof. ARTICLE V Remedies of the Association Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional event is specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section, the right of the Borrower to withdraw the funds made available to it under the UNDP Agreement for the employment of experts and consultants shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the UNDP Agreement. (b) Paragraph (a) of this Section shall not apply if: (i) such suspension, cancellation or termination is not caused by the failure of the Borrower to perform any of its obligations under that UNDP Agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and condi- tions consistent with the obligations of the Borrower under this Agreement. ARTICLE VI Effective Date; Termination Section 6.01. The date W7 tiA S*is hereby speci- fied for the purposes of Section 12. 4 of the General Conditions. -7- ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The Minister of Planning of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of Che General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere du Plan Botte Postale 46 Kigali Rwanda Telex: MINIPLAN Kigali For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 40098 (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. RWANDESE REPUBLIC By (s 043o,to e« ~ re U > 'CDra Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By A.'t . 1 Regional Vice President Eastern Africa -9- 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: Ambunt of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Study fund 3,270,000 100% of foreign for Part A expenditures of the Project and 75% of local expendi- tures (2) Seminars 140,000 100% (3) Documentation Center (a) Construction 130,000 100% of foreign expenditures and 70% of local expendi- tures (b) Equipment 30,000 100% of foreign expenditures and 80% of local expendi- tures (4) Vehicles 60,000 100% of foreign expenditures and 80% of local expendi- tures (5) Unallocated 670,000 TOTAL 4,300,000 - 10 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borwer 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. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to March 16, 1982. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agrded percentage of all expenditures in that Category, the Association may, by notice to the Borrower 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. 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to - 11 - - the Borrower, cancel such amount of the Credit as, in the Asso- ciation's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. -12 - SCHEDULE 2 Description of the Project The Project has as its objective to improve the Borrower's interministerial coordination and thereby its capacity to program investments and implement projects. The Project consists of the following Parts: Part A: The selection, preparation and execution of prefeasibility, feasibility and detailed engineering studies for projects and the organization of seminars on project preparation. Part B: The improvement of the Documentation Center in Kigali by construction of new facilities and by provision of equipment. Part C: The provision of two vehicles for the Min.istry of Planning and one for BUNEP. Part D: Strengthening of the Borrower's investment programming capacity by the employment of a project economist within the Ministry of Planning and a financial analyst in BUNEP, each for four years and a documentalist at the Documentation Center for two years. The Project is expected to be completed by June 30, 1986. - 13 - SCHEDULE 3 Procurement A. Goods and Civil Works 1. Contracts for the purchase of vehicles and equipment may be procured on the basis of solicitation of price quotations from at least two suppliers who are represented in Rwanda and offer adequate guarantees to provide service and spare parts. 2. Contracts for civil works for the Documentation Center may be procured on the basis of competitive bidding in accordance with local procedures which permit participating of national as well as foreign firms and which are acceptable to the Association. 3. The design and supervision of the construction of the Docu- mentation Center may be carried out by force account by the Borrower's'Ministry of Public Works. B. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: (a) Before bids for civil works on the Documentation Center are invited, the Borrower shall furnish to the Association for its comments the text of the invitations to bid and the speci- fications 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 modifi- cation 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 -14 - be inconsistent with the Guidelines* and with 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. (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 withdrawal of funds from the Credit Account in respect of such contract. 2. 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 provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. * The latest edition of the Guidelines for Procurement under World Bank Loans and IDA Credits. -15- SCHEDULE 4 Preparation of Programs of Studies The Ministry of Planning coordinates the preparation of yearly programs of studies and monitors the carrying out of prefeasibility, feasibility and 'detailed engineering studies, included in such programs, as follows: (a) Twice a year, at the request of the Minister of Plan- ning, all Ministries and government agencies shall submit study proposals. (b) The Ministry of Planning submits the study proposals to an Advisory Commission, composed of the correspondents of the Plan in each Ministry; such correspondents shall be designated by the Minister of Planning in agreement with each department con- cerned. (c) This Commission, convened and chaired by the Minister of Planning or his representative, shall meet as often as neces- sary but at least twice a year. BUNEP shall attend these meetings. (d) After receiving the Commission's advice, the Minister of Planning shall select the proposals which will be included in the yearly program of studies, to be submitted to the Asso,iation in accordance with Section 3.04 of this Agreement. (e) The composition of the proposed programs of studies shall generally reflect the priorities of the Borrower's Five-Year Plan so that funds for Part A of the Project may be disbursed in the following indicative proportions: 35% for agriculture and rural development, 25% for industry and crafts, 15% for human resources development, 15% for transport and communication and 10% for projects in other sectors. These indicative percentages can be changed, in agreement with the Association, in the light of financing available from other lenders. (f) Unless the Association and the Borrower shall otherwise agree, the cost for each individual study as financed under Category (1) of Schedule 1 hereto shall not exceed the equivalent of $250,000. (?) The work necessary to prepare the meetings of the Advisory Commission and to cause the implementation of the agreed - 16 - upon program of studies shall be the responsibility of the Minister of Planning; contracts shall be signed by the technical Ministry concerned after approval by the Ministry of Planning. The technical side of contract implement atIfon shall be supervised by the Ministry concerned. Disbursement, requests shall be prepared by the technical Ministries and transmitted to the Association by the Ministry of Planning. - 17 - SCHEDULE 5 Consulting Services 1. Experts and consultants shall be employed in accordance with procedures consistent with those set forth in the "Guidelines on the Use of Consultants by World Bank Borrowers and the World Bank as Executing Agency," published by the Bank in August, 1981 (here- inafter called the Guidelines). In particular, the following arrangements will apply to the selection process. 2. Before proposals are invited from experts or consultants, the Borrower shall furnish to the Association for its approval: (i) the text of the assignment terms of reference; (ii) the proposed assignment budget; (iii) the name(s) of the firm, or of firms on a short list, to be invited to submit proposals, together with any additional information as the Association may reasonably request. 3. The short list of firms shall have a lower limit .of three and an upper limit of six firms. 4. Before proposals are invited from experts or consultants, the Borrower shall furnish to the Association for its comments: (i) details of the proposed selection procedures to be adopted, including the criteria to be used in evaluating the experts' or consultants' proposals; and (ii) the draft text of the letter of invitation to the experts or consultants together with all attachments. 5. The firm ranked highest in the evaluation of proposals shall be invited to negotiate a contract. 6. After the Borrower has completed the evaluation of proposals, but before negotiations with the highest-ranking consultant, the Borrower shall furnish to the Association for its comments a copy of the proposal of the firm to be invited to negotiate a contract. - 18 - 7. The choice of the consulting firm or consultant shall be based on criteria of technical competence, financial standing and proposed price. The selection of bids shall clearly state a comparative analysis of these three criteria, based on the nature of the studies to be carried out. 8. After a contract has been negotiated with the expert or consultant, but before signature, the Borrower shall furnish to the Association for its review and approval a copy of the proposed contract. 9. 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. - 19 - SCHEDULE 6 Role of BUNEP To achieve the Borrower's objective of strength ening BUNEP, the Minister of Planning shall communicate to BUNEP's Director the following guidelines concerning the role of BUNEP in the execution of studies: (a) BUNEP may conduct studies financed by the Study Fund, without, however, having the exclusive right to conduct such studies; (b) after elaboration of the program of studies as (escribed in Schedule 4, BUNEP shall communicate to the Advisory Commission a list of studies that BUNEP deems to be within its capabilities, given its technical competence and work load; (c) for such studies BUNEP shall submit technical and financial proposals to the relevant authorities; (d) if BUNEP's proposal is accepted by the Advisory Commission and approved by the Association, BUNEP shall be given responsibility to conduct the study; and (e) if not, the choice of consultants shall follow proce- dures specified in Section 3.02 (c) of this Agreement. 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