India - National Agricultural Extension Project : Credit 1523 - Project Agreement - Conformed

CREDIT NUMBER 1523 IN OFFICIAL DOCUMENTS Project Agreement (National Agricultural Extension Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF RAJASTHAN and STATE OF ORISSA and STATE OF MADHYA PRADESH Dated 1 Cx1Ut 2- 1984 CREDIT NUMBER 1523 IN PROJECT AGREEMENT AGREEMENT, dated >CAV*)b' , 1984, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and STATE OF RAJASTHAN and STATE OF ORISSA and STATE OF MADHYA PRADESH, acting by their respective governors (hereinafter collectively called the Project States). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to thirty eight million and six hundred thousand Special Drawing Rights (SDR 38,600,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that the Project States agree to undertake such obligations toward the Association as are hereinafter set forth; WHEREAS in accordance with the Borrower's standard arrangements for development assistance to the States of India, part of the proceeds of the credit provided for under the Development Credit Agreement will be made available to the Project States; and WHEREAS the Project States, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. The Project States declare their commitment to the objectives of the Project as set forth in Schedule 2 to the - 2 - Development Credit Agreement, and, to this end, shall carry out Part A of the Project described in said Schedule with due dili- gence and efficiency and in conformity with appropriate admini- strative, financial, engineering and agricultural practices. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to the Development Credit Agreement. Section 2.03. (a) The Project States undertake to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to them by the Borrower against hazards incident to the acquisi- tion, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be pay- able in a currency freely usable by the Project States to replace or repair such goods. (b) The Project States shall cause all goods and services financed out of the proceeds of the Credit made available to them by the Borrower to be used exclusively for the purposes of the Project. Section 2.04. (a) The Project States shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Project States 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 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 through DOE, at regular intervals, all such informa- tion as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be -3- derived from it, the expenditures of such proceeds and the goods and services financed out of such proceeds, and all such other information as the Borrower shall reasonably request in order to enable the Borrower to carry out its obligations under Section 3.05 of the Development Credit Agreement. (c) Upon the award by the Project States 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 Project States and the Association, the Project States 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 derived and to be derived from it, the performance by the Project States and the Association of their respective obligations under this Agreement and the accomplishment of the purposes of the Credit. (e) The Project States shall enable the Association's representatives to examine all plants, installations, sites, works, buildings, property and equipment, records and documents of the Project States relevant to the performance of their respective obligations under this Agreement. Section 2.05. (a) The Project States shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) The Project States shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by the Project States of their respective obligations under this Agreement. Section 2.06. The Project States shall: (a) establish procedures, satisfactory to the Association, for carrying out effective monitoring and evaluation of their respective parts of the Project, and carry out such monitoring and evaluation in accordance with said procedures; and (b) prepare and furnish to the Association, through DOE, annual summaries of the results of such monitoring and evaluation. Section 2.07. The Project States shall ensure that: (a) all extension positions assigned to the administrative control of DOA for the purposes of the Project shall be used exclusively for agricultural extension and retained under such administrative control and; (b) staff assigned to carry out extension work under the Project shall not be adversely affected, in respect of their entitlements to emoluments, benefits and promotional prospects, by reason alone of such assignment. Section 2.08. In order to ensure the mobility of staff engaged in extension work under the Project, the Project States undertake to make available: (a) to all eligible staff in need of credit for the purchase of motorcycles, mopeds or bicycles, such credit on terms and conditions designed to provide incentives for the purchase of such motorcycles, mopeds or bicycles; and (b) such financial incentive, including appropriate travel allowances, in order to encourage optimum use of the motorcycles, mopeds and bicycles to be purchased under paragraph (a) above. Section 2.09. The Project States undertake to fill incre- mental staff positions in accordance with a schedule agreed with the Association. Section 2.10. Each of the Project States: (a) shall, no later than September 30, 1986, prepare and furnish to the Association for its comments, a review of Project execution, such review to determine, inter alia, the adequacy of field staff arrangement thereunder; and (b) if the findings of such review reveal that the number of staff or other facilities deployed under the Project are not sufficient for the efficient implementation thereof, shall increase the number of staff and other facilities so deployed, taking into account the Association's recommendations. -5- ARTICLE III Financial Covenants Section 3.01. Each of the States shall cause its departments and other agencies and authorities responsible for the carrying out of its part of the Project or any part thereof to: (i) main- tain separate records and accounts adequate to reflect, in accordance with sound accounting practices and procedures consis- tently applied, their resources, expenditures and operations related to the Project; and (ii) furnish to the Association copies of their accounts and financial statements related to the Project for each fiscal year, certified as to their accuracy and authenticity by an independent auditor acceptable to the Associa- tion, as soon as available but in any case not later than nine months after the end of each such year. Section 3.02. Each of the States shall cause its departments and other agencies and authorities responsible for the carrying out of its part of the Project or any part thereof to: (i) have their accounts and financial statements related to the Project 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 immediately following its finalization, the report of such audit by said auditors, of such scope and in such detail as the Asso- ciation shall have reasonably requested; and (iii) furnish to the Association such other information concerning said accounts and records, financial statements and the audit thereof as the Association shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of the Project States thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or -6- (ii) a date 20 years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify the Project States of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancella- tion or suspension under the General Conditions. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. For State of Rajasthan: Secretary AgrLcultural Production Government of Rajasthan Jaipur, India Cable address: AGRIRAJ Jaipur -7- For State of Madhya Pradesh: Secretary to Government of Madhya Pradesh Department of Agriculture Bhopal, India Cable address: AGRISEC Bhopal For State of Orissa: Commissioner-Cum-Secretary to Government of Orissa Agricultural and Cooperation Department Bhubaneswar, India Cable address: AGRISEC Bhubaneswar, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of each of the Project States may be taken or executed by a Secretary to the Government in each Project State or such other person or persons as each Project State shall designate in writing, and each Project State shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument. - 8 - 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. INTERNATIONAL DEVELOPMENT ASSOCIATION SActing Regional Vice President South Asia STATE OF RAJASTHAN By -Authorized Representative STATE OF ORISSA Byf -Authorized Representative STATE OF MADHYA PRADESH By (j 'uthorized Representative 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