China - Rural Health And Medical Education Project : Credit 1472 - Project Agreement - Conformed

OFFICIAL CREDIT NUMBER 1472 CHA DOCUNMENTS Project Agreement (Rural Health and Medical Education Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and HEILONGJIANG PROVINCE SHANDONG PROVINCE SICHUAN PROVINCE and NINGXIA HUI AUTONOMOUS REGION Dated , 1984 CREDIT NUMBER 1472 CHA PROJECT AGREEMENT AGREEMENT, dated ; LA , 1984, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and HEILONGJIANG PROVINCE, SHANDONG PROVINCE, SICHUAN PROVINCE, and NINGXIA HUI AUTONOMOUS REGION (hereinafter called the Local Entities). WHEREAS by the Development Credit Agreement of even date herewith between the People's Republic of China (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to eighty million two hundred thousand Special Drawing Rights (SDR 80,200,000), on the terms and condi- tions set forth in the Development Credit Agreement, but only on condition that the Local Entities agree to undertake such obliga- tions toward the Association as are hereinafter set forth; and WHEREAS the Local Entities, in consideration of the Associa- tion'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. (a) Each of the Local Entities declares its commitment to the objectives of Part A of the Project, and also Part C.3 of the Project in the case of Sichuan, as set forth in Schedule 2 to the Development Credit Agreement, to this end, shall carry out such respective Parts of the Project described in said Schedule with due diligence and efficiency and in con- formity with appropriate administrative, financial, engineering - 2 - and public health practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) With respect to that Part of the Project for which each of the Local Entities is financially responsible, such Local Entity shall: (i) make adequate and timely budgetary provisions for the implementation of such Part; and (ii) take appropriate steps for the operation and mnintenance of the facilities and equipment provided under the Project. Section 2.02, 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 the Development Credit Agreement. Section 2.03. (a) Each of the Local Entities undertakes 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 it by the Borrower 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 such Local Entity to replace or repair such goods. (b) Each of the Local Entities shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the purposes of its respective Part of the Project. Section 2.04. With respect to that Part of the Project for which it, or any of its counties or agencies, is responsible, each of the Local Entities: (a) shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract docu- ments 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; and (b) 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, - 3 - and to disclose their use in the Project; (ii) enable the Asso- ciation's representatives to visit the facilities and construct- ion 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 expenditures of such proceeds and the goods and services financed out of such proceeds. Section 2.05. (a) Upon the award 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. (b) 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, each of the Local Entities shall assist the Borrower 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 Local Entities and the Association of their respective obligations under the Project Agreement and the accomplishment of the purposes of the Credit. Section 2.06. (a) Each of the Local Entities 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) Each of the Local Entities 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 of its obligations under this Agreement. Section 2.07. Each of the Local Entities shall take or cause to be taken all such action as shall be necessary to make ready facilities and related personnel prior to installation of equipment financed out of the proceeds of the Credit. Section 2.08. Each of the Local Entities shall maintain a World Bank Loan Office throughout implementation of the Project with appropriate functions and staffing. ARTICLE III Other Covenants Section 3.01. (a) Each of the Local Entities shall maintain records adequate to reflect in accordance with consistently main- tained appropriate accounting practices its operations and finan- cial condition in respect of activities related to the Project, including, without limitation to the foregoing, separate accounts reflecting all expenditures on account of which wvithdrawals are requested from the Credit Account on the basis of statements of expenditure. (b) Each of the Local Entities shall 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 Ac- count on the basis of statements of expenditure, and shall enable the Association's representatives to examine such records. Section 3.02. Each of the Local Entities shall, in respect of activities related to the Project: (a) have its accounts and financial statements for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors accept- able to the Association; (b) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year: (I) certified copies of its financial statements for such year as so audited; and (ii) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested, including, without limitation to the foregoing, separate opinions by said auditors in respect of the expenditures and records referred to in Section 3.01 (a) of this Agreement, as to whether the proceeds of the Credit made available to it and withdrawn from the Credit Account on the basis of statements of expenditure have been used for the purpose for which they were provided; and - 5 - (c) furnish to the Association such other information con- cerning said accounts and financial statements, as well as the audit thereof, as the Association shall from time to time reason- ably 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 Local Entities 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 (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 Local Entities 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 -6- 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: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For Heilongjiang: Provincial Bureau of Health Harbin, Heilongjiang Province People's Republic of China For Shandong: Provincial Bureau of Health Jinan, Shandong Province People's Republic of China For Sichuan: Provincial Bureau of Health Chengdu, Sichuan Province People's Republic of China For Ningxia: Regional Bureau of Health Yinchuan, Ningxia Hui Autonomous Region People's Republic of China 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 any of the Local Entities may be taken or executed by the Director of the Bureau of Health of such Local Entity or such other person or persons as such Director shall -7- designate in writing, and such Director shall furnish to the Association sufficient evidence of the authority and the authen- ticated 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. 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 By Regional Vice President East Asia and Pacific HEILONGJIANG PROVINCE By Authorized Representative SHANDONG PROVINCE By Authorized Representative 8 SICHUAN PROVINCE By uthorized Representative NINGXIA HUI AUTONOMOUS REGION By Authorized 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