India - Fourth Population Project : Credit 1623 - Project Agreement - Conformed

CREDIT NUMBER 1623 IN OFFICGA Project Agreement (Fourth Population Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF WEST BENGAL Dated , 1985 CREDIT NUMBER 1623 IN PROJECT AGREEMENT AGREEMENT, dated , 1985, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and the STATE OF WEST BENGAL (WB), acting by its Governor. WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to fifty-one million five hundred thousand Special Drawing Rights (SDR 51,500,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that WB agree to undertake such obligations toward the Association as are set forth in this Agreement; WHEREAS in accordance with the Borrower's standard arrange- ments for developmental assistance to the States of India, the proceeds of the Credit provided for under the Development Credit Agreement will be made available to WB; and WHEREAS WB, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Preamble to this 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) WB declares its commitment to the objec- tives of the Project as set forth in Schedule 2 to the Develop- ment Credit Agreement, and, to this end, shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, public health -2- and WB family planning practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section, WB shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement, as such Schedule may be amended from time to time by agreement among the Borrower, the Association and WB. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.03. WB shall carry cut the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement. Section 2.04. (a) WB shall, at the request of the Associa- tion, 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) WB shall promptly inform the Association of any condi- tion which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by WB of its obligations under this Agreement. ARTICLE III Financial Covenant Section 3.01. (a) WB shall cause its departments and other agencies and authorities responsible for the carrying out of the Project or any part thereof to: (i) maintain separate records and accounts adequate to reflect, in accordance with sound accounting practices and procedures consistently applied, their resources, expenditures and operations related to the Project; and (ii) furnish to the Association copies of their accounts and financial -3- statements related to the Project for each financial year, certi- fied as to their accuracy and authenticity by an independent auditor acceptable to the Association, as soon as available but in any case not later than nine months after the end of each such year. (b) WB shall cause its departments and other agencies and authorities responsible for the carrying out of the Project or any part thereof to: (i) have their accounts and financial state- ments related to the Project for each financial 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 finali- zation, the report of such audit by said auditors, of such scope and in such detail as the Association 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. (c) For all expenditures with respect to which withdrawals are requested from the Credit Account on the basis of statements of expenditure, WB shall: (i) maintain, in accordance with paragraph (a) of this Section, separate records and accounts reflecting such expenditures; (ii) retain, until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association's representatives to examine such records; and (iv) ensure that such separate accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report thereof contains, in respect of such separate accounts, a separate opinion by the said auditors as to whether the proceeds of the Credit withdrawn in respect of such expenditures have been used for the purpose for which they were provided. -4- 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 WB 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) the date 20 years after the date of this Agree- ment. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in para- graph (a) (ii) of this Section, the Association shall promptly notify WB 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 -5- 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 West Bengal: Chief Secretary Government of West Bengal Writer's Building Calcutta 700001 Cable address: CHIEFSEC Calcutta 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 WB may be taken or executed by its Chief Secretary or sucy other person or persons as said Chief Secretary shall designate in writing, and WB shall furnish to the Associa- tion 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. - 6 - IN WITNESS WHEREOF, tfte parties hereto, acting through their duly authorized representatives, 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 Regional Vice President STATE OF WEST BENGAL Authorized Representative -7- SCHEDULE 1 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A. International Competitive Bidding 1. Except as provided in Part D hereof, goods shall be procured under contracts awarded in accordance with procedures consistent with those set forth in Sections I and II of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in August 1984 (the Guidelines). 2. To the extent practicable contracts for goods shall be grouped in bid packages estimated to cost the equivalent of $100,000 or more each. Part B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A 1 hereof, goods manufactured in India may be granted a margin of preference in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 thereto. Part C. Other Procurement Procedures 1. Contracts for civil works may be awarded on the basis of competitive bidding procedures of WB, acceptable to the Associa- tion. Civil works on small isolated buildings not exceeding 20% of the civil works may be carried out departmentally under the supervision of project construction units. 2. Contracts for furniture and vehicles shall be procured through the competitive bidding procedures of WB, satisfactory to the Association. Contracts for the purchase of furniture esti- mated to cost less than the equivalent of $25,000 each may be awarded on the basis of prudent shopping, with solicitation of price quotation from at least three suppliers, provided the aggregate value of such contracts shall not exceed $250,000. 3. Contracts for the purchase of equipment estimated to cost less than the equivalent of $100,000 each may be awarded on the basis of competitive bidding procedures of WB, acceptable to the -8- Association, provided the aggregate value of such contracts shall not exceed $2,000,000. Contracts for the purchase of equipment estimated to cost less than the equivalent of $25,000 each may be awarded on the basis of prudent shopping, with solicitation of price quotations from at least three suppliers, provided the aggregate value of such contracts shall not exceed $500,000. Part D. Review by the Association of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to all contracts estimated to cost the equivalent of $100,000 or more, the procedures set forth in para- graphs 2 and 4 of Appendix 1 to the Guidelines shall apply. (b) With respect to each contract not governed by the preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Asso- ciation has authorized withdrawals from the Credit Account on the..basis of-statements of. expenditure. Such contracts shall be retained until one year after the Closing Date. 2. The figure of 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants In order to assist WB in carrying out the Project, WB shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Asso- ciation. Such consultants shall be selected in accordance with principles and procedures satisfactory to the Association on the basis of the "Guidelines for the Use of Consultants by World Bank Borrcwers and by the World Bank as Executing Agency" published by the Bank in August 1981. -9- SCHEDULE 2 Implementation Program In the implementation of the Project, WB shall carry out the following undertakings: 1. Not later than two months before the beginning of its finan- cial year, furnish detailed annual demand generation strategies to the Association for its review and comments. 2. By March 31, 1986, take all measures to appoint the required number of health assistants (female). 3. By March 31, 1986: (a) complete a survey to identify any significant gaps in the skills, knowledge and practices of family welfare staff as a basis for the reorientation of the staff in the Project Districts; and (b) promptly furnish the results of said siurvey to the Association for its review and comments. 4. Not later than two months before the beginning of its finan- cial year annually furnish curricula and a timetable for the retraining of staff in the Project Districts, to the Association for its review and comments. 5. (a) Complete a mid-term review of the progress of each com- ponent of the Project and of the performance of the family wel- fare program in WB, with particular reference to the selected districts; and (b) furnish the results of said review to the Association, by April 1, 1988 for its comments and thereafter take all neces- sary actions as agreed with the Association. 6. (a) By June 30, 1986, appoint a nucleus of senior staff positions as agreed with the Association; and (b) by March 31, 1988 fully staff the SIHFW as agreed with the Association and thereafter maintain all the SIHFW staff positions on a regular basis. 7. By December 31, 1985, establish and maintain two committees to coordinate the functions of: (a) the Mass Education and Media Division with the State Bureau of Health Education; and (b) the Family Welfare Demographic and Evaluation Cell with the State Bureau of Health Intelligence. Said committees shall have member- ship, functions and powers satisfactory to the Association. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archi\,es of the Interna- tional Development Association. in witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the 2 day of F 98 E. FOR SECRETARY