Burkina Faso - Primary Education Project : Credit 1598 - Credit Agreement - Conformed

' uFFIGIAL G=UM T CREDIT NUMBER 1598 BUR Development Credit Agreement (Primary Education Development Project) between BURKINA FASO and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1985 CREDIT NUMBER 1598 BUR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1985, between BURKINA FASO (the Borrower) and INTERNATIONAL DEVELOPMENT ASSO- CIATION (the Association). WHEREAS the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; 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 set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The General Conditions Applicable to Develop- ment Credit Agreements of the Association, dated January 1, 1985, (the General Conditions) constitute an integral part of this Agreement. Section 1.02. 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 and acronyms have the following meanings: (a) "CFA Francs" mean the currency of the Borrower; (b) "DFOMR" means the "Direction de la Formation et de l'Organisation du Monde Rural" of MAE (as hereinafter defined); (c) "DOB" means the "Direction de l'Orientation et des Bourses" of MESRS (as hereinafter defined); (d) "DPE" means the "Direction de la Planification de 'Education" of MEN (as hereinafter defined); (e) "DPR" means the "Direction du Projet Education" of MEN (as hereinafter defined); -2- (f) "ENEP" means the "Ecole Nationale des Enseignants du Primaire" of MEN (as hereinafter defined); (g) "FJA" means the "Formation des Jeunes Agriculteurs", the rural youth training program administered by L'DFOMR; (h) "IPB" means the "Institut P6dagogique du Burkina" administered by MEN (as hereinafter defined); (i) "MAE" means the "Ministare de l'Agriculture et de l'Elevage" of the Borrower; (j) "MEN" means the "Ministare de 'Education Nationale" of the Borrower; (k) "MESRS" means ' the "MinistAre de l'Enseignement Sup6rieur et de la Recherche Scientifique" of the Borrower; (1) "Project Area" means the provinces of Bam, Gnagna, Gourma, Namentenga, Sanmatenga, Tapoa and Yaterga; and (m) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to twenty-one million eight hundred thousand Special Drawing Rights (SDR 21,800,000). Section 2.02. (a) 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 described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. -3- (b) The Borrower shall, for the purposes of the Project, open and maintain in CFA Francs a special account in a commercial bank on terms and conditions satisfactory to the Association. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement. Section 2.03. The Closing Date shall be June 30, 1992 or such later date as the Association shall establish. The Asso- ciation shall promptly notify the Borrower of such later date. Section 2.04. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not with- drawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; 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. Section 2.05. 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 2.06. Commitment charges and service charges shall be payable semiannually on April 15 and October 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 15 and October 15 commencing October 15, 1995, and ending April 15, 2035. Each installment to and including the installment payable on April 15, 2005 shall be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter shall be one and one-half per cent (1-1/2%) of such principal amount. -4- 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 Execution of the Project Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project through MEN, MESRS and MAE with due diligence and efficiency and in con- formity with appropriate administrative, educational, engineer- ing, financial and training practices, and shall provide, 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, the Borrower shall carry out the Project in accordance with the Izplementation Program set forth in Sched- ule 4 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Associa- tion. Section 3.02. 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 3 to this Agreement. Section 3.03. The Borrower shall: (a) establish, not later than June 30, 1986, a National Commission under the auspices of the Minister of Agriculture and Livestock to review ways to harmonize the systems of primary education and of rural youth training taking into account the new objectives assigned to DFOMR; and (b) discuss with the Association, not later than June 30, 1987, the results of the r view referred to in para- graph (a) above. Section 3.04. The Borrower shall cause all staff having received training abroad financed under the Project to remain in their assignments for a period rc at least three years following the completion of their trainint. -5- Section 3.05. The Borrower shall review with the Associa- tion, not later than April 30 of each year, the expenditures and financing needs of the education sector with a view to providing for a reallocation of education budget resources in favor of, or an increase in funds allocated to, the primary education system. Section 3.06. The Borrower shall prepare and furnish to the Association not later than December 31, 1985 or such later date as the Association may agree, a proposal for the financing and organization of the periodic maintenance and repair of primary schools and, promptly upon agreement between the Borrower and the Association on such proposal, give effect thereto. ARTICLE IV Financial Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained separate records and accounts adequate to reflect in accordance with sound 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. (b) The Borrower shall: (i) have the accounts referred to in paragraph (a) of this Section including the Special Account 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, as soon as available, but in any case not later than nine months after the end of each such year, a certified copy of the report of such audit by the 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 the said accounts and the audit thereof and said records as the Association shall from time to time reasonably request. -6- (c) For all expenditures with respect to which withdrawals are requested from the Credit Account on the basis of statements of expenditure, the Borrower shall: (i) maintain or cause to be maintained, 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. ARTICLE V Remedies of the Association Section 5.01. Pursuant to Section 6.02 (h) of the General Conditions, the following additional events are specified: (a) the Borrower shall have taken any action to change the duration or content of the training course at ENEP so as to materially and adversely affect the objectives thereof; and (b) the Borrower shall have taken any action which would materially and adversely affect the recruitment of primary school teachers graduated from ENEP as "instituteurs adjoints" in Category C, Grade 1 of the civil service of the Borrower. ARTICLE VI Effective Da Termination Section 6.01. The date 10 days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. -7- Section 6.02. The obligations of the Borrower under Sec- tions 3.05 and 3.06 and the provisions of Section 5.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date 10 years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Minist8re des Ressources Financiares Ouagadougou Burkina Faso Cable address: Telex: MINIFI SEGEGOUV Ouagadougou 5555 8F 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) -8- IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in Ouagadougou, Burkina Faso, as of the day and year first above written. BURKINA FASO By V Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By 644-7~L ~ Regional Vice President Western 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: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works: 6,120,000 100% (2) Matching contri- 820,000 100% butions, under Part A (3) of the Project (Civil works and building materials, other than Category (1); furniture and equip- ment, other than Category (3)) (3) Equipment, furni- 1,360,000 100% ture and vehicles (4) Periodic maintenance 420,000 45% and repair of primary schools in Project Area (5) Textbooks 1,430,000 100% (6) Consultants, train- 3,570,000 100% ing and fellow- ships (7) Salaries: (a) Project 300,000 100% implementation staff - 10 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (b) Teachers in 830,000 65% Project primary schools (8) Operating costs 1,610,000 85% (9) Unallocated 5,340,000 TOTAL 21,800,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for (i) expenditures prior to the date of this Agreement; and (ii) expenditures in respect of Category '(4) of the table set forth in paragraph 1 above until the agreement referred to in Section 3.06 of this Agreement shall have been reached. - 11 - SCHEDULE 2 Description of the Project The objective of the Project is the implementation of a financing strategy aimed at accelerating the expansion of primary education and includes the reduction of primary education unit costs and the development of the capabilities of DFOMR, DOB, DPE and DPR in planning, managing and controlling education costs. The Project consists of the following parts, subJect to such modifications thereof as the Borrower and the Asoociation may agree upon from time to time to achieve such objectives: Part A: Reduction of Primary Education Unit Costs (1) The restructuring of teacher training by: (a) the building, furnishing and equipping of ENEP at Loumbila; (b) the training of "instituteurs adjoints" at ENEP and the revision of their present entry level in the civil service of the Borrower; (c) the provision of training fellowships for teaching staff at ENEP; and (d) the upgrading of the primary school teachers' promotion examination. (2) The development, procurement and distribution of textbooks by: (a) the rehabilitation and modification of the IPB library, conference room and former printing shop into offices for its Editing Division and the building of a printing shop and a central warehouse for the School Equipment Division of MEN's Primary Education Directorate; (b) the reorganization of the Teaching Materials Production Department of IPB to provide for an Editing Division and a Production Division; - 12 - (c) the strengthening of the distribution and storage capabilities of the School Equipment Division of MEN's Primary Education Directorate; (d) the production, adaptation and importation of about 800,000 textbooks and teachers' guides and their dis- tribution to primary schools; and (e) the training of staff of IPB and the School Equipment Division. (3) The construction and maintenance of primary schools by DPR through: (a) the testing of alternative construction methods through the execution of a pilot school building program con- sisting of the construction of about 30 classrooms and associated facilities; (b) the encouragement of village construction and maintenance of schools through the provision of matching contributions for civil works, building materials, furniture and equipment and teachers' salaries; (c) the construction, equipment and furnishing of about 450 classrooms and the construction of about 450 teachers' houses and associated facilities and the financing of salaries of teachers graduated from ENEP and assigned to classrooms constructed under the Project in about 150 villages in the provinces of Bam, Guagna, Gourma, Namentenga, Sanmatenga, Tapoa and Yatenga; and (d) the development and implementation of a cost-efficient primary school maintenance system. Part B: Institutional Development 1. DPE: (a) the construction, furr-hing and equipping of an office building for DPE and .; - 13 - (b) the strengthening of the organization and staffing of DPE to develop its capacity for primary and secondary educational planning, for financial planning and cost monitoring and for improved decision making in the allocation and use of resources; and (c) the training of DPE staff. 2. DOB: (a) the strengthening of DOB's capability to manage higher education, to develop a more differentiated fellowship policy and to formulate a strategy for post-primary educational development; and (b) the training of DOB staff. 3. DFOMR: (a) the furnishing and equipping of DFOMR offices; (b) the strengthening of FJA at the central and regional levels in order to achieve a more efficient use of resources, to develop the production and distribution of learning materials, to establish a monitoring and evaluation system and to initiate studies for the future harmonization of primary education and rural youth training; and (c) the training of DFOMR staff. 4. DPR: (a) the construction of a central storage facility for DPR at Ouagadougou and of three regional branch offices and two storage points; (b) the strengthening of DPR's capability in the identifi- cation, preparation and implementation of projects; and (c) the training of DPR staff. The Project is expected to be completed by June 30, 1991. - 14 - SCHEDULE 3 Procurement and Consultants' Services I. Procurement of Goods and Works Part A. International Competitive Bidding 1. Except as provided in Part b) hereof, goods and works 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 construction materials, equipment, foreign printing of textbooks and vehicles shall be grouped in bid packages, estimated to cost the equiva- lent of $50,000 or more each. 3. To the extent practicable, contracts for gasoline, office materials, spare parts, other consumables and building main- tenance shall be grouped in bid packages, estimated to cost the equivalent of $15,000 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 Burkina 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. Preference for Domestic Contractors In the procurement of works in accordance with the pro- cedures described in Part A.1 hereof, the Borrower may grant a margin of preference to domestic contractors in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraph 5 of Appendix 2 thereto. Part D. Other Procurement Procedures 1. Contracts for civil works may be awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. - 15 - 2. Contracts for construction materials, transportation, labor, equipment, furniture, gasoline, office materials, spare parts, other consumables, and building and other maintenance services, estimated to cost the equivalent of more than $15,000 but less than $50,000 may be awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. 3. (a) Contracts for construction materials, transportation and labor estimated to cost the equivalent of less than $15,000, up to an aggregate amount not to exceed the equivalent of $2,500,000; (b) contracts for minor items of equipment estimated to cost the equivalent of less than $500, up to an aggregate amount not to exceed the equivalent of $70,000; and (c) contracts for gasoline, office materials, spare parts, other consumables and building and other maintenance services estimated to cost the equivalenat of less than $15,000, up to an aggregate amount not to exceed the equivalent of $500,000; may be awarded on the basis of an evaluation and comparison of bids invited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association. 4. Civil works for the construction of rural primary class- rooms, teacher houses and wells may be carried out by force account. Part E. Review by the Association of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract estimated to cost the equivalent of $50,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Association pursuant to said paragraph 2 (d) shall be furnished to the Association prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the pre- ceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such - 16 - procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Association pursuant to said paragraph 3 shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 (the Special Account Schedule) to this Agreement. (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.01 (c) (ii) of this Agreement. 2. The figure of 5% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. II. Employment of Consultants In order to assist the Borrower in carrying out the Project, the Borrower shall employ architectural, economic, education and management consultants and specialists whose qualifications, experience and terms and conditions of employment shall be satis- factory to the Association. 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 Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. - 17 - SCHEDULE 4 Implementation Program A. Reduction of Primary Education Unit Costs 1. Restructuring of Teacher Training (a) ENEP is being constructed at Loumbila and expected to be completed by mid-1985. It will have an enrollment of about 340 students. (b) The Project will be instrumental in changing the entry level of the "instituteurs adjoints" in the civil service of the Borrower. Candidates will be recruited from among graduates with a lower secondary school diploma ("brevet d'6tudes du premier cycle") and will be integrated into the civil service at Category C, Grade 1 upon the completion of their one-year training at ENEP. The training will comprise pedagogical training, general subjects and complementary courses such as agricultural and physical education. (c) The Borrower shall, not later than December 31, 1986, put into effect measures, agreed upon with the Association, to upgrade the primary teacher promotion examination by introducing general subjects. 2. Development, Procurement and Distribution of Textbooks (a) Civil works consist of the rehabilitation and modifica- tion of the IPB library, conference room and former printing shop into offices for the Editing Division, the construction of an adjacent printing shop and of a central warehouse, and the re- habilitation of two regional warehouses for the School Equipment Division. (b) The Teaching Materials Production Department of IPB will be reorganized not later than June 30, 1986, by the esta- blishment of an Editing Division and of a Production Division with a technical staff in numbers and with qualifications satis- factory to the Borrower and the Association. (c) The distribution and storage capabilities of the School Equipment Division will be strengthened by the assignment of seven additional staff. - 18 - (d) The textbook provision program will encompass the production of about 180,000 textbooks each for mathematics and science courses in Grades 3 to 6, about 155,000 textbooks for French courses in Grades 1 to 3 and about 6,000 teachers' guides for each of these subjects. The textbooks will be procured following international competitive bidding. The program also includes the importation of about 260,000 textbooks and about 8,500 teachers' guides in French for Grades 1 to 6. Distribution of the textbooks will be carried out in two stages: from the School Equipment Division to the Primary School Inspectorates and thence to the primary schools. Transportation will be handled by the School Equipment Division or private contractors, as the case may be. 3. Primary School Construction and Maintenance (a) The pilot school building program consists of the construction of about 30 classrooms and associated facilities by DPR, using various types of construction, design, finance, procurement, maintenance and supervision. To facilitate super- vision of the program as well as to provide a number of teaching practice schools for ENEP, a number of the experimental class- rooms will be located near Loumbila. During project implementa- tion, DPR will conduct a systematic evaluation of the pilot school building program, using criteria agreed with the Associa- tion, and DPR's findings and recommendations will be submitted to the Association for review. (b) The matching contributions will help to complete local school building efforts and to meet the cost of teachers' salaries. The identification of participating villages will be made by the primary school inspectors, who would turn over the candidacies to DPR for further processing. (c) DPR will undertake the construction of about 450 class- rooms and teachers' houses in about 150 villages in the provinces of Bam, Gnagna, Gourma, Namentenga, Sanmatenga, Tapoa and Yatenga. Normally, construction will include a three-classroom unit, supplemented by three teachers' houses and a drilled well in villages which have no school. In the case of some villages already endowed with a school, additional classrooms and teachers' houses will be provided if justified by the size of the village concerned. Classroom and staff housing design as well as the organization of the work will be based on an evalua- tion of a trial run currently underway and financed under Credit - 19 - No. 956-UV. Savings realized in the primary school construction program will be made available for building additional class- rooms. The salaries of teachers graduated from ENEP and assigned to schools constructed under the Project will be financed out of the proceeds of the Credit. B. Institutional Development 1. DPE (a) Civil works consist of the construction of an office building for DPE to be shared with DPR. Equipment and furniture will also be provided. (b) The organization and staffing of DPE will be streng- thened in order to enable it, in addition to its current respon- sibilities, to prepare, follow-up and review the implementation of policy measures relating to the financing of the expansion of primary education. In particular, DPE will undertake to: (i) improve the reliability and timing of the analysis and publi- cation of educational statistics; (ii) complete a country-wide school mapping exercise for primary education; (iii) carry out, in collaboration with IPB, a study on the introduction of a double-shift system for primary schools; (iv) conduct an organi- zation and management study of MEN; (v) define in a directive to be agreed upon with the Association and to be issued not later than June 30, 1986 the level of Government subsidies to private education as a function of the number of students which the Government will enroll in private institutions; and (vi) have an annual review with the Association of the expenditures and financing needs of the education sector with a view to providing for a reallocation of education budget resources in favor of, or an increase in funds allocated to, the primary education system. During project implementation, additional staff will be assigned to DPE in numbers and with qualifications agreed upon between the Borrower and the Association. (c) Training will be provided for DPE staff in relevant fields. 2. DOB (a) In order to strengthen DOB's capability to manage higher education, to improve the criteria for the award of fellowships and to formulate a strategy for post-primary educa- - 20 - tional development, DOB will: (i) establish a modern data storage/retrieval system to expedite the administration of fellowships and permit a more differentiated fellowship policy; and (ii) undertake a study of national manpower needs and of post-primary educational development in collaboration with the Ministries of National Education, Agriculture and Livestock, and Planning and National Development. DOB will also contribute to the preparation of the Government-Association review of the expenditures and financing needs of the education sector. (b) Fellowships will be provided for the training of DOB staff in relevant fields. 3. DFOMR (a) Furniture and equipment will be provided for DFOMR offices. (b) The strengthening of DFOMR at the central and local levels will include: (i) the establishment of a DFOMR management performance monitoring system; (ii) contribution to the manpower study referred to in B.2 (a) (ii) above; (iii) the collection, analysis and publication on a regular basis of statistics on the FJA system and the completion of an evaluation of rural training through a sample of FJA centers; (iv) the production and distri- bution of about 11 million leaflets and other learning materials; and (v) the provision of information to the National Commission referred to in Section 3.03 of this Agreement. For the foregoing purposes, DFOMR will recruit five additional staff members to be financed out of the proceeds of the Credit. (c) Fellowships will be provided for the training of DFOMR staff in relevant fields. 4. DPR (a) Civil works consist of the construction of an office building to be shared with DPE, a central storage facility in Ouagadougou, three regional branch offices and two regional storage points. Furniture and equipment will be provided for these facilities. (b) DPR's capability in the identification, preparation and implementation of projects will be strengthened by the organi- zation of an Administration Division and a Construction and - 21 - Development Division. Three regional offices with a staff of nine technicians for direct on-site supervision and supply management will be attached to the Construction and Equipment Division. The number and qualifications of the staff to be recruited for DPR for the foregoing purposes will be agreed upon by the Borrower and the Association. (c) Fellowships will be provided for the training of DPR staff in relevant fields. - 22 - SCHEDULE 5 Special Account 1. For the purposes of this Schedule: (a) the term "Category" means a category of items to be financed out of the proceeds of the Credit as set forth in the table in paragraph 1 of Schedule 1 to this Agreement; (b) the term "eligible expenditures" means expenditures 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 allocated from time to time to Categories (1) to (8) inclusive in accordance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount in CFA Francs equivalent to SDR 760,000 which is to be withdrawn from the Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Unless the Association shall otherwise agree, payments out of the Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Association has received evidence satisfactory to the Association that the Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdra- wals to replenish the Special Account may be made as follows: (a) On the basis of a request or requests by the Borrower for a deposit or deposits which add up to the aggregate amount of the Authorized Allocation, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit in the Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the Association requests for replenishment of the Special Account at such intervals as the Association shall specify. On the basis of such requests, the Association shall withdraw from the Credit Account and deposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the Special Account for eligible - 23 - expenditures. Each such deposit shall be withdrawn by the Association from the Credit Account under the respective Categories (1) to (8) inclusive, and in the respective equivalent amounts, as shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. For each payment made by the Borrower out of the Special Account for which the Borrower requests replenishment pursuant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Association, prior to or at the time of such request, such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expen- ditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made by the Association when either of the following situations first arises: (i) the Association shall have determined that all further withdrawals should be made directly by the Borrower from the Credit Account in accordance with the provisions of paragraph (a) of Section 2.02 of this Agreement; or (ii) when the total unwithdrawn amount of the Credit allocated to Categories (1) to (8) inclusive for the Project, minus the amount of any outstanding qualified agreement to reimburse made by the Association and of any outstanding special com- mitment entered into by the Association pursuant to Section 5.02 of the General Conditions with respect to the Project, shall be equal to the equivalent of twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to Cate- gories (1) to (8) inclusive for the Project shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice have been or will be utilized in making payments for eligible expenditures. - 24 - 6. (a) If the Association shall have determined at any time that any payment out of the Special Account: (i) was made for any expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule, or (ii) was not justified by the evidence furnished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notice from the Association deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. No further deposit by the Association into the Special Account shall be made until the Borrower has made such deposit or refund. (b) If the Association shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. 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 _ _ 19831 FORSECRETARY