Nepal - Agricultural Extension II Project : Credit 1570 - Credit Agreement - Conformed

CREDIT NUMBER 1570 NEP OFFICIAL DOCUMENTS Development Credit Agreement (Agricultural Extension II Project) between KINGDOM OF NEPAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated /0 1985 CREDIT NUMBER 1570 NEP DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated /0 , 1985, between the KINGDOM OF NEPA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS 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 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 hereinafter set 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 Agree- ments 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 additional terms have the following meanings: (a) "DOA" means the Department of Agriculture of the Borrower's Ministry of Agriculture; (b) "Project Area" means the administrative districts of Kanchanpur and Kailali in the Far-Western Region, Bardia and Dang in the Mid-Western Region, Bara, Parsa and Rautahat in the Central Region, and Sirha, Saptari, Sunsari and Morang in the Eastern Region; (c) "Special Account" means the account to be opened and, thereafter, maintained pursuant to the provisions of Section 2.02 (b) of this Agreement; and (d) "Nepal Rastra Bank" means the Borrower's central bank, established and operating pursuant to the Borrower's Nepal Rastra Bank Act, 1955, as amended to the date of this Agreement. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit AgreemeAt set forth or referred to, an amount in various currencies equivalent to seven million four hundred thousand Special Drawing Rights (SDR 7,400,000). 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 and to be financed out of the proceeds of the Credit. (b) The Borrower shall, for the purposes of the Project, open and thereafter maintain in the Nepal Rastra Bank a special account 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 4 to this Agreement. Section 2.03. 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 this Agree- ment. Section 2.04, The Closing Date shall be December 31, 1991 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. 3 Section 2.05. (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 2.06. 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 2.07. Commitment charges and service charges shall be payable semiannually on March 1 and September 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 1 and September 1 commencing September 1, 1995, and ending March 1, 2035, each installment to and including the installment payable on March 1, 2005, 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 2.09. 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 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 with due diligence and efficiency and in conformity with appropriate -4- agricultural, administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in carrying out Parts B and C of the Project, the Borrower shall, by Decem- ber 31, 1985, employ architects whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, such architects to 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. Section 3.03. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit 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 the Borrower to replace or repair such goods. (b) The Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Section 3.04. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and construction 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 Borrower: (i) shall 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) shall 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) 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 -5- expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower 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 Borrower and the Association, the Borrower 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 Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. Section 3.05. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for carrying out the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfac- tory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 3.06. The Borrower shall: (a) maintain in the DOA the professional positions existing in the Project Area as of the date of this Agreement, and shall continue to fill such positions, at all times, with suitably qualified and experienced officers; (b) ensure that the Panchayat Level Agriculture Assistants to be appointed for carrying out the Project shall be qualified and experienced persons, and residents of the Panchayats in which they shall be assigned to work; and (c) without limitation to the provisions set forth in Section 3.01 of this Agreement and in paragraphs (a) and (b) of this Section, by March 31, 1987, jointly review with the Associa- tion the adequacy of the staff assigned for carrying out the Project, in particular Panchayat Level Agricultural Assistants, and, thereafter, take all such action as shall be necessary to ensure that, at all times, an adequate number of qualified and experienced staff are employed for the efficient implementation of the Project. Section 3.07. The Borrower shall: (a) by December 31, 1985, establish and, thereafter, main- tain a District Technical Committee for each district in the Project Area, with such powers, functions and responsibilities as shall be required to enable each such Committee to review the rate of adoption of agricultural practices and identify research priorities and adaptive trial needs for the district concerned. Such Committees shall each be chaired by the Agricultural Development Officers of the respective district and include as members the Subject Matter Specialists, the Research Outreach Officer, and representatives of the district field staff, research workers, irrigation staff and farmers of the district concerned. Such Committee shall meet regularly at least once every aix months; (b) by December 31, 1985, appoint and, thereafter, maintain in the Eastern, Central and Western Regions of Nepal, qualified and experienced Senior Agricultural Extension Officers; and (c) by August 31, 1986, appoint and, thereafter, main- tain in each of the Far-Western and Mid-Western Regions of Nepal, a qualified and experienced Senior Agricultural Exten- sion Officer. Section 3.08. The Borrower shall: (a) appoint and, thereafter during Project Implementation, maintain the incremental staff required for the carrying out of the Project pursuant to a staffing schedule satisfactory to the Association; (b) upon completion of the Project, maintain the incre- mental staff employed pursuant to the provisions of paragraph (a) of this Section required to achieve the objectives of the Proj- ect; (c) ensure that all the extension staff of DOA assigned to the Project shall carry out, exclusively, agricultural extension work under the Project; and -7- (d) ensure that all special production programs to be implemented in the Project Area shall be carried out utilizing appropriate extension methodology and organization. Section 3.09. The Borrower shall, by June 30, 1986, furnish to the Association, for its review and comments, a statement of the progress made by the Borrower in the location of sites for offices, training sub-centers and staff housing to be constructed under the Project and all such information in connection there- with as the Association shall reasonably request. Section 3.10. The Borrower shall take all such action as shall be necessary to provide facilities and incentives to the field Project staff, including establishment of a credit scheme pursuant to which all junior technical assistants engaged in the implementation of the Project may purchase bicycles financed out of the proceeds of the Credit, In addition, the Borrower shall provide to such staff an appropriate monthly maintenance allow- ance to encourage optimum use of such bicycles. Section 3.11. The Borrower shall, through the Evaluation and Programme Analysis Division of its Ministry of Agriculture, carry out: (a) by July 31, 1987, benchmark studies in the districts of Kanchanpur, Kailali, Bardia, Dang, Sirha and Saptari, furnish to the Association, for its review and comments, the results of such studies, and, thereafter, taking into account the Association's comments, if any, implement the results of such studies; and (b) a monitoring and evaluation system, satisfactory to the Association, for purposes of carrying out, on a semi-annual basis, the monitoring and evaluation of the activities under the Project, and, thereafter, furnish to the Association the results of such surveys, for its review and comments. Section 3.12. The Borrower shall at all times cause the buildings provided under the Project to be efficiently main- tained, as well as the vehicles and equipment provided under the Project efficiently operated and maintained, and all necessary repairs and renewals thereof to be made, all in accordance with sound engineering and financial practices. -8- ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained separate records and accounts adequate to reflect in accordance with consistently maintained appropriate 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) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to be maintained separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of statements of expenditure; (ii) 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 Account on the basis of statements of expenditure; and (iii) enable the Association's representatives to examine such records. (c) 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 certif-ed copy of the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably requested, including without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of this Section as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of statements of expenditure have been used for the purpose for which they were provided; and (iii) furnish to the Association such other information concerning said accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably request. ARTICLE V Effective Date; Termination Section 5.01. The date / _ eLbtde4 is hereby specified for the purposes of Section 12.04 of the General Condi- tions. -9- ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Secretary, Ministry of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance His Majesty's Government of Nepal Kathmandu Nepal Cable address: Telex: ARTHA 2499 NEP Kathmandu, Nepal 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) - 10 - 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. KINGDOM OF NEPAL By -el Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By AA 72uicLv&1 Regional Vice President South Asia - 11 - 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 2,880,000 81% (2) Vehicles, equip- 1,150,000 100% of foreign ment and furni- expenditures, ture 100% of local expenditures (ex-factory cost) and 75% of local ex- penditures for other items pro- cured locally (3) Salaries and 1,380,000 100% FY86, allowances for 70% FY87, Project staff 50% FY88, 30% FY89, 20% FY90 (representing in the aggregate 75% of salaries and allowances for incremental staff) (4) Project opera- 490,000 45% ting cost - 12 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (5) Training and 760,000 100% monitoring and evaluation (6) Special Acconnt 310,000 Amount to be deposited pur- suant to para- graph 3 (n) of Scheduli 4 to this Agreement (7) Unallocated 430,000 TOTAL 7,400,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; (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; (c) the term "Project staff" means the Borrower's staff employed for purposes of carrying out the Project, including the incremental staff; and (d) the term "incremental staff" means the Borrower's additional staff employed after the date of this Agreement for purposes of carrying out the Project. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Association that the proceeds of the Credit shall not be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or - 13 - services, or on the importation, manufacture, procurement or supply thereof; on this basis, if the amount of any such taxes levied on or in respect of items in any Category decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such Category as required to be consistent with the aforemen- tioned 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 the date of this Agreement. 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 agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) 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; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Cate- gory may continue until all expenditures thereunder shall have been made. 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 expen- diture 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 the Bor- rower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 14 - SCHEDULE 2 Description of the Project The objective of thie Project is to improve agricultural production through the adoption of low cost and labor intensive agricultural practices, proper irrigation water management and appropriate package of agricultural technology and inputs. The Project consists of the following Parts: Part A: Reorganization and strengthening of the Borrower's agricultural extension services in the Project Area, through, inter alia, the provision of adequate staff, vehicles, equipment, and training. Part B: (i) Construction, equipping and furnishing of about 40 training subcenter buildings in the Project Area, and improvement of the existing training facili- ties at Jhumka and Parwanipur. (ii) Construction, equipping and furnishing of the required Project staff residential buildings and offices in the Project Area. Part C: Strengthening of the building construction capability of the Agricultural Engineering Division of DOA through the provision of additional staff, equipment and con- sultants' services for architectural design. Part D: Monitoring and evaluation of the various activities under the Project, including evaluation studies and surveys. The Project is expected to be completed by June 30, 1991. - 15 - SCHEDULE 3 Procurement A. International Competitive Bidding 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 (hereinafter called the Guidelines). B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the pro- cedures described in Part A of this Schedule, goods manufactured in Nepal 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. C. Other Procurement Procedures 1. Contracts for civil works may be procured on the basis of competitive bidding advertized locally, in accordance with pro- cedures satisfactory to the Association. 2. Contracts for vehicles, motorcycles, bicycles and equipment estimated to cost the equivalent of $30,000 each or less, not to exceed in the aggregate the equivalent of $200,000, may be let on the basis of competitive bidding advertized locally, in accordance with procedures satisfactory to the Association. 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 each contract for civil works estimated to cost the equivalent of $100,000 or more and with respect to each contract for vehicles, equipment and other goods 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; provided, however, that where payments for such contract are to be made out of the proceeds of the Special Account, the - 16 - two conformed copies of the contract required to be furnished to the Association, pursuant to paragraph 2 (d) of Appendix 1 to the Guidelines, 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 preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply, provided, however, that where payments for such contracts are to be made out of the proceeds of the Special Account, the two conformed copies fo the contract required to be furnished to the Association, pursuant to paragraph 3 of Appendix 1 to the Guidelines together with the other information specified therein, shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 4 to this Agreement. (c) The provisions of the proceeding sub-paragraphs (a) and (b) shall not apply to contracts on account of which the Associa- tion has authorized withdrawals from the Credit Account on the basis of statements of expenditure. 2. The figure of 10% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. - 17 - SCHEDULE 4 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), (2), (3), (4) and (5) in accordance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount in dollars of the United States of America equivalent to the amount allocated to Category (6) which is to be withdrawn from the Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Payments out of the Special Account shall be made exclu- sively for eligible expenditures in accordance with the provi- sions 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 - 18 - amount of payments made out of the Special Account for eligible expenditures. Except as the Association may otherwise agree, each such deposit shall be withdrawn by the Association from the Credit Account under the respective Categories (1), (2), (3), (4) and (5), and in the respective equivalent amounts, as shall have been justified by the evidence supporting the request for such deposit furnished pursua .t to paragraph 4 of this Schedule. 4. For each payment mEde 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 and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expenditures. 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 can 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) unless otherwise agreed by the Association, when the total unwithdrawn amount of the Credit allo- cated to Categories (1), (2), (3), (4) and (5) for the Project, minus the amount of any outstanding qualified agreement to reimburse made by the Association and of any outstanding special commit- ment 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 Catego- ries (1), (2), (3), (4) and (5) for the Project shall follow such procedures as the Association shall specify by notice to the Borrower. Except as the Association shall otherwise agree, such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such - 19 - 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. 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. Unless otherwise agreed by the Association, 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 \ 198 FOR SECRETARY