Rwanda - Agricultural Research Project : Credit 1546 - Credit Agreement - Conformed

CREDIT NUMBER 1546 RW Development Credit Agreement (Agricultural Research Project) between RWANDESE REPUBIC and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1985 CREDIT NUMBER 1546 RW DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 'A - q- P 1985, between the RWANDESE REPUBLIC (hereinafter called the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). 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 have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Project Preparation Advance" means the project pre- paration advance granted by the Association to the Borrower pursuant to an exchange of letters dated April 18, 1983 and June 24, 1983 between the Borrower and the Association; (b) "Ministry" means the Borrower's Ministry of Agricul- ture, Livestock and Forestry; (c) "ISAR" means the Agricultural Research Institute of Rwanda; and (d) "Special Account" means the account to be maintained pursuant to Section 2.02 (c) of this Agreement. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions in the Development Credit 2- Agreement set forth or referred to, an amount in various curren- cies equivalent to eloven million seven hundred thousand Special Drawing Rights (SOR 11,700,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to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 Associa- tion 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) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the principal amount oi the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges there- on. The unwithdrawn balance of the authorized amount of the Project Preparation Advance shall thereupon be cancelled. (c) The Borrower shall, for the purposes of the Project, cause ISAR to maintain in U.S. dollars a special account in the National Bank of Rwanda 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 Sched- ule 3 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 CredLt shall be governed by the provisions of Schedule 4 to this Agree- ment. Section 2.04. The Closing Date shall be December 31, 1988 or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. 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. -3- (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 February 15 and August 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each Feb- ruary 15, and August 15 commencing February 15, 1995, and ending August 15, 2034, each installment to and including the install- ment payable on August 15, 2004, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment there- after 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, economic, financial, administrative, technical and agricultural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the pur- pose. -4- Section 3.02. (a) In order to assist the Borrower in carry- ing out the Project, the Borrower shall employ an agricultural economist for Part A thereof and shall cause ISAR to employ other consultants and experts, all of whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, such economist and consultants and experts to be selected in accordance with principles and procedures satisfac- tory 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. (b) Pursuant to paragraph (a) above, the Borrower shall cause ISAR to employ the following key staff: a Managing Direc- tor, who will also act as Project Manager; a Programming and Evaluation Advisor; five department heads, for the Crops Produc- tion, Environmental Studies and Production Systems, Animal Production, Forestry and Agro-forestry Departments, and Financial and Administrative Affairs Service; a Biometrician; three senior scientists in the Environmental Studies and Production Systems Department, namely, a farming systems agronomist, an agricultural economist and a rural sociologist; a senior animal production systems specialist in the Animal Production Department; a docu- mentalist; and an engineer who will supervise the engineering and construction contracts. The Borrower shall ensure that ISAR employ its research staff for periods which are appropriate to the demands of the research programs in question. Section 3.03. The Borrower shall cause the Faculty of Agronomy and the Department of Geography of the Faculty of Arts of the National University of Rwanda to prepare in consultation with ISAR their proposed research programs and related budgets for the coming year and shall ensure that ISAR furnish such programs and budgets to the Association and make payments to the University only for expenses for Part G of the Project properly incurred pursuant to approved budgets. Section 3.04. (a) The Borrower shall invite and encourage all bilateral and international agencies interested in the financing of agricultural research in Rwanda to cooperate in respect of the development of agricultural research in Rwanda. (b) Promptly following the signature of this Agreement, the Borrower shall cause the Minister responsible for agricul- ture, livestock and forestry to furnish to such agencies for comment the proposed research programs, and corresponding work -5- programs, budget, financing plan, staffing and training program and program review schedule of ISAR for 1985. (c) Beginning in 1985, the Borrower shall cause ISAR to furnish for comment by September 30 of each year to each of such agencies, including the Association, the documents referred to in paragraph (b) above. (d) The Borrower shall cause ISAR to accompany the docu- ments referred to in this Section with detailed schedules of reviews by independent experts of its proposed and completed research programs and proposed lists of visiting scientists to be employed both for such reviews and in research; in the case of research projects lasting more than five years, a mid-term review will also be carried out. (e) The Borrower shall cause ISAR to carry out before June 30, 1986 an analysis of research on farming systems to assess the first results of on-going research programs in such field in Rwanda. Section 3.05. The Borrower shall cause ISAR to introduce by June 30, 1985, a system for reporting quarterly on the progress of the Project and annually on technical activities. Section 3.06. In connection with the preparation of the Master Plan for agricultural research included in Part A of the Project, the Borrower shall cause the Ministry to furnish to the Association for its approval: (a) at least two months prior to the start of each year beginning in respect of 1986, a detailed work program and pro- posed budget for the preparation of such Plan in such year; for 1985, such documents will be turnished by September 1, 1985; (b) beginning not later than December 3t, 1985, semi- annual progress reports for such Plan together with, beginning July 1, 1986, reports on the preparation of a second agricul- tural research project; (c) by September 1, 1985, a first outline of such Plan, as well as a schedule and detailed terms of reference for additional studies; -6- (d) by June 1, 1986, a draft of such Plan, including detailed proposals for a national seeds-control and certification system, a national informational system for the dissemination of research results and extension themes and a long-term program for the recruitment, career development and training of research personnel, all as furnished to the agencies described in Sec- tion 3.04 (a) above; (e) by September 1, 1986, the final Master Plan, together with detailed proposals and terms of reference for the prepara- tion of a future agricultural research project; and (f) by June 1, 1987, a detailed description and analysis of such future project sufficient to serve as a basis for its appraisal. Section 3.07. (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 inci- dent 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 3.08. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the ?lans, 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 shall: (i) maintain and shall cause ISAR to maintain records and procedures adequate to record and moni- tor the progress of the Project (including its cost and the bene- fits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) furnish or cause ISAR to furnish to the Association at regular -7- intervals all such information as the Association shill reason- ably request concerning the Project, its cost and, where appro- priate, the benefits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower or ISAR 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 or cause ISAR 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 Borrower and the Association of their respec- tive obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of ISAR and 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 ISAR to maintain 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 or cause ISAR to 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. -8- (c) The Borrower shall or shall cause ISAR to: (i) have the Special Account and the accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by indepen- dent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than six months after the end of each such year, certified copies of the reports of such audits 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 Associa- tion such other information concerning said accounts, records and expenditures and the audits thereof as the Association shall from time to time reasonably request. Section 4.02. The Borrower shall cause ISAR: (a) to take out and maintain with responsible insurers, or to make other provision satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with appropriate practice; (b) to carry on its operations and conduct its affairs in accordance with sound administrative, financial, economic, technical and agricultural practices under the supervision of qualified and experienced management assisted by competent staff in adequate numbers; and (c) at all times to operate and to maintain its plants, machinery, equipment and other property, and from time to time, promptly as needed, to make all necessary repairs and renewals thereof, all in accordance with sound engineering, financial and agricultural practices. ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the - 9- General Condition, namely, that ISAR has entered into formal arrangements with the International Council for Research in Agro-forestry under which the latter will provide expert advice on the orientation and design of research in agro-forestry and training of Rwandan scientists. Section 5.02. The Cate is hereby specified for the purposes of S ction 12.04 of the General Condi- tions. Section 5.03. The obligations of the Borrower under Arti- cle IV of this Agreement shall cease on the date on which the Development Credit Agreement shall terminate or on a date fifteen years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. 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 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere des Finances et de 1'Economie Botte Postale 158 Kigali Rwandese Republic Cable address: Telex: MINIFIN ECO 04 or 021 PUB KGL Kigali For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America - 10 - Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) 64145 (WUI) 89650 (WUT) or 197688 (TRT) 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. RWANDESE REPUBLIC By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Eastern and Southern Africa 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 3,050,000 90% (2) Vehicles and 1,420,000 100% of foreign equipment expenditures and 90% of local expendituies (3) Consultants, 2,340,000 100% experts, archi- tects and auditors (4) Training; carto- 710,000 100% graphy travel allowances, Part G of the Project (5) Research supplies: 1,630,000 100% of foreign seeds, fertilizers, expenditures pesticides; fuel, and 90% of local lubricants, spare expenditures parts and outside repairs for vehi- icles; plant and equipment main- tenance (outside bills for mate- rials and parts) (6) Special Account 810,000 Amounts to be deposited pursuant to paragraph 3 (a) of Schedule 3 - 12 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (7) Refunding of 310,000 Amount due under Project Pre- Section 2.02 (b) paration Advance (8) Unallocated 1,430,000 TOTAL 11,700,000 2. To the extent that the amount allocated to Category (7) above is in excess of the amount due, the excess will be reallo- cated to Category (8). 3. 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; and (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. 4. 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 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. 5. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: - 13 - (a) payments made for expenditures prior to the date of this Agreement; (b) expenditures under Categories (2) or (5) above except and to the extent that such expenditures are included among items approved by the Association following their consideration by the agencies described in Section 3.04 of this Agreement; (c) expenditures for civil works in Karama or Songa until the Association has received an independent opinion by an expert from the International Livestock Center for Africa on the useful- ness of extending ISAR's cattle breeding program and ISAR has entered into formal arrangements with the International Livestock Center for Africa under which the later will support ISAR's pro- grams of livestock research, provide technical assistance and training of research staff and recruit for ISAR an animal produc- tion systems expert and an animal nutritionist. 6. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 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 expen- ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 7. 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 the Project is to strengthen the Borrower's agricultural research activities and to make them more responsive and applicable to the constraints of the producer. The Project constitutes the first phase of a long-term support program to enhance the national agricultural research capability of Rwanda. The Project consists of: Part A: Master Plan for Agricultural Research The preparation by the Directorate of Studies and Planning of the Ministry of Agriculture, Livestock and Forestry, thereby assisted by ISAR, of a long-term (15 to 20 years) Master Plan for agricultural research in Rwanda, including the definition of an agricultural research strategy and of priority objectives, proposals for a better linkage between research and extension services, the definition of coordination mechanisms with agricul- tural research in other countries of the region, proposals for an adaptation of ISAR's organization to the priority objectives, the development of a long-term research manpower development plan and a seeds control and certification system, aiming at the pre- paration of a follow-on agricultural research project; and the strengthening of the Ministry through the procurement of one vehicle, office equipment and supplies, furniture, one micro computer, one word processor and providing a one-year overseas training fellowship. Part B: Research Programs The continuation or establishment and implementation over a three-year period of: (1) thirteen multidisciplinary crop research programs, nationally coordinated for the following commodities: beans, peas, soybeans and groundnuts, maize, sorghum and millet, wheat and triticale, sunflower, cassava and sweet potatoes, potatoes, coffee, tea, banana and avocado; (2) three multidisciplinary regional programs regarding crop and livestock production systems: - 15 - (a) at Karama (Bugesera region) with emphasis on agricultural and livestock production under low rainfall conditions; (b) at Gisovu (Zaire-Nile divide region) with emphasis on such production under high altitude conditions; and (c) at Rwerere with emphasis on such production under medium and high altitude conditions; (3) three research programs in livestock production: (a) a cattle breeding program at Songa and Karama and an observation program at Kinigi focussing on improved milk production; (b) an animal nutrition research program at Rubona- Songa and Karama focussing on fodder production and agricultural by-product utilization; and (c) a small ruminants research program at Gishwati focussing on sheep and goat production in the highlands; and (4) two research programs in forestry and agro-forestry research at Ruhande. Part C: Institutional Development of ISAR (1) Strengthening of ISAR's headquarters through: (a) the establishment of a research programming and evaluation unit; (b) the reinforcement of the Financial and Administra- tive Service; (c) the reinforcement of the central support services: documentation and publication, data processing and statistics, and the central laboratories; and (d) the establishment, staffing, equipping and opera- tion of a full-time liaison office at Kigali. - 16 - (2) Reorganization of ISAR's research management through: (a) the staffing, equipping and operation of the Crops Research Department, including five multidiscipli- nary research groups on: legumes, cereals, tubers, coffee and tea, and fruit crops; (b) the staffing, equipping and operation of the Environmental Studies and Agricultural Production Systems Department, including: (i) a central systems analysis unit; (ii) a central soil fertility management research group; and (iii) three regional systems research groups, at Karama, Gisovu and Rwerere; (c) the staffing, equipping and operation of the Animal Production Department, including: (i) a central animal production systems research unit; and (ii) three livestock research groups at Rubona- Songa, Gishwati and Karama; and (d) the staffing and operation of the Forestry and Agro-forestry Department. (3) Training of research workers and senior administrative staff through the provision of 70 fellowships overseas, and workshops, seminars and conferences in Rwanda. (4) Establishing procedures for review of research programs and annual budgets. (5) Intensifying exchanges with national and international agricultural research centers. Part D: Infrastructure (1) Development, rehabilitating and equipping ISAR's research stations at Rubona-Songa, Karama, Ruhengeri- Kinigi and Tamira including: - 17 - (a) the rehabilitation of operational buildings and of housing; and (b) the construction of new operational buildings and housing. (2) Constructing and equipping an addition of about 1,200 m2 to ISAR's headquarters in Rubona, including offices, laboratories and a documentation and publica- tions unit. (3) Constructing and equipping at Kigali of a 120 m2 liai- son office and about 75 m of overnight facilities. Part E: Equipment Rehabilitating or procuring for use in the Project, agricultural equipment, meteorological equipment, laboratory equipment, vehicles, office equipment and furniture, data pro- cessing equipment, communication equipment, generators, workshop equipment, documentation equipment, cartographic equipment and topographic equipment; equipment to be procured includes six tractors, 15 cars, 12 trucks, 40 motorcycles, four personal computers, one word processor and three generators. Part F: Cartography Multicolor printing of the soils map of Rwanda on a 1:50,000 scale; production of a map defining agro-ecological zones and of a map defining agro-forestry zones of Rwanda. Part G: Support to the Faculty of Agronomy and to the Depart- ment of Geography of the Faculty of Arts of the National University of Rwanda Support of the Faculty of Agronomy and of the Department of Geography of the Faculty of Arts, of the National University of Rwanda through the purchase and use of agricultural equipment, laboratory equipment, ten personal computers and research supplies. The Project is expected to be completed by June 30, 1988. - 18 - SCHEDULE 3 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) through (6) in accordance with the provisions of Schedule 1 to this Agreement; and (c) the term "authorized allocation" means an amount in dollars equivalent to the amount allocated to Category (6) and 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. (a) For purposes of withdrawal of the authorized alloca- tions, the Association shall, on the basis of a request or requests by the Borrower and evidence satisfactory to the Asso- ciation that the Special Account has been duly opened, withdraw on behalf of the Borrower from the Credit Account and deposit into the Special Account such amount or amounts of the authorized allocation as the Borrower shall have requested, up to the total of the authorized allocation. (b) For purposes of withdrawal of the proceeds of the Credit to replenish the Special Account, the Association shall, on the basis of requests by the Borrower furnished to the Asso- ciation at such intervals as the Association shall specify, 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 expenditures. Except as the Association may otherwise agree, each such deposit shall be withdrawn by the Association from the Credit Account under the - 19 - respective Categories (1) through (5), 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. Prior to or at the time of each request made by the Borrower for a deposit by the Association into the Special Account pur- suant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Association in respect of each payment made by the Borrower out of the Special Account such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expenditures. 5. Notwithstanding the provisions of paragraph 3 of this Sched- ule, no further deposit into the Special Account shall be made by the Association (a) when the Association shall have determined at any time that all further withdrawals can be made directly by the Borrower from the Credit Account in accordance with the pro- visions of paragraph (a) of Section 2.02 of this Agreement, or (b) unless otherwise agreed by the Association, when the total unwithdrawn amount of the Credit allocated to Categories (1) through (5) for the Project, minus the amount of any qualified agreement to reimburse made by the Association and of any special commitment entered into by the Association pursuant to Sec- tion 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, whichever shall be sooner. Withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to Categories (1) through (5) for the Project sl-all follow such procedures as the Association shall specify by notice to the Borrower and shall, except as the Association shall otherwise agree, be made only after and to the extent the Asso- ciation 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. 6. If the Association shall have determined at any time that: (a) 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 and, unless otherwise agreed by the Association, prior to any further - 20 - deposit into the Special Account by 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; or (b) 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, and unless otherwise agreed by the Association, refund to the Association such outstanding amount. - 21 - SCHEDULE 4 A. International Competitive Bidding 1. Except as provided in Part B hereof, goods and services 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. Similar and relited items shall be grouped to the extent practicable into economical packages for the purpose of inviting bids or quotations. B. Other Procurement Procedures 1. Contracts for civil works shall be procured following local competitive bidding procedures as described in paragraph 3.3 of Part III of the Guidelines. 2. Contracts for the purchase of equipment which, after group- ing, are estimated to cost less than $100,000, and contracts for the purchase of vehicles and tractors, shall also be procured following such local competitive bidding procedures, with due attention to the availability of spare parts and repair facili- ties. 3. Specialized and proprietary equipment for research may be purchased directly from the suppliers thereof, as provided in paragraph 3.5 of Part III of the Guidelines. 4. All contracts for the rehabilitation of physical plant, as well as contracts for the purchase of seeds, fertilizers, pesti- cides, animal feed, hand tools and miscellaneous items which, after grouping, are estimated to cost less than the equivalent of $50,000, shall be purchased through shopping procedures as de- scribed in paragraph 3.4 of Part III of the Guidelines. C. 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 esti- mated to cost the equivalent of $100,000 or more as well as for - 22 - equipment 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 pay- ments for such contract are to be made out of the proceeds of the Special Account, the two conformed copies of the contract required to be furnished to the Association, pursuant to para- graph 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 pre- ceding 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 contract are to be made out of the proceeds of the Special Account, the two conformed copies of 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 3 to this Agreement. (c) The provisions of the preceding subparagraphs (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 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. 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 5. R CRETARY