Niger - Health Project : Credit 1668 - Credit Agreement - Conformed

OFFICIAL CREDIT NUMBER 1668 NIR DOCUMENTS Development Credit Agreement (Health Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated l , 1986 CREDIT NUMBER 1668 NIR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 4h , 1986, between REPUBLIC OF NIGER (the Botrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) 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; (B) the Association has received a letter dated Decem- ber 30, 1985 from the Borrower describing a program of objec- tives, policies and actions designed to achieve structural adjustment of the Borrower's economy, declaring, inter alia, the Borrower's commitment to the execution of the health sector adjustment program described in Annex 3 thereto; 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, with the deletion of the last sentence of Section 3.02, (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 have the respec- tive meanings therein set forth and the following additional terms have the following meanings: (a) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement; (b) "CFAF" means the common currency of the Borrower and the other members of the West African Monetary Union; - 2 - (c) "Project Preparation Advance" means the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters dated May 20, 1983 and August 26, 1983, and February 26, 1986 and March 17, 1986 between the Borrower and the Association; (d) "MOPHSA" means the Ministry of Public Health and Social Affairs of the Borrower; (e) "ONPPC" means the Office National des Produits Pharmaceutiques et Chimiques, the national pharmaceutical company of the Borrower; (f) "PMU" means the Project Management Unit to be attached to the Office of the Minister of Public Health and Social Affairs; (g) "Local Advance Account" .ans the account referred to in Section 3.06 of this Agreement; and (h) "MCH" means maternal and child health care. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to twenty-five million one hundred thousand Special Drawing Rights (SDR 25,100,000). 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. (b) The Borrower shall, for the purposes of the Project, open and maintain in CFAF a special account in a commercial bank on terms and conditions satisfactory to the Association. Deposits -3- into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement. (c) 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 of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the Project Preparation Advance shall thereupon be cancelled. Section 2.03. The Closing Date shall be June 30, 1993, or such later date as the Association shall establish. The Association 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 re- strictions 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 May 15 and November 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 15 and November 15 commencing May 15, 1996, and ending November 15, 2035. Each installment to and including the installment payable on November 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. Section 2.08. The currency of the French Republic is hereby specified for the purposes of Section 4.02 of the General Condi- tions. 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 Part A of the Project through the Ministry of Plan and Part B of the Project through MOPHSA with due diligence and efficiency and in con- formity with appropriate administrative, financial, technical and public health 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 Implementation 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 annually: (i) organize a meeting of all aid agencies participating in the Borrower's health sector financing in order to review the progress made in said sector and to coordinate further assistance; (ii) review in detail with the Association all investments made in the health sector during the previous year and expected to be made during the next three years, including recurrent cost implications, regardless of the source of financing of such investment; and (iii) review in detail with the Association recurrent budget allocations to support the health sector adjustment. -5- Section 3.04. The Borrower shall open and maintain through ONPPC an account in a commercial bank, under terms and conditions mutually agreed upon by the Borrower and the Association, to finance exclusively the replenishment of chloroquine for the malaria control program under Part A.1 (i) of the Project. All proceeds from the sales of chloroquine financed under the Project shall be deposited in said account. Section 3.05. In order to carry out Part B of the Project, the Borrower shall submit to the Association by July 31 of each year, for review and approval, the annual in-service training plans, including study tour and fellowship proposals provided for selected health care personnel under the Project. Section 3.06. Without limitation upon the generality of the provisions of Section 3.01 (a) of this Agreement, the Borrower shall open an account in a commercial bank and shall deposit in such account an amount of CFAF 30,000,000. The account shall be operated by PMU and shall be replenished monthly by the Borrower at PMU's request. Funds shall be withdrawn from this account only for the purpose of meeting the Borrower's local cost contribution to the Project not financed out of the proceeds of the Credit. Section 3.07. The Borrower shall prepare in collaboration with the Association and submit to the Association for approval detailed plans of action not later than: (i) December 31, 1986, on the supervision of health field staff; (ii) January 31, 1987, on a maintenance system for secondary health structures including efficient low cost design; and (iii) March 31, 1987, on a nutri- tion surveillance system together with a proposed timetable for implementation. Section 3.08. The Borrower shall prepare and submit to the Association not later than September 1 of each year: (a) the results of the evaluation of the past vaccination campaign; and (b) a vaccination program for the coming campaign, satis- factory to the Association. ARTICLE IV Financial Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and accounts adequate to reflect in accordance -6- 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, the Local Advance Account and chloroquine revolving fund 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 six months after the end of each such year, a certified copy of the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning the said accounts and the audit thereof and said records as the Association shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Credit Account were made 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 at least one year after the completion of the audit for the fiscal year in which the last withdrawal from the Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association's representatives to examine such records; and -7- (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 said auditors as to whether the proceeds of the Credit withdrawn in respect of such expenditures were used for the purposes for which they were provided. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Local Advance Account has been opened and the initial deposit of CFAF 30,000,000 referred to in Section 3.06 of this Agreement has been made; (b) the account referred to in SeLtion 3.04 of this Agree- ment has been opened; and (c) PMU has been established and adequately staffed and an accounting system satisfactory to the Association has been set up for it. Section 5.02. The date ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12-04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for Planning 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: -8- For the Borrower: Ministere du Plan B. P. 862 Niamey Niger Cable address:' Telex: MINIPLAN 5463 NI Niamey 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) -9- IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the dey and year first above written. REPUBLIC OF NIGER By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa - 10 - 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 itemas 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 2,170,000 100% (2) Furniture, equip- 5,410,000 100% ment, vehicles, materials, drugs (3) Vaccines 3,970,000 100% (4) Consultants' ser- 6,220,000 100% vices, fellow- ships and train- ing (5) Sub-projects 3,160,000 100% (6) Operating costs 1,810,000 90% for with- drawals up to an aggregate amount equi- valent to $950,000; 60% for with- drawals up to an aggregate amount equi- valent to $1,430,000; - 11 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed and 30% for withdrawals up to an aggre- gate amount equivalent to $1,810,000 (7) Refunding of 910,000 Amount due pur- Project Prepa- suant to Section ration Advance 2.02 (c) of this Agreement (8) Unallocated 1,450,000 TOTAL 25,100,000 2. For the purposes of this Schedule: (a) "Operating costs" means all costs associated with PMU operations including salaries of new personnel and bonuses for designated MOPHSA personnel, Project generated incremental recurrent costs for ongoing health programs and activities for Part B of the Project including operation and maintenance of vehicles and equipment, travel costs and office running costs; and (b) "Sub-projects" means the execution of any plan of action accepted for financing by the Association pursuant to paragraph 4 of Schedule 4 to this Agreement. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made: (a) for expenditures prior to the date of this Agreement; (b) under Category (4) for a specific sub-project until the Association shall have notified the Borrower of its approval of the plans of action referred to under paragraph 4 of Schedule 4 to this Agreement; and - 12 - (c) for expenditures under Category (3), September 1 of each year, starting September 1, 1987, until the Association shall have notified the Borrower of its approval of the vaccina- tion activities program for the upcoming vaccination campaign, in accordance with paragraph 7 of Schedule 4 to this Agreement. - 13 - SCHEDULE 2 Description of the Project The objective of the Project is to assist the Borrower in increasing the performance of its public health sector inter alia through: (i) adoption of appropriate mechanism for investment planning and recovery of investment costs; (ii) design and iuple- mentation of policies in the fields of population control, nutri- tion, maternal and child health care, and control of communicable diseases including, inter alia, malaria and diarrhea; and (iii) carrying out of training programs for health personnel. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Health Sector Adjustment 1. Studies to develop health sector policy reform aimed at, inter alia, strengthening operational and financial management, improving basic health services, increasing cost recovery and improving drug availability, and to provide assistance in the formulation of a population and nutrition policy. 2. Implementation of the recommendations and the plans of action resulting from the studies under Part A.1 above. Part B: Basic Health and Family Planning Services 1. Strengthening and extension of health care services through: (i) upgrading, rehabilitation and re-equipping of secondary health facilities; (ii) evaluation of the efficiency of existing mainte- nance structures (the Service d'Entretien des Appareils M6dicaux (SERAM) the Service d'Entretien et de R6paration des Materiels d'Exploitation (SERMEX), et the Service d'Entretien et de R6para- tion du Parc Automobile (SERPA)) for health facilities; - 14- (iii) a national malaria control program including the acquisition of an initial stock of chloroquine and diagnostic equipment for 3 selected medical cen- ters, award of 2 fellowships to train an ento- mologist and a sanitary engineer, staff training, community education and logistical support for supervision and monitoring of malaria control activities; (iv) a study on the feasibility of a malaria vector control program; (v) coordination and management of a national diar- rheal disease control program; (vi) carrying out of an Expanded Program of Immuniza- tion including the preparation of a morbidity and mortality study. for development of a data base, acquisition of vaccines, cold chain, equipment for vaccination for fixed structures, vehicles, vac- cines and cold chain and vaccination equipment for the mobile units, staff training and additional operating costs; and technical assistance for program monitoring and evaluation; (vii) strengthening of MCH services and MCH outreach including the acquisition of small vehicles, mopeds, equipment and material; and (viii) the expansion of family planning activities through the training of medical, paramedical and auxiliary personnel, the acquisition of gynecolog- ical equipment and contraceptives for MCH centers and rural health facilities, execution of public information campaigns on family health and family planning, technical assistance and specialized training. 2. Development of health education and community partici- pation in health and nutrition: (i) development of an appropriate health education program through the preparation and production of health education materials, the acquisition of equipment, the provision of overseas training and - 15 - study tours for selected division staff and health education officers. (ii) development of community participation in health and nutrition and of nutrition policy through the extension to about 60 villages of the ongoing WHO-UNICEF pilot project, including the provision of equipment and. logistical support, development of a nutrition surveillance system and its inte- gration into a health information system. 3. Health manpower development: (i) support to the establishment of a program for regular in-service training and field supervision of paramedical staff through the acquisition of equipment and materials and the provision of logistical support. (ii) revision of paramedical schools' curricula to address current priorities and needs. (iii) provision of fellowships for staff in needed specialties. The Project is expected to be completed by December 31, 1992. - 16 - SCHEDULE 3 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A: International Competitive Bidding Except as provided in Part C 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 May 1985 (the Guidelines). Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A hereof, goods manufactured in Niger may be granted a margin of nreference in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 thereto. Part C: Other Procurement Procedures 1. Civil works: Contracts may be awarded on the basis of competitive bidding, advertised locally, ri accordance with procedures satis- factory to the Association. Items estimated to cost less than the equivalent of $13,000 per contract, up to an aggregate amount not to exceed the equiva- lent of $600,000, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accor- dance with procedures acceptable to the Association. 2. Equipment, material, furniture, vehicles and drugs. Contracts estimated to cost less than the equivalent of $75,000 per contract, up to an aggregate amount not to exceed the equivalent of $700,000, may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. - 17 - Items or groups of items estimated to cost less than the equivalent of $10,000 per contract, up to an aggregate amount not to exceed the equivalent of $200,000, may be procured under con- tracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association. 3. Medical equipment, vaccines and drugs may be procured t",augh UNICEF in accordance with UNICEF's international procure- ment procedures. 4. Items of proprietary nature may be procured directly from the supplier in agreement with the Association. Part D: Review by the Association of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract for equipment, material, furniture, vehicles and drugs 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 Associa- tion 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 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 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 - 18 - basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.01 (c) (ii) of this Agree- ment. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satis- factory to the Association. Such consultants shall be selected in accordance with principle-, and procedures satisfactory to the Association on the basis c. the "Guidelines for the Use of Con- sultants by World Bank Borrowers and by the World Bank as Execut- ing Agency" published by the Bank in August 1981. - 19 - SCHEDULE 4 Implementation Program Overall Management of the Project 1. A Project Management Unit (PMU) will be established in the Office of the Minister of Public Health. It will be responsible for overall coordination of Project activities, assist in the preparation of annual work programs and budgets, procurement of goods, processing of Credit withdrawal applications and consoli- dation of Project process reports. PMU will consist of a direc- tor, an administrator and an accountant, as well as support staff. It will be assisted by a full-time, internationally recruited specialist in project management and implementation, and 8 months of short-term consultant services to set up a project accounting system, audit project accounts and assist in procurement. Part A of the Project 2. Following the recommendations of the studies referred to under Part A.1 of the Project, the Borrower shall prepare in collaboration with the Association a detailed and specific plan of action for each study by the dates indicated below: - not later than August 31, 1986, a plan on hospital fee system; - not later than September 30, 1986, a plan on cost effectiveness of proposals to use more efficiently the university hospital facilities; - not later than May 31, 1987, a plan on cost effective- ness of basic health services and operations; - not later than March 31, 1988, a plan on MOPHSA's financial management, including a hospital management plan; - not later than December 31, 1988, a plan on cost recovery of basic health services at the local level; and - not later than March 31, 1989, a plan on improvement of the distribution of essential drugs. - 20 - 3. Each plan of action will be prepared by the Borrower and the Association in accordance with the following criteria: (i) relationship to the Borrower's health policy; (ii) relationship to the Borrower's annual health sector investment programs; (iii) potential impact; and (iv) financial viability and availability of resources to support incremental operating costs. 4. Upon preparation by the Borrower and in collaboration with the Association of any plan of action referred to under Section 3.07 of this Agreement and paragraph 3 above, the Association shall provide notice thereof to the Borrower by letter or telex. Said notice shall set forth the amount of financing made available for the execution of the plan of action and any technical requirement which might be attached to such financing. 5. The Ministry of Plan is responsible for implementation of Part A of the Project in collaboration with MOPHSA. MOPHSA will implement the basic health and family planning component with assistance from the Ministries of National Education, Higher Education and Research, Public Works and Housing and others, as appropriate. A cooperation agreement will be established between MOPHSA and the Ministry of Culture and Communication for execu- tion of the health education component. Part B of the Project 6. Execution of the basic health and family planning component will be integrated into existing services of MOPHSA. These services will be appropriately strengthened with local staff and technical assistance. Particular attention will be paid to mini- mizing the need for incremental staff. The capabilities of health facilities to execute the programs under the Project will be strengthened through appropriate training and through the study and eventual implementation of policies to improve management and cost effectiveness of services. 7. Each year the Borrower shall prepare an evaluation of the past vaccination campaign and submit the results of such evalua- tion to the Association for approval not later than September 1, together with a program of vaccination for the upcoming vaccina- tion campaign. The Association shall notify its approval of such program of vaccination to the Borrower by letter or telex setting forth the amount of financing made available for the program of vaccination for the upcoming campaign and any technical require- ment which might be attached to such financing. - 21 - SCHEDULE 5 Special Account 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categories 1 through 6 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 the eligible Categories in accor- dance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount equivalent to CFAF 385,000,000 to be withdrawn from the Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Except as 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 it that the Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals 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 - 22 - expenditures. All such deposits shall be withdrawn by the Asso- ciation from the Credit Account under the respective eligible Categories, 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) the total unwithdrawn amount of the Credit allo- cated to the eligible Categories, minus the amount of any outstanding special commitment 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 the eligible Categories 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. 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 - 23 - 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 f-rther payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount for crediting to the Credit Account. 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 1984. FORSECRETARY