India - Punjab Flood Protection And Drainage Project : Credit 0015 - Project Agreement - Conformed

CREDIT NUMBER 15 IN Project Agreement (Punjab Flood Protection and Drainage Project) BETWEEN THE STATE OF PUNJAB AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED NOVEMBER 22, 1961 CREDIT NUMBER 15 IN Project Agreement (Punjab Flood Protection and Drainage Project) BETWEEN THE STATE OF PUNJAB AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED NOVEMBER 22, 1961 $irvird Agurntrut AGREEMENT, dated November 22, 1961, between the STATE OF PUNJAB, acting by its Governor (hereinafter called Punjab) and INTERNATIONAL DEVELOPMENT AssOCIATION (hereinafter called the Association). WHEREAs by a development credit agreement of even date herewith (hereinafter called the Credit Agreement) be- tween India (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower a development credit in various currencies equivalent to ten million dollars ($10,000,000), on the terms and conditions set forth in the Credit Agreement, but only on condition that Punjab agree to undertake certain obliga- tions to the Association as hereinafter in this Project Agreement set forth; and WHEREAS Punjab, in consideration of the Association's entering into the Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; Now THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions SECTION 1.01. Wherever used in this Project Agreement, unless the context shall otherwise require, the several terms defined in the Credit Agreement and in the Regulations (as so defined) shall have the respective meanings therein set forth. ARTICLE II Particular Covenants of Punjab SECTION 2.01. (a) Punjab shall carry out and operate the Project with due diligence and efficiency and in conformity 4 with sound engineering and financial standards and prac- tices, and taking into consideration, among other things, the restoration of agricultural production in the land in- tended to be benefited thereby. (b) Punjab shall make available promptly as needed all sums which shall be required for the carrying out and op- eration of the Project. SECTION 2.02. (a) Punjab shall take all such action as shall be required to assure that the land intended to be re- stored to agricultural production by the Project shall, to the maximum extent possible, be so restored fully, effec- tively and promptly. (b) Punjab shall cause all works and facilities included in the Project to be adequately maintained and repaired in accordance with sound engineering practices and stand- ards and shall cause all works and facilities not included in the Project but necessary to the proper and efficient operation thereof to be operated and adequately main- tained and repaired in accordance with such practices and standards. SECTION 2.03. (a) Upon request from time to time by the Association, Punjab shall promptly furnish or cause to be furnished to the Association, the plans, specifications and work schedules for the Project and any material modifica- tions subsequently made therein, in such detail as the Association shall request. (b) Punjab shall maintain or cause to be maintained records adequate to identify the goods financed out of the proceeds of the Credit, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof), to show the results achieved by the Project and to reflect in accordance with consistently main- tained sound accounting practices the operations and fi- 5 nancial condition with respect to the Project of the agency or agencies of Punjab responsible for the carrying out of the Project or any part thereof ; shall enable the Associa- tion's representatives to inspect the Project, the goods and any relevant records and documents; and shall furnish or cause to be furnished to the Association all such informa- tion as the Association shall reasonably request concerning the expenditure of the proceeds of the Credit, the Project and the goods, and the operations and financial condition with respect to the Project of the agency or agencies of Punjab responsible for the carrying out of the Project or any part thereof. SECTION 2.04. (a) Punjab and the Association shall co- operate fully to assure that the purposes of the Credit will be accomplished. To that end, each of them shall furnish to the other all such information as it shall reason- ably request. (b) Punjab and the Association shall from time to time exchange views through their representatives with regard to matters relating to the purposes of the Credit. Punjab shall promptly inform the Association of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit or the per- formance by Punjab of its obligations under this Project Agreement or the obligations to be performed by it pur- suant to the provisions of the Credit Agreement, or which shall increase or threaten to increase materially the esti- mated cost of the Project. SECTION 2.05. (a) Except as shall be otherwise agreed by Punjab and the Association: (i) Punjab shall cause all goods purchased with the proceeds of the Credit to be used in the territories of the Borrower exclusively in the carry- ing out of the Project and (ii) Punjab shall obtain title to all such goods free and clear of all encumbrances. 6 (b) Punjab shall not, without the prior consent of the Association, sell or otherwise dispose of any goods pur- chased or paid for out of the proceeds of the Credit. SECTION 2.06. Punjab shall satisfy the Association that adequate arrangements have been made to insure the goods financed out of the proceeds of the Credit against risks incident to their purchase and importation into the terri- tories of the Borrower. ARTICLE III Effective Date; Termination SECTION 3.01. This Project Agreement shall come into force and effect on the Effective Date. If, pursuant to Sec- tion 8.04 of the Regulations, the Association shall terminate the Credit Agreement, the Association shall promptly notify Punjab thereof and upon the giving of such notice, this Project Agreement and all obligations of the pa'ties hereunder shall forthwith cease and determine. SECTION 3.02. If and when the entire principal amount of the Credit shall have been paid or caused to be paid by the Borrower (or shall have been cancelled), together with service charges which shall have accrued on the Credit, this Project Agreement and all obligations of Punjab and of the Association hereunder shall forthwith terminate. ARTICLE IV Miscellaneous Provisions SECTION 4.01. Any notice or request required or per- mitted to be given or made under this Project Agreement and any agreement between the parties contemplated by this Project Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, 7 cable or radiogram to the party to which it is required or permitted to be given or made at its address hereinafter specified, or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: (a) For Punjab: Secretary to the Government of Punjab Irrigation and. Power Departments Chandigarh (Japital, Punjab Alternative address for cablegrams and radiograms: Chiefsee Chandigarh, India (b) For the Association: International Development Association 1818 H Street, N.W. Washington 25, D. C. United States of America Alternative address for cablegrams and radiograms: Indevas Washington, D. C. SECTION 4.02. Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Project Agreement on behalf of Pun- jab may be taken or executed by a Secretary to the Gov- ernment of Punjab in the Irrigation and Power Depart- ments or such other person or persons as Punjab shall designate in writing. SECTION 4.03. Punjab shall furnish to the Association sufficient evidence of the authority of the person or persons who will, on behalf of Punjab, take any action or execute 8 any documents required or permitted to be taken or exe- cuted by Punjab pursuant to any of the peovisions of this Project Agreement and the authenticated specimen sig- nature of each such person. SECTION 4.04. This Project Agreement may be executed in several counterparts, each of which shall be an original and all collectively but one instrument. IN WITNESS WHEREOF, the parties hereto have caused this Project Agreement to be signed in their respective names by their representatives thereunto duly authorized and de- livered in the District of Columbia, United States of Amer- ica, as of the day and year first above written. STATE OF PUNJAB By M. R. SACHDEV Authorized Representative INTERNATIONAL DEVELOPMENT AssOCIATION By W. A. B. ILIFF Vice President