Conformed Copy - C1884 - Municipal and Housing Development Project - Canadian Grant Agreement

Page 1 CANADIAN GRANT RELATED TO CREDIT NUMBER 1884 SE Canadian Grant Agreement (Municipal and Housing Development Project) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada Dated September 14, 1988 CANADIAN GRANT RELATED TO CREDIT NUMBER 1884 SE CANADIAN GRANT AGREEMENT AGREEMENT, dated September 14, 1988, between REPUBLIC OF SENEGAL (the Beneficiary) and INTERNATIONAL DEVELOPMENT ASSOCIATion acting as Administrator (the Administrator) of the Contribution (as hereinafter defined) provided by the Government of Canada (Canada). WHEREAS the Beneficiary requested the assistance of Canada to finance the technical assistance in the carrying out of the Municipal and Housing Development Project as such assistance is described in Schedule 2 hereto (thereinafter called the Project); WHEREAS by an agreement of even date herewith between Canada and the International Development Association, (hereinafter called the Contribution Agreement) Canada has requested the International Development Association, and the International Development Association has accepted therein to administer an amount of two million seven hundred thirty- two thousand three hundred and forty US Dollars (US$2,732,340) (hereinafter called the Contribution) in accordance with the provisions of the Contribution Agreement; WHEREAS the Beneficiary requested the International Development Association to act as administrator for the Contribution; and Page 2 WHEREAS the Beneficiary acknowledges that the financial assistance extended to the Beneficiary under this Agreement shall be considered as part of the bilateral development aid extended by Canada to the Beneficiary; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, (the General Conditions) constitute an integral part of this Agreement, subject, however, to the following modifications thereof: (a) the term "Association", wherever used in the General Conditions, means the International Development Association acting as Administrator of the Contribution except in the phrase " member of the Association " in Sections 2.01 (5) , 4. 02 (b) and 6. 02 (e) (i); (b) the term "Development Credit Agreement" whenever used in the General Conditions, means this Agreement; (c) the term "Credit", whenever used in the General Conditions, means the Contribution extended to the Beneficiary under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, means the account opened in the Bank of Canada in the name of the Administrator to which the amount of the Contribution is credited; (e) in Section 6.02 the term "Association" shall also include the International Development Association acting in its own capacity; (f) Section 9.06 (c) shall be modified to read: "(c) Not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Beneficiary and the Administrator, the Beneficiary shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execution of the project referred to in the Preamble to the Canadian Grant Agreement, the performance by the Beneficiary and the Administrator of their respective obligations under the Canadian Grant Agreement and the accomplishment of the purposes of the Contribution."; (g) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 of the General Conditions are deleted. ARTICLE II The Contribution Section 2.01. The Administrator agrees to extend to Page 3 the Beneficiary, on the terms and conditions herein set forth or referred to, a Contribution in an amount of up to two million seven hundred thirty-two thousand three hundred and forty US dollars (US$2,732,340). Section 2.02. (a) The amount of the Contribution may be withdrawn from the account referred to in Section 1.01 of this Agreement for expenditures made (or if the Administrator shall so agree, to be made) in respect of the reasonable cost of services required for the Project and to be financed out of the proceeds of the Contribution. (b) Notwithstanding the provisions of paragraph (a) above, no withdrawals shall be made in respect of payments for taxes levied by, or in the territory of, the Beneficiary on goods and services or in the importation, manufacture, procurement or supply thereof . Section 2.03. (a) Except as the Administrator shall otherwise agree, contracts for services required for the Project and to be financed out of the proceeds of the Contribution shall be procured in accordance with the provisions of Schedule 1 to this Agreement provided, however, that the Beneficiary shall engage a firm acceptable to Canada to carry out such services. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the procedures set forth or referred to in paragraph (a) above, no expenditures for such item shall be financed out of the proceeds of the Contribution, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, by notice to the Beneficiary, cancel such amount of the Contribution as, in the Administrator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Contribution. Section 2.04. The Closing Date shall be May 31, 1995, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Borrower of such later date. ARTICLE III Execution of the Project Section 3.01. The Beneficiary shall carry out part of the Project through its Bureau de Circulation de Dakar within its Ministry responsible for transport, part of the Project, through its Ministry responsible for finance (Direction du Cadastre), and shall ensure that part of the Project shall be carried out through Communaute de Dakar (CUD), all with due diligence and efficiency and in conformity with appropriate administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. ARTICLE IV Representation; Transfer of Rights and Obligations Page 4 Section 4.01. The minister of the Beneficiary responsible for finance shall be the representative of the Beneficiary for the purposes of Section 11.03 of the General Conditions. Section 4.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Beneficiary: Ministry of Economy and Finance Rue Charles Laine P.O. Box 4017 Dakar, Senegal Cable address: Telex: MINIFINANCES 3203 SG Dakar, Senegal For the Administrator: 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) Section 4.03. In accordance with the agreement referred to in the Preamble to this Agreement between Canada and the Administrator, the rights and obligations of the Administrator under this Agreement may be transferred to Canada. The Beneficiary accepts and agrees that, upon notice by the Administrator to the Beneficiary to that effect, Canada shall, ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if Canada had been an original party to this Agreement, without any further action or formality required on the part of any party, and from such date the Administrator shall cease to have any rights or obligations as a party under this Agreement. ARTICLE V Effectiveness Section 5.01. This Agreement shall become effective as of the date first above written and shall continue in effect until termination of the Contribution Agreement referred to in the Preamble, or until the Contribution has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder, whichever occurs first. 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 day and year first above written. Page 5 REPUBLIC OF SENEGAL By /s/ Silcarneyni Gueye Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada By /s/ Michael J. Gillette Acting Regional Vice President Africa SCHEDULE 1 Procurement and Consultants' Services Employment of Consultants In order to assist in carrying out the Project, consultants shall be employed whose nationality, qualifications, experience and terms and conditions of employment shall be satisfactory to Canada and the Administrator. SCHEDULE 2 Description of the Project I. The Project The objectives of the Municipal and Housing Development Project are to improve the resources and the efficiency of metropolitan Dakar's local governments in policy- making related to service delivery and urban investment, and to expand the economic impact and efficiency of the housing sector through an expansion of BHS's activities and through the increased supply of serviced and titled plots. 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: Municipal Credit Fund Provision of Sub-loans to local governments for the financing of income generating projects. Part B: Strengthening of CUD's Technical Department 1. Acquisition of civil works equipment and vehicles needed for infrastructure maintenance; 2. Rehabilitation, including extension and remodelling, of buildings of the technical services; Page 6 3 . Technical assistance; 4. Short-term and long-term training programs for selected key staff members; and 5.. Rehabilitation of about 25 schools, 165 public latrines, eight health facilities, and three administrative field offices of CUD. Part C: Traffic and Public Transport Management in Dakar 1. Technical assistance to the Traffic Bureau (Bureau de la Circulation). 2 Rehabilitation of CUD's main collector roads (68 km) including: (a) reconstruction of about 33 km of roads; (b) resurfacing of about 28 km of roads; and (c) minor repairs on about 7 km of roads. 3. Implementation of a traffic management plan in the central Dakar area (Plateau), including: (a) repairs and remodeling works on selected street sections and junctions; (b) installation of street lighting; (c) installation of traffic signals; and (d) establishment of parking lots. 4. Improvement of key junctions and selected sections of the national urban road network in metropolitan Dakar, including: (a) road remodeling and repairs; (b) construction of sidewalks; (c) installation of street lightings; and (d) installation of traffic signals. Part D: Municipal Resource Mobilization 1. Establishment of a fiscal cadastre for the territories of the three communes of the Dakar region. 2. Computerization of the data base of the fiscal cadastre and improvement of the computerized processing of the tax billing for the territories of the three communes of the Dakar region, and acquisition of computer equipment and software therefor. Part E: Housing Component 1. A program of land development for servicing and titling of approximately 1,800 plots annually. 2. Provision of housing loans for very low-cost, low- cost and medium standard housing as defined in Section 2.01 (c) (i) of the BHS Project Agreement. Page 7 * * * The Project is expected to be completed by June 30, 1994. II. The purpose of CIDA's contribution CIDA's contribution will be utilized to finance the technical assistance components of the above Project. Technical assistance will be provided to the Communaute Urbaine de Dakar (CUD) for strengthening temporarily a few key positions in CUD's technical department in order to allow immediate effectiveness of functions which relate "inter alia" to execution of Parts B(l), B(2) and B(5) of the Project and for onthe-job training of permanent staff in charge of these functions. Technical assistance will also be provided to the Traffic Bureau (Bureau de la Circulation). Experts will provide technical supervision and assistance for implementation of Parts C(2), C(3) and C(4) of the Project. Technical assistance and consultant services will also be provided to the Ministry in charge of finance (Direction du Cadastre) as needed for implementation of Part D of the Project. III. The Budget The following allocation of funds is tentative. (a) Technical Assistance and Consultant Services: US$ - to CUD's Technical Department Engineer 319,800 Mechanic 280,000 Technician 240,200 Sub-total 840,000 - to the Traffic Bureau Engineers 1,120,000 - to the Direction du Cadastre Technical assistance 167,000 Consultants 99,800 Training 99,800 Sub-total 366,600 (b) Contingencies Physical contingencies 190,416 Price contingencies 188,000 Sub-total 378,416 (c) IDA supervision 27,324 Page 8 TOTAL 2,732,340