Conformed Copy - C2133 - Seventh Population Project - Project Agreement 2

Page 1 CONFORMED COPY CREDIT NUMBER 2133 IN LOAN NUMBER 3199 IN (Seventh Population Project) among INTERNATIONAL DEVELOPMENT ASSOCIATION and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and STATE OF BIHAR STATE OF GUJARAT STATE OF HARYANA STATE OF JAMMU and KASHMIR STATE OF PUNJAB Dated October 23, 1990 CREDIT NUMBER 2133 IN LOAN NUMBER 3199 IN PROJECT AGREEMENT AGREEMENT, dated October 23, 1990, among INTERNATIONAL DEVELOPMENT ASSOCIATION, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and STATE OF BIHAR, STATE OF GUJARAT, STATE OF HARYANA, STATE OF JAMMU and KASHMIR and STATE OF PUNJAB. WHEREAS (A) by the Development Credit Agreement of even date herewith between India and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to sixty seven million one hundred thousand Special Drawing Rights (SDR 67,100,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that the Project States agree to undertake such obligations toward the Association as are set forth in this Agreement; Page 2 (B) by the Loan Agreement of even date herewith between the Borrower and the Bank, the Bank has agreed to make available to the Borrower an amount in various currencies equivalent to ten million dollars ($10,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that the Project States agree to undertake such obligations toward the Bank as are set forth in this Agreement; WHEREAS the Project States, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, and the Bank's entering into the Loan Agreement with the Borrower, have agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Loan Agreement, and in the General Conditions (as so defined in the Development Credit Agreement and the Loan Agreement, respectively) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) The Project States declare their commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall carry out Part B (3) of the Project severally and Parts A, C, D and E of the Project jointly with the Borrower with due diligence and efficiency and in conformity with appropriate administrative, financial, health and family welfare practices, and shall provide, or cause to be provided, 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 and except as the Association, the Bank and the Project States shall otherwise agree, the Project States shall carry out Part B (3) of the Project severally and Parts A, C, D, and E of the Project jointly with the Borrower in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association and the Bank shall otherwise agree, procurement of the goods, works and services required for the Project and to be financed out of the proceeds of the Credit and the Loan shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.03. Each of the Project States shall carry out, severally and jointly, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions applicable to the Development Credit Agreement and in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions applicable to the Loan Agreement (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement, and Part B (3) and Page 3 Parts A, C, D, and E of the Project respectively. Section 2.04. (a) Each of the Project States shall, at the request of the Association and the Bank, exchange views with the Association and the Bank with regard to the progress of the Project, the performance of its obligations under this Agreement, and other matters relating to the purposes of the Credit and the Loan. (b) Each of the Project States shall promptly inform the Association and the Bank of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit or the Loan, or the performance by each of the Project States of its respective obligations under this Agreement. ARTICLE III Financial Covenants Section 3.01. (a) The Project States shall maintain records and accounts adequate to reflect in accordance with sound accounting practices their operations and financial condition in respect of activities related to their respective parts of the Project. (b) Each Project State shall: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association and the Bank; (ii) furnish to the Association and the Bank as soon as available, but in any case not later than nine months after the end of each such year, (A) certified copies of its financial statements for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association and the Bank shall have reasonably requested; and (iii) furnish to the Association and the Bank such other information concerning said records, accounts and financial statements as well as the audit thereof, as the Association and the Bank shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which both the Development Credit Agreement and the Loan Agreement become effective. Section 4.02. (a) This Agreement and all obligations of the Association, the Bank and of the Project States thereunder shall terminate on the earlier of the following two dates: (i) the date on which both the Development Credit Agreement and the Loan Agreement Page 4 shall have terminated in accordance with their respective terms; or (ii) the date twenty (20) years after the date of this Agreement. (b) If the Development Credit Agreement or the Loan Agreement or both of the said Agreements terminate in accordance with their respective terms before the date specified in paragraph (a) (ii) of this Section, the Association or the Bank or both shall promptly notify the Project States of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions applicable to the Development Credit Agreement or the Loan Agreement. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this 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, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's 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: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 197688 (TRT), Washington, D.C. 248423 (RCA), 64145 (WUI) or 82987 (FTCC) For State of Bihar: Chief Secretary to the Government of Bihar Main Secretariat Patna - 800001, Bihar Telex: Page 5 22-291 BHR GTPT For State of Gujarat: Chief Secretary to the Government of Gujarat Gujarat Administration Department Sachivalaya Gandhinagar Gujarat 382020 Telex: 120-3215 CSGJ For State of Haryana: Chief Secretary to the Government of Haryana Chandigarh Haryana Cable address: Telex: HARCHIEFSEC 395-374 HYCS Chandigarh For State of Jammu and Kashmir: Chief Secretary to the Government of Jammu and Kashmir New Secretariat Srinagar Cable address: Telex: CHIEFSEC 375-229 CSTK Srinagar For State of Punjab: Chief Secretary to the Government of Punjab Civil Secretariat Chandigarh Telex: 395-208 CSPB Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of each of the Project States may be taken or executed by its Chief Secretary or such other person or persons as the concerned Project State shall designate in writing, and each of the Project States shall furnish to the Association and the Bank sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. As long as the Bank has not given notice to the contrary to the Project States and so long as the Development Credit Agreement shall not have terminated prior to the termination of the Loan Agreement: (a) the obligations of the Project States to consult with, and to furnish information, documents, plans, reports, records and statements to, the Bank shall be satisfied to the extent performance in respect of such obligations is rendered to the Association; (b) the obligations of the Bank to consult with, Page 6 and to furnish information to, the Project States shall be satisfied to the extent such obligations are fulfilled by the Association; and (c) all actions taken (including the giving of approvals or granting of waivers) by the Association pursuant to the Development Credit Agreement shall be deemed to be taken pursuant to both the Development Credit Agreement and the Loan Agreement, and in the name and on behalf of both the Association and the Bank. Section 5.04. This 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, 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. INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ A. Karaosmanoglu Regional Vice President Asia STATE OF BIHAR STATE OF GUJARAT STATE OF HARYANA STATE OF JAMMU and KASHMIR STATE OF PUNJAB By /s/ A. Hussain Authorized Representative SCHEDULE 1 Procurement and Consultants' Services Section I: Procurement of Goods and Works Part A: International Competitive Bidding Except as provided in Part C hereof, equipment shall be procured under contracts awarded in accordance with procedures consistent with those set forth in Sections I and II of the "Guidelines -- 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 procedures described in Part A hereof, goods manufactured in India may be granted a margin of preference in accordance with, and subject to, the provisions of Page 7 paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 6 of Appendix 2 thereto. Part C: Other Procurement Procedures 1. Except as provided in Paragraph 2 hereof, contracts for civil works shall be awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. 2. Civil works, estimated to cost less than $30,000 equivalent each, up to an aggregate amount not exceeding $13,000,000 equiva-lent, may be carried out by force account. 3. Except as provided in Paragraph 6 hereof, equipment estimated to cost less than the equivalent of $200,000 per contract, up to an aggregate amount not exceeding $4,000,000 equivalent, shall be pro-cured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. 4. Except as provided in Paragraph 6 hereof, furniture, medicines and medical and other supplies shall be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. 5. Vehicles shall be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. 6. Equipment, furniture, medicines and medical and other supplies, off the shelf items or groups of items estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $11,000,000 equivalent, may be procured under quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures satisfactory to the Association and the Bank. 7. Books and materials shall be procured under quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures satisfactory to the Association and the Bank. 8. Laparascopes and fallopian rings, up to an aggregate amount of $2,000,000 equivalent, may be procured under contracts negotiated directly with one or more suppliers of such equipment in accordance with procedures satisfactory to the Association and the Bank. Part D: Review by the Association and the Bank 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, vehicles, equipment and furniture, estimated to cost the equivalent of $200,000 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 Association pursuant to said paragraph 2 (d) shall be furnished to Page 8 the Association and the Bank prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. 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 and the Bank pursuant to said paragraph 3 shall be furnished to the Association and the Bank as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 4 to the Development Credit Agreement. (c) The provisions of the preceding subparagraph (b) shall not apply to contracts on account of which the Association and the Bank has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.02 (a) (ii) of the Development Credit Agreement. 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 Project States in carrying out the Project, each of them shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association and the Bank. Such consultants shall be selected in accordance with principles and procedures satisfactory to the Association and the Bank 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. SCHEDULE 2 Implementation Program 1. The Project States shall each prepare and furnish to the Association and the Bank for their review and comments, by January 31 of each year, an annual information, education and communication plan. 2. The Project States shall each, in conjunction with the Borrower, adequately fund and maintain their respective Community Health Centers, Primary Health Centers and Sub-center facilities and equipment provided under the Project. 3. The Project States shall each, in conjunction with the Borrower: (a) establish (i) an Institute of Health and Family Welfare, (ii) a Human Resources Development Cell, (iii) District Training Centers/Teams, and (iv) a Construction Cell for the purposes and in accordance with a schedule agreed to by the Project States, the Association and the Bank; and (b) staff the Institute of Health and Family Welfare, Human Resources Development Cell, District Training Centers, and Construction Cell in accordance with a key staffing plan agreed to by the Project States, the Association and the Bank. Page 9 4. The Project States shall each, in conjunction with the Borrower, by December 31, 1990, identify blocks/districts for the operational research on measurement and evaluation of the Family Welfare Program of the Borrower and release those from present target- setting procedures. 5. The Project States shall each, in conjunction with the Borrower, (a) by December 31, 1992, cause its Human Resources Development Cell to develop and institute a Personnel Management Information System under terms of reference satisfactory to the Association and the Bank, and (b) establish systems intended to maintain the agreed staffing pattern with reference to key instructional personnel. 6. The Project States shall each, in conjunction with the Borrower, prepare and furnish terms of reference for additional innovative schemes in support of the family welfare program to the Association and the Bank for their review and comment prior to implementation. 7. The Project States shall, in conjunction with the Borrower, undertake an annual review of Project progress and (a) by January 31 each year commencing in 1991 prepare and furnish to the Association and the Bank an annual evaluation report outlining progress in meeting Project objectives, and (b) by December 31, 1991, undertake and complete baseline surveys to assist the Borrower in preparing its annual summative and comparative report.