Conformed Copy - C2394 - Family Welfare (Urban Slums) Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2394 IN Project Agreement (Family Welfare (Urban Slums) Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH STATE OF KARNATAKA STATE OF WEST BENGAL Dated February 4, 1994 CREDIT NUMBER 2394 IN PROJECT AGREEMENT AGREEMENT, dated February 4, 1994 between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and THE STATES OF ANDHRA PRADESH, KARNATAKA AND WEST BENGAL, acting by their respective Governors, (referred to collectively hereinafter as Project States). WHEREAS (A) by the Development Credit Agreement of even date herewith between India, acting by its President (the Borrower) and the Association (the Development Credit Agreement), the Association has agreed to make available to the Borrower an amount in various currencies equivalent to fifty-seven million seven hundred thousand Special Drawing Rights (SDR 57,700,000), 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; WHEREAS the Project States, in consideration of the Association's entering into the Development Credit Agreement with the Borrower have agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: Page 2 ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Preamble thereto, and in the General Conditions (as so defined in the Development Credit Agreement) 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 or cause to be carried out activities under Part A of the Project 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 Part A of the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association shall otherwise agree, the Project States shall carry out or cause to be carried out their activities under the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association 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 shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.03. Each Project State shall carry out, or cause to be carried out, 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 (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 A of the Project carried out by each of them respectively. Section 2.04. (a) Each Project State shall, at the request of the Association, exchange views with the Association 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. (b) Each Project State shall promptly inform the Association 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 performance by each Project State of its respective obligations under this Agreement. ARTICLE III Financial Covenants Section 3.01. (a) The Project States shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices their operations, resources and expenditures in respect of activities related to their respective role in Part A of the Project, of the Project Cities, departments or agencies of the Project States responsible for carrying out the Project or any part thereof. (b) Each Project State shall: (i) cause the records and accounts referred to in paragraph (a) of this Section for each financial Page 3 year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) cause to be furnished to the Association as soon as available, but in any case not later than nine months after the end of each such year, certified copies 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) cause to be furnished to the Association such other information concerning said records, accounts and the audit thereof, as the Association 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 the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of the Project States thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall have terminated in accordance with its terms; or (ii) the date twenty (20) years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association 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. 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: Page 4 INDEVAS 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) For Andhra Pradesh: Secretary to the Government of Andhra Pradesh Department of Health, Medical and Family Welfare Secretariat Hyderabad, Andhra Pradesh India Telex: 0425-6608 For Karnataka: Secretary to the Government of Karnataka Department of Health and Family Welfare Stage II Multistory Building Doctor Ambadekar Veedhi Bangalore 560001 Karnataka, India Telex: 0845-8680 For West Bengal: Secretary to the Government of West Bengal Department of Health and Family Welfare Writers Building Calcutta 700001, India Telex: 258-262 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 Project State may be taken or executed by a Secretary of such Project State or such other person or persons as the respective Project States shall designate in writing; and each Project State shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. 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 By /s/ D. Joseph Wood Regional Vice President South Asia Page 5 STATE OF ANDHRA PRADESH STATE OF KARNATAKA STATE OF WEST BENGAL By /s/ N. Valluri 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, goods 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 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 paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 6 of Appendix 2 thereto. Part C: Other Procurement Procedures 1. (a) Except as provided in sub-paragraph (b) hereof, contracts for civil works shall be awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. (b) Civil works, estimated to cost less than $50,000 equivalent each, up to an aggregate amount not exceeding $7,150,000 equivalent, may be carried out by force account, direct contracting or under quotations solicited from a list of at least three contractors eligible under the Guidelines, in accordance with procedures satisfactory to the Association. 2. (a) Except as provided in sub-paragraph (b) hereof, equipment, vehicles, furniture, medicines, and Maternal and Child Health materials estimated to cost less than the equivalent of $200,000 per contract, up to an aggregate amount not exceeding $20,100,000 equivalent, may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. (b) Equipment, medicines, books, IEC and Maternal and Child Health materials, estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $10,600,000 equivalent, may be procured under quotations solicited from a list of at least three suppliers, in accordance with procedures satisfactory to 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 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 Page 6 Association 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 3 to the Development Credit Agreement. (c) The provisions of the preceding subparagraph (b) shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.01 (c) (ii) of the Development Credit Agreement. 2. The figure of 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. Section II: Employment of Consultants 1. In order to assist the Project States and the Borrower in carrying out the Project, each of them shall employ or cause to be employed consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Such consultants shall be selected in accordance with principles and procedures satisfactory 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. SCHEDULE 2 Implementation Program 1. The Project States shall cause the Project Cities (a) to furnish to the Association by June 30, 1994, baseline surveys and beneficiary and community needs assessments with format and content satisfactory to the Association; and (b) promptly thereafter suitably adjust the hours of operation of health facilities located in slum areas in its jurisdiction so as to be fully responsive to the findings of the above beneficiary and community needs assessment. 2. The Project States shall cause the Project Cities to (a) provide in accordance with a time schedule agreed with the Association and thereafter maintain adequate salaried staff and honorary health workers, and other resources as shall be necessary to ensure the effectiveness of its outreach programs under the Project; and (b) establish within its family welfare department or agency in accordance with a time schedule agreed with the Association and thereafter maintain cells with adequate staff and other resources with responsibility for planning, implementing and training programs in each of the following areas: IEC, management information systems, grants in aid to PVOs and PMPs, women in development and accounting and auditing. 3. The Project States shall cause the Project Cities to furnish to the Association by January 31 of each year, commencing January 31, 1995, a report on the following for review and comment, and thereafter duly take into account any comments provided by the Association in respect thereof: (a) annual plans for civil works, training and IEC in respect of its immediately succeeding financial year; and (b) progress achieved during the previous year in basic education for females. Page 7 4. The Project States shall cause the Project Cities to (a) establish by January 31, 1995 community-based management committees for facilities and programs developed under the Project; and (b) institute no later than April 1, 1995 such measures as shall generate resources from the direct beneficiaries of said facilities and programs to support a portion of the operation and maintenance costs thereof, including medicines. 5. The Project States shall cause the Project Cities to establish by June 30, 1994, IEC Program Planning and Implementation Committees with membership and terms of reference satisfactory to the Association. 6. The Project States shall cause the Project Cities to (a) develop by June 30, 1994, a program of measures to improve compliance with the Borrower's Child Marriage Restraint Act, 1929, as amended; and (b) furnish to the Association by January 31, 1995, and by January 31 each year thereafter, a report for review and comment by the Association on the steps taken in the previous year towards said improvement. 7. The Project States shall cause the Project Cities to (a) prepare in accordance with terms of reference agreed with the Association and furnish to the Association for review and comment by January 31, 1995, a City Health Plan covering the area under its jurisdiction; and (b) discuss said Plan with the Association including proposed actions for implementing such Plan. 8. The Project States shall cause the Project Cities in consultation with the concerned Project State and the Borrower, to prepare and furnish to the Association for its approval prior to their implementation, all proposed innovative schemes under Part A (v) of the Project. 9. Without prejudice to any of its obligations under this Agreement or the Development Credit Agreement, each Project State shall (a) utilize key indicators agreed with the Association for evaluating performance of the Project; and (b) use rapid low cost studies, as agreed with the Association, for the purposes of such evaluation. 10. The Borrower and the Project States shall furnish or cause to be furnished to the Association by December 31, 1996 a mid-term review of the progress of the Project.