India - Hydrology Project : Credit 2774 - Project Agreement - Conformed

CREDIT NUMBER 2774-IN Project Agreement (Hydrology Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH STATE OF GUJARAT STATE OF KERALA STATE OF MADHYA PRADESH STATE OF MAHARASETRA STATE OF ORISSA and STATE OF TAMIL NADU Dated 1995 CREDIT NUMBER 2774-IN PROJECT AGREEMENT 3 AGREEMENT, dated iu, , 1995, between INTERNATIONAL DEVELOPMENT 'ASSOCIATION (the Association) and the States of Andhra Pradesh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Orissa and Tamil Nadu (the Project States). WHEREAS (A) by the Development Credit Agreement of even date herewith between India (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various -currencies equivalent to ninety million one hundred thousand Special Drawing Rights (SDR 90,100,000), 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 the Development Credit Agreement, and in this Agreement; (B) Part A of the Project will be carried out by the States of Andhra Pradesh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Orissa and Tamil Nadu (hereinafter called the Project States) with the Borrower's assistance and, as part of such assistance, the Borrower will make available to the Project States part of the proceeds of the Credit as provided 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: ARTICLE 1 Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) Each of the Project States declares its commitment to the objective of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall carry out Part A of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and environmental practices, and technical and hydrological practices, standards and criteria, under the overall coordination of MOWR, 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. - 2 - (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and the Project States shall otherwise agree, each of the Project States shall carry out Part A of the Project in accordance with the Implementation Program set forth in the Schedule to this Agreement. Section 2.02. 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 the Development Credit Agreement. Section 2.03. Each of the Project States shall carry out the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (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. Section 2.04. Without limitation upon the provisions of Article IX of the General Conditions, each of the Project States shall: (a) prepare and furnish to the Association not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Association and such Project State, a plan, of such scope and in such detail as the Association shall reasonably request, for the future operation of Part A of the Project; (b) afford the Association a reasonable opportunity to exchange views with such Project State on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Association's comments thereon. Section 2.05. (a) Each of the Project States shall, at the request of the Association, exchange views with the Association with regard to the progress of Part A of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) Each of the Project States shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of Part A of the Project, the accomplishment of the purposes of the Credit, or the performance by such Project State of its obligations under this Agreement. -3- ARTICLE III Financial Covenants Section 3.01. (a) Each of the Project States shall maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of Part A of the Project of the departments or agencies of such Project State responsible for carrying out Part A of the Project. (b) Each of the Project States shall: (i) have the records and accounts referred to in paragraph (a) of this Section 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 nine months after the end of each such year, 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 said records, accounts and financial statements as well as 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 each 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 terminate in accordance with its terms; or (ii) the date twenty (20) years after the date of this Agreement. -4- (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 each of 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. 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 248423 (RCA) Washington, D.C 82987 (FTCC) 64145 (WUJI) or 197688 (TRT) For Andhra Pradesh: Chief Secretary Government of And.hra Pradesh Hyderabad Andhra Pradesh, India For Gujarat: Chief Secretary Government of Gujarat Gandhinagar, Guj arat, India -5 - For Kerala: Chief Secretary Government of Kerala Trivandrum, Kerala, India For Madhya Pradesh: .Chief Secretary Government of Madhya Pradesh Bhopal, Madhya Pradesh, India For Maharashtra: Chief Secretary Government of Maharashtra Bombay Maharashtra, India For Orissa: Chief Secretary Government of Orissa Bhubaneswar, Orissa, India For Tamil Nadu: Chief Secretary Government of Tamil Nadu Madras Tamil Nadu, India 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 any of the Project States may be taken or executed by its Chief Secretary or such other person or persons as such State 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 ' Regional Vice President South Asia STATE OF ANDHRA PRADESH STATE OF GUJARAT STATE OF KERALA STATE OF MADHYA PRADESH STATE OF MAHARASHTRA STATE OF ORISSA STATE OF TAMIL NADU By Authorized Representative -7- SCHEDULE Implementation Program 1. To assist in the implementation of Part A of the Project, each of the Project States shall maintain the Project coordination arrangements agreed with the Association. 2. Each of the Project States shall undertake in collaboration with the Borrower and the Association, not later than October 31 of each year, starting October 31, 1996, an annual review of the Project, and shall incorporate the findings of such review in the work programs referred to in paragraph 3 (a) below. 3. (a) Each of the Project States shall furnish to the Association for the Association's review and comments not later than December 31 of each year, starting December 31, 1996, work program, cost estimates and budget proposals for Part A of the Project for the following fiscal year. (b) Without limitation to the provisions of Section 2.01 (a) of this Agreement, each of the Project States shall make budgetary provisions sufficient to implement the work program referred to in (a) above, starting fiscal year 1995 - 1996, and for each subsequent fiscal year thereafter until Project completion. 4. To assist in the management and dissemination of hydrological data generated through the Project, each of the Project States shall set up, not later than December 31, 1995, hydrology data user groups with membership and terms of reference agreed with the Association. 5. Without limitations to the provisions of Section 2.01 of this Agreement and paragraph 3 of this Schedule, each of the Project States shall take the necessary action for providing, in a timely manner, all the funds needed fc. covering operation and maintenance costs under Part A of the Project. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY