Sierra Leone - Education Project : Credit 0170 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 170 SL Development Credit Agreement (Education Project) BETWEEN SIERRA LEONE AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 5, 1970 CONFORMED COPY CREDIT NUMBER 170 SL Development Credit Agreement (Education Project) BETWEEN 0 SIERRA LEONE AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 5, 1970 AGREEMENT, dated January 5, 1970 between SIERRA LEONE (hereinafter called the Borrower) and INTERNA- TIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS the Borrower has requested the Association to assist the Borrower in financing the construction and equip- ping of replacements for or extensions to a number of its educational institutions; WHEREAS the Borrower has requested the Canadian In-- ternational Development Ageicy to provide instructional equipment for these educational institutions, and that Agency has agreed to comply with this request; WHEREAS the Borrower has made arrangements with the United Nations Development Programme to provide a team of experts to give technical assistance in developing certain of these educational institutions; and WHEREAS the Association is willing tn make a develop- ment credit available to the Borrower on the terms and conditions provided in this Development Credit Agreement; Now THEREFORE thle parties hereto hereby agree as f ollows: ARTICLE I General Conditions; Definitions SECTION 1.01. The parties to this Development Credit Agreement accept all the provisions of the General Con- ditions Applicable to Development Credit Agreements of the Association dated January 31, 1969, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Assoe'ation being hereinafter called the General Conditions). SECTION 1.02. Wherever used in this Development Credit Agreement, unless the context otherwise requires, the sev- eral terms defined in the General Conditions have the re- spective meanings therein set forth. ARTICLE II The Credit SECTION 2.01. The Association agrees to lend to the Bor- rower on the terms and conditions in this Development Credit AgreeT,ment set forth or referred to, an amount in various currencies equivalent to three million dollars ($3,000,000). SECTIOx 2.02. (a) The Association shall open a Credit Account on its books in the name of the Borrower and shall credit to such. Account the amount of the Credit. (b) The amount of the Credit may be withdrawn from the Credit Account as provided in, and subject to the rights of cancellation and suspension set forth in, this Develop- ment Credit Agreement and in accordance with the alloca- tion of the proceeds of the Credit set forth in Schedule 1 to this Agreement, as such allocation shall be modified from time to time pursuant to the provisions of such Schedule or by further agreement between the Borrower and the Association. SECTION 2.03. The Borrower shall be entitled to with- draw from the Credit Account in respect of the reasonable cost of goods or services required for the Project and to be financed under this Development Credit Agreement; (i) the equivalent of sixty-six and two-thirds per cent (662/3%) of such amounts as shall have been paid (or, if the Association shall so agree, shall be re- quired to meet payments to be made) for goods or services included in Categories I, II and III of the allocation of the proceeds of the Credit referred to in Section 2.02 of this Agreement; provided, how- ever, that if there shall be an increase in the esti- mate of such payments for goods or services in- cluded in any such Category, the Association may by notice to the Borrower adjust the stated per- centage applicable to such Category as required in order that withdrawals of the amount of the Credit then allocated to such Category and not withdrawn may continue pro rata with the -ayments remaining to be made for goods or services included in such Category; and (ii) such amounts as shall have been paid (or if the Association shall so agree, as shall be required to meet payments to be made) for goods or services included in Category IV of the allocation of the proceeds of the Credit referred to in Section 2.02 of this Agreement. SECTION 2.04. No withdrawals from the Credit Account shall be made under Category IV of the allocation of the proceeds of the Credit referred to in Section 2.02 of this Agreement on account of payments in the currency of the Borrower, or for goods produced in, or services supplied from, the territories of the Borrower. SECTION 2.05. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. SECTIOx 2.06. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. SECTION 2.07. Service charges shall be payable semi- annually on May 1 and November 1 in each year. 6 SECTION 2.08. The Borrower shall repay the principal amount of the Credit withdrawn from the Credit Account in semi-annual installments payable on each May 1 and November 1 commencing May 1, 1980 and ending November 1, 2019, each installment to and including the installment payable on November 1, 1989 to be one-half of one per cent (/ of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (11/2%) of such principal amount. ARTICLE III Use of Proceeds of the Credit SECTION 3.01. The Borrower shall apply the proceeds of the Credit in accordance with the provisions of this Devel- opment Credit Agreement to expenditures on the Project, described in Schedule 2 to this Agreement. SECTION 3.02. Except a9 bhe Association shall otherwise agree, the goods and services to be financed out of the pro- ceeds of the Credit shall be procured on the basis of inter- national competitive bidding in accordance with the Guide- lines for Procurement under World Bank Loans and IDA Credits, published by the Bank in August 1969, and in ac- cordance with such other procedures supplementary thereto as are set forth in Schedule 3 to this Agreement or as shall be agreed between the Borrower and the Association. SECTION 3.03. Except as the Association may otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclu- sively in the carrying out of the Project. ARTICLE IV Particular Covenants SECTION 4.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with 7 sound administrative, financial, educational and architec- tural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. SECTION 4.02. The Borrower shall: (a) establish a Project Unit responsible to the Minister of Finance, with such responsibilities, powers and staff as are specified in Schedule 4 to this Agreement; (b) appoint by August 1, 1970 in its Ministry of Edu- cation a properly qualified education specialist as Principal Education Officer (Technical) to be re- sponsible for supervision of all technical education below University level, including staff training and curriculum development; (c) appoint by July 1, 1970 in its Ministry of Education a properly qualified and experienced education spe- cialist for all agricultural education below Univer- sity level with responsibilities similar to those of the official referred to in subsection (b) above; (d) form by July 1, 1970 a Secondary Schools Inspecto- rate under its Ministry of Education; (e) provide by July 1, 1970 the Planning Section of its Ministry of Education with a trained statistician and an experienced educational planner; and (f) assign an official to its Ministry of Education to be responsible for regular inspection of maintenance needs of school buildings and for close liaison with its Ministry of Works as to the execution of mainte- nance work. SECTIoN 4.03. The Borrower shall employ, upon terms and conditions satisfactory to the Association: (a) consulting architects experienced in the construction and furnishing of schools and acceptable to the Association, to be selected and retained in accordance with the proce- dures set forth in the booklet entitled "Uses of Consultants by the World Bank and its Borrowers," published by the Bank in September 1966, to provide the architectural, engi- neering and other technical services to carry out the Proj- ect, to supervise the construction and to certify contractors' invoices; and (b) qualified and experienced contractors acceptable to the Association. SECTION 4.04. Before submitting to the Canadian Inter- national Development Agency a list of the instructional equipment to be provided for the Project, the Borrower shall consult with and obtain the approval of the Associa- tion for such list. Said list shall include, inter alia: (i) a time schedule for phasing supply and installation of the equipment coordinated with the progress of construction under the Project; and (ii) the specifications and estimated unit and total prices of each item, each item to be coded and numbered for identification of the school and type of space for which the item is required. SECTION 4.05. The Borrower shall, before starting the construction or iodification of any building included in the Project, furnish to the Association for its approval, in such detail as it shall reasonably request, a plan of such building, indicating its architectural features and furnish- ings. Any subsequent material modifications shall similarly be submitted to the Association before they are imple- mented. SECTION 4.06. The Borrower shall make adequate provi- sion to insure the goods to be financed out of the proceeds of the Credit against marine, transit and other hazards 9 incident to acquisition, transportation and delivery thereof to the place of use or installation, any indemnity under such insurance to be payable in a currency freely usable by the Borrower to replace or repair such goods. SECTION 4.07. The Borrower shall endeavor to utilize the educational institutions included in the Project at their designed capacity and shall operate them so as to achieve its educational objectives. SECTION 4.08. The Borrower shall properly maintain the educational institutions included in the Project and for that purpose make adequate budgetary provision. SECTIO, 4.09. The Borrower shall recruit tirough ar- rangements with the United Nations Development Pro- gramme or with other sources acceptable to the Association a technical assistance team of at least eight experts, the leader of which is to serve for at least five years and the other members to serve for at least three years, to assist in the development of the technical institutes and trade schools included in the Project and to establish a technical teacher training program in association with the Freetown Technical Institute and the Milton Margai Teachers' Col- lege. SECTION 4.10. (a) The Borrower shall, within two years of the date of this Agreement, produce, with the assistance of competent experts, a manpower survey, including pro- jections of future skilled manpower requirements, for the purpose of developing its educational system. (b) Within one year after completion of the manpower survey referred to in paragraph (a) above, the Borrower shall: (i) prepare, with the assistance of competenL experts, a development plan for its educational system; and (ii) complete with the assistance of competent experts, accept- able to the Association, a revision of the secondary school 10 curriculum in order to adapt this curriculum to the skilled manpower needs of its economy. (c) The Borrower shall introduce the revised secondary school curriculum referred to in paragrlph (b) above no later than one year after its completio ., into its secondary school system. SECTION 4.11. The Borrower (i) shall maintain records adequate to identify the goods and services financed out of the proceeds of the Credit, to disclose the use thereof in the Project, to record the progress of the Project (includ- ing the cost thereof) and the expenditure of the proceeds of the Credit and to reflect in accordance with consistently maintained sound accounting practices the operations, in respect of the Project, of the departments or agencies of the Borrower responsible for the carrying out of any part of the Project; (ii) shall enable accredited representatives of the Association to inspect the Project, such goods and services, and any relevant records and documents; and (iii) shall furnish or cause to be furnished to the Associa- tion all such information as the Association shall reason- ably request concerning the expenditure of the proceeds of the Credit, such goods and services, the Project, the educa- tional institutions included therein and the plans for their development, and the operations, in respect of the Project, of the departments or agencies of the Borrower responsible for the carrying out of any part of the Project. SECTION 4.12. (a) The Borrower and the Association shall cooperate fully to ensure that the purposes of the Credit will be accomplished. To that end, the Borrower and the Association shall from time to time, at the request of either party, exchange views through their representatives with regard to matters relating to the purposes of the Credit and the maintenance of the service thereof, and each of them shall furnish to the other all such information 11 as it shall reasonably request with regard to the general status of the Credit. On the part of the Borrower, such information shall include information with respect to finan- cial and economic conditions in the territories of the Bor- rower and the balance of payments position of the Bor- rower. (b) The Borrower shall promptly inform the Association of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit, the carrying out of the Project or the maintenance of the service of the Credit. (c) The Borrower shall afford all reasonable opportu- nity for accredited representatives of the Association to visit any part of the territories of the Borrower for pur- poses related to the Credit. SECTION 4.13. The principal of, and service charges or, the Credit shall be paid without deduction for, and free from, any taxes, and free from all restrictions, imposed under the laws of the Borrower or laws in effect in its territories. SECTION 4.14. The Development Credit Agreement shall be free from any taxes that shall be imposed under the laws of the Borrower or laws in effect in its territories on or in connection with the execution, delivery or registration thereof. ARTICLE V Remedies of the Association SECTION 5.01. If any event specified in Section 7.01 of the General Conditions shall occur and shall continue for the period, if any, therein set forth, then at any subsequent tinie during the continuance thereof, the Association, at its option, may by notice to the Borrower declare the principal of the Credit then outstanding to be due and payable S 12 immediately together with the service charges thereon and upon any such declaration such principal, together with such charges, shall become due and payable immediately, anything in this Development Credit Agreement to the contrary notwithstanding. ARTICLE VI Effective Date; Termination SECTION 6.01. The following events are specified as addi- tional conditions to the effectiveness of this Development Credit Agreement within the meaning of Section 10.01 (b) of the General Conditions: (a) agreement shall have been reached on the recruit- ment of the technical assistance team provided for in Section 4.09 of this Agreement; (b) the Borrower shall have established the Project Unit provided for in Section 4.02 (a) of this Agreement; and (c) the Borrower shall have entered into agreements sat- isfactory to the Association for the employment of the Project Director and the Project Architect pro- vided for in sub-paragraphs 2(a) and (b) of Sched- ule 4 to this Agreement. SECTION 6.02. The date of April 1, 1970 is hereby speci- fied for the purposes of Section 10.04 of the General Con- ditions. SECTION 6.03. The obligations of the Borrower under Sections 4.02 (b)-(e), 4.07 and 4.08 of this Agreement shall terminate on the date on which this Development Credit Agreement shall terminate or on a date twenty-five years after the date of this Development Credit Agreement, whichever shall be the earlier. 13 ARTICLE VII MisGellaneous SECTION 7.01. The Closing Date shall be June 30, 1974 or such other date as shall be agreed between the Borrower and the Association. SECTION 7.02. The Minister of Finance of the Borrower is designated as representative of the Borrower for the puirposes of Section 9.03 of the General Conditions. SECTION 7.03. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: The Financial Secretary The Ministry of Finance Freetown, Sierra Leone Cable address: Minfin Freetown For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Indevas Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Development Credit Agreement to be signed in their respective names and to be delivered in the District 14 of Columbia, United States of America, as of the day and year first above written. SIERRA LEONE By /s/ Jonx J. AKAR Authorized Representative INTERNATIONAL DEVELOPMENT AssocIATIo By /s/ J. BURKE KNAPP Vice President 15 SCHEDULE 1 Allocation of Proceeds of Credit Amounts Expressed Category in Dollar Equivalent I. Construction, including fixed furnishings and fittings 1,900,000 II. Consultant and other professional services 500,000 III. Furniture 150,000 IV. Freight of instructional equipment 65,000 V. Unallocated 385,000 TOTAL 3,000,000 Reallocation Upon Change in Cost Estimates 1. If the estimate of the cost of the items included in any of the Categories I to IV shall decrease, the amount of the Credit then allocated to, and no longer required for, such Category will be reallocated by the Association to Category V. 2. If the estimate of the cost of the items included in any of the Categories I to IV shall increase, an amount equal to the portion, if any, of such increase to be financed out of the proceeds of the Credit (or, in the case of Categories I to III an amount equal to 662/3%o of such increase) will be allocated by the Association, at the request of the Borrower, to such Category from Cate- gory V, subject, however, to the requirements for con- tingencies, as determined by the Association, in respect of the cost of the items in the other Categories. 16 SCHEDULE 2 Description of the Project The Project consists of : (a) The construction, furnishing of: (i) a replacement for the Freetown Teachers' Col- lege; (ii) extensions at: two technical institutes; two trade schools; eleven secondary schools. (b) The provision of technical assistance. The specific educational institutions to be included in the Project, their locations, their planned enrollment levels and the approximate area to be constructed for each, shall be as specified in Exhibit A of this Schedule, and the de- tails of the technical assistance provided shall be as speci- fied in Exhibit B of this Schedule. The specifications of both Exhibits are subject to modification by further agreement between the Borrower and the Association. The Project is expected to be completed by December 31, 1973. 17 EXHIBIT A List of Educational Institutions Area of new Total planned construction Code. enrollment (approx. No. Location (Name) capacity* gross sq. ft.) (a) Primary Teachers' College 3TT Freetown 250 3,700 (Freetown Teachers' College) (b) (i) Technical Institutes 17 TECH Freetown 536 6,100 (Technical Institute, Freetown) 20 TECH Kenema 432 7,900 (Technical Institute, Kenema) (b) (ii) Trade Schools 18 TECH Kissy 720 20,300 (Trade Centre, Kissy) 19 TECH Magburaka 240 11,300 (Trade Centre, Magburaka) (b) (iii) Secondary Schools 5SS Freetown 800 24,200 (Bishop Johnson Memorial School) 6SS Freetown 660 (60 boarders) 17,700 (Annie Walsh Memorial School) 7SS Freetown 600 (40 boarders) 15,100 (Methodist Girls High School) 8SS Freetown 720 8,400 (Prince of Wales School) loSS Jimmi 400 (200 boarders) 33,100 (Government Secondary School) liSS Kenema 400 (200 boarders) 23,200 (Government Secondary School) 12SS Magburaka 780 (360 boarders) 21,900 (Government Secondary School for Boys) 13SS Bumpe 400 (90 boarders) 7,400 (Bumpe High School) 14SS Taiama 400 (110 boarders) 6,300 (Taiama Secondary School) 15SS Kamakwie 400 (80 boarders) 3,400 (Kamakwie Secondary School) 16SS Kabala 400 (50 boarders) 5,200 (Kabala Secondary School) * For the institutions to be extended, the capacity indicated is the total for the extended facility. 18 EXHIBIT B Technical Assistance Experts Man/Months Project Architect 48 Agricultural Education Specialists 36 Statistician 36 Curriculum Revision Specialists Mathematics 18 Science 6 Social Studies 6 English 6 19 SCHEDULE 3 Procurement Procedures 1. Construction under the Project shall be grouped so as to make possible the formation of economic bid packages for contracts (hereinafter called Civil Works Contracts) and shall be phased so as to make possible a continuous flow of work within each such package. 2. The award of contracts for procuring furniture (herein- after called Furniture Contracts) shall be arranged and phased in accordance with sound procurement practices and to permit bulk purchases whenever possible. 3. Prior to inviting bids, the Borrower shall obtain the Association's approval: (a) with respect to the Civil Works Contracts: (i) for a complete list of such contracts, including the estimated value of each, an indication of their grouping and a time-table for the"r award; (ii) for a list of pre-qualified contractors, including the pre-qualification documents, a description of pre-qualification procedures and recom- mendations for pre-qualification; (b) with respect to the Furniture Contracts: (i) for lists of all items of furniture required for the Project, including the specifications and estimated unit and total prices of each item, each item to be coded and numbered for iden- tification of the school and type of space for which the item is required. (ii) for a schedule showing the approximate time of procurement of major groups of items; 20 (c) for the bid invitation documents, with descriptions of the tendering procedures (including the advertis- ing coverage); and (d) for the proposed contract documents. 4. After bids have been received, the Borrower shall promptly send to the Association a summary and analy- sis of these, together with its recommendations for awards and a justification for any award. proposed to be made to other than the lowest bidder. 5. With respect to Furniture Contracts the Association agrees pursuant to paragraph 2.8 of the Guidelines for Procurement referred to in Section 3.02 of this Agree- ment that where any bid is submitted by any manufie- turer, established in the territories of the Borrower, of furniture manufactured or processed within the terri- tories of the Borrower to a substantial extent as deter- mined by the Association (Local Bid), the following rules shall be observed for the purpose of comparing any Local Bid as thus defined to any bid other than a Local Bid (Foreign Bid) (a) All taxes on the importation of the furniture offered shall first be deducted from the total of any Foreign Bid; (b) The portion of any Foreign Bid representing the c.i.f. landed price of such furniture shall then be increased by 15/ thereof or the applicable amount of such taxes as they generally apply to non-exempt purchasers in the territories of the Borrower for the importation of such furniture, whichever is lower; (c) The figure resulting from (b) above shall be deemed to be the price of the Foreign Bid for purposes of comparison with the Local Bid; 21 (d) If the ex-factory price of the furniture offered by the lowest evaluated Local Bid is equal to or lower than the comparison price of the lowest evaluated Foreign Bid arrived at under (b) and (c) above, then such Local Bid may be considered the lowest evalu- ated bid for purposes of paragraph 3.9 of the said Guidelines for Procurement; and (e) In cases where it is recommended to award a con- tract to a Local Bid, the bid analysis shall state the amount of taxes referred to in (b) above and the proportion of the c.i.f. landed price of furniture offered under the lowest evaluated Foreign Bid rep- resented by such amount. 6. Prior Association approval for an award shall be re- quired only if : (a) it involves an amount of $100,000 equivalent or more for a Civil Works Contract or $10,000 equivalent or more for a Furniture Contract; or (b) it is for an amount above the lowest bid received; or (c) it is for an amount exceeding by 107 or more the estimated value or price approved pursuant to para- graph 3 (a) (i) or 3 (b) (i) above. 7. A certified copy of each contract shall be sent to the Association promptly after its execution and prior to the submission of the first application for withdrawal of funds from the Credit Account in respect of that contract. S. Without the Association's approval no change involving either a price increase of over 5%o of the original con- tract or over $10,000 equivalent for a Civil Works Con- tract or over $1,000 equivalent for a Furniture Contract, shall be made in any contract. 22 SCHEDULE 4 The Project Unit 1. The Project Unit shall be responsible, and have the nec- essary powers, for the execution of the Project, in close cooperation with the Borrower's Ministries of Educa- tion and Works, including, inter alia: (a) the selection, briefing, coordination and supervision of the consulting architects provided for in Section 4.03 (a) of this Agreement; (b) the approval of the design of the buildings included in the Project; (e) the preparation of the detailed lists referred to in paragraph 3 (b) (i) of Schedule 3 and in Section 4.04 of this Agreement; (d) the supervision of the preparation of bidding doci- ments for all construction work and for the pro- curement of furniture; the analysis of bids and, where required by Schedule 3 to this Agreement, the making of recommendations regarding the award of contracts; (e) the regular inspection of all construction work; and (f) the keeping of records, including financial records, of the execution of the Project; and the preparatioii of regular reports to the Association. 2. The Project Unit shall consist of : (a) a full-time Project Director acceptable to the Asso- ciation, who is to have over-all responsibility for the direction and coordination of the Unit's work; (b) a full-time Project Architect acceptable to the Asso- ciation, who is to be particularly responsible for 23 the direction and supervision, through the consult- ing architects, of all construction work; (c) an accountant; and (d) administrative and secretarial staff as may be re- quired for the carrying out of the Unit's respon- sibilities. 3. The leader of the technical assistance team referred to in Section 4.09 of this Agreement shall cooperate closely with the Project Unit.