Senegal - Highway Project : Credit 0198 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 198 SE Development Credit Agreement (Highway Project) BETWEEN REPUBLIC OF SENEGAL AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 19, 1970 CONFORMED COPY CREDIT NUMBER 198 SE Development Credit Agreement (Highway Project) BETWEEN REPUBLIC OF SENEGAL AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 19, 1970 AGREEMENT, dated June 19, 1970 between REPUBLIC OF SENEGAL (hereinafter called the Borrower) and INTER- NATIONAL DEVELOPMENT AssoCIATIoN (hereinafter called the Association). ARTICLE I General Conditions; Definitions SECTION 1.01. The parties to this Development Credit Agreement accept all the provisions of the General Condi- tions 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 Gen- eral Conditions Applicable to Development Credit Agree- ments of the Associatioi being hereinafter called the Gen- eral 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 respective 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 Agreement set forth or referred to, an amount in various currencies equivalent to two million one hundred thousand dollars ($2,100,000). SECTION 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name of the Borrower and shall credit to such Account the amount of the Credit. 4 (b) The amount of the Credit may be withdrawn from the Credit Account as provided in, and subject to the rights of cancellation and suspension set forth in, this Develop- ment Credit Agreement and in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 Asso- ciation. 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) such amounts as shall have been paid (or, if the Association shall so agree, shall be required to meet payments to be made) for goods or services included in Categories II, III and IV of the allocation of the proceeds of the Credit referred to in Section 2.02 of this Agreement; and (ii) the equivalent of sixty-six percent (66%) of such amounts as shall have been paid (or, if the Associa- tion shall so agree, shall be required to meet pay- ments to be made) for goods or services included in Category I of the allocation of the proceeds of the Credit referred to in Section 2.02 of this Agree- ment, which percentage represents the estimated foreign exchange component of the cost of such goods or services; provided, however, that if there shall be an increase in the estimate of such payments for goods or services included in Category I, the Association may by notice to the Bor- rower adjust the stated percentage applicable to such Cate- gory as required in order that withdrawals of the amount of the Credit then allocated to such Category and not with- drawn may continue pro rota with the payments remaining to be made for goods or services included in such Category. 5 SECTION 2.04. No withdrawals from the Credit Account shall be made on account of payments (i) for goods pro- duced in, or services supplied from, the territories of the Borrower except under Category I of the allocation of the proceeds of the Credit referred to in Section 2.02 (b) of this Agreement, or (ii) for taxes imposed by the Borrower or any of its political subdivisions on, or in connection with the importation or supply of, goods or services to be financed out of the proceeds of the Credit. SECTION 2.05. The currency of the Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. SECTION 2.06. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one percent (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 March 1 and September 1 in each year. 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 March 1 and September 1 commencing September 1, 1980 and ending March 1, 2020, each installment to and including the install- ment payable on March 1, 1990 to be one-half of one percent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half percent (1 %) 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 Development Credit Agreement to expenditures on the Project, described in Schedule 2 to this Agreement. 6 SECTION 3.02. Except as the Association shall otherwise agree, (i) the goods and services to be financed out of the proceeds of the Credit shall be procured on the basis of international competitive bidding in accordance with the Guidelines for Procurement under World Bank Loans and IDA Credits, published by the Bank in August 1969, and in accordance 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 Associa- tion, and (ii) contracts for the procurement of such goods and services shall be subject to the prior approval of 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 carrying out the Project. ARTICLE IV Particular Covenants SECTION 4.01. (a) The Borrower shall carry out the Project with due diligence and efficiency and in conformity with sound administrative, financial and engineering prac- tices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Except as the Association shall otherwise agree, the roads referred to in Part A of the Project shall be con- structed by contractors acceptable to the Association and the Borrower, employed under contracts satisfactory to the Association and the Borrower. (c) In the carrying out of the Project, the Borrower shall employ consultants and experts acceptable to, and to an extent and upon terms and conditions satisfactory to, the Association: (i) to review the designs of the roads included in Part A of the Project; 7 (ii) to supervise the construction of the roads included in Part A of the Project; and (iii) to carry out the study included in Part C of the Project. (d) The general design standards to be used for the roads included in the Project shall be as set forth in Schedule 4 to this Agreement, as such standards shall be modified from time to time by agreement between the Borrower and the Association. (e) The Borrower shall furnish or cause to be furnished to the Association, promptly upon their preparation, the plans, specifications, contract documents and work schedules for the Project and any material modifications subsequently made therein, in such detail as the Association shall rea- sonably request. (f) Except as the Association shall otherwise agree, not later than three months after the employment of the con- sultants pursuant to paragraph (c) (iii) of Section 4.01 of this Agreement, the Borrower shall submit to the Asso- ciation for approval a list of the equipment and vehicles to be procured under Part B of the Project. (g) Upon the completion of the study included in Part C of the Project, the Borrower and the Association shall agree upon (i) the implementation, by the Borrower, of such study's principal recommendations, and (ii) a time- table for such implementation. SECTION 4.02. The Borrower shall (i) cause to be main- tained records adequate to identify the goods and services financed out of the proceeds of the Credit, to disclose the use thereof in the Project, and to record the progress of the Project (including the cost thereof) ; (ii) enable the Asso- ciation's representatives to inspect the Project, such goods and any relevant records and documents; and (iii) cause to be furnished to the Association all such inf9rmation as the Association shall reasonably request concerning the 8 expenditure of the proceeds of the Credit, the Project, such goods and services, and the operations, administra- tion and financial condition of the agency or agencies of the Borrower responsible for the carrying out of the Project or any part thereof. SECTION 4.03. (a) The Borrower and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, each of them shall furnish to the other all such information 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 financial and eco- nomic conditions in the territories of the Borrower and the international balance of payments position of the Bor- rower. (b) The Borrower and the Association shall from time to time exchange views through their representatives with regard to matters relating to the purposes of the Credit and the maintenance of the service thereof. 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 or the main- tenance of the service thereof. (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 4.04. The Borrower undertakes to insure, or make other arrangements satisfactory to the Association for insurance of, the imported goods to be financed out of the proceeds of the Credit against marine, transit and other hazards incident to the acquisition, transportation and deliv- ery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. 9 SECTION 4.05. The Borrower shall establish and maintain facilities adequate to collect and record, in accordance with appropriate statistical methods and procedures, such infor- mation concerning road traffic, road construction and road maintenance costs as shall be reasonably required for proper planning of maintenance, improvements and exten- sions of its public roads system. SECTION 4.06. The Borrower shall cause its road system to be adequately maintained and shall cause all. necessary repairs thereof to be made, all in accordance with sound engineering practices, and shall provide, as needed, the funds, facilities, services and other resources required for the foregoing. SECTION 4.07. The Borrower shall take all measures rea- sonably required to ensure that the dimensions and axle- loads of vehicles using its road network shall not exceed limits consistent with the design standards of such roads. SECTION 4.08. The principal of, and service charges on, 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 4.09. This 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 regis- tration 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 10 time during the continuance thereof, the Association, at its option, may by notice to the Borrower declare the prin- cipal of the Credit then outstanding to be due and payable 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 con- trary notwithstanding. ARTICLE VI Effective Date; Termination SECTION 6.01. The following event is specified as an addi- tional condition to the effectiveness of this Development Credit Agreement within the meaning of Section 10.01 (b) of the General Conditions: The Borrower shall have employed the consultants to carry out the study included in Part C of the Project, as required by the provisions of Section 4.01 (c) (iii) of this Agreement. SECTION 6.02. The date of October 1, 1970 is hereby spec- ified for the purposes of Section 10.04 of the General Con- ditions. SECTION 6.03. The obligations of the Borrower under Sections 4.01, 4.02, 4.04, 4.05, 4.06 and 4.07 of this Agree- ment shall terminate on the date on which this Development Credit Agreement shall terminate or on a date fifteen years after the date of this Development Credit Agreement, whichever shall be the earlier. ARTICLE VII Miscellaneous SECTION 7.01. The Closing Date shall be June 30, 1972 or such other date as shall be agreed between the Borrower and the Association. 11 SECTIoN 7.02. The Minister of Finance and Economic Affairs of the Borrower is designated as representative of the Borrower for the purposes of Section 9.03 of the Gen- eral Conditions. SECTiON 7.03. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: Ministere des Finances et des Affaires Economiques B. P. 4017 Rue Charles Laine Dakar Senegal Cable address: Minifinances Dakar 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 12 in their respective names and to be delivered in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF SENEGAL By /s/ CHEIKH IBRAHIMA FALL Authorized Representative INTERNATIONAL DEVELOPMENT AssoCIATION By /s/ J. BURKE KNAPP Vice President 13 SCHEDULE 1 Allocation of Proceeds of Credit Amounts Expressed Category in Dollar Equivalent I. Construction of feeder roads 500,000 II. Supervision of road construction 20,000 III. Imported road maintenance equipment, vehicles and spare parts 1,000,000 IV. Consultants' services for carrying out Part C of the Project 200,000 V. Unallocated 380,000 2,100,000 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 Cate- gory I an amount equal to 66% of such increase) will be allocated by the Association, at the request of the Borrower, to such Category from Category V, subject, however, to the requirements for contingencies, as deter- mined by the Association, in respect of the cost of the items in the other Categories. 14 SCHEDULE 2 Description of the Project The Project consists of : Part A. The construction and supervision of construction of four sections of feeder roads as follows: Approximate Road Section Length in Km Koungheul-Lour 26 Maleme Hodar-Delbi 17 Kaffrine-Katakiel 19 Sokone--Diaye-Diaye 16 Part B. The procurement of road maintenance equipment and vehicles. Part 0. The carrying out of a road improvement and maintenance study. The Project is expected to be completed by December 31, 1971. 15 SCHEDULE 3 Supplementary Procurement Procedures A. Contracts for the Construction of Feeder Roads. 1. Prequalification of bidders as described in paragraph 1.3 of the Guidelines referred to in Section 3.02 of this Agreement shall be used for bidding on all feeder road construction works under Category I of Schedule 1 to this Agreement, and at least 45 days shall be allowed for sub- mission of prequalification documents. 2. Foreign contractors shall not be required to register in Senegal as a prerequisite for submitting bids. In the event that registration shall be necessary after a foreign contractor has been awarded a contract, the Borrower shall facilitate the registration. 3. Each contract shall include: (a) an obligation to provide a performance bond in the amount of 100% of the contract price or a bank guarantee in an amount not less than 10% of such price; and (b) a provision for (i) the retention of 10% of the amounts payable under each of the contractor's monthly invoices, the aggregate total of such reten- tions not to exceed 5% of the contract price, or (ii) a bank guarantee in the amount of 5% of the contract price, such retention or such guarantee to remain in effect until final reception of the works. 4. The following documents shall be submitted to the Association for approval: (a) prior to advertisement: prequalification documents and advertising coverage. (b) prior to invitation of bids: 16 (i) evaluation of completed prequalification docu- ments and proposed list of prequalified con- tractors; and (ii) bidding and contracting documents. (c) prior to contract award: (i) abstract and evaluation of bids received; and (ii) recommendation for award. 5. As soon as a contract has been signed, a copy thereof shall be sent to the Association promptly after execution of any such contract and prior to the submission to the Association of the first application for withdrawal in re- spect of such contract. B. Contracts for the Procurement of Road Maintenance Equipment and Vehicles. Road maintenance equipment and vehicles under Cate- gory III of Schedule 1 to this Agreement shall be procured as follows: 1. Identical or similar goods shall be grouped together whenever practicable for the purpose of bidding and pro- curement. 2. Bidding documents shall state that the suppliers of equipment shall provide adequate servicing facilities and shall maintain up-to-date inventories of spare parts in the territories of the Borrower. 3. The time interval between the invitation to bid and the opening of the bids shall be not less than 60 days. 4. The following documents shall be submitted to the Association for approval: (a) prior to invitation of bids: 17 (i) proposals for advertising coverage, specifica- tions of goods and grouping of goods; and (ii) bidding and contracting documents. (b) prior to contract award: (i) abstract and evaluation of bids received; and (ii) recommendation for award. 5. As soon as a contract has been signed, two copies thereof shall be sent to the Association promptly after execution of any such contract and prior to the submission to the Association of the first application for withdrawal in respect of such contract. 18 SCHEDULE 4 Design Standards Design Speed 60 km/h Maximum Grade 6 % Minimum Curves Radius 60 m Width of Formation 6 m Width of Surfacing 6 m Thickness of Surfacing after Compaction 12 cm