CREDIT NUMBER 1394 NIR Development Credit Agreement (Fourth Highway Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated /4 1983 CREDIT NUMBER 1394 NIR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated /s-/ F , 1983, between REPUBLIC OF NIGER (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following addi- tional terms have the following meanings: (a) "Project Account A" means the account referred to in Section 3.02 (a) of this Agreement; (b) "Project Account B" means the account referred to in Section 3.02 (b) of this Agreement; (c) "Training Center" means the public works training center to be established under Part C of the Project; -2- (d) "Service Materiel" means the Directorate of Equipment of the Borrower's Ministry of Public Works and Urban Dpvelopment; (e) "Fiscal Year" means the fiscal year of the Borrower, starting on October 1st and ending on September 30th of each calendar year; (f) "CFAF" means the currency of the Borrower; (g) "Treasury" means the Directorate of Treasury of the Borrower's Ministry of Finance; (h) "BDRN" means Banque de Developpement de la R6publique du Niger; and (i) "Budget" means Fonds National d'Investissements et Budget National. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to twenty one million nine hundred thousand Special Drawing Rights (SDR 21,900,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, prncurement of the goods and civil works 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 this Agreement. Section 2.04. The Closing Date shall be October 30, 1989 or such later date as the Association shall establish. The -3- Association shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty' days after the date of the Development Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account ot shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 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 semiannually on April 15 and October 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 15 and October 15 commencing October 15, 1993, and ending April 15, 2033, each installment to and including the installment payable on April 15, 2003, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.09. The currency of the Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project through its Ministry of Public Works and Urban Development with due diligence and efficiency and in conformity wiLh appropriate administrative, financial and engineering practices, and shall provide, promptly as needed, the funds,. facilities, services and other resources required for the purpose. Section 3.02. Without limitation or restriction upon any of its obligations under Section 3.01 of this Agreement, the Bor- rower shall, for purposes of Part C of the Project: (a) open, and thereafter maintain an account (the Project Account A) in the Treasury and an account (Project Account B) in BDRN, in CFAF on terms and conditions satisfactory to the Association, to pay the operating costs of the Public Works Training Center referred to in Part C of the Project, including the costs referred to in Section 3.09 of this Agreement; (b) deposit into Project Account A nine million CFAF (CFAF 9,000,000) and withdraw from such Account three million CFAF (CFAF 3,000,000) and deposit such sum into Project Account B; (c) authorize the Director of the Public Works Training Center or his authorized representative to make the withdrawals from the Project Account B for the operating costs referred to in paragraph (a) above; (d) in addition to the ihitial deposit referred to in para- graph (b) hereof, make as and when required such additional deposits into the Project Account A as shall ensure that the funds available in the Project Account A shall at all times be sufficient to permit timely and efficient execution of Part C of the Project; and (e) withdraw from Project Account A and deposit into Pro- ject Account B promptly as and when required to permit timely and efficient execution of Part C of the Project, amounts equal to payments made out of Project Account B for expenditures for such Part of the Project. Section 3.03. In order to assist the Borrower in the super- vision of the construction under Parts A and C.1 of the Project, and in the carrying out of Parts B and C of the Project, the Bor- rower shall employ such consultants and other experts as shall be agreed between the Borrower and the Association, whose qualifica- tions, experience and terms and conditions of employment shall be satisfactory to the Association, such consultants and experts to - 5 - be selected in accordance with principles and procedures satis- factory 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. Section 3.04. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery 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. (b) The Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Section 3.05. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the Credit, the Association may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. - 6 - (d) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furniso to the Association a report, of such scope and in such detail as che Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. Section 3.06. The Borrower shall take all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for carrying out the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 3.07. In carrying out Part B of the Project, the Borrower shall, not later than September 30, 1984: (a) appoint qualified local counterparts to the engineer and the technician to be employed pursuant to Section 3.03 of this Agreement; and (b) make available suitable office space for the Road Management Unit. Section 3.08. In carrying out Part C 3 of the Project the Borrower shall: (a) not later than December 31, 1984 transfer from Service Materiel to the Public Works Training Center, a crawler tractor, a motor grader, a tyred loader and an agricultural tractor; and (b) before making the transfer referred to in paragraph (a) of this Section, furnish to the Association a written statement, satisfactory to the Association, confirming that such road equipment and vehicles will be suitable for their intended purposes after rehabilitation. -7- Section 3.09. The Borrower shall make available promptly as needed (i) all travel expenses and accommodation allowances for students attending the Public Works Training Center, and (ii) all honoraria for full-time instructors and visiting lecturers at the Public Works Training Center, at such rates as shall be deter- mined by the Borrower to the satisfaction of the Association. Section 3.10. The Borrower shall, not later than December 31, 1984, appoint five full-time instructors and eight supporting staff to the Public Works Training Center whose qualifications and experience shall be satisfactory to the Association, or any other member of such full-time instruction and supporting staff as shall be agreed upon between the Borrower and the Association. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and account5 adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall: (i) have the 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 six months after the end of each such year, a certified copy of the report of such audit by such 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 accounts and the audit thereof as the Association shall from time to time reasonably request. Sectio)n 4.02. (a) For the purposes of Schedule 1 of this Agreement, the Borrower shall furnish to the Association each disbursement request within forty-five days of receipt of the invoice relating thereto. (b) The Borrower shall take all such action as shall be necessary to ensure that all payments by the Borrower in connec- tion with the Project are made within ninety days of receipt of the invoice relating thereto. -8- Section 4.03. The Borrower shall collect and analyse in accordance with appropriate statistical methods and nrocedures such technical, economic and financial data as shall be reason- ably required for proper planning of maintenance, improvements and extension of its road network. Section 4.04. The Borrower shall cause its priority road network and its road maintenance equipment to be adequately maintained and shall cause all necessary repairs thereof to be made with due diligence and efficiency in accordance with appropriate engineering and economic practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section 4.05. The Borrower shall: (a) maintain the level of revenue from road-user charges, including taxes and duties on vehicles, spare parts and fuels, and revenue derived indirectly from the operation of motor vehicles, at least equal to the total cost of road maintenance and road administration; and (b) allocate (i) in its Budget for the Fiscal Year 1983/84 an amount equivalent to not less than CFAF one billion seven hundred milliun (CFAF 1,700,000,000) for the maintenance of its roads; and (ii) in its annual Budgets, until the Project has been completed, the amounts necessary for the maintenance of its roads as shall be agreed upon between the Borrower and the Association. Section 4.06. The Borrower shall, not later than December 31, 1983 and not later than December 31st of each year, thereafter, until the Project has been completed, furnish to the Association, for its comments, its highway investment program. Section 4.07. The Borrower shall take all such action as shall be reasonably required to ensure that all dimensions and axle loads of vehicles using the roads in its national highway system will not exceed limits consistent with the design standards of such roads. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as additional conditions to the effectiveness of the Development -9- Credit Agreement within the meaning of Section 12.01 (b) of the General Ccnditions: (i) that the Borrower has provided in its Budget for fiscal year 1983/84 the sum of CFAF one billion (CFAF 1,000,000,000) as a contribution to the cost of the first year of the Project out of which the sum of CFAF one hundred forty million (CFAF 140,000,000) shall be allocated to Fonds National d'Investissements and the sum of CFAF eight hundred sixty million (CFAF 860,000,000) shall be allocated to Budget National; and (ii) that the Project Accounts referred to in Section 3.02 of this Agreement have been opened in accordance with the provisions of such Section. Section 5.02. The date 0-7'-w' 73/7/PF3 is hereby specified for the purposes of Section 12.04 of the General Condi- tions. Section 5.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date 20 years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of Public Works and Urban Development of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere des Travaux Public et de 1'Urbanisme Niamey Republic of Niger Cable address: Telex: MINISTRAVO 5283 NI Niamey- - 10 - For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their reGpective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF NIGER By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa - 11 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit and the allocation of the amounts of the Credit to each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works for 13,910,000 74% Parts A of the Project (2) Civil works for 790,000 50% Part C.1 of the Project (3) Equipment, furniture, 835,000 100% of foreign vehicles and spare expenditures parts for Parts B.2, and 50% of C.2 and C.3 of local expendi- the Project tures (4) Consultants' services 1,300J000 85% for supervision of civil works under Parts A and C.1 of the Project (5) Consultants' services 2,780,000 85% for Parts B.1 and C.1 of the Project (6) Unallocated 2,285,000 TOTAL 21,900,000 - 12 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such good, or services shall be deemed to be "foreign expenditures". 3. The disbursement percentages have been calculated in com- pliance with the policy of the Association that the proceeds of the Credit shall not be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; on this basis, if the amount of any such taxes levied on or in respect of items in any Category decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such Category as required to be consistent with the aforemen- tioned policy of the Association. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance all expenditures in that Category, the Ass-ciation may, by notice to the Borrower, reallocate to such Categoty, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures. 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of - 13 - the Credit and the Association may, without in any way restrict- ing or limiting any other right, power or remedy of the Associa- tion uncier the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Associa- tion's reasonable opinion, represents the amount of such expendi- tures which would otherwise have been eligible for financing out of the proceeds o.f the Credit. - 14 - SCHEDULE 2 Description of the Project The Project consists of the following Parts: Part 1.: Pavement Strengthening and Resurfacing Strengthening and resurfacing of about 374 kilometers of the existing bituminous road network as set forth in Schedule 4 to this Agreement. Part B: Road Network Management 1. Establishment and operation of a Road Management Unit within the Directorate of Public Works of the Borrower; and 2. Acquisition and utilization of office, traffic- counting, pavement-testing and line-marking equipment, and vehicles, by the Road Management Unit. Part C: Training Center 1. Construction and operation of a Public Works Training Center in Niamey including workshops, classrooms, and administrative offic'es; 2. Acquisition and utilization of teaching, office and workshop equipment, and furniture, and earth-moving machinery and vehicles, by the Training Center; and 3. Rehabilitation by the Training Center of equipment and vehicles transferred to the Training Center from the Service Materiel and acquisition and utilization of spare parts for the purpose. The Project is expected to be completed by December 31, 1988. - 15 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part C hereof, goods and civil works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the current edition of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (hereinafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For goods and works to be procured on the basis of inter- national competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Association as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as .the case may be, a general procurement notice, in such form and detail and containing such information as the Asso- ciation shall reasonably request; the Association will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of inter- national competitive bidding. 3. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) priL, for the imported goods, or the ex-factory price or off-the-shelf price of other goods, offered in such bid; (ii) customs duties and other import taxes levied in connection with the importation, or the sales and similar taxes levied in connection with the sale or delivery, pursuant to the bid, of the goods shall not be taken into account in the evaluation of the bids; and (iii) the cost of inland freight and other expenditures incidental to the delivery of the goods to the place of their use or installation shall be included. - 16 - B. Preference for Domestic Contractors With respect to the evaluation of bids for any contract or part thereof, for civil works included under Category (2) of the table set forth in Schedule 1 to the Development Credit Agreement and to be procured in accordance with the procedures described in Part A of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, in accordance with, and subject to, the following provisions: 1. Contractors applying for such preference shall be asked to provide, as part of the data for qualification, such informa- tion, including details of ownership, as shall be required to deterrine whether, according to the classification established by the Borrower and accepted by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. 2. After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. C. Other Procurement Procedures Equipment and furniture for the Training Center, other than workshop equipment and vehicles, and equipment for traffic counting, pavement marking and roughness measurement may be procured by negotiated purchase after solicitetions of quotations from at least three suppliers. D. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: - 17 - With respect to all contracts to cost the equivalent of $50,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Associa- tion, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification was invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for with- drawal of funds from the Credit Account in respect of such con- tract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other infor- mation as the Association shall reasonably request. The Associa- tion shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower add state the reasons for such determination. - - 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower shall inform the Association of the proposed modification, waiver, exteasion or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent with the pro- visions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. - 19 - SCHEDULE 4 Road Strengthening Program Description of Works Road* Works* RN-1W Niamey-Tillaberry 44 km monocouche 1/ PK 0-62 18 km bicouche 2/ Supplementary works 3/ RN-29 Tsernaoua-Tahoua 28 km bicouche PK 0-118 90 km monocouche 1.5 km drainage and pavement repairs at PK 69 Supplementary works RN 1E Niamey-Birni Nkonni 50 km monocouche PK 10-50, 210-220 Supplementary works PK 270-320 50 km bicouche Supplementary works PK 320-414 94 km bicouche 30 km strengthening 4/ Supplementary works * The road sections and work quantities indicated below may vary by 5 km and 10% in base cost. 1/ Single bituminous surface dressing. 2/ Double bituminous surface dressing. 3/ Regulating and other patching, making up shoulders, culvert repairs, etc. 4/ Overlaying with 15-25 cm laterite. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I heteby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the day of 1983 FOR SECRETARY