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CONFORMED COPY
CREDIT NUMBER 2020 GUB
Development Credit Agreement
(Social and Infrastructure Relief Project)
between
REPUBLIC OF GUINEA BISSAU
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated June 29, 1989
CREDIT NUMBER 2020 GUB
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated June 29, 1989, between REPUBLIC OF GUINEA BISSAU (the
Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association).
WHEREAS (A) the Borrower, having satisfied itself as to the
feasibility and priority of the Project described in Schedule 2 to this
Agreement, has requested the Association to assist in the financing of the
Project; and
(B) the Borrower intends to contract from other donor institutions
(Cofinanciers) other financial contributions to assist in financing the
Project on the terms and conditions set forth in the Agreements (Financing
Agreements) to be entered into between the Borrower and the Cofinanciers.
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 set forth in this Agreement;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Development Credit
Agreements" of the Association, dated January 1, 1985, with the last
sentence of Section 3.02 deleted (the General Conditions) constitute an
integral part of this Agreement.
Section 1.02. 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 additional terms
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have the following meanings:
(a) "BNGB" means Banco Nacional da Guine-Bissau, the Central Bank
of the Borrower;
(b) "ME" means the Ministry of Education of the Borrower;
(c) "MINSAP" means the Ministry of Public Health of the Borrower;
(d) "MFPT" means the Ministry of Public Function and Labor of the
Borrower;
(e) "MP" means the Ministry of Planning of the Borrower;
(f) "MU" means the Management Unit (Unidade de Gestao) established
within MP in accordance with Despacho No. 1/88 of the Borrower, dated
December 6, 1988, as set forth in Section 3.02 (a) of, and in paragraph 1
of Schedule 5 to this Agreement;
(g) "MES" means the Ministry of Social Infrastructure of the
Borrower;
(h) "TO" means the Technical Office (Gabinete Tecnico) established
within MES in accordance with Despacho No. 1/88 of the Borrower, dated
November 28, 1988, as set forth in Section 3.02 (b) of, and in paragraph 2
of Schedule 5 to this Agreement;
(i) "Bidding Committee" means the committee (Comissao de Concursos)
established by Despacho No. 18/89 of the Borrower, dated February 16, 1989,
as set forth in Section 3.02 (c) of, and in paragraph 3 of Schedule 5 to
this Agreement;
(j) "Reorientation Unit" means the unit (Celula de Reconversao)
established within MFPT in accordance with Despacho Ministerial No. 1/89 of
the Borrower, dated February 17, 1989, to manage and coordinate the
reallocation of laid-off civil servants under the adjustment program of the
Borrower;
(k) "Special Account" means the account referred to in Section 2.02
(b) of this Agreement;
(l) "Project Preparation Advances" means the project preparation
advances granted by the Association to the Borrower pursuant to an exchange
of letters dated May 18, 1988 and June 7, 1988, and November 28, 1988, and
April 3, 1989 between the Borrower and the Association;
(m) "Pesos" means the Borrower's currency unit; and
(n) "fiscal year" means the Borrower's fiscal year which
runs from January 1 to December 31.
ARTICLE II
The Credit
Section 2.01. The Association agrees to lend to the Borrower, on the
terms and conditions set forth or referred to in the Development Credit
Agreement, an amount in various currencies equivalent to three million eight
hundred fifty thousand Special Drawing Rights (SDR 3,850,000).
Section 2.02. (a) The amount of the Credit may be withdrawn from the
Credit Account in accordance with the provisions of Schedule 1 to this
Agreement 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 described in Schedule 2 to this Agreement and to be financed
out of the proceeds of the Credit.
(b) The Borrower shall, for the purposes of the Project, open and
maintain in dollars, a special account in a commercial bank on terms and
conditions satisfactory to the Association. Deposits into, and payments out
of, the Special Account shall be made in accordance with the provisions of
Schedule 4 to this Agreement.
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(c) Promptly after the Effective Date, the Association shall, on
behalf of the Borrower, withdraw from the Credit Account and pay to itself
the amount required to repay the principal amount of the Project Preparation
Advance withdrawn and outstanding as of such date and to pay all unpaid
charges thereon. The unwithdrawn balance of the authorized amount of the
Project Preparation Advance shall thereupon be cancelled.
Section 2.03. The Closing Date shall be June 30, 1993, or such later
date as the Association shall establish. The Association shall promptly
notify the Borrower of such later date.
Section 2.04. (a) The Borrower shall pay to the Association a
commitment charge on the principal amount of the Credit not withdrawn from
time to time at a rate to be set by the Association as of June 30 of each
year, but not to exceed the rate of one-half of one percent (1/2 of 1%) per
annum.
(b) The commitment charge shall accrue: (i) from the date sixty days
after the date of this Agreement (the accrual date) to the respective dates
on which amounts shall be withdrawn by the Borrower from the Credit Account
or cancelled; (ii) at the rate set as of the June 30 immediately preceding
the accrual date and at such other rates as may be set from time to time
thereafter pursuant to paragraph (a) above. The rate set as of June 30 in
each year shall be applied from the next payment date in that year specified
in Section 2.06 of this Agreement.
(c) 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 2.05. 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 2.06. Commitment charges and service charges shall be payable
semiannually on June 15 and December 15 in each year.
Section 2.07. (a) Subject to paragraphs (b) and (c) below, the
Borrower shall repay the principal amount of the Credit in semiannual
installments payable on each June 15 and December 15 commencing June 15,
1999, and ending December 15, 2029. Each installment to and including the
installment payable on June 15, 2009 shall be one percent (1%) of such
principal amount, and each installment thereafter shall be two percent (2%)
of such principal amount.
(b) Whenever: (i) the Borrower's gross national product per capita,
as determined by the Association, shall have exceeded $790 in constant 1985
dollars for five consecutive years; and (ii) the Bank shall consider the
Borrower creditworthy for Bank lending, the Association may, subsequent to
the review and approval thereof by the Executive Directors of the
Association and after due consideration by them of the development of the
Borrower's economy, modify the terms of repayment of installments under
paragraph (a) above by requiring the Borrower to repay twice the amount of
each such installment not yet due until the principal amount of the Credit
shall have been repaid. If so requested by the Borrower, the Association may
revise such modification to include, in lieu of some or all of the increase
in the amounts of such installments, the payment of interest at an annual
rate agreed with the Association on the principal amount of the Credit
withdrawn and outstanding from time to time, provided that, in the judgment
of the Association, such revision shall not change the grant element
obtained under the above-mentioned repayment modification.
(c) If, at any time after a modification of terms pursuant to
paragraph (b) above, the Association determines that the Borrower's economic
condition has deteriorated significantly, the Association may, if so
requested by the Borrower, further modify the terms of repayment to conform
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to the schedule of installments as provided in paragraph (a) above.
Section 2.08. The currency of the United States of America is hereby
specified for the purposes of Section 4.02 of the General Conditions.
ARTICLE III
Execution of the Project
Section 3.01. (a) The Borrower declares its commitment to the
objectives of the Project as set forth in Schedule 2 to this Agreement and,
to this end, shall carry out the Project with due diligence and efficiency
and in conformity with appropriate administrative, engineering, health,
educational and managerial practices, and shall provide, promptly as needed,
the funds, facilities, services and other resources required for the
Project.
(b) Without limitation upon the provisions of paragraph (a) of this
Section, and except as the Borrower and the Association shall otherwise
agree, the Borrower shall carry out the Project in accordance with the
Implementation Program set forth in Schedule 5 to this Agreement:
(i) Parts A and B of the Project through MES;
(ii) Part C of the Project through ME;
(iii) Part D of the Project through MINSAP;
(iv) Part E of the Project through MFPT; and
(v) Part F of the Project through MP.
Section 3.02. The Borrower shall continue to maintain: (a) MU within
MP; (b) TO within MES; and (c) the Bidding Committee, as provided for in
Schedule 5 to this Agreement and in a form, with functions, staffing and
office space satisfactory to the Association.
Section 3.03. The Borrower shall, not later than September 30, 1990,
and, not later than September 30, of each year thereafter, conduct with the
Association and other Cofinanciers, annual Project implementation reviews
to:
(a) monitor technical and financial progress in achieving Project
objectives;
(b) update Project implementation timetables and cost estimates;
(c) evaluate Project impact including the results of the studies
referred to in Part F of the Project; and
(d) exchange information among staff responsible for Project
implementation and propose solutions to any current problems.
Section 3.04. The Borrower shall:
(a) not later than June 30, 1990, carry out and complete, under
terms of reference agreed with the Association: (i) the survey referred to
in Part B.2 of the Project; and (ii) the studies and survey referred to in
Part F of the Project;
(b) not later than September 30, 1990: (i) review with the
Association the recommendations of the surveys and studies referred to in
paragraph (a) of this Section; and (ii) agree with the Association on an
action plan to implement the recommendations of the survey referred to in
Part B.2 of the Project including the resettlement plan, if necessary, and
the measures to recover the cost of land to be legally attributed to
eligible beneficiaries of serviced plots under Part B.1 of the Project; and
(c) promptly thereafter, carry out said action plan according to a
timetable agreed with the Association.
Section 3.05. Except as the Association shall otherwise agree,
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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 this Agreement.
Section 3.06. The Borrower shall:
(a) open an account in Pesos, in a domestic bank in the name of
MP/MU for the Borrower's financial contribution to the Project; and
(b) during execution of the Project make such deposits into such
account in such amounts as needed to finance the Borrower's contribution to
implement the Project.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain or cause to be
maintained records and accounts adequate to reflect in accordance with sound
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 records and accounts referred to in paragraph
(a) of this Section including those for the Special
Account 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 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 the audit thereof
as the Association shall from time to time reasonably
request.
(c) For all expenditures with respect to which withdrawals from the
Credit Account were made on the basis of statements of expenditure, the
Borrower shall:
(i) maintain or cause to be maintained, in accordance with
paragraph (a) of this Section, records and accounts
reflecting such expenditures;
(ii) retain, until at least one year after the Association has
received the audit for the fiscal year in which the last
withdrawal from the Credit Account was made, all records
(contracts, orders, invoices, bills, receipts and other
documents) evidencing such expenditures;
(iii) enable the Association's representatives to examine such
records; and
(iv) ensure that such records and accounts are included in the
annual audit referred to in paragraph (b) of this Section
and that the report of such audit contains a separate
opinion by said auditors as to whether the statements of
expenditure submitted during such fiscal year, together
with the procedures and internal controls involved in
their preparation, can be relied upon to support the
related withdrawals.
ARTICLE V
Remedies of the Association
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Section 5.01. Pursuant to Section 6.02 (h) of the General
Conditions, the following additional events are specified:
(a) The Legislation establishing MU, TO, Bidding Committee, and
Reorientation Unit shall have been amended, suspended, abrogated, repealed
or waived so as to affect materially and adversely the ability of the
Borrower to perform any of its obligations under this Agreement.
(b) The Financing Agreements shall have failed to become effective
provided, however, that the provisions of this paragraph shall not apply if
the Borrower establishes to the satisfaction of the Association that
adequate funds for the Project are available to the Borrower from other
sources on terms and conditions consistent with the obligations of the
Borrower under this Agreement.
(c) (i) Subject to subparagraph (ii) of this paragraph:
(A) The right of the Borrower to withdraw the proceeds
of any grant or loan made to the Borrower for the
financing of the Project shall have been suspended,
cancelled or terminated in whole or in part,
pursuant to the terms of the Financing Agreements
providing therefor, or
(B) any such loan shall have become due and payable
prior to the agreed maturity thereof.
(ii) Subparagraph (i) of this paragraph shall not apply if the
Borrower establishes to the satisfaction of the
Association that:
(A) such suspension, cancellation, termination or
prematuring is not caused by the failure of the
Borrower to perform any of its obligations under
such agreement; and
(B) adequate funds for the Project are available to the
Borrower from other sources on terms and conditions
consistent with the obligations of the Borrower
under this Agreement.
Section 5.02. Pursuant to Section 7.01 (d) of the General Conditions,
the following additional events are specified:
(a) the event specified in paragraph (a) of Section 5.01 of this
Agreement shall occur and shall continue for a period of sixty (60) days
after notice thereof shall have been given by the Association to the
Borrower; and
(b) any of the events specified in paragraph (c) (i) (B) of Section
5.01 of this Agreement shall occur, subject to the proviso of paragraph (c)
(ii) of that Section.
ARTICLE VI
Effective Date; Termination
Section 6.01. The following events are specified as additional
conditions to the effectiveness of the Development Credit Agreement within
the meaning of Section 12.01 (b) of the General Conditions:
(a) MU's Project Coordinator, Accountant and Procurement Specialist
have been employed, as set forth in paragraph 1 (a) (i) of Schedule 5 to
this Agreement;
(b) consultants' services, satisfactory to the Association have been
employed in accordance with Section II of Schedule 3 to this Agreement, to
staff the TO, with the following experts: (i) Contract Specialist; (ii)
Supervision Engineer; and (iii) Accountant, as set forth in paragraph 2 of
Schedule 5 to
this Agreement; and
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(c) the Borrower has deposited into the account opened as set forth
in Section 3.06 of this Agreement, an aggregate amount of not less than the
equivalent of fifty thousand dollars ($50,000).
Section 6.02. The date one hundred and twenty (120) days after the
date of this Agreement is hereby specified for the purposes of Section 12.04
of the General Conditions.
ARTICLE VII
Representative of the Borrower; Addresses
Section 7.01. The Minister of Finance of the Borrower is designated
as representative of the Borrower for the purposes of Section 11.03 of the
General Conditions.
Section 7.02. The following addresses are specified for the purposes
of Section 11.01 of the General Conditions:
For the Borrower:
Ministerio das Financas
C.P. 67
Bissau, Guine-Bissau
Cable address: Telex:
MEF 257 MEF BI
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 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.
REPUBLIC OF GUINEA-BISSAU
By /s/ Alfredo Lopes Cabral
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Edward V.K. Jaycox
Regional Vice President
Africa
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, the allocation of the amounts of the Credit
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to each Category and the percentage of expenditures for items so to be
financed in each Category:
Amount of the
Credit Allocated % of
(Expressed in Expenditures
CategorySDR Equivalent) to be Financed
(1) Civil Works 380,000 100% of foreign
expenditures and
95% of local
expenditures
(2) Vehicles, equip- 150,000 100%
ment, materials,
and supplies
(3) Consultants' 1,850,000 100%
services,
training,
studies, sur-
veys and
audits
(4) Operating costs 150,000 100%
of:
(a) MU;
(b) TO; and
(c) Reorientation Unit
(5) Refunding of 1,050,000 Amount due pur-
Project Prepara- suant to Section
tion Advance 2.02 (c) of this
Agreement
(6) Unallocated 270,000
TOTAL 3,850,000
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
serv,ices supplied from the territory of any country other than that of the
Borrower;
(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; and
(c) the term "operating costs" means Project management costs,
including:
(i) costs of operating and maintaining vehicles, equipment and
buildings required for the Project;
(ii) office running expenses including rental fees, cost of
stationary and supplies and materials; and
(iii) such other Project related costs as the Borrower and the
Association may from time to time determine.
3. 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.
SCHEDULE 2
Description of the Project
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The objectives of the Project are: (a) to rehabilitate and maintain
essential urban and social infrastructure and improve overall sanitary
conditions in urban areas; (b) to relieve the acute shortage of urban
housing through the provision of serviced plots; (c) to increase the
efficiency of delivery of educational and health services; (d) to facilitate
the placing of laid-off civil servants and other unemployed persons; and (a)
to assist in mitigating some of the social costs of adjustment.
The Project consists of the following parts, subject to such
modifications thereof as the Borrower and the Association may agree upon
from time to time to achieve such objectives:
Part A: Social infrastructure rehabilitation and maintenance
1. Infrastructure Rehabilitation and Construction: carrying out, in the
City of Bissau and other priority cities, the following works:
(a) clearing existing and construction of new earth and concrete
drainage works;
(b) street improvements, including repair of pavements, sidewalks,
culverts and construction of neighborhood access roads;
(c) repair and minor extension of water supply systems; and
(d) sanitation programs, including repair of sewerage systems.
2. Rehabilitation of Community Facilities: carrying out, in the City of
Bissau, other cities and rural areas, maintenance and repair works of:
(a) about eleven secondary schools;
(b) about sixty primary schools;
(c) food-handling facilities in the three pre-primary
schools implementing the school food program;
(d) about six health facilities; and
(e) markets and other priority facilities of social and
economic importance.
Part B: Sites and Services
1. Provision of about seven hundred serviced plots located in the City of
Bissau (neighborhood of Antula), with basic road, drainage, water supply and
electrical power services.
2. Carrying out a survey to:
(a) ascertain the number of persons currently living in the sites to
be developed;
(b) evaluate whether any of the occupants of the sites need to be
resettled, in order to vacate said sites; and
(c) recommend the social, legal, institutional and financial aspects
necessary to design and implement a resettlement plan if necessary; and
(d) recommend measures to recover the cost of land where the housing
units will be built.
Part C: Education
1. Acquisition of basic school equipment, classroom furniture and teaching
aids.
2. Provision of food-handling equipment and utensils for the three pro-
primary schools implementing the school food program.
Part D: Health
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1. Supplemental essential drug supply scheme:
(a) acquisition of drugs, medicines, medical supplies, training
supplies and vehicles; and
(b) design and implementation of a training program for MINSAP's
health staff in handling and operating a supplemental essential drugs
program.
2. Strengthening of the AIDS-control program:
(a) acquisition of drugs to combat AIDS-related diseases; and
(b) acquisition of a vehicle, equipment and supplies for the National
Hospital Blood Donor Bank.
3. Equipping of Health Facilities: acquisition of supplies, equipment and
furniture for the health facilities to be rehabilitated under the Project.
Part E: Strengthening of the Reorientation Unit
1. Establishment and operation of a data-bank on the supply and demand of
employment for laid-off civil servants and unemployed persons, with special
emphasis on the women and the youth.
2. Design and implementation of an information dissemination campaign and
a training program for laid-off civil servants.
3. Acquisition of basic equipment to assist the trainees in starting
microbusinesses.
Part F: Social Dimensions of Adjustment
1. Carrying out socioeconomic studies on:
(a) definition of social policy mechanisms;
(b) household living conditions in the City of Bissau;
(c) social assessment of the Borrower's investment program;
(d) assessment of the informal sector;
(e) assessment of the food security situation;
(f) women's entrepreneurial activities; and
(g) assessment of the reorientation program for laid-off
civil servants, including: (i) their employment characteristics; and (ii)
the extent to which the employment opportunities generated under the Project
meet their employment needs.
2. Conducting a standard household living survey in the City of Bissau.
Part G: Institutional Development
Strengthening the Borrower's capabilities for Project implementation.
1. MP: (a) acquisition of vehicles, establishment, equipping and furnishing
of MU; (b) strengthening of MU's managerial capabilities to coordinate
Project implementation; and (c) assistance to undertake studies on the
social dimensions of adjustment.
2. MES: (a) acquisition of vehicles, establishment, equipping and
furnishing of TO; and (b) strengthening of TO's managerial capabilities to
manage and supervise infrastructure works financed under the Project;
3. MFPT: (a) equipping and (b) strengthening of the Reorientation Unit to
build-up a data-bank, develop an information dissemination campaign and
carry out a training program for laid-off civil servants.
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4. MINSAP: strengthening of MINSAP's capabilities to implement the
supplemental essential drugs program.
* * * *
The Project is expected to be completed by December 31, 1992.
SCHEDULE 3
Procurement and Consultants' Services
Section I. Procurement of Goods and Works
Part A: International Competitive Bidding
Except as provided in Part D hereof, goods and works 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 Guinea-Bissau 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 4 of
Appendix 2 thereto.
Part C: Preference for Domestic Contractors
In the procurement of works in accordance with the procedures described
in Part A, hereof, the Borrower may grant a margin of preference to domestic
contractors in accordance with, and subject to, the provisions of paragraphs
2.55 and 2.56 of the Guidelines and paragraph 5 of Appendix 2 thereto.
Part D: Other Procurement Procedures
1. Local competitive bidding:
Works estimated to cost the equivalent of $100,000 or more up to an
aggregate amount of $400,000 may be procured under contracts awarded on the
basis of competitive bidding, advertised locally, in accordance with
procedures satisfactory to the Association.
2. International or Local Shopping:
(a) Works estimated to cost the equivalent of $50,000, up to an amount
not to exceed the equivalent of $100,000 per contract, up to an aggregate
amount of $300,000; and
(b) Items or groups of items estimated to cost less than the
equivalent of $50,000 per contract, may be procured under contracts awarded
on the basis of comparison of price quotations solicited from a list of at
least three suppliers eligible under the Guidelines, in accordance with
procedures acceptable to the Association.
3. Direct Contracting:
Works estimated to cost the equivalent of up to $50,000 per contract,
up to an aggregate amount of $300,000, may be awarded on the basis of direct
contracting in accordance with procedures acceptable to the Association.
Part E: 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
$100,000 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 Association pursuant to said paragraph 2 (d) shall be furnished to the
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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 preceding
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 4 to this Agreement.
(c) The provisions of the preceding subparagraphs (a) and (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 this Agreement.
2. The figure of 10% is hereby specified for purposes of paragraph 4 of
Appendix 1 to the Guidelines.
Section II. Employment of Consultants
In order to assist the Borrower in carrying out the Project, the
Borrower shall employ engineering and other consultants and qualified local
counterpart staff 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 4
Special Account
1. For the purposes of this Schedule:
(a) the term "eligible Categories" means Categories (1) through (4)
set forth in the table in paragraph 1 of Schedule 1 to this Agreement;
(b) the term "eligible expenditures" means expenditures 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 allocated from time to time
to the eligible Categories in accordance with the provisions of Schedule 1
to this Agreement; and
(c) the term "Authorized Allocation" means an amount equivalent to
$600,000 to be withdrawn from the Credit Account and deposited into the
Special Account pursuant to paragraph 3 (a) of this Schedule.
2. Payments out of the Special Account shall be made exclusively for
eligible expenditures in accordance with the provisions of this Schedule.
3. After the Association has received evidence satisfactory to it that the
Special Account has been duly opened, withdrawals of the Authorized
Allocation and subsequent withdrawals to replenish the Special Account.shall
be made as follows:
(a) For withdrawals of the Authorized Allocation, the Borrower shall
furnish to the Association a request or requests for a deposit or deposits
which do not exceed the aggregate amount of the Authorized Allocation. On
the basis of such request or requests, the Association shall, on behalf of
the Borrower, withdraw from the Credit Account and deposit into the Special
Account such amount or amounts as the Borrower shall have requested.
(b) (i) For replenishment of the Special Account, the Borrower shall
furnish to the Association requests for deposits into the
Special Account at such intervals as the Association shall
specify.
(ii) Prior to or at the time of each such request, the Borrower
shall furnish to the Association the documents and other
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evidence required pursuant to paragraph 4 of this Schedule
for the payment or payments in respect of which
replenishment is requested. On the basis of each such
request, the Association shall, on behalf of the Borrower,
withdraw from the Credit Account and deposit into the
Special Account such amount as the Borrower shall have
requested and as shall have been shown by said documents and
other evidence to have been made out of the Special Account
for eligible expenditures. All such deposits shall be
withdrawn by the Association from the Credit Account under
the respective eligible Categories, and in the respective
equivalent amounts, as shall have been justified by said
documents and other evidence.
4. For each payment made by the Borrower out of the Special Account, the
Borrower shall, at such time as the Association shall reasonably request,
furnish to the Association such documents and other evidence showing that
such payment was made exclusively for eligible expenditures.
5. Notwithstanding the provisions of paragraph 3 of this Schedule, the
Association shall not be required to make further deposits into the Special
Account:
(a) if, at any time, the Association shall have determined that all
further withdrawals should be made by the Borrower directly from the Credit
Account in accordance with the provisions of Article V of the General
Conditions and paragraph (a) of Section 2.02 of this Agreement; or
(b) once the total unwithdrawn amount of the Credit allocated to the
eligible Categories, less the amount of any outstanding special commitment
entered into by the Association pursuant to Section 5.02 of the General
Conditions with respect to the Project, shall equal the equivalent of twice
the amount of the Authorized Allocation.
Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn
amount of the Credit allocated to the eligible Categories shall follow such
procedures as the Association shall specify by notice to the Borrower. Such
further withdrawals shall be made only after and to the extent that the
Association shall have been satisfied that all such amounts remaining on
deposit in the Special Account as of the date of such notice will be
utilized in making payments for eligible expenditures.
6. (a) If the Association shall have determined at any time that any
payment out of the Special Account: (i) was made for an expenditure or in
an amount not eligible pursuant to paragraph 2 of this Schedule; (ii) was
not justified by the evidence furnished to the Association, the Borrower
shall, promptly upon notice from the Association: (A) provide such
additional evidence as the Association may request; or (B) deposit into the
Special Account (or, if the Association shall so request, refund to the
Association) an amount equal to the amount of such payment or the portion
thereof not so eligible or justified. Unless the Association shall otherwise
agree, no further deposit by the Association into the Special Account shall
be made until the Borrower has provided such evidence or made such deposit
or refund, as the case may be.
(b) If the Association shall have determined at any time that any
amount outstanding in the Special Account will not be required to cover
further payments for eligible expenditures, the Borrower shall, promptly
upon notice from the Association, refund to the Association such outstanding
amount.
(c) The Borrower may, upon notice to the Association, refund to the
Association all or any portion of the funds on deposit in the Special
Account.
(d) Refunds to the Association made pursuant to paragraphs 6 (a), (b)
and (c) of this Schedule shall be credited to the Credit Account for
subsequent withdrawal or for cancellation in accordance with the relevant
provisions of this Agreement, including the General Conditions.
SCHEDULE 5
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Implementation Program
1. Management Unit (MU)
(a) MP shall be responsible for overall Project implementation and
shall ensure the coordination of all operational and financial aspects of
the Project through MU, established within the MP.
(b) MU shall be responsible, inter alia, for the following:
(i) monitoring procurement procedures;
(ii) monitoring disbursements of all Credit funds;
(iii) coordinating and monitoring the performance of consultants
employed under the Project;
(iv) establishing and managing the Special Account;
(v) monitoring overall progress in Project implementation; and
(vi) preparing quarterly progress reports;
(c) MU shall be headed by a Project Coordinator and a National
Director, both full-time, with qualifications and managerial experience
acceptable to the Association. The MU's Project Coordinator and National
Director shall report directly to the Minister of Planning.
(d) The Project Coordinator and National Director shall be jointly
responsible, inter alia, for the following:
(i) coordinate the following activities: collecting information
and statistics, designing institutional set-up including
distribution arrangement for individual components,
establishing import/contract/monitoring/ auditing/reporting
mechanisms; and consultants' services;
(ii) liaise among the Association, Government agencies and the
donor community;
(iii) liaise with the designated representatives of the other
ministries responsible for Project implementation;
(iv) brief implementing agencies on eligibility criteria for
Project components and procurement procedures under the
Project;
(v) supervise procurement procedures including preparation of
tender documents, primarily in collaboration with the TO and
the Bidding Committee;
(vi) assist the qualified importers under the Project in
obtaining import licenses, establishing letters of credit
and clearing imports through customs;
(vii) ensure expedient and efficient distribution and utilization
of imported goods according to the Project objectives;
(viii) liaise with the MES and the TO to ensure timely and
effective conclusion and implementation of civil works
contracts;
(ix) supervise and assist the Accountant in preparing withdrawal
applications to the Association;
(x) advise and assist all implementing agencies in ensuring the
beat possible accountability for disbursements of Credit
funds;
(xi) assist all implementing agencies to prepare and submit
regular progress reports, audit reports and other reports
required under the Project;
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(xii) maintain consolidated accounts for the entire Project and
detailed accounts for all components; and
(xiii) manage the Special Account and the Project local
account.
(e) MU shall be staffed, in addition to its Project Coordinator and
National Director, with the following:
(i) Experts.
- Accountant, who shall be responsible, inter alia for:
keeping financial accounts for all Project components,
managing the local Project account, preparing withdrawal
credit applications for signature of the authorized
representatives of MP, Ministry of Finance and BNGB and
reconciling Special Account bank statements in accordance
with the Association disbursement instructions; liaising
with the designated Department in the Ministry of Finance;
approving payment on bills, preparing expenditure accounts,
quarterly reports, annual financial plans and submission of
accounts for audit. The Accountant shall also provide other
necessary financial assistance to the Project Coordinator
and National Director.
- Procurement Specialist, who shall be responsible, inter alia
for: preparing all bidding documents including tendering and
contractual arrangements; packaging contracts and
supervising all relevant procurement procedures for Project
implementation; order planning and coordinating reception,
and delivery of all items to be procured under the Project
with the responsible implementing agencies included in the
quarterly progress reports a price list for all materials
and construction equipment utilized under the Project; and
(ii) Local technical and support staff:
2. Technical Office (TO)
(a) MES shall be responsible for the overall coordination of all
infrastructure and site development works through its Directorates of Roads
and Bridges and Housing and Urban Affairs.
(b) TO, established within MES, shall be responsible in collaboration
with the MU and other agencies responsible for Project implementation, for
the management of the works to be carried out under Parts A and B of the
Project.
(c) TO shall be responsible, inter alia, for the following:
(i) coordinating all implementation aspects with central and
local government agencies;
(ii) preparing and supervising bidding and contract management;
(iii) preparing quarterly progress reports for the infrastructure
works and the site development components;
(iv) carrying out the survey described under Part B.2 of the
Project; and
(v) assisting MES in the preparation, appraisal, implementation
and review of other investment projects in the
infrastructure sector.
(d) TO shall be staffed, inter alia, with the following:
(i) Experts:
- Supervision Engineer, who shall be responsible inter alia
for: managing and coordinating all units and supervising all
civil works, in close collaboration with the local
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counterpart and ensuring the coordination of all
administrative aspects related to Project implementation,
including staff management, transport and logistics;
- Contract Specialist, who shall be responsible, inter alia
for: carrying out engineering designs and topographical
surveys to be carried out by selected contractors, preparing
bidding documents, carrying out all tender procedures,
assisting the local engineers in discharging their
responsibilities under the project, and providing advice and
technical support to the local enterprises to strengthen
their capabilities for programming and monitoring civil
works;
- Accountant, who shall be responsible, inter alia for
carrying out all accounting procedures for TO, organizing,
ensuring and overseeing all accounting aspects related to
engineering certificates and other procedures to monitor
public works supervised by TO and providing advice and
technical support to the local enterprises to strengthen
their capabilities for programming and monitoring civil
works; and
(ii) Local technical and support staff.
3. Bidding Committee
(a) The Bidding Committee established within MES, shall be responsible
for the review and evaluation of procurement procedures to contract civil
works under Parts A and B of the Project. In discharging its
responsibilities, the Bidding Committee shall be assisted by the TO.
(b) The Bidding Committee shall be staffed as follows:
(i) one representative of the Presidency of the Council of
State;
(ii) two representatives of MES, including the Chairman of the
Bidding Committee;
(iii) one representative of MP; and
(iv) one representative of the central and local government
agency concerned, including, inter alia:
- central government: ME, MINSAP, or Resident Minister; and
- local government: Bissau Municipality or State Committee.