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CONFORMED COPY   
CREDIT NUMBER 3176-GM
Development Credit Agreement
(Poverty Alleviation and Capacity Building Project)
between
REPUBLIC OF THE GAMBIA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated April 1, 1999
CREDIT NUMBER 3176-GM 
DEVELOPMENT CREDIT AGREEMENT 
AGREEMENT, dated April 1, 1999, between REPUBLIC OF THE GAMBIA (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; 
(B)
Parts A, B.2 and B.3 of the Project will be carried out by the Gambian 
Agency for the Management of Public Works (GAMWORKS) with the Borrower’s assistance 
and, as part of such assistance, the Borrower will make available to GAMWORKS part of 
the proceeds of the Credit as provided in this Agreement; 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 set forth in this 
Agreement and in the Project Agreement of even date herewith between the Association 
and GAMWORKS;
NOW THEREFORE the parties hereto hereby agree as follows: 
ARTICLE I 
General Conditions; Definitions 
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Section 1.01. The “General Conditions Applicable to Development Credit 
Agreements” of the Association, dated January 1, 1985 (as amended through December 2, 
1997), with the modifications set forth below (the General Conditions), constitute an 
integral part of this Agreement.
(a)
A new paragraph (12) is added to Section 2.01 to read as set forth below 
and the existing paragraphs (12) through (14) of said Section are accordingly 
renumbered as paragraphs (13) through (15): 
“12.
‘Participating Country’ means any country that the Association 
determines 
meets the requirements set forth in Section 10 of Resolution No. 
183 of the Board of 
Governors of the Association, adopted on June 26, 
1996; and ‘Participating Countries’ means, 
collectively, all such countries.”
(b)
The second sentence of Section 5.01 is modified to read:
“Except as the Borrower and the Association shall otherwise agree, no 
withdrawals 
shall be made: (a) on account of expenditures in the territories 
of any country which is not 
a Participating Country or for goods produced in, or 
services supplied from, such 
territories; or (b) for the purpose of 
any payment to persons or entities, or for any import 
of goods, if such payments 
or import, to the knowledge of the Association, is prohibited by 
a decision of the 
United Nations Security Council taken under Chapter VII of the Charter of 
the 
United Nations.”
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 have the following 
meanings: 
(a)
“Beneficiary” means either a Department of State, an LGA (as hereinafter 
defined), a Non-Government Organization or a Community-Based Organization which 
submits Subprojects (as hereinafter defined) to GAMWORKS under Part A of the Project; 
(b)
“Dalasi” means the currency of the Borrower; 
(c)
“DoS LGL” means the Borrower’s Department of State for Local Government, 
Lands and Religious Affairs;  
(d)
“DoS FEA” means the Borrower’s Department of State for Finance and 
Economic Affairs;
(e)
“Framework Agreement” means the agreement, dated September 15, 1993, as 
amended on February 19, 1999 between the Borrower and GAMWORKS, which provides for the 
proceeds of the Credit to be made available by the Borrower to GAMWORKS under terms 
and conditions which have been approved by the Association, including the terms set 
forth in the Manual of Procedures (as hereinafter defined);
(f)
“IEC” means information, education and communication; 
(g)
“LGA” means a Local Government Authority established in accordance with 
the Borrower's laws and which, for purposes of this Project includes, Banjul City 
Council, Kanifing Municipal Council and the Brikama, Kerewan, Basse, Mansakonko, 
Kuntaur and Janjangbureh Area Councils; 
(h)
“Manual of Procedures or MOP” means the GAMWORKS’ Manual of Procedures 
approved by the Borrower and the Association as of the date of this Agreement for the 
purposes of the Project; 
(i)
“Memorandum and Articles” means the Memorandum and Articles of 
Association of GAMWORKS, dated September 13, 1993, as amended to the date of this 
Agreement; 
(j)
“PCO” means the Project Coordinating Officer referred to in paragraph 4 
of Schedule 4 to this Agreement; 
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(k)
“PCU” means the Project Coordinating Unit, to be established by the 
Borrower within DoS LGL (as hereinafter defined), to be responsible for the day-to-day 
implementation of the Project as referred to in paragraph 4 of Schedule 4 to this 
Agreement;
(l)
“PIM” means the Project Implementation Manual referred to in paragraph 1 
of Schedule 4 to this Agreement containing, inter alia, work plans, monitoring and 
performance indicators and procedures to be used for the purposes of implementation of 
Parts B.1 and C of the Project, as they may be amended from time to time, in 
consultation with the Association, and such item includes any schedules to the PIM; 
(m)
“PIP” means the Project Implementation Plan including the Procurement 
Plan referred to in paragraph 1 of Schedule 2 to the Project Agreement, containing, 
inter alia, work plans, monitoring and performance indicators and procedures to be 
used for the purposes of the implementation of Parts A, B.2 and B.3 of the Project as 
they may be amended from time to time, in consultation with the Association, and such 
item includes any schedules to the PIP; 
(n)
“Project Agreement” means the agreement between the Association and 
GAMWORKS of even date herewith, as the same may be amended from time to time, and such 
term includes all schedules and agreements supplemental to the Project Agreement; 
(o)
“Project Coordinators” means Local Government Officers designated by each 
LGA to liaise with the PCO and GAMWORKS with regard to activities under the Project; 
(p)
“Project Management Report” means each report prepared in accordance with 
Section 4.02 of this Agreement; 
(q)
“Project Preparation Advance” means the project preparation advance 
granted by the Association to the Borrower pursuant to a letter dated July 22, 1998, 
from the Association and countersigned by the Borrower on August 21, 1998; 
(r)
“PSC” means the Project Steering Committee to be established by the 
Borrower, to provide oversight for the implementation of the Project as referred to in 
paragraph 3 of Schedule 4 to this Agreement; 
(s)
“Special Accounts” means the accounts referred to in Section 2.02 (b) of 
this Agreement; and 
(t)
“Subproject” means a specific development project to be carried out by 
GAMWORKS for a Beneficiary under Part A of the Project. 
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 ten million seven hundred thousand Special Drawing 
Rights (SDR 10,700,000).
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 and to be financed 
out of the proceeds of the Credit. 
(b) 
The Borrower may, for the purposes of  the Project, open and maintain in 
dollars two special deposit accounts (Special Account A for Parts A, B.2 and B.3 of 
the Project and Special Account B for Parts B.1 and C of the Project) in its Central 
Bank on terms and conditions satisfactory to the Association, including appropriate 
protection against set-off, seizure or attachment. Deposits into, and payments out of, 
the Special Accounts shall be made in accordance with the provisions of Schedule 5 to 
this Agreement. 
(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 
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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 December 31, 2003, 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 canceled; and (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 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 1 and December 1 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 1 and December 1 commencing each June 1, 2009, and ending December 1, 2038. Each 
installment to and including the installment payable on December 1, 2018, 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 per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years the 
level established annually by the Association for determining eligibility to access 
the Association's resources; 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 
repayment of installments under paragraph (a) above by: (A) 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; and (B) requiring the Borrower to commence 
repayment of the principal amount of the Credit as of the first semiannual payment 
date referred to in paragraph (a) above falling six months or more after the date on 
which the Association notifies the Borrower that the events set out in this paragraph 
(b) have occurred, provided, however, that there shall be a grace period of a minimum 
of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the 
modification referred to in paragraph (b) above 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. 
(d)
If, at any time after a modification of terms pursuant to paragraph (b) 
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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 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: (i) shall carry 
out Parts B.1 and C of the Project through DoS LGL with due diligence and efficiency 
and in conformity with appropriate administrative, financial and public utility 
practices and shall provide promptly as needed the funds, facilities, services and 
other resources required for Parts B.1and C of the Project; and (ii) without any 
limitation or restriction upon any of its other obligations under the Development 
Credit Agreement shall, with respect to Parts A, B.2 and B.3 of the Project, cause 
GAMWORKS to perform in accordance with the provisions of the Project Agreement all of 
the obligations of GAMWORKS therein set forth, shall take and cause to be taken all 
action, including the provision of funds, facilities, services and other resources, 
necessary or appropriate to enable GAMWORKS to perform such obligations, and shall not 
take or permit to be taken any action which would prevent or interfere with such 
performance. 
(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 Parts B.1 and C of the Project in accordance with the Implementation 
Program set forth in Schedule 4 to this Agreement. 
(c)
The Borrower shall make the proceeds of the Credit, for Parts A, B.2 and 
B.3 of the Project, available to GAMWORKS under the Framework Agreement.  
(d)
The Borrower shall exercise its rights under the Framework Agreement in 
such manner as to protect the interests of the Borrower and the Association and to 
accomplish the purposes of the Credit, and except as the Association shall otherwise 
agree, the Borrower shall not assign, amend, abrogate or waive the Framework Agreement 
or any provision thereof. 
Section 3.02. Except as the Association shall otherwise agree, procurement of 
the goods and consultants’ services required for Parts B.1 and C of 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 3.03. The Borrower and the Association hereby agree that the obligations 
set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions 
(relating to insurance, use of goods and services, plans and schedules, records and 
reports, maintenance and land acquisition, respectively) for Parts A, B.2 and B.3 of 
the Project shall be carried out by GAMWORKS pursuant to Section 2.03 of the Project 
Agreement. 
ARTICLE IV 
Financial and Other 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 Parts B.1 and C 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 its records, accounts and financial statements (balance 
sheets, 
statements of income and expenses and related 
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statements) and the records and 
accounts for the Special Accounts for 
each semester 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 two months after the end of each such semester: 
(A) certified copies of 
its financial statements for such semester as 
so audited; and (B) the report 
of such audit by said auditors, of such 
scope and in such detail as the 
Association shall have reasonably 
requested;  
(iii)
consolidate the semiannual audit reports for the fiscal year and 
furnish to 
the Association as soon as available, but in any case not 
later than three 
months after the end of its fiscal year, the 
said consolidated audit report; 
and
(iv)
furnish to the Association such other information concerning such 
records, 
accounts and financial statements 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, 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 
consolidated audit report 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 
consolidated audit 
report 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.
Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this 
Agreement, the Borrower shall carry out a time-bound action plan acceptable to the 
Association for the strengthening of its financial management system for the Project 
in order to enable the Borrower, not later than January 1, 2001, or such later date as 
the Association shall agree, to prepare quarterly Project Management Reports, 
acceptable to the Association, each of which: 
(i)
(A) sets forth actual sources and applications of funds for the 
Project, both 
cumulatively and for the period covered by said 
report, and projected sources 
and applications of funds for the 
Project for the six-month period following 
the period covered by said 
report; and (B) shows separately expenditures 
financed out of the 
proceeds of the Credit during the period covered by said 
report and 
expenditures proposed to be financed out of the proceeds of the 
Credit during the six-month period following the period covered by said 
report;
(ii)
(A) describes physical progress in Project implementation, both 
cumulatively 
and for the period covered by said report; and (B) explains 
variances between 
the actual and previously forecast implementation 
targets; and
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(iii)
sets forth the status of procurement under the Project and 
expenditures under 
contracts financed out of the proceeds of the Credit, 
as at the end of the 
period covered by said report. 
(b) 
Upon the completion of the action plan referred to in paragraph (a) of 
this Section, the Borrower shall prepare, in accordance with guidelines acceptable to 
the Association, and furnish to the Association not later than 45 days after the end 
of each calendar quarter, a Project Management Report for such period. 
ARTICLE V 
Remedies of the Association
Section 5.01. Pursuant to Section 6.02 (l) of the General Conditions, the 
following additional events are specified: 
(a)
GAMWORKS shall have failed to perform any of its obligations under the 
Project Agreement; 
(b)
as a result of events which have occurred after the date of the 
Development Credit Agreement, an extraordinary situation shall have arisen which shall 
make it improbable that GAMWORKS will be able to perform its obligations under the 
Project Agreement; or 
(c)
the Memorandum and Articles and the Framework Agreement shall have been 
amended, suspended, abrogated, repealed or waived so as to affect materially and 
adversely the ability of GAMWORKS to perform any of its obligations under the Project 
Agreement.
Section 5.02. Pursuant to Section 7.01 (h) 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 days after notice thereof shall 
have been given by the Association to the Borrower; and 
(b)
the event specified in paragraph (c) of Section 5.01 of this Agreement 
shall occur. 
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)
the Borrower has appointed the PCO, in accordance with the provisions of 
Schedule 4 to this Agreement;  
(b)
the Borrower and GAMWORKS have adopted the PIM, the revised MOP and the 
PIP, all in form and substance satisfactory to the Association; 
(c)
the Borrower has designated Project Coordinators for each LGA, with 
qualifications satisfactory to the Association; and (d)
the Borrower and GAMWORKS 
have adopted Financial Management and Accounting Systems acceptable to the 
Association.
Section 6.02. The following are specified as additional matters, within the 
meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion 
or opinions to be furnished to the Association: 
(a)
that the Project Agreement has been duly authorized or ratified by 
GAMWORKS, and is legally binding upon GAMWORKS in accordance with its terms; and 
(b)
that the amended Framework Agreement has been duly authorized or ratified 
by the Borrower and GAMWORKS and is legally binding upon the Borrower and GAMWORKS in 
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accordance with its terms. 
Section 6.03. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions.
ARTICLE VII 
Representatives of the Borrower; Addresses 
Section 7.01.  The Secretary of State responsible for Finance and Economic 
Affairs 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:
Department of State for Finance and Economic Affairs
The Quadrangle
Banjul
Republic of The Gambia
Cable address:
Telex:
MINFIN
2264
Republic of The Gambia  
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INDEVAS
248423 (MCI) or
Washington, D.C.
 64145 (MCI)
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 THE GAMBIA
By /s/ Crispin Grey-Johnson 
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Jean-Louis Sarbib 
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 
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proceeds of the Credit, the allocation of the amounts of the Credit 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
Category
SDR Equivalent)
to be Financed
(1)
Civil works 
100% of foreign
expenditures and
80% of local
expenditures
(a)
Under Part A.1
   7,000,000
of the Project
(b)
Under Part A.2
     280,000
of the Project
(2)
Goods
100% of foreign
expenditures and
80% of local
expenditures
(a)
Under Part B.1
      50,000
of the Project
(b)
Under Parts A.2, 
     600,000
B.2 and B.3
of the Project
(3)
Consultants’ services
100%
(a)
Under Part B.1
     110,000
of the Project
(b)
Under Parts B.2 and
      60,000
B.3 of the Project
(c)
for Studies under
     620,000
Part C of the Project
(4)
Operating costs,
including audits
(a)
for PCU
      30,000
95%
(b)
for GAMWORKS
     670,000
85%
(5)
Refunding of
     750,000
Amount due 
Project
pursuant
Preparation
to Section 2.02 (c) 
Advance
of this Agreement
(6)
Unallocated
     530,000
         __________
TOTAL
  10,700,000
  ==========
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 services 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 
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Borrower or for goods or services supplied from the territory of the Borrower; and 
(c)
the term “operating costs” means incremental recurring costs excluding 
salaries of civil servants but including staff expenses and overnight allowances, 
costs of operating vehicles, plant and equipment required for the Project, maintenance 
of Project equipment, vehicles, and office facilities and Project-related transport 
costs.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of: (a) payments made for expenditures prior to the date of this 
Agreement; and (b) payments made for expenditures in respect of Category (1) (b) until 
the Borrower has established institutional and financial arrangements, satisfactory to 
the Association, for carrying out Part A.2 of the Project.
4.
The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditure: (a) for expenditures for works under contracts 
costing less than $200,000 equivalent each; (b) for expenditures for goods under 
contracts costing less than $100,000 equivalent each; (c) for expenditures under 
contracts for consultants’ services provided by firms not exceeding $75,000 equivalent 
each; (d) for expenditures under contracts for consultants’ services provided by 
individuals not exceeding $25,000 equivalent each; and (e) for expenditures for 
studies, all under such terms and conditions as the Association shall specify by 
notice to the Borrower.
SCHEDULE 2 
Description of the Project
The objectives of the Project are to assist the Borrower to: (i) reduce the 
backlog of public infrastructure and assets, and improve their maintenance; (ii) 
alleviate poverty through the creation of temporary jobs; and (iii) strengthen the 
technical and managerial capacity of LGAs, local private construction firms, local 
consulting firms and GAMWORKS.
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:
Investments 
1.
Carrying out by GAMWORKS of Subprojects, for the construction and rehabilitation 
of infrastructure and public facilities in urban areas, submitted by Beneficiaries. 
2.
Establishment of a solid waste collection and disposal system for Banjul City 
Council, Kanifing Municipal Council and Brikama Area Council.
Part B:
Capacity Building
1.
Strengthening the technical and managerial capacity of the Borrower’s agencies 
responsible for the implementation of the Project and LGAs, including: 
(a)
logistical support and acquisition of equipment for the PCU; 
(b)
provision of technical advisory services in the area of community 
sensitization; 
(c)
provision of technical advisory services to assist the valuation unit in 
the DoS LGL, in updating and completing the valuation of properties; and
(d)
provision of training and technical advisory services to assist LGAs to: 
(i) assess and address priority needs; (ii) ensure the maintenance of public 
infrastructure and improve the quality of the delivery of public services; and (iii) 
improve the resources of the LGAs. \0c2.
Upgrading the skills of local contractors and 
consultants. 
3.
(a)
Strengthening GAMWORKS’ capacity in the areas of management information 
systems, oversight of design studies, and supervision of services and works undertaken 
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by local contractors and consultants respectively under the Project; and
(b)
support for GAMWORKS in carrying out Subproject related IEC.
Part C:
Studies 
1.
Carrying out physical, financial and management audits of LGAs.  
2.
Carrying out studies on mapping, street identification, property numbering and 
property valuation. 
3.
Carrying out a study to define the institutional and financial framework for the 
development of a solid waste management system. 
4.
Carrying out a detailed engineering study for the rehabilitation of the storm 
water drainage/flood control and sanitation system of Banjul. 
5.
Carrying out a study on the feasibility of creating a municipal development 
fund.
* * *
The Project is expected to be completed by June 30, 2003.
SCHEDULE 3 
Procurement and Consultants’ Services 
Section I.
Procurement of Goods
Part A:
General
1.
Goods for Part B.1 and C of the Project shall be procured in accordance with: 
(a)  the provisions of Section I of the “Guidelines for Procurement under IBRD 
Loans and IDA Credits” published by the Bank in January 1995 and revised in January 
and August 1996, September 1997 and January 1999, subject to the modifications set 
forth in paragraph 2 of this Part A (the Guidelines); and 
(b)  the provisions of the following Parts of this Section I. 
2.
In paragraphs 1.6 and 1.8 of the Guidelines, the references to “Bank member 
countries” and "member country” shall be deemed to be references, respectively, to 
“Participating Countries” and "Participating Country”.
Part B:
International Competitive Bidding 
1.
Except as otherwise provided in Part C of this Section, goods shall be procured 
under contracts awarded in accordance with the provisions of Section II of the 
Guidelines and paragraph 5 of Appendix 1 thereto. 
2.
The following provisions shall apply to goods and works to be procured under 
contracts awarded in accordance with the provisions of paragraph 1 of this Part B. 
(a)
Grouping of contracts 
To the extent practicable, contracts for goods shall be grouped in bid packages 
estimated to cost $100,000 equivalent or more each. 
(b)
Preference for domestically manufactured goods 
The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 
thereto shall apply to goods manufactured in the territory of the Borrower.
Part C:
Other Procurement Procedures  
1.
National Competitive Bidding 
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Goods estimated to cost less than $100,000 equivalent per contract, up to an 
aggregate amount not to exceed $300,000 equivalent, may be procured under contracts 
awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines. 
2.
National Shopping 
Goods estimated to cost less than $15,000 equivalent per contract, up to an 
aggregate amount not to exceed $150,000 equivalent, may be procured under contracts 
awarded on the basis of national shopping procedures in accordance with the provisions 
of paragraphs 3.5 and 3.6 of the Guidelines.
Part D:
Review by the Bank of Procurement Decisions 
1.
Procurement Planning 
Prior to the issuance of any invitations to prequalify for bidding or to bid for 
contracts, the proposed procurement plan for the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall 
be undertaken in accordance with such procurement plan as shall have been approved by 
the Association, and with the provisions of said paragraph 1. 
2.
Prior Review
With respect to each contract for goods estimated to cost the equivalent of 
$100,000 or more, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the 
Guidelines shall apply. 3. Post Review With respect to each contract not governed by 
paragraph 2 of this Part, the procedures set forth in paragraph 4 of Appendix 1 to the 
Guidelines shall apply. 
Section II.
Employment of Consultants
Part A:
General
1.
Consultants’ services shall be procured in accordance with: (a) the provisions 
of the Introduction and Section IV of the “Guidelines: Selection and Employment of 
Consultants by World Bank Borrowers” published by the Bank in January 1997 and revised 
in September 1997 and January 1999, subject to the modifications set forth in 
paragraph 2 of this Part A (the Consultant Guidelines); and (b) the provisions of the 
following Parts of this Section II. 
2.
In paragraph 1.10 of the Consultant Guidelines, the references to “Bank member 
countries” and “member country” shall be deemed to be references, respectively, to 
“Participating Countries” and “Participating Country”.
Part B:
Quality- and Cost-based Selection 
1.
Except as otherwise provided in Part C of this Section, consultants’ services 
shall be procured under contracts awarded in accordance with the provisions of Section 
II of the Consultant Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 
thereto, and the provisions of paragraphs 3.13 through 3.18 thereof applicable to 
quality- and cost-based selection of consultants. 
2.
The following provisions shall apply to consultants’ services to be procured 
under contracts awarded in accordance with the provisions of the preceding paragraph. 
The short list of consultants for services, estimated to cost less than $75,000 
equivalent per contract, may comprise entirely national consultants in accordance with 
the provisions of paragraph 2.7 of the Consultant Guidelines.
Part C:
Other Procedures for the Selection of Consultants Least-cost Selection
Services for financial audits under Part B.1 of the Project may be procured 
under contracts awarded in accordance with the provisions of paragraphs 3.1 and 3.6 of 
the Consultant Guidelines.
Page  13
Part D:
Review by the Bank of the Selection of Consultants 
1.
Selection Planning 
Prior to the issuance to consultants of any requests for proposals, the proposed 
plan for the selection of consultants under the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Consultant Guidelines.  Selection of all consultants’ 
services shall be undertaken in accordance with such selection plan as shall have been 
approved by the Association, and with the provisions of said paragraph 1. 
2.
Prior Review
(a)
With respect to each contract for the employment of consulting firms 
estimated to cost the equivalent of $150,000 or more, the procedures set forth in 
paragraphs 1, 2 and (other than the third subparagraph of paragraph 2 (a)) and 5 of 
Appendix 1 to the Consultant Guidelines shall apply.
(b)
With respect to each contract for the employment of consulting firms 
estimated to cost the equivalent of $75,000 or more, but less than the equivalent of 
$150,000, the procedures set forth in paragraphs 1, 2 (other than the second 
subparagraph of paragraph 2 (a)) and 5 of Appendix 1 to the Consultant Guidelines 
shall apply.
(c)
With respect to each contract for the employment of individual 
consultants estimated to cost the equivalent of $25,000 or more, the qualifications, 
experience, terms of reference and terms of employment of the consultants shall be 
furnished to the Association for its prior review and approval.  The contract shall be 
awarded only after the said approval shall have been given. 
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall 
apply.
SCHEDULE 4 
Implementation Program 
1.
Except as the Association shall otherwise agree, the Borrower shall carry out 
Parts B.1 and C of the Project in accordance with the PIM and shall not amend the PIM 
or waive any provision thereof which, in the opinion of the Association, will 
materially or adversely affect the implementation of the Project.
2.
The Borrower shall: (a) maintain policies and procedures adequate to enable it 
to monitor and evaluate on an ongoing basis, in accordance with the indicators 
satisfactory to the Association, the carrying out of Parts B.1 and C of the Project 
and the achievement of the objectives thereof;
(b)
prepare, under terms of reference satisfactory to the Association, and 
furnish to the Association, on or about September 30 in each year, a report 
integrating the results of the monitoring and evaluation activities performed pursuant 
to paragraph (a) of this Section, on the progress achieved in the carrying out of 
Parts B.1 and C of the Project during the period preceding the date of said report 
based on the work plan for the period under review and setting out the measures 
recommended to ensure the efficient carrying out of the Project and the achievement of 
the objectives thereof during the period following such date; 
(c)
review with the Association, by December 31 in each year, or such later 
date as may be acceptable to the Association, the report referred to in paragraph (b) 
of this Section, and, thereafter, take all measures required to ensure the efficient 
completion of the Project and the achievement of the objectives thereof, based on the 
conclusions and recommendations of the said report and the Association’s views on the 
matter;
(d)
carry out, jointly with the Association and GAMWORKS, no later than 
Page  14
December 31, 2000, a mid-term review of the progress made in carrying out of Parts B.1 
and C of the Project. The said mid-term review shall cover, among other things: 
(i) progress in meeting the Project’s objectives; and (ii) performance by PCU and 
GAMWORKS of their respective obligations under the Project; and 
(e)
carry out the recommendations of the review referred to in 
subparagraph (d) of this paragraph, as agreed with the Association and set out in a 
time-bound action plan satisfactory to the Association. 
3.
The Borrower shall maintain, until completion of the Project, the PSC which 
shall be responsible for the overall management of the Project. The PSC shall be 
chaired by the Permanent Secretary of the DoS FEA and composed of representatives of 
the DoS LGL, Office of the President, the LGAs, the National Water and Electricity 
Company, the National Environment Agency, and GAMWORKS. The PSC shall meet at least 
every two months during the first year of Project implementation and twice a year 
thereafter.
4.
The Borrower shall establish and maintain until completion of the Project the 
PCU, to be headed by the PCO, appointed in accordance with the provisions of Section 
II of Schedule 3 to this Agreement.
5.
The Borrower shall: (a) by September 30, 1999, complete the study under Part C.3 
of the Project; and (b) promptly thereafter, adopt institutional and financial 
arrangements, satisfactory to the Association, for the development of a solid waste 
management system. 
6.
The Borrower shall, not later than December 31, 1999, cause each LGA to create 
an Operations and Maintenance fund, under terms of reference and with levels 
satisfactory to the Association.
7.
The Borrower shall cause the LGAs to adopt, not later than June 30, 2000: 
(a) revenue improvement action plans to strengthen their technical and managerial 
capacities and improve their overall performance; and (b) priority investment programs 
with associated targets and related schedules.
SCHEDULE 5 
Special Accounts
1.
For the purposes of this Schedule:
(a)
the terms “eligible Categories” means Categories 1 (a), 1 (b), 2 (b), 3 
(b) and 4 (b) with respect to Special Account A and Categories 2 (a), 3 (a), 3 (c) and 
4 (a) with respect to Special Account B 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 $1,200,000 
in respect of Special Account A and an amount equivalent to $100,000 in respect of 
Special Account B, to be withdrawn from the Credit Account and deposited into the 
respective Special Account pursuant to paragraph 3 (a) of this Schedule, provided, 
however, that unless the Association shall otherwise agree, the Authorized Allocation 
shall be limited to an amount equivalent to $600,000 in respect of Special Account A 
and an amount equivalent to $50,000 in respect of Special Account B, until: (i) in 
respect of Special Account A, the aggregate amount of withdrawals from the Credit 
Account plus the total amount of all outstanding special commitments entered into by 
the Association pursuant to Section 5.02 of the General Conditions shall be equal to 
or exceed the equivalent of SDR 1,000,000; and (ii) in respect of Special Account B 
the aggregate amount of withdrawals from the Credit Account plus the total amount of 
all outstanding special commitments entered into by the Association pursuant to 
Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of 
SDR 200,000. 
Page  15
2.
Payments out of the respective Special Accounts 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 
respective Special Account has been duly opened, withdrawals of the Authorized 
Allocation and subsequent withdrawals to replenish the respective 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 deposit into the respective Special 
Account of an amount or amounts 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 respective Special Account such amount or amounts as the Borrower shall have 
requested.
(b)
(i)
For replenishment of the respective Special Account, the Borrower 
shall 
furnish to the Association requests for deposits into the 
respective 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 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 respective 
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 paid out of the respective 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 respective 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 any 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;
(b)
if the Borrower shall have failed to furnish to the Association, within 
the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the 
audit reports required to be furnished to the Association pursuant to said Section in 
respect of the audit of the records and accounts for the Special Accounts;
(c)
if, at any time, the Association shall have notified the Borrower of its 
intention to suspend in whole or in part the right of the Borrower to make withdrawals 
from the Credit Account pursuant to the provisions of Section 6.02 of the General 
Conditions; or 
(d)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories for the respective Special Account, minus the total amount of all 
outstanding special commitments 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 
Page  16
on deposit in the respective 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 any Special Account: (i) was made for an expenditure or in an amount not eligible 
pursuant to paragraph 2 of this Schedule; or (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 respective 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 any 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 any 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 Accounts.
(d)
Refunds to the Association made pursuant to paragraph 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.