CREDIT NUMBER 1760 GM Development Credit Agreement (National Health Development Project) between THE REPUBLIC OF THE GAMBIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1987 CREDIT NUMBER 1760 GM DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1987, between THE REPUBLIC OF THE GAMBIA (the Borrower) and INTER- NATIONAL DEVELOPMEY 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) the Government of the Italian Republic has agreed to extend a grant to the Borrower (the Italian Grant) in an amount equivalent to nine million six hundred thousand dollars ($9,600,000) to assist in financing Part B of the Project on the terms and conditions set forth in an agreement (the Italian Grant Agreement) dated June 17, 1986 between the Borrower and the. Italian Republic; (C) the Borrower intends to obtain from the Government of the Kingdom of the Netherlands (the Netherlands) a grant (the Netherlands Grant) in an amount equivalent to two million dollars ($2,000,000) to assist in financing Parts A and B of the Project on the terms and conditions set forth in an agreement (the Netherlands Grant Agreement) to be entered into between the Borrower and the Netherlands; (D) the Borrower intends to obtain from the Government of the United Kingdom of Great Britain and Northern Ireland a contribution (the U.K. Contribution) in an amount equivalent to up to eight hundred seventy-five thousand dollars ($875,000) to assist in financing Part B of the Project; (E) the Borrower intends to obtain from the United Nations Capital Development Fund (UNCDF) a grant (the UNCDF Grant) in an amount equivalent to four hundred fifteen thousand dollars ($415,000) to assist in financing Part B of the Project on the terms and conditions set forth in an agreement (the UNCDF Grant Agreement) to be entered into between the Borrower and UNCDF; 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: -2"- ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of the Association, dated January 1, 1985, (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 have the respec- tive meanings therein set forth and the following additional terms have the following meanings: (a) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement; (b) "MHLSW" means the Borrower's Ministry of Health, Labor and Social Welfare; (c) "PIC" means the Project Implementation Committee referred to in Section 3.05 (a) of this Agreement; (d) "PMU" means the Project Management Unit referred to in Section 3.05 (b) of this Agreement; (e) "SCFHN" means the Sub-committee of PIC for Family, Health and Nutrition referred to in Section 3.05 (c) of this Agreement; (f) "MEPID" means the Borrower's Ministry of Economic Planning and Industrial Development; (g) "Project Preparation Advance" means the project pre- paration advance granted by the Association to the Borrower pursuant to an exchange of letters dated July 16, 1985 and July 23, 1985 between the Borrower and the Association; (h) "Region" means a Region of the Gambia as established by MHLSW for purposes of the health sector in the Gambia; and (i) "Revolving Fund" means the Revolving Fund referred to in Section 3.01 (c) of this Agreement. -3- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to four million seven hundred thousand Special Drawing Rights (SDR 40,700,000). 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, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project 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 the Central Bank of the Gambia 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. (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 December 31, 1992 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 at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not with- drawn from time to time. The commitment charge shall accrue from -4- a date sixty days after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Commitment charges and service charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 1 and November 1 commencing May 1, 1997, and ending November 1, 2036. Each installment to and including the installment payable on November 1, 2006 shall be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter shall be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4,02 of the General Conditions. 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, financial and public health management practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. -5- (b) The Borrower shall for the purposes of the Project: (i) open and maintain in a commercial bank a project account (the Project Account) to be used exclusively to meet expenditures for the Project; (ii) pay into the Project Account an initial deposit in the Borrower's currency equivalent to $20,000; and (iii) pay into the Project Account additional amounts sufficient to ensure that there shall be in the Project Account at the beginning of every quarter of the year amounts equivalent in the Borrower's currency to not less than $20,000. (c) The Borrower shall establish and thereafter maintain in a form and with functions satisfactory to the Association the revolving fund described in Part A (3) (iii) of the Project. Further provisions relating to the Revolving Fund are set out in Part D of Schedule 5 to this Agreement. Section 3.02. Except as the Association shall otherwise agree, 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 3.03. The Borrower shall: (i) no later than Decem- ber 31, 1989 carry out, and furnish to the Association for its review and comments the result of, the mid-term evaluation of the Project; and (ii) no later than December 31, 1992 carry out, and furnish to the Association for its review and comments the results of, the final evaluations of the Project. Section 3.04. (a) The Borrower shall no later than May 1 every year up to and including 1992 prepare and furnish to, and thereafter review, with the Association: (i) plans satisfactory to the Association for investment and recurrent expenditures in the health sector (including family planning and nutrition expenditures) for the three fiscal years immediately following; and (ii) the Borrower's annual development and recurrent budgets for the health sector for the fiscal year immediately following. The said plans shall be consistent with the Borrower.'s economic recovery programs and shall be used by the Borrower as a framework in seeking financing from other donors for the health sector. (b) The Borrower undertakes in seeking financing for the health sector to do so on the basis of the health sector -6- expenditures set out in the plans required under paragraph (a) of this Section. Section 3.05. (a) The Borrower shall establish, and there- after maintain, in a form and with functions satisfactory to the Association a Project Implementation Committee (PIC) which shall have responsibility for overseeing the carrying out of the Pro- ject. Further provisions relating to PIC are set out in Part A of Schedule 5 to this Agreement. (b) The Borrower shall establish, and thereafter maintain, in a form and with functions satisfactory to the Association a Project Management Unit (PMU) which shall have responsibility for coordinating the day-to-day Project execution activities of line units of MHLWS. Futher provisions relating to PMU are set out in Part B of Schedule 5 to this Agreement. (c) The Borrower shall establish, and thereafter maintain, in a form and with functions satisfactory to the Association a Sub-Committee of the Project Implementation Committee referred to in Part B (4) of the Project. Further provisions relating to SCFHN are set out in Part C of Schedule 5 to this Agreement. Section 3.06. The Borrower undertakes that its recurrent budget expenditures on health, as a percentage of the Borrower's total recurrent budget expenditures (exclusive of debt service), shall be maintained at not less than the 1985/86 recurrent budget expenditures levels. 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 Revolving Fund, the Special Account and the accounts referred to in paragraph (a) of this Section for each fiscal year audited, in -7- accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, b.ut in any case not later than six months ,after the end of each such year, a certified copy of..thp. 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 the Revolving Fund, the Special Account and the said accounts -and the audit thereof and said records 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, separate records and accounts reflecting such expenditures; (ii) retain, until at least one year after the com- pletion of the audit for the fiscal year in "ich the last withdrawal from the Credit AccQunt 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 separate accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report thereof contains, in respect of such separate accounts, a separate opinion by said auditors as to whether the pro- ceeds of the Credit withdrawn in respect of such expenditures were used for the purposes for which they were provided. -8- ARTICLE VI Remedies of the Association Section 6.01. (a) Pursuant to Section 6.02 (h) of the General Conditions, the following additional events are speci- fied, namely, that subject to paragraph (b) of this Section: (i) the right of the Borrower to withdraw the pro- ceeds of any loan, grant or contribution made to the Borrower for the financing of the Project (including the Italian Grant, the Netherlands Grant, the U.K. Contribution and the UNCDF Grant) shall have been suspended, cancelled or terminated, in whole or in part, pursuant to the terms of the agreement providing therefor; or (ii) any such loan shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section 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 cny 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 6.02. Pursuant to Section 7.01 (d) of the General Conditions, the following additional event is specified, namely, that any of the events specified in Section 6.01 (a) of this Agreement shall occur, subject to the proviso of Section 6.01 (b) hereof. ARTICLE VII Effective Date; Termination Section 7.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit -9- Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) that the Project Account has been opened and the initial deposit required under Section 3.01 (b) of this Agreement has been paid in; (b) that all conditions precedent to the effectiveness of the Netherlands Grant Agreement have been fulfilled, other than the effectiveness of this Agreement; and (c) that the Borrower has furnished the Association with a sectoral reform plan satisfactory to the Association for strengthening MHLSW's management, financial and support systems, including detailed procedures and regulations. Section 7.02. 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 VIII Representative of the Borrower; Addresses Section 8.01. The Minister responsible for Finance and Trade of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 8.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance and Trade The Quadrangle Banjul The Republic of the Gambia Cable address: Telex: MINFIN 2264 The Republic of the Gambia - 10 - For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their 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. THE REPUBLIC OF THE GAMBIA Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION Regional lice President Western Africa - 11 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed .out of the proceeds of the Credit, 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 750,000 100% (2) Equipment and 660,000 100% vehicles (3) Drugs and medical 500,000 100% supplies (4) Materials and fuel 330,000 100% (5) Consultants' ser- 1,650,000 100% vices, technical assistance, fellow- ships and opera- tions research (6) Refunding of 330,000 Amount due pur- Project Prepara- suant to Section tion Advance 2.02 (c) of this Agreement (7) Unallocated 480,000 TOTAL 4,700,000 2. 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. - 12 - SCHEDULE 2 Description of the Project The objectives of the Project which forms part of the Borrower's Health Development Program are: (i) the strengthening and expansion of Gambia's national health program; (ii) decen- tralization of health sector management; (iii) improvement of health sector planning; and (iv) introduction of more effective cost recovery systems. 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: Strengthening of Health Sector Management, Finance and Support Systems (1) Central reorganization of health sector administration including: (i) integration of the health responsibilities of the Ministry of Health, Labor and Social Wealth (MHLSW) and those of the Department of Health and Medical Services; and (ii) estab- lishment of Government hospitals as semi-autonomous institutions under MHLSW. (2) Decentralization of health administration including transfer of increased auzhority and responsibilities to Regional Health Teams and health center staff. (3) Establishment of effective cost recovery systems including: (i) improvement of existing systems for collection of, and accounting for, health service fees; (ii) establishment of fees for in-patient care, selected diagnostic services and for other medical services; and (iii) establishment of a revolving fund to be managed by the Borrower's MHLSW and replenished with fees charged for drugs, medical supplies and services. (4) (a) Reorganization of MHLSW's transport services includ- ing: (i) provision of about 30 vehicles to replace unservice- able vehicles and provision of fuel for MHLSW's transport needs; (ii) institution of a regular maintenance and repair program; (iii) provision of an adequate stock of spare parts; (iv) establishment of routine service facilities in each Region; and (v) rationalization of fuel distribution including establish- ment of regional storage facilities and provision of a tanker truck. - 13 - (b) Development of communications network between MHLSW and peripheral health units in the country including provision of VHF transceivers. Part B: Strengthening National Health Services (1) Western Region: Expansion of the primary health care service to about 53 villages in the Western Region and the peri-urban areas of Banjul; and provision of motorcycles, bicycles and basic medical equipment and initial and in-service training for village health workers and traditional birth attendants. (2) All Regions: Training of selected village development committee members in basic principles of management and simple financial accounting and control; conduct of outreach clinics (including maternal and child health and family planning activi- ties) by regional health teams in the villages; and expansion of the communicable disease prevention and treatment programs including provision of drugs, laboratory supplies and in-service training of about 330 Nurses. (3) (a) Rehabilitation and upgrading (including new construc- tion) of the Royal Victoria Hospital, Bansang hospital, five health centers (including shelters for mothers) and five dispen- saries; minor upgrading at seven health centers and seven dispen- saries; construction of twelve staff houses, a new health center for Banjul peri-urban area and a new polyclinic in Banjul; and provision of appropriate equipment and furniture for each of the said facilities. (b) Overseas in-service training of about five Gambian doctors and ten nurse midwives in obstetrics and gynecology. (4) (a) Incorporation of primary health care subjects into curricula of Community Health Nurses and State Enrolled Nurses; provision of teaching equipment and materials; and overseas fellowships for two Community Health Nursing instructors. (b) Establishment at Bansang hospital of a school for training Nurses including provision of appropriate teaching equipment and materials, and provision of overseas fellowships for nursing instructors and senior nursing staff of the school. (5) Coordination of health education, nutrition and family planning efforts including establishment of a Sub-Committee of -14 - the Project Implementation Committee (SCFHN) on Family, Health and Nutrition, operational research on nutrition intervention, production and dissemination of materials for health education and in-service training for doctors and nurse midwives in family planning and maternal and child health care. The Project is expected to be completed by June 30, 1992. - 15 - SCHEDULE 3 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A. International Competitive Bidding 1, Except as provided in Part C 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). 2. To the extent practicable, contracts for goods shall be grouped into bid packages of amounts that would encourage competition and bulk procurement. Part B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A.1 hereof, goods manufactured in the Gambia 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. Other Procurement Procedures Items estimated to cost an amount equivalent to less than $100,000 up to an aggregate amount not exceeding $1,000,000 may be procured: (i) under contracts awarded on the basis of compari- son of price quotations solicited from a list of at least three supplifers eligible under the Guidelines, in accordance with procedures satisfactory to the Association, or (ii) if of a proprietary nature or subject to standardization by direct shopping. Part D. 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. - 16 - 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 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 pre- ceding 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 para- graph 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 consultants whose qualifications, experience and terms and conditions of emv.loyment shall be satis- factory 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. - 17 - SCHEDULE 4 Special Account 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categorips (1) through (5) 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 $400,000 to be withdrawn from the Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Except as the Association shall otherwise agree, 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 may be made as follows: (a) On the basis of a request or requests by the Borrower for a deposit or deposits which add up to the aggregate amount of the Authorized Allocation, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit in the Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the Association requests for replenishment of the Special Account at such intervalp as the Association shall specify. On the basis of such requests, the Association shall withdraw from the Credit Accognt and deposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the Special Account for eligible - 18 - 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 the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedul. 4. For each payment made by the Borrower out of the Special Account for which the Borrower requests ,replenishment pursuant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Association, prior to or at the time of such request, such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expen- ditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made by the Association when either of the following situations first arises: (i) the Association shall have determined that all further withdrawals should be made directly by the Borrower from the Credit Account in accor- dance with the provisions of paragraph (a) of Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the Credit allo- cated 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 be equal to the equivalent of twice the amount of the Authorized Allocation. (b) 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 have been or 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 'any - 19 - expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule, or (ii) was not justified by the evidence furnished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notice from the Association, 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. No further deposit by the Association into the Special Account shall be made until the Borrower has made such deposit or refund. (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 Associatiov, refund to the Association such outstanding amount for crediting to the Credit Account. - 20 - SCHEDULE 5 PIC, PMU, SCFHN and Revolving Fund Part A: Project Implementation Committee (PIC) The membership of PIC shall include the following: Permanent Secretary, MHLSW - Chairman and Project Coordinator. Permanent Secretary, MEPID - Member Permanent Secretary, Ministry - Member of Finance Nominee from President's Office - Member Director of Medical Services - Member Project Manager - Member Representative of the - Member Gambia Family Planning Association (GFPA) Part B: Project Management Unit (PMU) PMU shall consist of the Project Manager, Deputy Project Manager, a project accountant and clerical support. PMU shall be responsible for all Project matters and for the coordination of day-to-day Project execution activities of the line units of MHLSW. PMU shall assist in the preparation of annual work programs and budgets for Project components, procurement of goods and arrangements for technical assistance, processing of credit withdrawal applications and preparation and submission to the Association of Project progress reports. Part C: Sub-Committee on Family, Health and Nutrition (SCFHN) (1) The membership of SCFHN shall include the following: Permanent Secretary, MHLSW - Co-Chairman Permanent Secretary, MEPID - Co-Chairman - 21 - A representative of the Gambia - Member Family Planning Association A representative of the Ministry - Member of Agriculture A representative of the Women's - Member Bureau The Director of Medical - Member Services Nominated religious and - Members community leaders Project Manager - Member (2) An Executive Secretary shall be appointed for SCFHN. (3) SCFHN shall assume most of the functions of the existing MEPID sector planning sub-committee on Population. The Executive Secretary shall be responsible for developing and maintaining a completed inventory of all relevant Family Planning, Health and Nutrition programs in the Gambia and for issuing to SCFHN a bi-monthly progress report on such programs. SCFHN shall be responsible for the coordination, review and approval of the detailed plans for these programs before approval of the annual budgets therefor. (4) SCFHN shall oversee the execution of the following activities: (i) development by MHLSW's Health Education Unit of a systematic, rolling, two-year work plan for family planning, health and nutrition educational messages and information; (ii) improved coordination and integration of nutrition programs (including a nutrition action program devel- oped by MHLSW's Nutrition Unit); and (iii) in-service training for about 10 doctors and 40 nurse midwives from MHLSW and GFPA in family planning and maternal and child health programs, issues and techni- ques and a study tour of staff of MHLSW and GFPA. - 22 - Part D: Revolving Fund (1) The Revolving Fund shall be in the Borrower's currency and shall consist of amounts equivalent in such currency to: (a) proceeds of external grants, credits and gifts made for drugs and medical supplies, (b) allocations made in the Borrower's budget for the purchase of drugs and medical supplies during the project period, and (c) fees paid by patients for drugs, medical supplies and services. (2) The Borrower undertakes to take such action as shall be necessary (including adjustments in the levels of fees payable for drugs, medical supplies and services) to ensure that there is at all times in the Revolving Fund amounts sufficient to meet the costs of such drugs, medical supplies and services. (3) The Borrower undertakes to pay into the Revolving Fund amounts equivalent to amounts lost to the Revolving Fund as a result of movements in the rates of exchange between the Bor- rower's currency and any other currencies. Any increases in the amounts in the Revolving Fund as a result of such exchange rate movements shall accrue to the Borrower. (4) The Borrower undertakes to facilitate promptly as needed the provision of foreign exchange required for the efficient operation of the Revolving Fund. (5) The Borrower shall use any surpluses accruing to the Revolving Fund, not being surpluses resulting from exchange rate movements referred to in Part D (3) above, for funding of other components of the Project. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY