Project Agreement. Public Disclosure Authorized CREDIT NUMBER 1012 IN. Public Disclosure Authorized OFFICIAL DOCUMENTj. (Cashewnut Project)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized OFFICIAL DOCUMENTj Project Agreement CREDIT NUMBER 1012 IN (Cashewnut Project) Public Disclosure Authorized between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH and STATE OF KARNATAKA and Public Disclosure Authorized STATE OF KERALA and STATE OF ORISSA Dated ( 2 ",1980

2 CREDIT NUMBER 1012 IN PROJECT AGREEMENT AGREEMENT, dated 011, 10, 1980, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and STATE OF ANDHRA PRADESH, acting by its Governor (hereinafter called Andhra Pradesh), and STATE OF KARNATAKA, acting by its Governor (hereinafter called Karnataka) and STATE OF KERALA, acting by its Governor (hereinafter called Kerala) and STATE OF ORISSA, acting by its Governor (hereinafter called Orissa), all being States of India (hereinafter collectively called the Project States). WHEREAS by the Development Credit Agreement of even date herewith between India acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to twenty-two million dollars ($22,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition inter alia that the Project States agree to undertake such obligations toward the Association as are hereinafter set forth; WHEREAS by an agreement of even date between the Association and the Agricultural Refinance and Development Corporation (hereinafter called ARDC), ARDC has agreed to undertake certain obligations in respect of the carrying out of the Project; and WHEREAS the Project States, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, have agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth and the term "Rs." means rupees in the currency unit of the Borrower.

3 -2- ARTICLE II Execution of the Project Section The Project States shall carry out Part B of the Project described in Schedule 2 to the Development Credit Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section Except as the Association shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Credit, shall be governed by the provisions of the Schedule to this Agreement. Section (a) Each Project State undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds or the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by such Project State to replace or repair such goods. (b) Except as the Association may otherwise agree, each Project State shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the Project. Section (a) Each Project State shall at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) Each Project State shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by such Project State of its obligations under this Agreement. Section In implementing cashew planting program under Part A.1 of the Project, each Project State shall provide or cause

4 - 3 - to be provided a subsidy to the farmers to a level of 25% of the cost of new planting or Rs. 900 per hectare, whichever is less. Section Each Project State shall, by September 30, 1980: (i) establish a State Project Coordination Committee with terms of reference mutually agreed upon between the Project States and the Association; (ii) and appoint a Project Officer at the state level. ARTICLE III Other Covenants Section The Project States shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of their departments or agencies responsible for carrying out the Project or any part thereof. Section The Project States shall cause their departments and agencies responsible for carrying out the Project or any part thereof to: (i) have their accounts and financial statements (balance sheets, statements of income and expenses and related statements) in respect of the Project 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 nine months after the end of each such year, (A) certified copies of the financial statements for such year 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; and (iii) furnish to the Association such other information concerning the accounts and financial statements and the audit thereof as the Association shall from time to time reasonably request. Section The Project States shall, by September 30, 1980, draw up their staff training programs to be carried out under Part B.2 of the Project and furnish said programs to the Association for comments, if any. Section Karnataka and Kerala shall give priority to the Project Area for implementing the Training and Visit Extension System.

5 Section Orissa shall, by December 31, 1980, prepare and make available to the Association, plans for implementing a dune reclamation pilot scheme to be carried out unaer Part B.3 of the Project. Section Kerala shall, not later than June 30 of each year, furnish to the Association its annual road construction program to be carried out under Part B.4 of the Project. Section Karnataka shall, not later than December 31, 1980, cause the Karnataka Cashew Developmert Corporation Limited to employ a finance officer with adequate experience for instituting a management accounting and reporting system. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section (a) This Agreement and all obligations of the Association and of the Project States thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) a date twenty years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify the Project States of this event. Section All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions.

6 - 5 - ARTICLE V Miscellaneous Provisions Section Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C United States of America Cable address: INDEVAS Washington, D.C. For Andhra Pradesh: Secretary to the Government of Andhra Pradesh, Department of Finance and Planning Hyderabad, Andhra Pradesh India Cable address: For Karnataka: APFIN Hyderabad Secretary to the Government of Karnataka Department of Planning Bangalore India

7 -6- Cable address: PLANNING SECRETARY Bangalore For Kerala: Special Secretary to the Government of Kerala Department of Agriculture Trivandrum India Cable address: For Orissa: AGRISEC Trivandrum Secretary to the Government of Orissa Department of Agriculture and Cooperation Bhubaneswar India Cable address: AGRICULTURE SECRETARY Bhubaneswar Section Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of the Project States may be taken or executed by a Secretary to each such Project State or such other persc,n or persons as each State shall designate ir writing, and each State shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument.

8 -7- Section Any amendment to the provisions of this Agreement, as applicable to each Project State, may be made by an agreement between the Association and such Project State alone. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, 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. INTERNATIONAL DEVELOPMENT ASSOCIATION By /c w Regional Vice President South Asia STATE OF ANDHRA PRADESH STATE OF KARNATAKA STATE OF KERALA STATE OF ORISSA By / Authorized Representative

9 - 8 - SCHEDULE Procurement A. General Except as provided in Part B hereof, goods and civil works shall be procured under contracts awarded on the basis of competitive bidding advertised locally under procedures satisfactory to the Association. B. Other Procurement Procedures 1. Road construction under Part B.4 of the Project and civil works related to the pilot scheme and research component under Parts B.3 and C.1, respectively, of the Project may be carried out by force account. 2. Motorcycles and bicycles may be purchased by individual staff directly from loan funds provided by the Project States. 3. Small items estimated to cost the equivalent of $10,000 or less may be procured off-the-shelf by prudent shopping through normal commercial channels. C. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to contracts for (i) civil works estimated to cost the equivalent of $200,000 or more and (ii) equipment and materials estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Borrower or the State concerned, as the case may be, shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders.

10 - 9 - (b) After bids have been received and evaluated, the Borrower or the State concerned, as the case may be, shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower or the State concerned, as the case may be, and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower or the State concerned, as the case may be, shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal. of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower or the State concerned, as the case may be, and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower or the State concerned, as the case may be, shall inform the Association of the proposed modification, waiver, extension or change order and the

11 reasons therefor. The Association, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower or the State concerned, as the case may be, and state the reasons for its determination.

12 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. In witness whereof I have signed this Certificate and affixed the Seal of the Association thereunto the L L. day of FOR SECRETARY