CONFORMED COPY
CREDIT NUMBER 352 DO
Development Credit
Agreement(Yaque del Norte Irrigation Project)
BETWEEN
DOMINICAN REPUBLIC
AND
INTERNATIONAL DEVELOPMENT ASSOCIATION
DATED JANUARY 17, 1973
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CONFORMED COPY
CREDIT NUMBER 352 DO
Development Credit
Agreement(Yaque del Norte Irrigation Project)
BETWEEN
DOMINICAN REPUBLIC
AND
INTERNATIONAL DEVELOPMENT ASSOCIATION
DATED JANUARY 17, 1973
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated January 17, 1973, between DOMINICANREPUBLIC (hereinafter called the Borrower) and INTERNATIONALDEVELOPMENT ASSOCIATION (hereinafter called the Association).
WHEREAS (A) The Borrower has decided to construct, in the Yaque delNorte River area, downstream of Santiago de los Caballeros, an irrigation anddrainage system designed in correlation to the pattern of land holding which willresult from an agrarian reform program;
(B) The Borrower has requested the Association to assist in financing theProject described in Schedule 2 to this Agreement by extending the Credit ashereinafter provided;
(C) The Borrower intends to contract from the Inter-AmericanDevelopment Bank a loan for the equivalent of not less than thirteen million dollars(hereinafter called the IDB Loan) to assist in financing the said Project on theterms and conditions set forth in an agreement (hereinafter called the IDB LoanContract) to be entered into between the Borrower and the Inter-AmericanDevelopment Bank;
(D) The Association has agreed, on the basis inter alia of the foregoing,to extend the Credit to the Borrower upon the terms and conditions hereinafterset forth;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The parties to this Agreement accept all the provisions of theGeneral Conditions Applicable to Development Credit Agreements of theAssociation, dated January 31, 1969, with the same force and effect as if theywere fully set forth herein, subject, however, to the deletion of Sections 5.01 and6.02(h) thereof and to the renumbering of Section 6.02(i) into 6.02(h) thereof(said General Conditions Applicable to Development Credit Agreements of theAssociation, as so modified, being hereinafter called the General Conditions).
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Section 1.02. Wherever used in this Agreement, unless the context otherwiserequires, the several terms defined in the General Conditions have the respectivemeanings therein set forth and the following additional terms have the followingmeanings:
(a) "INDRHI" means the Instituto Nacional de Recursos Hidrdulicos, anagency of the Borrower;
(b) "Project Coordinator" means the official referred to in sub-paragraph(i) of Section 3.05(b) of this Agreement;
(c) "Memorandum" means the agreement to be entered into between theAssociation and the Inter-American Development Bank, providing, inter alia, inrespect of the Project, for coordination between them with regard to disbursementsof funds from the Credit and the IDB Loan, and with regard to procurement ofgoods and services and supervision procedures and exchange of information inrespect of the Project, and;
(d) "Transfer Agreement" means the agreement to be entered into betweenthe Borrower and INDRHI, pursuant to Section 3.01(b) hereof, as the same maybe amended from time to time.
ARTICLE II
The Credit
Section 2.01. The Association agrees to lend to the Borrower, on the termsand conditions in the Development Credit Agreement set forth or referred to, anamount in various currencies equivalent to thirteen million dollars ($13,COO,000).
Section 2.02. The amount of the Credit may be withdrawn from the CreditAccount in accordance with the provisions of Schedule I to this Agreement, assuch Schedule shall be amended from time to time, for expenditures made (or,if the Association shall so agree, to be made) in respect of the reasonable costof goods and services required for the Project and to be financed under theDevelopment Credit Agreement; provided, however, that, except as the Associationshall otherwise agree: (i) no withdrawal shall be made on account of expendituresin the territories of any country which is not a member of the Bank (other thanSwitzerland) or for goods produced in, or services supplied from, such territories;and (ii) no withdrawal shall be made, except for the equivalent of $1,000,000under Category III and $200,000 under Category II of the allocation of the proceeds
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of the Credit set forth in Schedule I hereto, until all conditions precedent tothe first disbursement under the IDB Loan Contract shall have been fulfilled andthe Memorandum shall have been executed and delivered on behalf of the partiesthereto.
Section 2.03. Except as the Association shall otherwise agree, the goods andservices (other than services of consultants) required for the Project and to befinanced out of the proceeds of the Credit, shall be procured on the basis ofinternational competition under procedures consistent with the Guidelines forProcurement under World Bank Loans and IDA Credits, published by the Bankin April 1972, and in accordance with, and subject to, the provisions set forthin Schedule 3 to this Agreement.
Section 2.04. The Closing Date shall be December 31, 1979 or such otherdate as shall be agreed between the Borrower and the Association.
Section 2.05. The Borrower shall pay to the Association a service chargeat the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principalamount of the Credit withdrawn and outstanding from time to time.
Section 2.06. Service charges shall be payable semi-annually on May 15 andNovember 15 in each year.
Section 2.07. The Borrower shall repay the principal amount of the Creditin semi-annual installments payable on each May 15 and November 15 commencingMay 15, 1983, and ending November 15, 2022, each installment to and includingthe installment payable on November 15, 1992 to be one-half of one per cent(1/2 of 1%) of such principal amount, and each installment thereafter to be oneand one-half per cent (1-1/2%) of such principal amount.
Section 2.08. The currency of the United States of America is herebyspecified for the purposes of Section 4.02 of the General Conditions.
ARTICLE III
Execution of the Project
Section 3.01. (a) The Borrower shall cause INDRHI ,o carry out Part Aof the Project, and shall carry out Part B of the Project with due diligence andefficiency and in conformity with appropriate engineering and agrarian practices,and shall provide, promptly as needed, the funds, facilities, services and otherresources required for the purpose.
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(b) The Borrower shall make the proceeds of the Credit available toINDRH1 under a transfer agreement to be entered into between the Borrower andINDRHI under terms and conditions satisfactory to the Association.
(c) The Borrower shall exercise its rights under the Transfer Agreementin such manner as to protect the interests of the Borrower and the Associationand to accomplish the purpose of the Credit, and except as the Association shallotherwise agree, the Borrower shall not assign, amend, abrogate or waive theTransfer Agreement or any provision thereof.
Section 3.02. The Borrower shall cause INDRHI to employ engineering andagricultural development consultants acceptable to the Association upon terms andconditions satisfactory to the Association in accordance with the provisions ofSchedule 4 to this Agreement.
Section 3.03. In carrying out construction of civil works under the Project,the Borrower shall cause INDRHI to employ contractors acceptable to theAssociation upon terms and conditions satisfactory to the Association.
Section 3.04. The Borrower shall apply or cause to be applied such operatingcriteria for the Tavera reservoir and hydroplant as shall be required to providesufficient flow in the Yaque del Norte River, together with the normal flow ofthe Bao River as it may be regulated by future development, to meet at all timesthe Project diversion demands for irrigrtion at the Project headworks.
Section 3.05. The Borrower shall, to coordinate activities of agencies of theBorrower responsible for aspects of the Project other than those to be carriedout by INDRHI:
(a) establish and maintain a Central Policy Committee which shall includehigh officials of the Secretariat of State for Agriculture, INDRHI, Banco Agri'colade la Republica Dominicana and the Instituto Agrario Dominicano, to give overallguidance to the execution of such parts of the Project; and
(b) establish and maintain a Project Coordinating Committee which shallinclude field representatives of the agencies of the Borrower referred to in paragraph(a) hereof and the Corporaci6n Doninicana de Electricidad, senior local officialsof the Tobacco Department and the Rice Research Center at Juma, to ensure saidcoordination in the field. Said Committee (i) shall be chaired by the ProjectCoordinator, who shall report directly to the Central Policy Committee referredto in paragraph (a) hereof; (ii) shall have its headquarters in Santiago de losCaballeros and (iii) shall hold meetings at least quarterly. Appointments to the
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position of Project Coordinator shall be made by the said Central Policy Committeeonly after consultation with the Association.
Section 3.06. The Borrower shall (i) within one year after the date of thisAgreement, present to the Association for consultation a plan for the establishmentof a unit under the direction of the Project Coordinator, to provide extensionservices in the Project area; (ii) promptly thereafter, establish such unit; and (iii)make annual budgetary allocations required to provide such unit with the funds,facilities, staff and other resources necessary to car.y out the unit's purposes.
Section 3.07. The Borrower shall: (i) within 18 months after the date ofthis Agreement, submit to the Association for agreement a detailed plan for landacquisition and settlement of farmers in the area to be irrigated under the Project,to the extent required to carry out the design and layout of Part A (3), (4) and(5) of the Project; and (ii) promptly thereafter, carry out a plan therefor, acceptableto the Association, through the Instituto Agrario Doininicano, in accordance witha timetable to be agreed upon with the Association and simultaneously with theconstruction of the irrigation and drainage component of the Project so that changesin the farm size and boundaries will be correlated with the layout and constructionof said irrigation and drainage systems.
Section 3.08. (a) The Borrower undertakes to insure, or make adequateprovision for the insurance of, the imported goods to be financed out of theproceeds of the Credit against hazards incident to the acquisition, transportationand delivery thereof to the place of use or installation, and for such insuranceany indemnity shall be payable in a currency freely usable by the Borrower toreplace or repair such goods.
(b) Except as the Association shall otherwise agree, the Borrower shallcause all goods and services financed out of the proceeds of the Credit to be usedexclusively for the Project.
Section 3.09. (a) The Borrower shall furnish to the Association, promptlyupon their preparation, the plans, specifications, reports, contract documents andwork and procurement schedules for the Project, and any material modificationsthereof or additions thereto, in such detail as the Association shall reasonablyrequest.
(b) The Borrower: (i) shall maintain records adequate to record theprogress of the Project (including the cost thereof) and to identify the goods andservices fihanced out of the proceeds of the Credit, and to disclose the use thereofin the Project; (ii) shall enable the Association's accredited representatives to
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examine the Project, the goods financed out of the proceeds of the Credit andany relevant records and documents; and (iii) shall furnish to the Association allsuch information as the Association shall reasonably request concerning the Project,the expenditure of the proceeds of the Credit and the goods and services financedout of such proceeds.
ARTICLE IV
Other Covenants
Section 4.01. (a) The Borrower shall maintain or cause to be maintainedrecords adequate to reflect in accordance with consistently maintained appropriateaccounting practices the operations, resources and expenditures, in respect of theProject, of the departments or agencies of the Borrower responsible for carryingout the Project or any part thereof.
(b) The Borrower shall cause INDRHI, in respect of the Project and ofthe use of the proceeds of the Credit, to: (i) have its accounts, including separatesub-accounts regarding the Project, and financial statements (balance sheets,statements of income and expenses and related statements) for each fiscal yearaudited, in accordance with sound auditing principles consistently applied, byindependent auditors acceptable to the Association; (ii) furnish to the Associationas soon as available, but in any case not later than four months after the endof each such year, (A) certified copies of its financial statements for such yearas so audited and (B) the report of such audit by said auditors, of such scopeand in such detail as the Association shall have reasonably requested; and (iii)furnish to the Association such other information concerning the accounts andfinancial statements of INDRHI and the audit thereof as the Association shall fromtime to time reasonably request.
Section 4.02. (a) The Borrower shall submit to the Association for comments,within 24 months after the date of this Agreement, a study to determine (i) thelevel of water charges required for full recovery of operation and maintenancecosts and (ii) the proportion of investment costs that could reasonably be recoveredthrough the water charges taking into account planned farm sizes, croppingpossibilities, expected taxes, farm income and water consumption, and the needto maintain farmers' incentives.
(b) The Borrower shall, on the basis of the study referred to in paragraph(a) hereof, prepare rate schedules and schedules of implementation thereof,regulations for allocation and delivery of water and administrative procedures forthe collection of water charges.
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(c) Except as the Association shall otherwise agree, the Borrower shallcause INDRHI to impcse and collect such annual water charges as shall be necessaryto recover the full amount of operation and maintenance costs of the irrigationcomponent of the Project and a reasonable proportion of investment costs, takinginto account the partial recovery, if any, of such costs through land acquisitionspursuant to Law No. 5852 of 1962 of the Borrower as amended by Law No. 134of 1971.
Section 4.03. The Borrower shall (i) make available, or cause to be madeavailable, sufficient funds to meet the credit needs of farmers in the Project Area,and (ii) cause that the use of such funds be made available upon therecommendation of, and supervised by, the extension service unit referred to inSection 3.06 hereof.
Section 4.04. The Borrower shall take all measures necessary to adjust landand water titles to conform to changes in farm size and ownership and to bringnew land under irrigation.
ARTICLE V
Consultation, Information and Inspection
Section 5.01. The Borrower and the Association shall cooperate fully toassure that the purposes of the Credit will be accomplished. To that end, theBorrower and the Association shall from time to time, at the request of eitherparty:
(a) exchange views through their representatives with regard to theperformance of their respective obligations under the Development CreditAgreement, the administration, operations, resources and expenditures, in respectof the Project, of the departments or agencies of the Borrower responsible forcarrying out -any part of the Project, and other matters relating to the purposesof the Credit- and
(b) furnish to the other all such information as it shall reasonably requestwith regard to the general status of the Credit. On the part of the Borrower, suchinformation shall include information with respect to financial and economicconditions in the te :ritories of the Borrower, including its balance of payments,and the external debt of the Borrower, of any of its political subdivisions andof any agency of the Borrower or of any such political subdivision.
Section 5.02. (a) The Borrower shall furnish or cause to be furnished tothe Association all such information as the Association shall reasonably request
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concerning the administration, operations, resources and expenditures, in respectof the Project, of the departments or agencies of the Borrower responsible forcarrying out any part of the Project.
(b) The Borrower and the Association shall promptly inform each otherof any condition which interferes with, or threatens to interfere with, theaccomplishment of the purposes of the Credit, the maintenance of the servicethereof or the performance by either of them of its obligations under theDevelopment Credit Agreement.
Section 5.03. The Borrower shall afford all reasonable opportunity foraccredited representatives of the Association to visit any part of the territoriesof the Borrower for purposes related to the Credit.
ARTICLE VI
Taxes and Restrictions
Section 6.01. The principal of, and service charges on, the Credit shall bepaid without deduction for, and free from, any taxes imposed under the laws ofthe Borrower or laws in effect in its territories.
Section 6.02. The Development Credit Agreement shall be free from anytaxes on or in connection with the execution, delivery or registration thereof,imposed under the laws of the Borrower or laws in effect in its territories.
Section 6.03. The payment of the principal of, and service charges on, theCredit shall be free from all restrictions, regulations, controls and moratoria ofany nature imposed under the laws of the Borrower or laws in effect in itsterritories.
ARTICLE VII
Remedies of the Association
Section 7.01. If any event specified in Section 7.01 of the General Conditionsor in Section 7.03 of this Agreement shall occur and shall continue for the period,if any, therein set forth, then at any subsequent time during the continuancethereof, the Association, at its option, may by notice to the Borrower declarethe principal of the Credit then outstanding to be due and payable immediatelytogether with the service charges thereon and upon any such declaration such
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principal and service charges shall become due and payable immediately, anythingto the contrary in the Development Credit Agreement notwithstanding.
Section 7.02. For the purpose of Section 6.02 of the General Conditions,the following additional event is specified: the right of the Borrower to utilizethe IDB Loan, shall have been suspended or cancelled in whole or in part.
Section 7.03. For the purposes of Section 7.01 of the General Conditions,the following additional event is specified: the event specified in Section 7.02 shalloccur.
ARTICLE VIII
Effective Date; Termination
Section 8.01. The following events are specified as additional conditions tothe effectiveness of the Development Credit Agreement within the meaning ofSection 10.01(b) of the General Conditions:
(a) The execution and delivery of the Transfer Agreement on behalf ofthe Borrower and INDRHI, respectively, have been duly authorizedor ratified by all necessary corporate and governmental action;
(b) the consultants referred in paragraph I of Schedule 4 to this Agreementhave been employed;
(c) the Central Policy Committee and the Project Coordinating Committeereferred to in Section 3.05 (a) and (b), respectively, have beenestablished;
(d) the Project Coordinator has been appointed after consultation withthe Association; and
(e) INDRHI has been given powers to impose and collect annual waterfees, at such levels as shall be required to comply with the provisionsof Section 4.02(c) hereof.
Section 8.02. The following are specified as additional matters, within themeaning of Section 10.02(b) of the General Conditions, to be included in theopinion or opinions to be furnished to the Association: namely, that the TransferAgreemen% has been duly authorized or ratified by, and executed and deliveredon behalf of, the Borrower and INDRHI, respectively, and constitutes a valid andbinding obligation of the Borrower and INDRHI in accordance with its terms.
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Section 8.03. The date April 20, 1973, is hereby specified for the purposes ofSection 10.04 of the General Conditions.
Section 8.04. The obligations of the Borrower under Article IV of thisAgreement shall cease and determine on the date on which the Development CreditAgreement shall terminate or on a date 30 years after the date of this Agreement,whichever shall be the earlier.
ARTICLE IX
Representative of the Borrower; Addresses
Section 9.01. The Executive Director of INDRHI of the Borrower isdesignated as representative of the Borrower for the purposes of Section 9.03 ofthe General Conditions.
Section 9.02. The following addresses are specified for the purposes ofSection 9.01 of the General Conditions:
For the Borrower:
Instituto Nacional de Recursos HidrulicosCentro de los HroesSanto DomingoRep6blica Dominicana
Cable address:
INDRHISanto Domingo
For the Association:
International Development Association1818 H Street, N.W.Washington, D.C. 20433United States of America
Cable address:
INDEVASWashington, D.C.
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IN WITNESS WHEREOF, the parties hereto, acting through theirrepresentatives thereunto duly authorized, have caused this Agreement to be signedin their respective names and to be delivered in the District of Columbia, UnitedStates of America, as of the day and year first above written.
DOMINICAN REPUBLIC
By /s / Michel Lulo GuitteAuthorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Gerald AlterRegional Vice President
Latin America and the Caribbean
L|
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SCHEDULE 1
Withdrawal of the Proceeds of the Credit
1. The table below sets forth the Categories of items to be financed out ofthe proceeds of the Credit, the allocation of amounts of the Credit to each Categoryand the percentage of eligible expenditures so to be financed in each Category:
Amount of theCredit Allocated % of
(Expressed in ExpendituresCategory Dollar Equivalent) to be Financed
I. Civil works 7,900,000 73% of totalexpenditures
II. Equipment 200,000 100% of foreignexpenditures
III. Consultants' services 2,400,000 100% of foreignexpenditures
IV. Unallocated 2,500 ^ 0
TOTAL 13,000,000
2. For the purposes of this Schedule:
(a) the term "foreign expenditures" means expenditures for goodproduced in, or services supplied from, the territories, and in the currency, cany country other than the Borrower; and
(b) the term "total expenditures" means the aggregate of foreigexpenditures and of expenditures for goods produced in, or services supplied fronthe territories of the Borrower.
3. Notwithstanding the provisions of paragraph I above, no withdrawals shabe made in respect of:
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(a) expenditures prior to the date of this Agreement; and
(b) payments for taxes imposed directly under the laws of the Borroweror laws in effect in its territories on goods or services, or on the importation,manufacture, procurement or supply thereof. To the extent that the amountrepresented by the percentage set forth in the third column of the table in paragraphI above in respect of any Category would exceed the amount payable net of allsuch taxes, such percentage shall be reduced to ensure that no proceeds of theCredit will be withdrawn on account of payments for such taxes.
4. Notwithstanding the allocation of an amount of the Credit set forth in thesecond column of the table in paragraph I above:
(a) if the estimate of the expenditures under any Category shall decrease,the amount of the Credit then allocated to such Category and no longer requiredtherefor will be reallocated by the Association by increasing correspondingly theunallocated amount of the Credit;
(b) if the estimate of the expenditures under any Category shall increase,the percentage set forth in the third column of the table in paragraph I abovein respect of such expenditures shall be applied to the amount of such increase,and a corresponding amount will be allocated by the Association, at the requestof the Borrower, to such Category from the unallocated amount of the Credit,subject, however, to the requirements for contingencies, as determined by theAssociation, in respect of any other expenditures; and
(c) if the Association shall have reasonably determined that theprocurement of any item in any Category is inconsistent with the procedures setforth or referred to in Section 2.03 of this Agreement, no expenditures for suchitem shall be financed out of the proceeds of the Credit and the Association may,without in any way restricting or limiting any other right, power or remedy ofthe Association under the Development Credit Agreement, by notice to theBorrower, cancel such amount of the Credit as in the Association's reasonableopinion, represents the amount of such expenditures which would otherwise havebeen eligible for financing out of the proceeds of the Credit.
5. Notwithstanding the percentages set forth in the third column of the tablein paragraph I above, if the estimate of total expenditures under Category I shallincrease and no proceeds of the Credit are available for reallocation to suchCategory, the Association may, by notice to the Borrower, adjust the percentagethen applicable to such expenditures in order that further withdrawals under suchCategory may continue until all expenditures thereunder shall have been made.
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SCHEDULE 2
Description of the Project
The Project, the purpose of which is to increase the productivity of theYaque del Norte River Valley, consists of (i) the rehabilitation and enlargementof the irrigation area downstream of Santiago, to provide efficient and secureirrigation to an area of about 27,500 ha (4,500 ha on the left bank and 23,000 haon the right bank); (ii) the acquisition of land under the laws of the Borrowerand their distribution to poor farmers pursuant to said legislation; (iii) the provisionof supporting services for agricultural and livestock production in the area; and(iv) the provision of technical assistance to farmers in the area and to train technicalpersonnel.
Part A: 1. construction of headworks on the Yaque del Norte River atSantiago de los Caballeros, consisting of a diversion dam, a sluicestructure, a desilting works and intake structure designed forabout 40 m3/s;
2. construction of a concrete lined main canal of about 73 kin;
3. construction of a distribution system of concrete canals witha total length of about 300 km;
4. construction of a drainage system of about 500 km, about halfof which would consist of reconditioned natural drains;
5. construction of on-farm irrigation and drainage canals and thecarrying out of land leveling;
6. installation of a pumping plant to serve about 1,600 ha abovethe main canal;
7. construction of about 375 km of roads along the main andsecondary canals;
8. construction of buildings for operations and maintenance staff;
9. installation of a telecommunication system connecting keyoperating stations in the Project Area;
10. the procurement of equipment for the Project;
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Part B: 11. the provision of extension services, technical assistance in thefields of marketing, agricultural credit cooperatives, operationand maintenance of the irrigation area and agrarian reform;
12. provision of agricultural credit to farmers in the area.
The Project is expected to be completed by June 30, 1979.
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SCHEDULE 3
Procurement
1. Scope of Contracts for Civil Works
There shall be 4 contracts for civil works: one for the headworks and firstsections of the main canal; one for the second section of the main canal, includingdistribution and on-farm works; one for the third section of the main canal, includingthe pumping plant, distribution and on-farm works; and one for the pumping plant andrelated distribution and on-farm works.
2. Large Contracts for Civil Works or Equipment
With respect to any contract for civil works or equipment estimated to costthe equivalent of $50,000 or more:
(a) Bidders for civil works contracts shall be required to prequalify. TheBorrower shall, before qualification is invited, inform the Association in detail ofthe procedure to be followed and shall introduce such modifications in saidprocedure as the Association shall reasonably request. The list of prequalifiedbidders, together with a statement of their qualifications and of the reasons forthe exclusion of any applicant for prequalification, shall be furnished by theBorrower to the Association for its comments before the applicants are notifiedand the Borrower shall make such additions to or deletions from the said list asthe Association shall reasonably request.
(b) Before bids are invited, the Borrower shall furnish to the Association,for its approval, the text of the invitations to bid and the plans and specificationsand other bidding documents, together with a description of the advertisingprocedures to be followed for the bidding, and shall make such modifications inthe said documents or procedure as the Association shall reasonably request. Anyfurther modification to the bidding documents shall require the Association'sconcurrence before it is issued to the prospective bidders.
(c) After bids have been received and evaluated, the Borrower shall, beforea final decision on the award is made, inform the Association of the name ofthe bidder to whom it intends to award the contract and shall furnish to theAssociation, in sufficient time for its review, a detailed report on the evaluationand comparison of the bids received, together with the reasons for the intendedaward. The Association shall, if it determines that the intended award would beinconsistent with the procedures set forth or referred to in Section 2.03 of thisAgreement, promptly inform the Borrower and state the reasons for suchdetermination.
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(d) The terms and conditions of the contract shall not, without theAssociation's concurrence, materially differ from those on which bids were asked.
(e) Two conformed copies of the contract shall be furnished to theAssociation promptly after its execution and prior to the delivery to the Associationof the first application for withdrawal of funds from the Credit Account in respectof any such contract.
3. Other Contracts for Civil Works or Equipment
With respect to any other contract for civil works or equipment, the Borrowershall furnish to the Association, promptly after its execution and prior to thedelivery to the Association of the first application for withdrawal of funds fromthe Credit Account in respect of any such contract, two conformed copies of suchcontract, together with the analysis of bids, recommendations for award and suchother information as the Association shall reasonably request. The Association shall,if it determines that the award of the contract is not consistent with the proceduresset forth or referred to in Section 2.03 of this Agreement, promptly inform theBorrower and state the reasons for such determination.
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SCHEDULE 4
Consultants Services
1. Except as the Association shall otherwise agree, the terms of reference ofconsultants retained to assist INDRHI in carrying out Part A of the Project shallrequire the consultants to:
(a) Review the proposed plan for the Project and perform additionalstudies as required;
(b) perform detailed surveys as required for design and layout of theirrigation and drainage component of the Project, including topographicsurveys for land leveling;
(c) prepare final designs, specifications, and cost estimates;
(d) prepare mass diagrams, quantity estimates and elevations for landleveling;
(e) provide layout stakes for the contractors and make final inspectionsfor compliance with specifications;
(f) prepare tender documents and contracts and assist in evaluation ofbids;
(g) supervise construction, perform partial and final inspections, certifywork performed;
(h) prepare specifications and assist with inspection and acceptance ofequipment and materials purchased directly by INDRHI for the Project;
(i) prepare progress reports as required; and
(j) provide in-service training to local staff employed on the Project.
2. Except as the Association shall otherwise agree, the terms of reference ofthe consultants retained to assist the Borrower in carrying out Part B of the Projectshall require the consultants to:
(a) assist in the preparation and timing of a detailed plan for acquisitionand redistribution of Project lands;
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(b) assist in, the implementation of this plan over the Project period,including the settlement of farm families;
(c) assist in the coordination and strengthening of the extension servicesunder the Project, to assist the farmers in increasing their productivity;
(d) assist the credit and marketing services under the Project, in orderto coordinate the channeling of supervised credit to Project farmers;
(e) assist, mainly INDRHI, to prepare and implement a water deliveryschedule, to prepare an operation and maintenance manual and todetermine the level of water charges, and;
(f) provide in-service training to local staff employed on the Project.
These consultants shall be headed by a senior extension specialist and shall includeexperts in agronomy, water distribution and irrigation practices, credit, marketing,and agrarian reform.
