OFICIF SPECIAL FUND CREDIT NUMBER SF-22 BD 'DOCUMENTS Special Fund Credit Agreement (Second Textile Industry Rehabilitation Project) between PEOPLE'S REPUBLIC OF BANGLADESH and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FUND established with funds contributed by certain members of the International Development Association Dated ,1984 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
OFICIF SPECIAL FUND CREDIT NUMBER SF-22 BD
'DOCUMENTS
Special Fund Credit Agreement(Second Textile Industry Rehabilitation Project)
between
PEOPLE'S REPUBLIC OF BANGLADESH
and
INTERNATIONAL DEVELOPMENT ASSOCIATIONas ADMINISTRATOR of the SPECIAL FUND
established with funds contributed bycertain members of the
International Development Association
Dated ,1984
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SPECIAL FUND CREDIT NUMBER SF-22 BD
SPECIAL FUND CREDIT AGREEMENT
AGREEMENT, dated QDEJu e 9< , 1984, betweenPEOPLE'S REPUBLIC OF BANGLADE H ( ereinafter called the Borrower)
and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of theSPECIAL FUND established with funds contributed by certain mem-bers of the International Development Association (hereinaftercalled the Administrator).
WHEREAS (A) by Resolution No. IDA 82-6, adopted on Octo-ber 26, 1982, of the Executive Directors of the InternationalDevelopment Association (hereinafter called IDA) there has beenestablished by IDA a Special Fund constituted by the funds whichshall be contributed by certain members of IDA and administeredby IDA, acting as Administrator of such Special Fund, for thepurpose of, and in accordance with, the provisions of said Reso-lution;
(B) the Borrower has requested of the Administrator assis-tance from the resources of the Special Fund in the financing ofthe Project described in Schedule 2 to the Development CreditAgreement (as herein defined), and the Administrator has deter-mined that such assistance would be in accordance with the
provisions of the Resolution referred to above;
(C) the Borrower has also requested IDA to provide addi-tional assistance towards the financing of the Project and byan agreement of even date herewith between the Borrower and IDA(hereinafter called the Development Credit Agreement) IDA isagreeing to provide such assistance in an aggregate principalamount equivalent to twenty-one million six hundred thousandSpecial Drawing Rights (SDR 21,600,000) (hereinafter called theIDA Credit);
(D) the Project, to the extent that it relates to thePublic Mills (as defined in the Development Credit Agreement),will be carried out or caused to be carried out by the BangladeshTextile Mills Corporation (hereinafter called BTMC) with theBorrower's assistance and, as part of such assistance, the Bor-rower will make available to BTMC part of the proceeds of theSpecial Fund Credit as hereinafter provided; and
(E) the Project, to the extent that it relates to thePrivate Mills (as defined in the Development Credit Agreement),will be carried out by the Borrower with the assistance of the
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Bangladesh Shilpa Bank (hereinafter called BSB) and the Bangla-eish Shilpa Rin Sangstha (hereinafter called BSRS) using part ofthe proceeds of the Special Fund Credit as hereinafter provided;and
WHEREAS the Administrator has agreed on the basis, interalia, of the foregoing, to extend the Special Fund Credit to theBorrower upon the terms and conditions hereinafter set 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 theprovisions of the General Conditions Applicable to DevelopmentCredit Agreements of the International Development Association,dated June 30, 1980, with the same force and effect as if theywere fully set forth herein, subject, however, to the followingmodifications thereof (said General Conditions Applicable toDevelopment Credit Agreements of the International DevelopmentAssociation, as so modified, being hereinafter called the GeneralConditions):
(a) the term "Association", wherever used in the GeneralConditions, means the International Development Associationacting as the Administrator of the Special Fund referred to inthe Preamble to this Special Fund Credit Agreement;
(b) the terms "Development Credit Agreement", "Credit" and"Credit Account", wherever used in the General Conditions, areamended to read "Special Fund Credit Agreement", "Special FundCredit" and "Special Fund Credit Account", respectively;
(c) the second sentence of Section 5.01 is deleted; and
(d) in Sections 6.02 and 7.01, the term "Association" shallalso include the International Development Association acting inits own capacity.
Section 1.02. Wherever used in this Agreement, unless thecontext otherwise requires, the several terms defined in theGeneral Conditions and in the Preamble to this Agreement have the
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respective meanings therein set forth and the following addi-tional terms have the following meanings:
(a) "Special Fund Resolution" means Resolution No. IDA 82-6of the Executive Directors of IDA which, inter alia, establishesthe Special Fund;
(b) "Part I member of IDA" means a member of IDA withrespect to which the terms and conditions of membership are thoseprescribed in the Articles of Agreement of IDA for countrieswhose names are listed in Part I of Schedule A to those Articles;
(c) "Part II member of IDA" means a member of IDA whichis not a Part I member of IDA;
(d) "Project Agreement" means the agreement among theAdministrator, IDA and BTMC of even date herewith, as the samemay be amended from time to time, and such term includes allschedules to the Project Agreement and all agreements supple-mental to the Project Agreement;
(e) "Subsidiary Loan Agreement" means the agreement tobe entered into between the Borrower and BTMC pursuant to Section3.01 (b) of the Development Credit Agreement as incorporatedherein, as the same may be amended from time to time, and suchterm includes all schedules to the Subsidiary Loan Agreement; and
(f) "Development Credit Agreement" means the agreement ofeven date herewith between the Borrower aad IDA for the purposeof the Project, as such agreement may be amended from time totime; and such term includes the General Conditions Applicable toDevelopment Credit Agreements of IDA, dated June 30, 1980, asmade applicable to such agreement, all agreements supplementalto the Development Credit Agreement and all schedules to theDevelopment Credit Agreement.
ARTICLE II
The Special Fund Credit
Section 2.01. The Administrator agrees to lend to theBorrower on the terms and conditions set forth or referred to inthe Special Fund Credit Agreement, an amount in various curren-cies equivalent to twenty million seven hundred thousand SpecialDrawing Rights (SDR 20,700,000).
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Section 2.02. (a) The amount of the Special Fund Credit may
be withdrawn from the Special Fund 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 Administrator, for expenditures made (or, if
the Administrator 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 Special Fund
Credit.
(b) Withdrawals shall be made only on account of expendi-
tures for goods produced in, or services supplied from, the
territories of (A) any Part II member of IDA; or (B) any Part I
member of IDA which fulfills the conditions set forth in para-
graph 13 (d) (ii) of the Special Fund Resolution on the date of
this Agreement, as determined by the Administrator.
Section 2.03. Except as the Administrator shall otherwise
agree, procurement of the goods to be financed out of the
proceeds of the Special Fund Credit shall be governed by the
provisions of Schedule 2 to this Agreement and the Schedule to
the Project Agreement.
Section 2.04. The Closing Date shall be June 30, 1989, or
such later date as the Administrator shall establish. The
Administrator shall promptly notify the Borrower of such later
date.
Section 2.05. (a) The Borrower shall pay to IDA 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 Special Fund Credit not
withdrawn from time to time. The commitment charge shall accrue
from a date sixty days after the date of the Special Fund Credit
Agreement to the respective dates on which amounts shall be
withdrawn by the Borrower from the Special Fund Credit Account or
shall be cancelled.
(b) The commitment charge shall be paid:. (i) at such places
as IDA 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 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.
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Section 2.06. The Borrower shall pay to IDA a service chargeat the rate of three-fourths of one per cent (3/4 of 1%) per
annum on the amount withdrawn from the Special Fund CreditAccount and outstanding from time to time.
Section 2.07. Commitment charges and service charges shall
be payable semiannually on April 15 and October 15 in each year.
Section 2.08. The Borrower shall repay to IDA the principalamount of the Special Fund Credit in semiannual installmentspayable on each April 15 and October 15 commencing October 15,1994, and ending April 15, 2034, each installment to and includ-
ing the installment payable on April 15, 2004, to be one-half ofone per cent (1/2 of 1%) of such principal amount, and each
installment thereafter to be one and one-half per cent (1-1/2%)of such principal amount.
Section 2.09. The currency of the United States of America,is hereby specified for the purposes of Section 4.02 of theGeneral Conditions.
ARTICLE III
Execution of the Project
Section 3.01. (a) Subject to paragraph (b) of this Section,Articles III and IV of, and Schedules 2, 4 and 5 to, the Deve-lopment Credit Agreement, as such Articles and Schedules may beamended from time to time, are incorporated in, and made a partof, this Agreement with the same force and effect as if they. werefully set forth herein; provided, however, that for the purposes
of this Agreement: (i) the reference to the Credit in said Arti-cles and said Schedule 4 shall be deemed to be a reference tothe Special Fund Credit; and (ii) the reference to the Develop-ment Credit Agreement in said Articles and said Schedules 4 and 5
shall be deemed to be a reference to this Agreement.
(b) As long as the Administrator has not given notice tothe contrary to the Borrower and so long as the DevelopmentCredit Agreement shall not have terminated prior to the termina-tion of this Agreement: (i) the obligations of the Borrower to
consult with and to furnish or cause to be furnished, informa-tion, documents, plans, reports, records and statements to theAdministrator shall be satisfied to the extent performance in
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respect of such obligations is rendered to the Association; (ii)the obligations of the Administrator to consult with and to fur-
nish information to the Borrower shall be satisfied to the extent
such obligations are fulfilled by the Association; and (iii) all
actions taken (including the giving of approvals or the grantingof waivers) by the Association pursuant to the Development Credit
Agreement shall be deemed to be taken pursuant to both the Devel-
opment Credit Agreement and the Special Fund Credit Agreement and
in the name and on behalf of both the Association and the Admin-istrator.
ARTICLE IV
Resedies of the Administrator
Section 4.01. For the purposes of Section 6.02 of the
General Conditions the following additional events are specified
pursuant to paragraph (h) thereof, namely, that:
(a) BTMC shall have failed to perform any of its covenants,
agreements or obligations under the Project Agreement.
(b) An extraordinary situation shall have arisen which
shall make it improbable that BTMC will be able to perform its
obligations under the Project Agreement.
(c) The Order (as defined in the Development Credit Agree-
ment) shall have been amended, suspended, abrogated, repealed orwaived in such a way as to materially and adversely affect the
ability of BTMC to carry out the covenants, agreements and
obligations set forth in the Project Agreement.
(d) The Borrower or any other authority having jurisdic--ion shall have taken any action for the dissolution or disesta-
Thment of BTMC or for the suspension of its operations.
(e) (i) Subject to subparagraph (ii) of this paragraph:
(A) the right of the Borrower to withdraw the
proceeds of any grant, loan or credit (in-
cluding the IDA Credit) made to the Borrowerfor the financing of the Project shall havebeen suspended, cancelled or terminated in
whole or in part, pursuant to the terms ofthe agreement providing therefor; or
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(B) any such loan or credit shall have become due
and payable prior to the agreed maturity
thereof.
(ii) Subparagraph (i) of this paragraph shall not apply
if: (A) such suspension, cancellation, termination
or prematuring is not caused by the failure of the
Borrower to perform any of its obligations under
such agreement; and (B) adequate funds for the
Project are available to the Borrower from other
sources on terms and conditions consistent with
the obligations of the Borrowver under this Agree-
ment.
Section 4.02. For the purposes of Section 7.01 of the Gene-
ral Conditions, the fn_llowing additional events are specified
pursuant to paragraph (d) thereof:
(a) the event specified in paragraph (a) of Section 5.01
of this Agreemnent shall occur and shall continue for a period
of 60 days after notice thereof shall have been given by the
Administrator to the Borrower and BTMC;
(b) any event specified in paragraph (c) or paragraph (d)
of Section 5.01 of this Agreement shall occur; and
(c) the event specified in paragraph (e) (i) (R) of Sec-
tion 5.01 of this Agreement shall occur, subject to the proviso
of subparagraph (ii) of that paragraph.
ARTICLE V
Effective Date; Termination;
Designation of Administrator
Section 5.01. The following events are specified as addi-
tional conditions to the effectiveness of the Special Fund Credit
Agreement within the meaning of Section 12.01 (b) of the General
Conditions, namely, that:
(a) all conditions precedent to the effectiveness of the
Development Credit Agreement, except for the effectiveness of
this Agreement, shall have been fulfilled; and
(b) the Subsidiary Loan Agreement shall have been executed
on behalf of the Borrower and BTMC.
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Section 5.02. 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 fur-
nished to the Administrator, namely:
(a) that the Project Agreement has been duly authorized or
ratified by BTMC, and is legally binding upon BTMC in accordance
with its terms; and
(b) that the Subsidiary Loan Agreement has been duly autho-
rized or ratified by the Borrower and BTMC and is legally binding
upon the Borrower and BTMC in accordance with its terms.
Section 5.03. The date L // ( , is hereby
specified for the purposes of Section 12.04 of the General Condi-
tions.
Section 5.04. The obligations of the Borrower under Sections
4.03, 4.04, 4.05 and 4.06 of the Development Credit Agreement
(as incorporated in this Agreement) and the provisions of para-
graph (b) of Section 4.02 of this Agreement shall cease and
determine on the date on which the Special Fund Credit Agreement
shall terminate or on a date eighteen (18) years after the date
of this Agreement, whichever shall be the earlier.
Section 5.05. In the event that the Executive Directors of
IDA decide to terminate the functions of IDA as administrator of
the Special Fund pursuant to paragraph 17 of the Special Fund
Resolution, the Administrator may, by notice to the Borrower,
designate another party which, on the date specified in such
notice, shall assume part or all of the rights and obligations of
the Administrator under this Agreement in accordance with the
Special Fund Resolution and such decision of the Executive
Directors, as specified in such notice.
ARTICLE VI
Representative of the Borrower; Addresses
Section 6.01. The Secretary, or any Additional Secretary,
Joint Secretary, Deputy Secretary or Section Officer of the
External Resources Division of the Ministry of Finance of the
Borrower is designated as representative of the Borrower for the
purposes of Section 11.03 of the General Conditions.
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Section 6.02. The following addresses are specified for thepurposes of Section 11.01 of the General Conditions:
For the Borrower:
External Resources DivisionMinistry of FinanceGovernment of the People's
Republic of BangladeshDhaka, Bangladesh
Cable address: Telex:
BAHIRSAMPAD 65886 SETUDhaka
For the Administrator:
Administrator of the Special Fund(International Development Association)
1818 H Street, N.W.Washington, D.C. 20433United States of America
Cable address: Telex:
INDEVAS 440098 (ITT)Washington, D.C. 248423 (RCA) or
64145 (WUI)
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IN WITNESS WHEREOF, the parties hereto, acting through their
representatives thereunto duly authorized, have cauned 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.
PEOPLE'S REPUBLIC OF BANGLADESH
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
as ADMINISTRATOR of the SPECIAL FUND
established wi:th funds contributed by
certain members of the International
Development Association
BySRegional Vice President
South Asia
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SCHEELE 1
Withdrawal of the Proceedsof the Special Fund Credit
1. The table below sets forth the Categories of items to befinanced out of the proceeds of the Special Fund Credit, theallocation of the amounts of the Special Fund Credit to eachCategory and the percentage of expenditures for items so to befinanced in each Category:
Amount of theSpecial Fund
Credit Allocated % of(Expressed in Expenditures
Category SDR Equivalent) to be Financed
(1) Equipment,machinery andspare parts
(a) Part A (i) 4,706,000 100% of foreignof the Project expenditures,
100% of local
expenditures(ex-factory cost)and 70% of localexpenditures forother items pro-cured locally
(b) Part A (ii) 7,997,000 100% of foreignof the Project expenditures, 100%
of local expendi-tures (ex-factorycost) and 70% oflocal expendituresfor items procuredlocally
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Amount of the
Special Fund
Credit Allocated % of
(Expressed in Expenditures
Category SDR Equivalent) to be Financed
(2) Raw materials 100 of foreign
expenditures
(a) Part A (i) 2,821,000of theProject
(b) Part A (ii) 4,706,000of theProject
(3) Unallocated 470,000
TOTAL 20,700,000
2. For the purposes of this Schedule:
(a) the term "foreign expenditures" means expenditures in
the currency of, and for goods produced in or services supplied
from, any country other than the Borrower which is (A) a Part II
member of IDA or (B) a Part I member of IDA which fulfills the
conditions set forth in paragraph 13 (d) (ii) of the Special Fund
Resolution on the date of the Special Fund Credit Agreement, as
determined by the Administrator; and
(b) the term "local expenditures" means expenditures in
the currency of the Borrower or for goods or services supplied
from the territory of the Borrower.
3. The disbursement percentages have been calculated in
compliance with the policy of the Administrator that the proceeds
of the Special Fund Credit shall not be disbursed on account of
payments for taxes levied by, or in the territory of, the Bor-
rower on goods or services, or on the importation, manufacture,
procurement or supply thereof; on this basis, if the amount of
any such taxes levied on or in respect of items in any Category
decreases or increases, the Administrator may, by notice to the
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Borrower, increase or decrease the disbursement percentage then
applicable to such Category as required to be consistent with the
aforementioned policy of the Administrator.
4. Notwithstanding the provisions of paragraph 1 above, no
withdrawals shall be made in respect of payments made for ex-
penditures prior to the date of this Agreement.
5. Notwithstanding the allocation of an amount of the Special
Fund Credit or the disbursement percentages set forth in the
table in paragraph 1 above, if the Administrator has reasonably
estimated that the amount of the Special Fund Credit then
allocated to any Category will be insufficient to finance the
agreed percentage of all expenditures in that Category, the
Administrator may, by notice to the Borrower: (i) reallocate to
such Category, to the extent required to meet the estimated
shortfall, proceeds of the Special Fund Credit which are then
allocated to another Category and which in the opinion of the
Administrator are not needed to meet other expenditures, and (ii)
if such reallocation cannot fully meet the estimated shortfall,
reduce the disbursement percentage then applicable to such
expenditures in order that further withdrawals under such
Category may continue until all expenditures thereunder shall
have been made.
6. If the Administrator shall have reasonably determined that
the procurement of any item in any Category is inconsistent with
the procedures set forth or referred to in this Agreement, no
expenditure for such item shall be fina.-ced out of the proceeds
of the Special Fund Credit, and the Administrator may, without in
any way restricting or limiting any other right, power or remedy
of the Administrator under the Special Fund Credit Agreement, by
notice to the Borrower, cancel such amount of the Special Fund
Credit as, in the Administrator's reasonable opinion, represents
the amount of such expenditures which would otherwise have been
eligible for financing out of the proceeds of the Special Fund
Credit.
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SCHEDULE 2
Procurement under Part A (ii)
of the Project
A. International Competitive Bidding
1. Subject to the eligibility restrictions set forth in Sec-
tion 2.02 (b) of this Agreement and except as provided in Part C
hereof, goods shall be procured under contracts awarded in accor-
dance with procedures consistent with those set forth in the
"Guidelines for Procurement under World Bank Loans and IDA
Credits" published by the Bank in March 1977 (July 1980 edition)
(hereinafter called the Guidelines), on the basis of interna-
tional competitive bidding as described in Part A of the Guiie--
lines. The above-mentioned eligibility restrictions shall be
stated in the tender documents for the procurement of such goods.
2. For goods to be procured on the basis of international com-
petitive bidding, in addition to the requirements of paragraph
1.2 of the Guidelines, the Borrower shall prepare and forward
to the Administrator as soon as possible, and in any event not
later than 60 days prior to the date of availability to the
public of the first tender documents relating thereto, a general
procurement notice, in such form and detail and containing such
information as the Administrator shall reasonably request; the
Administrator will arrange for the publication of such notice in
order to provide timely notification to prospective bidders of
the opportunity to bid for the goods in question. The Borrower
shall provide the necessary information to update such notice
annually so long as any goods remain to be procured on the basis
of international competitive bidding.
3. For the purpose of evaluation and comparison of bids for the
supply of goods to be procured on the basis of international
competitive bidding: (i) bidders shall be required to state in
their bid the c.i.f. (port of entry) price for the imported
goods, or the ex-factory price or off-the-shelf price of other
goods, offered in such bid; (ii) customs duties and other import
taxes levied in connection with the importation, or the sales and
similar taxes levied in connection with the sale or delivery,
pursuant to the bid, of the goods shall not be taken into account:
in the evaluation of the bids; and (iii) the cost of inland
freight and other expenditures incidental to the delivery of
the goods to the place of their use or installation shall be
included.
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B. Preference for Domestic Manufacturers
In the procurement of goods in accordance with the proce-dures described in Part A of this Schedule, goods manufactured inPeople's Republic of Bangladesh may be granted a margin of pre-ference in accordance with, and subject to, the following provi-sions:
1. All bidding documents for the procurement of goodsshall clearly indicate any preference which will be granted, theinformation required to establish the eligibility of a bid forsuch preference and the following methods and stages that will befollowed in the evaluation and comparison of bids.
2. After evaluation, responsive bids will be classified inone of the following three groups:
(1) Group A: bids offering goods manufactured inPeople's Republic of Bangladesh if the biddershall have established to the satisfaction of theBorrower and the Administrator that the manufac-turing cost of such goods includes a value addedin People's Republic of Bangladesh equal to atleast 20% of the ex-factory bid price of suchgoods.
(2) Group B: all other domestic bids.
(3) Group C: bids offering any other goods.
3. In order to determine the lowest evaluated bid of eachgroup, all evaluated bids in each group shall first be comparedamong themselves, without taking into account customs duties andother import taxes levied in connection with the importation, andsales and similar taxes levied in connection with the sale ordelivery, pursuant to the bids, of the goods. Such lowestevaluated bids shall then be compared with each other, and if, asa result of this comparison, a bid from group A or group B is thelowest, it shall be selected for the award.
4. If, as a result of the comparison under paragraph 3above, the lowest bid is a bid from group C, all group C bidsshall be further compared with the lowest evaluated bid fromgroup A after adding to the evaluated bid price of the imported
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goods offered in each group C bid, for the purpose of this
further comparison only, an amount equal to: (i) the amount of
customs duties and other import taxes which a non-exempt importer
would have to pay for the importation of the goods offered in
such group C bid; or (ii) 15% of the c.i.f. bid price of such
goods if said customs duties and taxes exceed 15% of such price.
If the bid from group A in such fui7ther comparison is the lowest,
it shall be selected for the award; if not, the bid from group C
which as a result of the comparison under paragraph 3 is the
lowest evaluated bid shall be selected.
C. Other Procurement Procedures
Contracts for equipment, machinery and spare parts, costing
less than the equivalent of $500,000 each, may be awarded in
accordance with BSB's and BSRS's standard procedures <-atisfactory
to the Administrator.
D. Review of Procurement Decisions by the Administrator
1. Review of invitations to bid and of proposed awards and
final contracts:
With respect to all contracts for equipment, machinery and
spare parts each estimated to cost the equivalent of $500,000 or
more:
(a) Before bids are invited, the Borrower shall furnish to
the Administrator, 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 Administrator shall
reasonably request. Any further modification to the bidding
documents shall require the Administrator's concurrence before it
is issued to the prospective bidders.
(b) After bids have been received and evaluated, the
Borrower shall, before a final decision on the award is made,
inform the Administrator of the name of the bidder to which it
intends to award the contract and shall furnish to the
Administrator, in sufficient time for its review, a detailed
report on the evaluation and comparison of the bids received and
such other information as the Administrator shall reasonably
request. The Administrator shall, if it determines that the
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intended award would be inconsistent with the Guidelines or this
Schedule, promptly inform the Borrower and state the reasons forsuch determination.
(c) The terms and conditionF of the contract shall not,without the Administrator's concurrence, materially differ fromthose on which bids were asked.
(d) Two conformed copies of the contract shall be furnishedto the Administrator promptly after its execution and prior to
the submission to the Administrator of the first application forwithdrawal of funds from the Special Fund Credit Account inrespect of such contract.
2. With respect to each contract not governed by the precedingparagraph (except for contracts on account of which withdrawalsare allowed from the Special Fund Credit Account on the basis ofstatements of expenditure), the Borrower shall furnish to theAdministrator, promptly after its execution and prior to thesubmission to the Administrator of the first application forwithdrawal of funds from the Special Fund Credit Account inrespect of such contract, two conformed copies of such contract,together with the analysis of the respective bids, recommenda-tions for award and such other information as the Administratorshall reasonably request. The Administrator shall, if it deter-mines that the award of the contract was not consistent with theGuidelines or this Schedule, promptly inform the Borrower andstate 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 extensionof the stipulated time for performance of -such contract, orissuing any change order under such contract (except in cases ofextreme urgency) which would increase the cost of the contract by
more than 15% of the original price, the Borrower shall informthe Administrator of the proposed modification, waiver, extensionor change order and the reasons therefor. The Administrator, ifit determines that the proposal would be inconsistent with theprovisions of this Agreement, shall promptly inform the Borrowerand state the reasons for its determination.
INTERNATIONAL DEVELOPMENT ASSOCIATION
CERTIFICATE
I hereby certify that the foregoing is a true
copy of the original in the archives of the Interna-
