LOAN AGREEMENT. (Fourth Education Project) between. and

Transcription

1 CONFORMED COPY Public Disclosure Authorized LOAN NUMBER 1271 TH LOAN AGREEMENT (Fourth Education Project) between KINGDOM OF THAILAND and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Dated September 13, 1976

2 LOAN AGREEMENT AGREEMENT, dated September 13, 1976, between KINGDOM OF THAILAND (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank).

3 - 2-0 ARTICLE I General Conditions; Definitions Section The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan an'- Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Apnlicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the resnective meanings therein set forth and the following additional terms have the following meanings: (a) "MOE" means the Borrower's Ministry of Education; (b) "DSEU" means the diversified secondary education unit of the MOE's Department of General Education; (c) "AED" means Adult Education Division of the MOE's Department of General Education; (d) "AEC" means Regional Adult Education Center; (e) "LEC" means Lifelong Education Center;

4 -3- (f) "Project Unit" means the central Project coordinating unit referred to in Section 3.07 (a) of this Agreement; and (g) "NCDC" means National Curriculum Development Center.

5 4- ARTICLE IT The Loan Section The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to thirty-one million dollars ($31,000,000). Section The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time, for expenditures made (or, if the Bank 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 Loan. Section 2.0i. Except as the Bank shall otherwise agree, contracts for the purchase of goods or for civil works required for the Project to be financed out of the proceeds of the Loan shall be procured in accordance with the provisions of Schedule 4 to this Agreement. Section The Closing Date shall be June 30, 1982 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one oer cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time.

6 -5- Section The Borrower shall pay interest at the rate of eight and one-half per cent (8-1/2%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section Interest and other charges shall be payable semiannually on June 1 and December 1 in each year. Section The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement.

7 -6- ARTICLE III Execution of the Project Section The Borrower shall carry out the Project through its Ministry of Education with due diligence and efficiency and in conformity with appropriate administrative, financial, technical and educational policies and practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section In order to assist the Borrower in carrying out the Project, the Borrower shall employ suitably qualified specialists (in accordance with Annex D to Schedule 2 to this Agreement) and suitably qualified consultant firm(s). The terms and conditions of employment of said specialists and firm(s) shall be agreeable to the Borrower and to the Bank. Section (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan 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 the Borrower to replace or repair such goods. (b) Except as the Bank shall otherwise agree, all goods and services financed out of the proceeds of the Loan shall be used exclusively for the Project until its completion.

8 -7- Section (a) The Borrower shall submit or cause to be submitted to the Bank for approval, promptly upon their preparation, the preliminary architectural drawings and the outline of the specifications for the buildings and facilities including a preliminary list of all furnishings and equipment, which are included in the Project and to be financed out of the proceeds of the Loan. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. Section The Borrower shall take all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for the construction (and operation) of-tht facilit-ies included in the Project and shall furnish to the Bank, promptly after such acquisition, evidence satisfactory to the Bank that such land and rights in respect of land are available for purposes related to the Project. Section The Borrower shall, within one (1) year from the date of this Agreement, or such other period as may be agreed

9 unon between the Borrower and the Bank, submit to the Bank for its review a comprehensive plan, including a schedule for -he implementation thereof, for coordinating (i) the curriculum development activities of NCDC with the AECs, and (ii) the activities of the AED with other interested agencies of the Government, including the Ministries of Agriculture and Cooperatives, Public Health and Interior and shall keep the Bank informed of any changes in the procedures for such coordination. Section (a) For the purpose of the Project, the Borrower shall maintain within the Ministry of Education the unit established pursuant to Section 3.11 (a) of the Develonment Credit Agreement number 369 TH, (Third Education Project) dated April 11, 1973, between the Borrower and the International Development Association, and the responsibilities of said unit with respect to the Project shall be as set forth in aforesaid Development Credit Agreement with respect to the Ministry of Education Project as therein defined together with the modifications and additions thereto set out in Schedule 5 to this Agreement. (b) The Borrower shall maintain adequate qualified staff within the Project Unit, and within the DSEU and AED. (c) For the nurpose of staffing the Project Unit and the DSEU and AED, the Borrower shall ensure that persons with qualifications and experience acceptable to the Borrower and the Bank are anpointed to fill each of the positions specified in Schedule 5 to this Agreement.

10 9 Section The Borrower shall, in order to ensure prompt implementation of the Project, take all stens necessary to expedite procurement, and in this connection, the Borrower shall, within six (6) months from the date of this Agreement, or such other period as may be agreed upon between the Borrower and the Bank, submit to the Bank for its review a completed study on procedures for review of procurement in externally financed education projects including specific recommendations on ways to expedite the necessary approvals. Section The Borrower shall, within two (2) years from the date of this Agreement, or such other period as may be agreed upon between the Borrower and the Bank, submit to the National Education Council (NEC) for its review, and to the Bank for its information, the proposed operational and teaching program of the LECs, and shall cause the NEC to evaluate such program and send the Borrower and the Bank a copy of such evaluation within six (6) months of its submission to NEC. Section The Borrower shall, with respect to the secondary schools included in the Project: (a) establish a tracer system to follow the careers of students who enroll in the project schools for the purpose of improving the efficiency of education programs in the said schools; (b) submit to the Bank for its comment, within one year from the date of this Agreement, its design for the tracer system including an imnlementation schedule; and (c) furnish to the Bank annually, for six consecutive years from inception of the tracer system, a summary analysis of information gathered.

11 - 10- Section The Borrower shall, with respect to Part II A and B of Schedule 2 to this Agreement, provide for the appointment of qualified staff in accordance with the recruitment and training plan referred to in paragraph 4 of Schedule 1 to this Agreement.

12 ARTICLE IV Otiier Covenants Section (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The fcregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property;

13 - 12- and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdivision thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained 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. Section The Borrower shall: (i) cause the buildings and equipment of the educational institutions included in the Project to be adequately maintained; (ii) cause all necessary renewals and repairs thereof to be made; and (iii) provide or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the foregoing. Section The Borrower shall cause the educational institutions included in the Project to be staffed at all times with experienced and qualified personnel in adequate numbers.

14 -13 - Section The Borrower shall operate or cause to be operated, the educational institutions and facilities included in the Project in accordance with appropriate administrative and educational policies and practices and with due regard to economy.

15 ARTICLE V Effective Date; Termination Section The following event is specified as an additional condition to effectiveness of this Agreement within the meaning of Section (c) of the General Conditions, namely, that the Borrower shall have apointed on terms and conditions acceptable to the Bank, either (i) a qualified consultant firm to provide professional services for the entire Project, or (ii) two qualified consultant firms, one to provide professional services with respect to Part I of the Project and the other to provide such services with respect to Part II of the Project. Section The date December 13, 1976, is hereby specified for the purposes of Section of the General Conditions.

16 -15 - ARTICLE VI Representative of the Borrower; Addresses Section The Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section of the General Conditions. Section The following addresses are specified for the purposes of Section of the General Conditions: For the Borrower: Minister of Finance Ministry of Finance Bangkok, Thailand Cable address: For the Bank: MINANCE Bangkok International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C United States of America Cable address: INTBAFRAD Washington, D.C.

17 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. KINGDOM OF THAILAND By /s/ Upacit Pachariyangkun Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By/s/ Gregory B. Votaw Acting Regional Vice President East Asia and Pacific

18 -17 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (expressed in Expenditures Category Dollar Equivalent) to be Financed (1) (a) Civil Works 10,400,000 30% (b) Professional 6oo,000 30% Services (2) Furniture and Equip- 8,500,000 ment (a) imported directly 100% of foreign expenditures (b) manufactured 100% (ex-factory) locally (c) imported but 65% locally procured (3) Specialists' Ser- 2,000, % of foreign vices and Fellow- expenditures or ships 80o (4) Unallocated 9,500,000 TOTAL 31,000,000

19 For the purposes of this Schedule, the term "foreign expenditures" means expenditures for goods or services supplied from, the territory, and in the currency, of any country other than the Borrower. 3. The disbursement percentages have been calculated in compliance with the policy of the Bank that no proceeds of the Loan shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if any event occurs which shall affect the amount of any such taxes included in the cost of any item to be financed out of the proceeds of the Loan, the Bank may, by notice to the Borrower, correspondingly adjust the disbursement percentage then applicable to such item. 4. Notwithstanding the provisions of paragraph 1 above, (A) withdrawals may be made in respect of Categories (1) (b) and (3) on account of 100% of expenditures for financing of professional and specialists' services rendered prior to January 1, 1977, in an aggregate amount not exceeding the equivalent of $200,000 and (B) no withdrawals shall be made in respect of: (a) expenditures prior to the date of this Agreement, except that withdrawals may be made in respect of Categories (1) (b) and (3) on account of expenditures incurred after March 1, 1976 in an aggregate amount not exceeding the equivalent of t50,000; and (b) expenditures in respect of Part II B (ii) of the Project until the Borrower shall have: (i) prepared a detailed recruitment and training plan, which shall be agreeable to the Borrower and the Bank for adult education staff to implement Part II of the Project; and (ii) furnished

20 -19 - to the Bank evidence satisfactory to the Borrower and the Bank that qualified staff have been hired for the positions specified in the Annex to this Schedule. 5. Notwithstanding thf- allocation of an amount of the Loan or the disbursement oercentapes set forth in the table in paragraph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Bank may, by notice to the Borrower: (i) reallocate to such Category to the extent required to meet the estimated shortfall proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank 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 Bank 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 expenditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan.

21 The following provisions shall apply in respect to any of the Specialists' contracts for which the Borrower shall apply for withdrawal under Category (3) above: (a) when submitting to the Bank the first withdrawal application with respect to each such contract, the Borrower shall notify the Bank as to whether the Borrower elects 100% of foreign expenditures or 80% of total expenditures for such contract to be financed out of the proceeds of the Loan; (b) no disbursement for any such contract shall be made by the Bank before it has been notified of the Borrower's election with respect to such contract; and (c) the Bank shall take note of such election by the Borrower with respect to each such contract, and any and all withdrawals with respect to such contract shall be made in accordance with such election.

22 -21 - ANNEX TO SCHEDULE 1 Staff Recruitment 1. At the national adult education coordinating unit within the Ministry of Education's Adult Education Division, the Chief of the coordinating unit Coordinator of the regional centers Coordinator of the LECs and Coordinator of radio correspondence; 2. At each of the four regional centers of Lampang, Ubon Rachathani, Rat Buri and Songkhla, the Director of the center Chief, administration Chief, materials production Chief, research and development Chief, training Chief, operations and Chief, radio correspondence; 3. At each of the 12 lifelong centers of Chachoengsao, Rat Buri, Phetchabun, Ubon Rachathani, Roi-Et, Chiang Mai, Sisaket, Phichit, Nakhon Ratchasima, Yala, Trang and Khon Kaen, the Director Chief, administration and Chief, operations.

23 - 22- SCHEDULE 2 Description of the Project The Project consists of the following parts: Part I. Introduction of diversified curricula in secondary schools A. Civil works, furniture, equipment and staffing for fifty (50) existing secondary schools (as specified in Annex A to this Schedule) for the purpose of introducing diversified curricula. B. Civil works, furniture, equipment and staffing for the existing training and maintenance center, for the purpose of improving the industrial arts training and equipment maintenance. Part II. Establishment of a national adult education system A. Furniture, equipment and staffing for an adult education coordinating unit; civil works, furniture, equipment and staffing for three new regional AECs; and renovation, furniture, equipment and staffing for one existing education center to transform it into a regional AEC, all for the purpose of adult education research, curriculum development, training adult educators and evaluating programs. B. Civil works, furniture, equipment and staffing for twentyfour (24) LECs in three phases, (i) the first two phases

24 consisting of those facilities specified in Annex B to this Schedule and (ii) the third phase consisting of those facilities specified in Annex C to this Schedule. C. The establishment, through the activities of the LECs, of adult education programs at the village level including, inter alia, the promotion of Village Reading Centers in eight thousand four hundred (8,oo) villages. Part III. Technical Assistance Technical assistance consisting of (i) approximately 110 man-years of specialists' services to assist in project implementation and preparation of future education projects and (ii) approximately 90 man-years of fellowships (all as more fully set forth in Annex D to this Schedule), subject to modification by agreement between the Borrower and the Bank. The location and the pltnned enrollment of the institutions included in Parts I and II A and B of this Schedule and the approximate areas of the physical facilities to be constructed at each of said institutions shall be as set forth in Annexes A, B and C to this Schedule, subject to modification by agreement between the Borrower and the Bank. The Project is expected to be completed by June 30, 1981.

25 - 24- ANNEX A TO SCHEDULE 2 Physical Facilities Diversified Secondary Education Approximate Gross Area (m 2 ) to be Constructed (excluding staff Total Projected Project Institution houses) Enrollment Diversified Secondary Schools 1. Chiang Mai 4,200 2, Lampang 3,700 2, Phitsanulok 2,500 2,4oo 4. Songkhla 3,600 2, Songkhla 3,900 1, Udon Thani 3,900 2, Phrae 3,600 2, Sisaket 2,400 1, Chon Buri 3,600 1, Phuket 4,6oo 2, Phuket 4,100 2, Tak 5,700 1, Tak 3,400 1, Maha Sarakhan 3,200 2, Chaiyaphum 3,800 1, Buriram 4,800 2, Kanchanaburi 5,000 1, Uthai Thani 4,800 1, Sisaket 4,400 1, Loei 3,800 2, Nan 4,800 1, Lop Buri 4,300 1, Chai Nat 5,300 2, Nakhon Pathom 4,6oo 2, Trang 6,000 2, Surin 5,100 1, Surin 4,100 1,920

26 Approximate Gross Area (m2) to be Constructed (excl,ding staff Total Projected Project Institution houses) Enrollment 28. Utaradit 4,400 1, Utaradit 1,500 1, Phet Buri 4,500 2, Satun 8,200 2, Kalasin 5,000 1, Nakhon Si-Thammarat 4,600 1, Phathalung 4,500 1, Suphanburi 4,4o0 1, Suphanburi 4,000 1, Chantaburi 5,000 1, Yala 5,300 1, Narathiwat 5,400 1, Chimnphon 3,400 1, Pattani 4,000 1, Krabi 3,900 2, Prachuap Khiri Khan 4,000 1, Phichit 3,800 2, Kamphaeng Phet 2,100 2, Mae Hongson (Maesariang) 4,900 1, Nong Khai 4,000 2, Yasothon 5,000 1, Trat 3,300 1, Chiang Rai (Phayao) 3,700 1,920 Training and Maintenance Center Bangkok 5,100 n.a. n.a. - not applicable.

27 - 26- ANNEX B TO SCHEDULE 2 Physical Facilities First and Second Phase of the Adult Education System Project Institution Approximate 2 Gross Area (m ) to be Constructed (excluding staff houses) Adult Education Coordinating Unit Bangkok n.a. Regional Adult Education Centers 1. Lampang (North) 3, Ubon Ratchathani (Northeast) 3, Rat Buri (Central Plains) 3, Songkhla (South) 3,800 Lifelong Education Centers 1. Chachoengsao 2, Rat Buri 2, Phetchabun 2, Ubon Ratchathani 1, Roi Et 1, Chiang Mai 1, Sisaket 2, Phichit 2, Nakhon Ratchasima 2, Yala 1, Trang 1, Khon Kaen 1,700 n.a. - not applicable

28 -27- ANNEX C TO SCHEDULE 2 Plysical Facilities Third Phase of the Adult Education System Project Institution Approximate 2 Gross Area (m ) to be Constructed (excluding staff houses) Lifelong Education Centers 1. Nakhon Sawan 2, Samut Sakhon 2, Surin 2, Nakhon Si-Thamarat 2, Ang Thong 2, Phathalung 2, Nan 1, Chaiyaphum 1, Satun 1, Ayutthaya 1, Kamphaeng Phet 1, Uthai Thani 1,700

29 ANNEX D TO SCHEDULE 2 1. Distribution of fellowships: Technical Assistance Man-months Fellows Ph.D Ph.D Train- Training or M.A. ing or M.A. equiv- Train- Short equiv- Train- Short alent ing Courses Total alent ing Courses Total Diversified Secondary Schools - - 6o Adult Education TOTALS ,o Expatriate expert services required to implement the Project: Approximate Title/Area of Expertise Man-Months Timing Diversified Secondary Schools (1) Advisory services 36 10/76-9/79 (2) Local short term school tabling 6 vacation periods workshops 1978 and Adult Education (1) Project Advisor 48 8/76-7/80 (2) Advisory services in: 60 9/76-3/80 radio correspondence, correspondence education training, materials production training, skill module curriculum development, research and evaluation, and programmed materials training ic8

30 -29 - Approximate Title/Area of Expertise Man-Months Timing Project Unit Support (1) Project Advisor 60 8/76-7/81 TOTAL Local expert services as part of the adult education component to assist in the in-service training of AED staff and to help with course development and evaluation, and in the Project Unit: Adult Education Man-Months Approximate Timing Staff Training 240 7/76-6/81 Course Development 480 7/76-6/81 Research and Evaluation 120 7/76-6/81 Sub-Total 840 Project Unit Support Project Coordinator 60 7/76-6/81 Project Architect 60 7/76-6/81 Project Procurement 60 7/76-6/81 Project Accountant 60 7/76-6/81 Sub-Total 240 TOTAL 1, Additional technical assistance (a) to prepare future education projects and (b) as required, to aid in implementation of the Project: 24 man-months.

31 - 30- SCHEDULE 3 Amortization Schedule Date Payment Due Payment of Principal (expressed in dollars)* December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, o,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,000 June 1, ,000 December 1, ,030,000 June 1, ,075,000 December 1, ,120,000 June 1, ,165,000 December 1, ,215,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal.

32 Date Payment Due Payment of Principal (expressed in dollars)* June 1, ,270,000 December 1, ,320,000 June 1, ,380,000 December 1, ,435,000 June 1, ,500,000 December 1, ,56o,ooo June 1, ,630, * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal.

33 Premiums on Prenayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1% More than three years but not more than six years before maturity 2-1/4% More than six years but not more than eleven years before maturity 4% More than eleven years but not more than sixteen years before maturity 5-1/2% More than sixteen years but not more than twenty-one years before maturity 7-1/4% More than twenty-one years but not more than twenty-three years before maturity 8% More than twenty-three years before maturity 8-1/2%

34 -33 - SCHEDULE 4 Procurement A. Procurement Procedures 1. Except as provided in paragraph 4 hereof, the goods and works shall be procured under contracts to be awarded in accordance with procedures consistent with those set forth in Part A of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. Contracts shall be grouped to the maximum extent reasonable so as to permit bulk procurement consistent with appropriate technical standards and procurement practices. 3. Bidders for all civil works estimated to cost more than $500,000 equivalent shall be prequalified as described in paragraph 1.3 of Part A of the Guidelines. 4. Notwithstanding the provisions of paragraph 1 above: (a) With respect to contracts for civil works and furniture, the Borrower may award such contracts on the basis of competitive bidding advertised locally and in accordance with procedures acceptable to the Bank.

35 (b) With respect to individual or bulk contracts for equipment, estimated to cost less than $50,000 equivalent, the Borrower may award such contract on the basis of competitive bidding advertised locally and in accordance with procedures acceptable to the Bank. (c) Notwithstanding the provisions of paragraphs 4 (a) and 4 (b), the Borrower may award contracts for furniture or equipment estimated to cost less than $10,000 equivalent without resorting to competitive bidding, and in accordance with local practices, provided that the Borrower shall have obtained at least three price quotations from suppliers, and to the extent that the combined aggregate amount for both furniture and equipment to be financed out of the proceeds of the Loan shall not exceed $500,000 equivalent. B. Evaluation and Comnarison of Bids for Goods - Preference for Domestic Manufacturers 1. For the purpose of evaluation and comparison of bids for the supply of goods except those to be procured in accordance with local procedures: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for imrorted goods, or the ex-factory price for domestically-manufactured goods; (ii) customs duties and other import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 10

36 Goods manufactured in Thailand may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All biddinr documents for the rrocurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Thailand if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in Thailand equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Thailand. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on

37 - 36- goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported 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 offercd 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 group A bid in such further 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 (c) is the lowest evaluated bid shall be selected. C. Review of Procurement Decisions by Bank 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Bank in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Bank shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification shall be furnished by the Borrower to the Bank for its comments before the applicants are notified, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Bank shall reasonably request.

38 Review of invitation to bid and of proposed awards and final contracts: With respect to all contracts for civil works estimated to cost the equivalent of $200,000 or more and all contracts for equipment and furniture estimated to cost the equivalent of $50,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Bank, 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 docu- * ments or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank'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 Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited.

39 (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. With respect to each contract to be financed out of the proceeds of the Loan and not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of bids, recommendations for award and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determinat on.

40 -39 - SCHEDULE 5 Project Implementation Organization 1. The Project Unit established in the Office of the Under- Secretary of State for Education and the DSEU and AED, respectively, shall be responsible for the implementation of the Project. 2. The Project Unit shall report to the Under-Secretary of State for Education and shall have the following staff: (a) a project director; (b) on a full-time basis - a project coordinator, an architect, a procurement officer, an accountant and an advisor; and (c) adequate supporting staff. 3. The Project Unit shall be responsible for the overall administrative, financial and technical coordination of the Project and shall supervise its proper execution. Its additional functions shall include, inter alia, the following: (a) coordinating preparation of disbursement schedules covering all aspects of the Project; (b) preparing or arranging for standard drawings, furniture and equipment lists, pro forma prequalification and tender documents, pro forma evaluation sheets and contracts;

41 - 40o (c) reviewing and arranging for the timely approval of selection of consultant firms and specialists and their respective terms of reference, criteria for selection of fellowshirs, drawings, furniture and equipment lists, prequalification and tender documents, bid evaluations, proposals for award, and contracts; (d) monitoring performance of consultant firms, specialists and contractors; (e) reviewing and arranging for the timely provision of adequate budgetary allocations to finance the Project, and keeping proper Project accounts; and (f) monitoring overall project imnlementation. 4. The DSEU and AED shall each have the following staff to implement the Project: (a) a director; (b) on a full-time basis - a deputy director, an architect and a procurement officer; and (c) adequate supporting staff. In addition, the AED shall have a full-time advisor. The DSEU shall be responsible for the implementation of Part I of the Project, and the AED shall be responsible for the implementation of Part II of the Project. The functions of DSEU and AED with respect to project implementation shall include, inter alia, the following: (a) coordinating through the Project Unit the activities of all agencies involved in the execution of their respective parts of the Project;

42 (b) planning, programming and preparing, in collaboration with the Project Unit, the implementation and disbursement schedules covering all aspects of their respective parts of the Project; (c) in collaboration with the Project Unit, for their respective parts of the Project, selecting consultant firms, specialists and fellowship candidates and preparing their respective terms of reference; and administering their respective contracts; (d) briefing, in collaboration with the Project Unit, of consultants and specialists conducting work directly related to their respective parts of the Project; (e) for their respective parts of the Project, monitoring performance of project consultants, specialists and fellowship recipients and submitting performance results to the Project Unit; (f) organizing and supervising specialists responsible for preparation of equipment and materials lists related to their respective parts of the Project and modification of master lists prepared or provided by the Project Unit to suit the requirements of their respective parts of the Project; (g) organizing all procurement under procedures described in Schedule 4 to this Agreement for civil works and goods

43 - 42- for their respective parts of the Project, based on documents, approved and reviewed by the appropriate authorities; and organizing the receipt, the distribution and the installation of goods intended for their respective parts of the Project procured under procedures described in Schedule 4 to this Agreement; (h) providing or arranging provision for the proper implementation of their respective parts of the Project by consultants and specialists; (i) for their respective parts of the Project, keeping of project accounts, ensuring the provision of funds for carrying out the Project in liaison with the Project Unit, processing expenditures, and submitting necessary documentation for preparation of withdrawal claims to the Project Unit; (j) monitoring implementation of their respective parts of the Project and ensuring that works are meeting established performance standards; and (k) preparing quarterly progress reports for the Department of General Education and the Project Unit.