INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
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1 Public Disclosure Authorized LOAN NUMBER /.) IN Public Disclosure Authorized Public Disclosure Authorized MAHARASHTRA PROJECT AGREEMENT (National Seed Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and THE GOVERNOR OF THE STATE OF MAHARASHTRA Public Disclosure Authorized Dated, 1976
2 MAHARASHTRA PROJECT AGREEMENT AGREEMENT, dated 1, 1976, between INTER- NATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank) and THE GOVERNOR OF THE STATE OF MAHARASHTRA (hereinafter called Maharashtra). WHEREAS by the Loan Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Bank, the Bank has agreed to make available to the Borrover an amount in various currencies equivalent to twenty-five million dollars ($25,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that Maharashtra agrees to undertake such obligations toward the Bank as are hereinafter set forth; and WHEREAS Maharashtra, in consideration of the Bank's entering into the Loan Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows:
3 -2- ARTICLE I Definitions Section Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the General Conditions (as so defined) have the respective meanings therein set forth.
4 - 3 - ARTICLE II Execution of the Project Section Maharashtra shall carry out or cause to be carried out in the State of Maharashtra the Project described in Schedule 2 to the Loan Agreement with due diligence and efficiency and in conformity with appropriate administrativ%, financial, agricultural and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section Maharashtra shall cause its SSC to enter into an agreement with NSC satisfactory to the Bank. The said agreement shall, inter alia, set out the respective responsibilities of NSC and the SSC in the carrying out of the Project. Section Maharashtra shall with respect to supplies of foundation seed, access to quality control services and such other matters as may be agreed between the Borrower and the Bank extend the same treatment to all persons involved in the seed industry. Section Except as the Bank may otherwise agree, Maharashtra shall support the establishment of an interdisciplinary cooperative program awng relevant departments of its Agricultural Universities to undertake applied seed technology research.
5 -4- Section Maharashtra shall not make or permit to be made any change in the articles of association or other instrument governing its SSC without prior consultation with the Borrower and the Bank. Section (a) Maharashtra shall cause its SSC to manage its affairs, maintain its financial position, plan its future expansion and carry on its operations in accordance with sound business, financial and personnel practices under the supervision of experienced and competent staff in adequate number. (b) Maharashtra shall by the Effective Date purchase for cash equity shares of its SSC in an amount of not less than five hundred thousand rupees (Rs500,000). Section Maharashtra shall review credit limits and adjust them as necessary for seed production. Section (a) Maharashtra shall permit its SSC to appoint such dealers in seed as the SSC may in the interest of efficiency consider necessary. (b) Maharashtra shall take action satisfactory to the Bank to designate and enforce in its cotton seed producing areas the one-variety cotton comunities and gins permitted in those areas. Section Maharashtra shall, for the purpose of enforcing the minimum seed quality control standards under the applicable lav, cause to be inspected annually not less than one-half of all dealers handling certified or truthfully labelled seeds in Maharashtra.
6 -5- Section Except as the Bank may otherwise agree, the goods and works for the Project to be financed out ol the proceeds of the Loan shall be procured in accordance with Schedule 4 to the Loan Agreement. Section (a) Maharashtra undertakes to insure, or make adequate provision for the insurance of, any imported goods to be financed out of the proceeds of the Loan made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by Maharashtra to replace or repair such goods. (b) Except as the Bank may otherwise agree, Maharashtra shall cause all goods and services financed out of the proceeds of the Loan made available to it by the Borrower to be used exclusively for the Project. Section (a) Except as the Bank may otherwise agree, Maharashtra shall furnish to the Bank promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) Maharashtra shall: (i) maintain or cause to be maintained 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 made available to
7 -6- it by the Borrower, and to disclose the use thereof in the Project; (ii) enable the Bank's representatives to visit the facilities and construction sites included in the Project, and to examine the goods financed out of such proceeds and any relevant records and documents; and (iii) furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan so made available to it and the goods and services financed out of such proceeds. Section (a) Maharashtra shall, at the request of the Bank, exchange views with the Bank vith regard to the progress of the Project in Maharashtra, the performance of its obligations under this Agreement and other matters relating to the purposes of the Loan. (b) Maharashtra shall promptly inform the Bank of any condition which interferes, or threatens to interfere, with the progress of the Project in Maharashtra, the accomplishment of the purposes of the Loan, or the performance by Maharashtra of its obligations under this Agreement.
8 -7- ARTICLE III Other Covenants Section Maharashtra shall maintain, and cause its SSC, SSCA and its Agricultural Universities to maintain, records adequate to reflect in accordance with consistently maintained appropriate accounting practices their respective operations and financial conditions. Section Maharashtra shall: (i) have its own accounts and financial statements for the Project (balance sheets, if any, statements of income and expenses and related statements) and those of its SSC, SSCA and each of Maharashtra's Agricultural Universities for each fiscal year audited, by independent auditors acceptable to the Bank; (ii) cause its SSC, SSCA and each such University to furnish, to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of their respective financial statements for such year as so audited, and (B) the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish, and cause its SSC, SSCA and each such University to furnish, to the Bank such other information concerning the accounts and financial statements of Maharashtra, its SSC, SSCA or each such University (as the case may be) and the audits thereof as the Bank shall from time to time reasonably request. Section Maharashtra shall at all times cause the facilities, plant, equipment and machinery required for the Project
9 -8- to be operated, maintained, renewed and repaired in accordance with appropriate engineering and management practices. *7
10 -9- ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section This Agreement shall come into force and effect on the date upon which the Loan Agreement becomes effective. (1) Section (a) This Agreement and all obligations of the Bank and of Maharashtra thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Loan Agreement shall terminate in accordance with its terms; or (ii) a date twenty years after the date of this Agreement. (b) If the Loan Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Bank shall promptly notify Maharashtra of this event. Section All the provisions of this Agreement shall continue in full force and effect notwithstanding any partial cancellation or suspension under the Loan Agreement.
11 ARTICLE V Miscellaneous Provisions Section Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C United States of America Cable address: For Maharashtra: INTBAFRAD Washington, D.C. Secretary Agriculture Department Government of Maharashtra Sachivalaya Bombay 40020, India Cable address: SECAGRI Bombay, India
12 Section Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Agreement on behalf of Maharashtra may be taken or executed by the Secretary, Agriculture Department, or such other person or persons as Maharashtra shall designate in writing. Section Maharashtra shall furnish to the Bank sufficient evidence of the authority and the authenticated specimen signature of the person or persons who vill, on behalf of Maharashtra, take any action or execute any documents required or permitted to be taken or executed by Maharashtra pursuant to any of the provisions of this Agreement. Section This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument.
13 IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 0 By Regional Vice -President South Asia FOR AND ON BEHALF OF THE GOVERNOR OF THE STATE OF MAHARASHTRA By A Authorized by the Governor of The State of Maharashtra Under Article 209(1) of the Constitution of India to sign this Agreement
14 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Bank for Reconstruction and Development. In witness whereof I have signed this Certificate and affixed the Seal of the Bank thereunto this /0 Zt day of, 97(. FOR SECRETARY
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