Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized 到 sure Authorized

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3 2 (a) "MINAGRI" means the Borrower's Ministry of Agriculture and Livestock Development. (b) "ONAPO" means the Office National de la Population, the Borrower's National Population Bureau. (c) "MINITRAP" means the the Borrower's Ministry of Public Works. (d) "ISAR" means MINAGRI's Institut des Sciences Agronomiques du Rwanda established and operating under the Legislative Ordinance No. R/118/52 of June 22, 962, as such may be amended from time to time. (e) "Project Coordinating Committee" means the Committee established pursuant to the BGM I Project. (f) "Regional Project Director" means one of the two officials (one in Bugesera and the other in Gisaka Migongo), in charge of the execution of the Project in his respective part of the Project Area. (g) "Project Coordinator" means the Permanent Secretary of the Project Coordinating Committee, in charge of coordination between the ministries responsible for the execution of the Project and support to the Regional Project Directors. (h) "Project Area" means the areas of Bugesera and Gisaka Migongo; "Bugesera" means the three Communes of Gashora, Kanzenze and Ngenda in the Preffecture of Kigali, and "Gisaka Migongo" means the three Communes of Birenga, Rukira and Rusumo in the Pr6fecture of Kibungo. (i) "Project Preparation Advance" means the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters, dated August 9, 1982 and August 31, 1982, between the Borrower and the Association. (j) "PAV" means an Agro-Veterinary Support Center (Poste Agro-Ve'te'rinaire) of the Borrower. (k) "Special Account" means the account to be established pursuant to Section 2.02 (c) of this Agreement.

4 -3- (1) "BGM I Project" means the project described in Schedule 2 to the Development Credit Agreement (Bugesera Est and Gisaka Migongo Project), dated March 31, 1977, between the Borrower and the Association, as amended from time to time. (m) "Annual Work Plan" means the separate plan and budget prepared each year by MINITRAP, ISAR, ONAPO, Rubilizi, the main office at Kigali and the Regional Project Directors in Bugesera and Gisaka Migongo respectively, detailing proposed activities and expenditures in the subsequent year for the Project activities to be implemented by each of them, and referred to in Section 3.04 of and Schedule 4 to this Agreement. (n) "Project Year" means a calendar year during which the Project is being carried out. (o) "IITA" means the International Institute for -zopical Agriculture (Ibadan, Nigeria). ARTICLE II The Credit Section The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to fourteen million five hundred thousand Special Drawing Rights (SDR 14,500,000). Section (a) The amount of the Credit may be withdrawn from the 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 Association, for expenditures made (or, if the Association 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 Credit. (b) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the principal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the Project Preparation Advance shall thereupon be cancelled.

5 -4- (c) The Borrower shall, for the purposes of the Project, open an account (the Special Account) in the Banque Nationale du Rwanda, on terms and conditions satisfactory to the Association. Payments out of the Special Account shall be made exclusively to pay the reasonable cost of goods and services required to carry out the Project and to be financed under Categories 1 to 5 of the table set forth in paragraph I of the Schedule hereto in accordance with the provisions of Schedule 1 hereto, but no such payments shall be made after the Closing Date. (d) The Association shall, promptly after the Effective Date, withdraw on behalf of the Borrower from the Credit Account and deposit in the Special Account 4n initial amount in the currency of the Borrower equivalent to seven hundred ten thousand Special Drawing Rights (SDR 710,000), as provided in Category 7 of the table set forth in paragraph 1 of Schedule 1 to this Agreement. Thereafter, at the request of the Borrower, the Association shall further so withdraw from the Credit Account and deposit in the Special Account, such amounts as shall be required to replenish the Special Account with amounts equal to payments made out of the Special Account for expenditures for the Project eligible for financing under this Agreement, bu' only to the extent that the amount of any such deposit, together with any amount remaining on deposit in the Special Account as of the date of such request, shall not exceed, in the aggregate, the equivalent of seven hundred ten thousand Special Drawing Rights (SDR 710,000). Except as the Association shall otherwise determine, each such deposit after the initial deposits shall be withdrawn by. the Association from the Credit Account in the same respective amounts as have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph (e) of this Section. (e) Prior to or at the time of each request for a reposit by the Association into the Special Account, the Borrower -hall furnish to the Association in respect of each payment made by the Borrower out of the Special Account such documents and other evidence as the Association shall reasonably request, showing that the payment was made on account of the reasonable cost of goods or services required for the Project which are eligible for financing out of the proceeds of the Credit in accordance with the provisions of Schedule 1 to this Agreement. (f) If the Association shall have determined that any payment out of the Special Account: (i) was made for any expenditure not mentioned in an approved Annual Work Plan; (ii) was made for

6 -5- any expenditure or in any amount not eligible for financing by withdrawal from the Credit Account; or (iii) was not justified by the evidence furnished pursuant to paragraph (e) of this Section, the Borrower shall, promptly upon notice from the Association and, unless otherwise determined by the Association, prior to any further deposit in the Special Account by the Association deposit in the Special Account an amount equal to the amount of such payment or the portion thereof not so eligible or justified. (g) Notwithstanding the provisions of paragraphs (d) and (e) of this Section, no further deposit in the Special Account shall be made by the Association when: (i) the Association shall have notified the Borrower that it has determined that all further withdrawals from the Credit Account can be made directly by the Borrower from the Credit Account under paragraph (a) of this Section; or (ii) when the total amount withdrawn from the Credit Account, plus the amount of any qualified agreement to reimburse made by the Association and of any special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions, shall have reached the equivalent of SDR 13,080,000, whichever shall be sooner. Withdrawal from the Credit Account of the remaining amounts of the Credit shall follow such procedures as shall be agreed between the Borrower and the Association and shall be made only to the extent that the Association shall be satisfied by the evidence submitted in support of the applications for such withdrawals that all payments by the Borrower out of the Special Account and out of the proceeds of the Credit were made on account of the reasonable cost of goods or services required for the Project and to be financed out of the proceeds of the Credit in accordance with Schedule 1 to this Agreement. (h) If the Association shall not have received, within ninety days after the Closing Date or within ninety days of the date of a notification as referred to in paragraph (g) of this Section, whichever date shall be the earlier, the evidence required pursuant to paragraph (e) of this Section in respect of any amount deposited in the Special Account in accordance with the provisions of this Section, or if any amount is to be paid by the Borrower after the Closing Date or the date of such notification pursuant to paragraph (f) of this Section, the Borrower shall, promptly upon notice from the Association, repay to the Association, the equivalent of such amount, as of the date of such notice, in the currency specified in Section 2.09 of this Agreement (or the currency designated or selected instead thereof pursuant to paragraph (c) or (e) of Section 4.02 of the General

7 -6- Conditions); any such repayment to credited to the Credit Account. the Association shall be Section Except as the Association shall otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be gcverned by the provisions of Schedule 3 to this Agreement. Section The Closing Date shall be December 31, 1988 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section (a) The Borrower shall pay to the Association 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 Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association 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 the 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. Section The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section Commitment and service charges shall be payable semiannually on June 1 and December 1 in each year. Section The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each June 1 and December 1 commencing December 1, 1992 and ending June 1, 2032, each installment to and including the installment payable on June 1, 2002, to be one-half of one per cent (1/2 of 1%) of

8 -7- such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section The currency of the United States of Amercia is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTILE III Execution of the Project Section (a) The Borrower shall carry out Part A through ISAR, Parts B through.e through MINAGRI, Part F through ONAPO and Part G through MINITRAP all with due diligence and efficiency and in conformity with appropriate agricultural, technical, financial, administrative and training practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) For the purpose of assisting the Borrower in carrying out the Project, the Borrower shall maintain the Project Coordinating Committee. Section In order to assist the Borrower in carrying out Parts A, B, F, G and H of the Project, the 3orrower shall employ consultants and experts in functions specified in Schedule 5 to this Agreement, whose selection, qualifications, experience and terms and conditions of employment shall be satisfactory to the Association in accordance with the principles and procedures described in the "Guidelines for the Use of,onsultants by Wor].d Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August Section (a) The Borrower shall consult with the Association prior to making any new appointments to the key staff positions of Project Coordinator, Financial Director, Livestock Advisor and two Regional Directors for the Project. kb) In order to assist the Borrower in carrying out Part F of the Project, the Borrower sha1ll employ a doctor and a nurse midwife at the hospital of Kibungo and two nurses' aides, one each at the Health Centers in Mutendeli and Rukira. (c) The Borrower shall maintain the staffing of the extension services in the Project Area and other Project staff at

9 -8- least at the January 1982 level and shall provide each Commune in the Project Area with an agronomist and a veterinarian. Section Except as the Association shall otherwise agree, the Project shall be carried out pursuant to Annual Work Plans acceptable to the Association and formulated in accordance with the provisions set forth in Schedule 4 to this Agreement and the following provisions: (a) not later than each September 15, beginning in 1982, the Borrower shall furnish to the Association, for its acceptance, proposed Annual Work Plans covering the year commencing the following January 1; (b) the first Annual Work Plans shall cover the period ending December 31, 1983; (c) each proposed Annual Work Plan furnished to the Association shall be signed by the Chairman of the Project Coordinating Committee; (d) the Association shall promptly inform the Borrower of its acceptance of, or comments on, each proposed Annual Work Pl&a and, if the Association shall not concur with such Annual Work Plan as proposed, the Borrower and the Association shall promptly exchange views thereon until agreement is reached; and (e) Annual Work Plans may be amended at any time by agreement between the Association and the Borrower. Section The Borrower shall: (i) not later than September 1, 1982, submit to the Association, for its review and comment, a detailed plan establishing procedures for gradual increases in the charges applicable to all veterinary medicines dispensed in Rwanda; and (ii) take all necessary action to ensure that, the users of veterinary medicine shall pay 70% of the cost of such medicine by January 1, 1983, 80% by January 1, 1984, 90% by January 1, 1985 and the full cost by January 1, 1986 and thereafter. Section The Borrower shall: (a) not later than September 15, 1983, determine the prices to be charged for the seeds produced in the Project Area; such prices shall allow recovery of the total production and distribution costs of such

10 -9- seeds, provide- that these prices shall be attractive enough to encourage the farmers to buy the seeds. The Borrower shall consult with the Association from time to time on the level of these prices and the effectiveness of measures to motivate the farmers to buy the seeds; and (b) take all necessary actions to insure that OCIR-Caf6 provides quantities of pesticides at least equal to the level provided in 1981 in the Project Area. Section (a) The Borrower, through MINAGRI, shall enter into an arrangement with IITA acceptable to the Association, covering all technical and administrative matters necessary for the execution of Part A of the Project. (b) The Borrower shall define, in a manner acceptable to the Association, the responsibilities of MINAGRI and MINITRAP with regard to the planning and execution of Part G of the Project and the supervision of construction under any other Part of the Project. Section (a) Three months after the arrival in Rwanda of the two experts for research under Part A of the Project, the Borrower shall cause ISAR: (i) to prepare a five-year agricultural research program; (ii) to submit said program to the Association for its approval; and (iii) to carry out the approved program. (b) The Borrower shall cause ISAR, not later than September 15 of each year, to submit to the Association for its review a progress report covering the implementation of said program in the previous 12-month period in such detail as the Association shall reasonably request. 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 Credit 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 thz Borrower to replace or repair such goods. (b) The Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the purposes of the Project.

11 Section (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably reqest. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the Credit, the Association may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (d) Before 1985, or by a later date acceptable to the Borrower and the Association, the Borrower and the Association shall jointly complete a review of all aspects of the first two years of Project implementation. (e) Promptly after completion of the Project, but in any, event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit.

12 Section The Borrower shall take or cause to be taken all such action as shall be necessary to acquire all such land and rights in respect of land as shall be required and shall furnish to the Association, promptly upon the Association's request therefore, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. ARTICLE IV Other Covenants Section (a) The Borrower shall maintain or cause to be maintained separate accounts, adequate to reflect in accordance with consistently maintained appropriate 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, including separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of statements of expenditure. (b) The Borrower shall retain or cause to be retained until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing the expenditures on account of which withdrawals are requested from the Credit Account on the basis of statements of expenditure and shall enable the Association's representatives to examine such records. (c) The Borrower shall: (i) have the accounts referred to in paragraphs (a) and (b) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than six months after the end of each such year, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably requested, including without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of this Section as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of statements of expenditure have been used for the purpose for

13 which they were provided; and (iii) furnish to the Association such other information concerning said separate accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably request. Section The Borrower shall cause the works and facilities included in the Project to be adequately maintained and shall cause all necessary repairs of such works and facilities to be made promptly, all in accordance with sound agricultural, engineering and administrative practices, and shall provide, or cause to be provided, promptly as needed, the funds, services, facilities and other resources required for such purposes. Section The Borrower shall take all financial, administrative and pedagogical action, necessary to assure that during the execution of the Project the Rubilizi Training Center will continue to educate students at least at the level reached in January 1982, in terms of quality and quantity. ARTICLE V Remedies of the Association Section For the purposes of Section 6.02 of the General Conditions, the following additional event is specified pursuant to paragraph (h) thereof namely that: (a) Subject to paragraph (b) of this Section, the right of the Borrower to withdraw the proceeds of the FAC Grant shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the FAC Grant Agreement. (b) Paragraph (a) of this paragraph shall not apply if the Borrower establishes to the satisfaction of the Association that: (i) such suspension, cancellation or termination is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate financing for the Project is available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement.

14 -13- ARTICLE VI Effective Date; Termination Section The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section (b) of the General Conditions, namely, that: (a) The two extension specialists for the Project Area to be financed under the FAC Grant, have been duly appointed; and (b) the arrangement referred to in Section 3.07 (a) of this Agreement has been entered into between MINAGRI and IITA. Section The date/ is hereby specified for the purposes of Section of the General Conditions. Section The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representatives of the Borrower; Addresses Section The Minister of Finance 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: Ministry of Finance P.O. Box 158 Kigali, Rwanda

15 -14 - Cable address: Telex: MINIFIN 04 Kigali For the Association: International Development Association 1818 H Street, N.W. Washington, D.C United States of America Cable address: INDEVAS Washington, D.C. Telex: (ITT) (RCA) or (WUI) 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. RWANDESE REPUBLIC By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Eastern Africa

16 SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) ISAR: (a) Equipment, 270,000 ) vehicles ) and imported ) small stock ) 100% of foreign ) expenditures (b) Civil works 65,000 ) and 95% of local ) expenditures (c) Technical assis- 710, % tance and studies (d) Operating costs 1,070,000 ) (including ) 100% of foreign local salaries ) expenditures miscellaneous ) and 95% of local furniture and ) expenditures supplies) ) (2) ONAPO: (a) Equipment and 45,000 ) vehicles ) 100% of foreign ) expenditures ) and 95% of local (b) Civil works 65,000 ) expenditures

17 Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (c) Technical assis- 135, % tance and studies (d) Operating costs 310, % of foreign (including expenditures and local salaries, 95% of local vehicle operating expenditures costs and supplies) (3) MINITRAP: (a) Equipment for 180,000 ) road building ) ) 100% of foreign ) expenditures ) and 95% of (b) Operating costs 1,600,000 ) local expendi- (including ) tures local salaries ) and spare parts) ) (c) Technical assis- 270, % tance (d) Local Salaries 2,220,000 95% (4) MINAGRI: (a) Vehicles and 270,000 85% of foreign veterinary expenditures supplies and 95% of local expenditures (b Civil works 890, % of foreign expenditures and 95% of local expenditures

18 Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (c) Technical assis- 710,000 35% tance and studies (d) Local salaries 1,420,000 Percentages as set forth in paragraph 2 of chis Schedule (e) Operating costs 1,330,000 85% of foreign (excluding local expenditures salaries), mis- and 95% of local cellaneous fur- expenditures nitures and equipment (5) Rubilizi Training Center: Staff salaries and 125, % of foreign other operating expenditures costs and 95% of local expenditures (6) Refunding of the 830,000 Amount due at Project Preparation Effective Date Advance (7) Initial Deposit in 710,000 Special Account (8) Unallocated 1,275,000 TOTAL 14,500, The percentages of expenditures for services to be financed under Category 4 (d) are:

19 % for services performed during 1983; 65% for services performed during 1984; 50% for services performed during 1985; 40% for services performed during 1986; and 30% for services performed during For the purposes of this Schedule: (a) the term "foreign expenditlures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; 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. 4. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit 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 the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 5. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made: (a) for expenditures prior to the date of this Agreement; (b) in respect of expenditures under Categories 3 and 4 (b) until evidence satisfactory to the Association has been furnished to the Association that the responsibilities referred to in Section 3.07 (b) have been defined; and (c) during any Project Year in respect of expenditures under Categories 1 to 5, respectively, until the Association and

20 the Borrower shall have approved the Annual Work Plan for such Project Year, in respect of the entity that has incurred such expenditures. 6. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which, in the opinion of the Association, 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. 7. If the Association 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 Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit.

21 SCHEDULE 2 Description of the Project The purpose of the Project is the carrying out of activities in continuation of the activities carried out as part of the BGM I Project. The Project consists of the following Parts: Part A: Semiarid crop development and farm systems research. Part B: Improvement of the Extension Support Services for agriculture and livestock activities in the Project Area by: (a) short-term training courses for the extension and PAV staff; (b) establishment of agricultural demonstrations for farmers; (c) production of improved seeds and tree cuttings at seed multiplication centers and PAV's, respectively, and their distribution to farmers; (d) production of coffee, fruit and forest trees at existing tree nurseries and their distribution to farmers; promotion of improved methods of tree maintenance; (e) improvement of soil fertility through stall-feeding of cattle and compost production and erosion control by planting of contour bunds; and (f) training of farmer groups in storage, marketing and accounting techniques and assistance in the preparation 1 i_: teq-ests for possible financing by Banques Por?la ires. Part C: Livestock Development in the Project Area: (a) expansion of the Rusumo Breeding Ranch, including the acquisition of additional breeding cattle, veterinary supplies, a pick-up truck and a tractor;

22 (b) improvement of the local sheep and goat stock; and (c) acquisition of veterinary medicines and supplies and sale of such medicines to livestock owners through PAV's. Part D: Part E: Operation of the Rubilizi Training Center. Nutrition Centers Support Program: (a) construction and equipping of four nutrition centers and essential repairs to existing nutrl-ion centers in the Project Area; and (b) operation by these nutrition centers of education programs in the areas of agriculture, small livestock development, family planning and family water supply methods. Part F: Pilot Family Planning Program: (a) construction and equipping of a small family planning clinic at Kibungo hospital; and (b) design and execution of a pilot family planning program. Part G: Part H: Upgrading and Maintenance of About 190 Kilometers of Existing Rural Roads and Construction of About 26 Kilometers of New Rural Roads, Including Small Bridges and Dikes, in the Project Area. Studies in the Project Area and Technical Assistance: (a) attitude studies related to family planning; (b) surveys on the nutritional status; (c) land-use studies for the Bugesera-Cyohoha area; (d) monitoring and evaluation of the execution of the Project and of the benefits to be derived therefrom; and

23 (e) improvement of MINAGRI's financial management capacity by the provision of expert auditing services. The Project is expected to be completed by December 31, 1987.

24 SCHEDULE 3 Procurement A. Procurement Procedures 1. Contracts for civil works, road construction equipment, materials and tools and spare parts shall be procured on the basis of competitive bidding advertised locally in accordance with local procedures satisfactory to the Association. 2. Vehicles and spare parts shall be procured on the basis of quotations from at least two suppliers, represented in Rwanda, and able to provide adequate guarantees of service and spare parts. 3. Furniture and equipment, agricultural tools and livestock inputs shall be procured on the basis of quotations from at least two local suppliers who are able to provide adequate guarantees of service and spare parts. B. Review of Procurement Decisions by the Association 1. Review of invitations to bid, proposed awards and final contracts. With respect to all contracts for goods and civil works estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. A.y further modification to the bidding documents shall require the Association'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 Association of the name of the bidder to which it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and. such other information as the Association shall reasonably request. The

25 Association 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 Association's concurrence, materially differ from those on which bids were asked or prequalification was invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination.

26 SCHEDULE 4 Annual Work Plans A. Responsibility for Preparation of Annual Work Plans: Annual work plans, providing a description of proposed work to be undertaken and a detailed budget for such proposed work, will be prepared by all entities responsible for implementation of activities financed out of the proceeds of the Credit. These entities include: (i) ISAR, for the semi-arid and farms systems research program; (ii) ONAPO, for the pilot family planning program; (iii) Department of Works (Ministry of Public Works) for the rural roads construction program; and (iv) BGM II Project Staff for all regional agricultural and livestock activities in the Bugesera and Gisaka Migongo regions and for expenditures related to the Rubilizi Training Center during 1983 and B. Content of the Annual Work Plans: (a) Brief, detailed description of proposed activities to be carried out, including quantitative objectives, and manner of organization and staffing. (b) Detailed annual budget proposed for each major activity by region (Gisaka Migongo, Bugesera, Kigali), including: (i) capital expenditures works, vehicles); (i.e. construction, civil (ii) investments in revolving funds (i.e. for veterinary medicines, seeds and agricultural implements); (iii) all recurrent costs, incluciog salaries and allowances, supplies, vehicle operation and maintenance and other expenditures related to specific activities; (iv) expenditures for technical assistance, short-term consultants and studies; and (v) all expenditures related to training programs. local and overseas

27 (c) Supporting Information and Schedules: (i) Staffing Table by Region.' All Project-related staff (name, title and salary) and source of financing (i.e. Commune budget, Fonction Publique, Project contract). All staff occupying positions not financed as part of Project costs would be identified in the staff lists; (ii) Calculation of Proposed Staff Allowances and Indemnities; (iii) Vehicle Table by Region, including type and age of vehicles existing in the vehicle pool plus proposed investments; summary of operating costs and mileage per vehicle in past 12-month period and calculation of proposed expenditures for vehicle operation in following year; list of personal staff vehicles eligible for transport indemnities; (iv) For all proposed construction: type, size and location; draft bidding documents; calculation of costs and timetable for completion; and (v) For annual work plans, comparison of actual and budgeted expenditures and expenditures projected by the Association. C. Additional Supporting Information To Be Provided in Annual Work Plan Prepared by BGM II Regional and Kigali Bureau Management Staff on Regional Agricultural and Livestock Activities: (a) Status of Accounts for: (i) Rusumo Ranch operations; (ii) (iii) Revolving fund for PAV veterinary and agricultural inputs; Regional Selected Seed revolving fund; (iv) Regional Center supplies inventory;

28 (v) Nasho Ranch sales (livestock, sheep and goats); and (vi) All administrative credits. (b) For all group livestock activities on controlled pasture areas: (i) Official designation by the Commission Prefectural of controlled grazing areas, their location and carrying capacity; (ii) Contract between livestock owners on maximum cattle per family with grazing rights, agreement to mark animals remaining on grazing land and to destock excess, obligations of group members for maintenance and participation on contruction of pasture improvements; (iii) Proposed investments for pasture improvement specific pasture area; and by (iv) Record of group payment for veterinary medicines and supplies by group and location. (c) Report on credit activities of the Banques Populaires in the Project area, including number of loan applications prepared with assistance of Project staff, number of loans approved and repayment performance. (d) Status of accounts of farmers' associations (&roupements des coo2eratives) assisted under the Project. (e) Progress report on training programs for extension staff.in the regions. (f) A description and terms of reference for any proposed studies to be carried out. (g) A report on monitoring and evaluation surveys carried out during the current Project area, including: (i) Comments on key indicators and measures proposed in Project activities as a result of indicators and observed trends; and

29 (ii) Proposed surveys to be undertaken in the following year and indicators to monitored. (h) All activities involving sale of agricultural inputs, veterinary medicines and any other supplies: (i) Schedule of current unit cost of items procured (prix de revient) under the Project for resale; (ii) Schedule of current level of charges/prices in effect; and (iii) Schedule of proposed increases in level of charges/prices to farmers and corresponding percentage of cost recovery (i.e. charge prix de revient). D. Criteria and Conditions on Which Association Approval of Proposed Annual Work Plan Will Be Based: (a) Adequacy of technical plans and staffing of proposed activities. (b) Clear program for monitoring of proposed activities, including agreement on indicators to be used, design of and timetable for implementation of surveys. (c) Satisfactory achievement of cost recovery targets agreed in previous annual work plans. (d) For proposed initial or incremental investments related to group livestock on controlled pasture areas: (i) presentation of satisfactory contracts and detailed information relevant to management of designated pasture areas; (ii) satisfactory performance of cost recovery on medicines dispensed; (iii) adequacy of record keeping for all related expenditures (i.e. destocking, construction and pasture improvement, veterinary medicines and supplies, animal marking program);

30 (iv) adequacy of material and financial support of communal authorities during current year; and (v) adequacy of overall financial control of Project activities, compliance with audit and reporting requirements and satisfactory action on any recommendations of the Project auditors.

31 SCHEDULE 5 Experts and Consultants Position Man-months Agriculture and Livestock Extension Research Extension Specialist (Bugesera) 60 Extension Specialist (Gisaka Migongo) 60 Financial Advisor 18 Monitoring and Evaluation Advisor 60 Plant Breeder (ISAR - Karama) 60 Farm Systems Researcher (ISAR -Karama) 60 Short-term consultants 15 Family Planning and Nutrition Family Planning Specialist (ONAPO) 14 Population Studies/Surveys (short-term 16 consultants) Nutrition Survey (short-term consultants) 9 Rural Roads Procurement Manager 36 Works Supervisor 60 Studies and Monitoring Unit of MINAGRI Chief Auditor 60

32 INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. In witness whereof I have signed this Certificate and affixed the Seal of the Association thereunto the day of 198. FOR SECRETARY