Loan Number 4029 RU
LOAN AGREEMENT
(CAPITAL MARKET DEVELOPMENT PROJECT)
BETWEEN RUSSIAN FEDERATION AND INTERNATIONAL BANK
FOR RECONSTRUCTION AND DEVELOPMENT
(Washington, 29.IX.1996)
Agreement, dated September 29, 1996, between the Russian
Federation (the Borrower) and the International Bank for
Reconstruction and Development (the Bank).
Whereas: (A) the Borrower, having satisfied itself as to the
feasibility and priority of the Project described in Schedule 2 to
this Agreement, has requested the Bank to assist in the financing
of the Project;
(B) The Bank has received a letter, dated March 23, 1996, from
the Borrower describing a program of objectives and policies
designed to develop its capital market and declaring the
Borrower's commitment to the attainment and implementation ' of
the said objectives and policies; and
Whereas the Bank has agreed, on the basis, infer alia, of the
foregoing, to extend the Loan to the Borrower upon the terms and
conditions set forth in this Agreement;
Now therefore the parties hereto hereby agree as follows:
Article I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Loan and
Guarantee Agreements" of the Bank, dated January 1, 1985, with the
modifications set forth below (the General Conditions) constitute
an integral part of this Agreement:
(a) The last sentence of Section 3.02 is deleted.
(b) The second sentence of Section 5.01 is modified to read:
"Except as the Bank and the Borrower shall otherwise agree, no
withdrawals shall be made:
(a) on account of expenditures in the territories of any
country which is not a member of the Bank or for goods produced
in, or services supplied from, such territories; or
(b) for the purpose of any payment to persons or entities, or
for any import of goods, if such payment or import, to the
knowledge of the Bank, is prohibited by a decision of the United
Nations Security Council taken under Chapter VII of the Charter of
the United Nations."
(c) In Section 6.02, sub-paragraph (k) is re-lettered as sub-
paragraph (1) and a new sub-paragraph (k) is added to read:
"(k) An extraordinary situation shall have arisen under which
any further withdrawals under the Loan would be inconsistent with
the provisions of Article III, Section 3 of the Bank's Articles of
Agreement."
Section 1.02. Unless the context otherwise requires, the
several terms defined in the General Conditions have the
respective meanings therein set forth and the following additional
terms have the following meanings:
(a) "Commercial Organization" means a Russian legal entity
which operates for profit and which is capable of distributing
income to its members.
(b) "DSFM" means the Department of Securities and Financial
Markets within MOF.
(c) "Eligible Beneficiary" or "Eligible Beneficiaries" means
respectively the organization or organizations selected from time
to time for participation under Part B of the Project pursuant to
Section 3.07(a) of this Agreement.
(d) "MOF" means the Ministry of Finance of the Borrower and
includes any successor or successors thereto.
(e) "RFCSCM" means the Russian Federation Commission for
Securities and the Capital Market, a federal administrative agency
of the Borrower, and includes any successor or successors thereto
acceptable to the Bank.
(f) "Special Account" means the account referred to in Section
2.02(b) of this Agreement.
(g) "Sub-loan/Supply and Credit Agreement(s)" means any
agreement(s) entered into between the Borrower and an Eligible
Beneficiary or Eligible Beneficiaries pursuant to Section 3.07(b)
of this Agreement, as the same may be amended from time to time,
and such term includes all schedules supplemental to the Sub-
loan/Supply and Credit Agreement(s).
(h) "Technical Services" means services relating to printing of
handbooks and other materials and the provision of media space and
time.
Article II
The Loan
Section 2.01. The Bank agrees to lend to the Borrower, on the
terms and conditions set forth or referred to in the Loan
Agreement, various currencies that shall have an aggregate value
equivalent to the amount of eighty nine million dollars
(89,000,000 USD), being the sum of withdrawals of the proceeds of
the Loan, with each withdrawal valued by the Bank as of the date
of such withdrawal.
Section 2.02. (a) The amount of the Loan may be withdrawn from
the Loan Account in accordance with the provisions of Schedule I
to this Agreement 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.
(b) The Borrower may, for the purposes of the Project, open and
maintain in Dollars a special deposit account in a commercial
bank, acceptable to the Bank, on terms and conditions satisfactory
to the Bank, including appropriate protection against set-off,
seizure or attachment. Deposits into, and payments out of, the
Special Account shall be made in accordance with the provisions of
Schedule 5 to this Agreement.
Section 2.03. The Closing Date shall be June 30, 2001 or such
later date as the Bank shall establish. The Bank shall promptly
notify the Borrower of such later date.
Section 2.04. The Borrower shall pay to the Bank a commitment
charge at the rate of three-fourths of one per cent (3/4 of 1%)
per annum on the principal amount of the Loan not withdrawn from
time to time.
Section 2.05. (a) The Borrower shall pay interest on the
principal amount of the Loan withdrawn and outstanding from time
to time, at a rate for each Interest Period equal to the Cost of
Qualified Borrowings determined in respect of the preceding
Semester, plus one-half of one percent (1/2 of 1%). On each of the
dates specified in Section 2.06 of this Agreement, the Borrower
shall pay interest accrued on the principal amount outstanding
during the preceding Interest Period, calculated at the rate
applicable during such Interest Period.
(b) As soon as practicable after the end of each Semester, the
Bank shall notify the Borrower of the Cost of Qualified Borrowings
determined in respect of such Semester.
(c) For the purposes of this Section:
(i) "Interest Period" means a six-month period ending on the
date immediately preceding each date specified in Section 2.06 of
this Agreement, beginning with the Interest Period in which this
Agreement is signed.
(ii) "Cost of Qualified Borrowings" means the cost, as
reasonably determined by the Bank and expressed as a percentage
per annum, of the outstanding borrowings of the Bank drawn down
after June 30, 1982, excluding such borrowings or portions thereof
as the Bank has allocated to fund:
(A) the Bank's investments; and
(B) loans which may be made by the Bank after July 1, 1989
bearing interest rates determined otherwise than as provided in
paragraph (a) of this Section.
(iii) "Semester" means the First six months or the second six
months of a calendar year.
(d) On such date as the Bank may specify by no less than six
months' notice to the Borrower, paragraphs (a), (b) and (c) (iii)
of this Section shall be amended to read as follows:
"(a) The Borrower shall pay interest on the principal amount of
the Loan withdrawn and outstanding from time to time, at a rate
for each Quarter equal to the Cost of Qualified Borrowings
determined in respect of the preceding Quarter, plus one-half of
one percent (1/2 of 1%). On each of the dates specified in Section
2.06 of this Agreement, the Borrower shall pay interest accrued on
the principal amount outstanding during the preceding Interest
Period, calculated at the rates applicable during such Interest
Period."
"(b) As soon as practicable after the end of each Quarter, the
Bank shall notify the Borrower of the Cost of Qualified Borrowings
determined in respect of such Quarter."
"(c) (iii) 'Quarter' means a three-month period commencing on
January I, April I, July I or October I in a calendar year."
Section 2.06. Interest and other charges shall be payable
semiannually on June 1 and December 1 in each year.
Section 2.07. The Borrower shall repay the principal amount of
the Loan in accordance with the amortization schedule set forth in
Schedule 3 to this Agreement.
Section 2.08. RFCSCM is designated as the representative of the
Borrower for the purposes of taking any action required or
permitted to be taken under the provisions of Section 2.02 of this
Agreement and Article V of the General Conditions.
Article III
Execution of the Project
Section 3.01. The Borrower declares its commitment to the
objectives of the Project as set forth in Schedule 2 to this
Agreement, and, to this end, shall carry out Parts A, B.l(b),
B.2(b), C, and D of the Project through RFCSCM exclusively and
Parts B.l(a) and B.2(a) of the Project through MOF and RFCSCM
jointly with due diligence and efficiency and in conformity with
appropriate administrative and financial practices, and shall
provide, promptly as needed, the funds (including funds for the
purpose of Financing the tax liabilities of RFCSCM under the
Project), facilities, services and other resources required for
the Project.
Section 3.02. Except as the Bank shall otherwise agree,
procurement of the goods and consultants' services (including
Technical Services) required for the Project and to be financed
out of the proceeds of the Loan shall be governed by the
provisions of Schedule 4 to this Agreement.
Section 3.03. For the purposes of Section 9.08 of the General
Conditions and without limitation thereto, the Borrower shall:
(a) prepare, on the basis of guidelines acceptable to the Bank,
and furnish to the Bank not later than six (6) months after the
Closing Date or such later date as may be agreed for this purpose
between the Borrower and the Bank, a plan designed to ensure the
continued achievement of the Project's objectives;
(b) afford the Bank a reasonable opportunity to exchange views
with the Borrower on said plan.
Section 3.04. The Borrower shall cause RFCSCM to provide such
staff, funding, facilities, and other resources required for the
administration of the Project and deemed satisfactory by the Bank.
Section 3.05. The Borrower shall carry out Part A.I of the
Project in accordance with an Institutional Development Plan,
agreed with the Bank, in a manner satisfactory to the Bank.
Section 3.06. The Borrower shall:
(a) maintain or cause to be maintained policies and procedures
adequate to enable it to monitor and evaluate on an ongoing basis,
in accordance with indicators satisfactory to the Bank, the
carrying out of the Project and the achievement of the objectives
thereof;
(b) prepare or cause to be prepared, under terms of reference
satisfactory to the Bank, and furnish or cause to be furnished to
the Bank, on or about June 30, 1998 a report integrating the
results of the monitoring and evaluation activities performed
pursuant to paragraph (a) of this Section, on the progress
achieved in the carrying out of the Project during the period
preceding the date of said report and setting out the measures
recommended to ensure the efficient carrying out of the Project
and the achievement of the objectives thereof during the period
following such date; and
(c) review with the Bank, by September 30, 1998, or such later
date as the Bank shall request, the report referred to in
paragraph (b) of this Section, and, thereafter, take all measures
required to ensure the efficient completion of the Project and the
achievement of the objectives thereof, based on the conclusions
and recommendations of the said report and the Bank views on the
matter.
Section 3.07. (a) The Borrower shall select organizations for
participation under Part B of the Project in consultation with the
Bank.
(b) The Borrower shall, with respect to Eligible Beneficiaries
that are Commercial Organizations, authorize MOF and RFCSCM to
enter into a Subloan/Supply and Credit Agreement, on its behalf,
with each such Eligible BeneFiciary for providing services and
equipment to be procured with the proceeds of the Loan or any part
thereof under terms and conditions which shall have been approved
by the Bank, including the following:
(i) not less than 51% of the services and equipment shall be
provided on a cost recovery basis;
(ii) the credit shall be provided for a term of up to 12 years,
and a grace period of 3 - 5 years;
(iii) the credit shall be secured by a guarantee or other form
of security; and
(iv) the credit shall be extended at an interest rate up to 2%
above the rate payable by the Borrower pursuant to Section 2.05 of
this Agreement.
(c) The Borrower shall exercise its rights under each of the
Sub-loan/Supply and Credit Agreement in such manner as to protect
the interests of the Borrower and the Bank and to accomplish the
purposes of the Loan, and except as the Bank shall otherwise
agree, the Borrower shall not assign, amend, abrogate or waive any
Sub-loan/Supply and Credit Agreement or any provision thereof.
Article IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain or cause to be
maintained records and accounts adequate to reflect in accordance
with 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.
(b) The Borrower shall:
(i) have the records and accounts referred to in paragraph (a)
of this Section including those for the Special Account for each
Fiscal year audited, in accordance with appropriate auditing
principles consistently applied, by independent auditors
acceptable to the Bank;
(ii) furnish to the Bank as soon as available, but in any case
not later than six (6) months after the end of each such year, 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 to the Bank such other information concerning
said records and accounts and the audit thereof as the Bank shall
from time to time reasonably request.
(c) For all expenditures with respect to which withdrawals from
the Loan Account were made on the basis of statements of
expenditure, the Borrower shall:
(i) maintain or cause to be maintained, in accordance with
paragraph (a) of this Section, records and accounts reflecting
such expenditures;
(ii) retain, until at least one year after the Bank has
received the audit report for the Fiscal year in which the last
withdrawal from the Loan Account or payment out of the Special
Account was made, all records (contracts, orders, invoices, bills,
receipts and other documents) evidencing such expenditures;
(iii) enable the Bank's representatives to examine such
records; and
(iv) ensure that such records and accounts are included in the
annual audit referred to in paragraph (b) of this Section and that
the report of such audit contains a separate opinion by said
auditors as to whether the statements of expenditure submitted
during such Fiscal year, together with the procedures and internal
controls involved in their preparation, can be relied upon to
support the related withdrawals.
Article V
Remedies of the Bank
Section 5.01. Pursuant to Section 6.02(1) of the General
Conditions, the following additional event is specified, namely,
that the Borrower or any other authority having jurisdiction shall
have taken any action for the dissolution or disestablishment of
RFCSCM or for the suspension of its activities.
Section 5.02. Pursuant to Section 7.01(h) of the General
Conditions, the following additional event is specified, namely,
the event specified in Section 5.01 of this Agreement shall occur.
Article VI
Termination
Section 6.01. The date ninety (90) days after the date of this
Agreement is hereby specified for the purposes of Section 12.04 of
the General Conditions.
Article VII
Representative of the Borrower; Addresses
Section 7.01. Except as provided in Section 2.08 of this
Agreement, the Minister of Finance of the Borrower is designated
as representative of the Borrower for the purposes of Section
11.03 of the General Conditions.
Section 7.02. The following addresses are specified for the
purposes of Section 11.01 of the General Conditions:
For the Borrower:
Ministry of Finance
Ilyinka Street 9
103097, Moscow
Russian Federation
Telex:
112008
For the Bank:
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address: Telex:
INTBAFRAD 248423 (RCA)
Washington, D.C. 82987 (FTCC)
64145 (WUI) or
197688 (TRT)
In witness whereof, the parties hereto, acting through their
duly authorized representatives, 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.
SCHEDULE I
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:
--------------------------T------------------T-------------------¬
¦ Category ¦ Amount of the ¦ % of ¦
¦ ¦ Loan Allocated ¦ Expenditures ¦
¦ ¦ (Expressed in ¦ to be Financed ¦
¦ ¦Dollar Equivalent)¦ ¦
+-------------------------+------------------+-------------------+
¦ ¦ ¦ ¦
¦(1) Computer hardware, ¦ ¦100% of foreign ¦
¦ networks, software, ¦ ¦expenditures, ¦
¦ data bases, ¦ ¦100% of local ¦
¦ communications gear, ¦ ¦expenditures ¦
¦ office and library ¦ ¦(ex-factory ¦
¦ equipment and ¦ ¦cost) and 80% ¦
¦ materials ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(a) under Parts A, ¦ 12,000,000 ¦of local ¦
¦ B.1(b), B.1(b), C ¦ ¦expenditures for ¦
¦ and D of the Project ¦ ¦other items ¦
¦ ¦ ¦procured locally ¦
¦ ¦ ¦ ¦
¦(b) under Parts B.l(a) ¦ 3,000,000 ¦ ¦
¦ and B.2(a) of the ¦ ¦ ¦
¦ Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(2) Technical Services ¦ 4,000,000 ¦100% ¦
¦ ¦ ¦ ¦
¦(3) Consultants' ¦ ¦100% ¦
¦ services ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(a) under Parts A, ¦ 46,000,000 ¦ ¦
¦ B.1 (b), B.2(b), C ¦ ¦ ¦
¦ and D of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(b) under Parts B.l(a) ¦ 6,000,000 ¦ ¦
¦ and B.2(a) of the ¦ ¦ ¦
¦ Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(4) Training ¦ 11,000,000 ¦100% ¦
¦ ¦ ¦ ¦
¦(5) Unallocated ¦ 7,000,000 ¦ ¦
¦ ¦ ¦ ¦
¦ TOTAL ¦ 89,000,000 ¦ ¦
L-------------------------+------------------+--------------------
2. For the purposes of this Schedule:
(a) the term "foreign expenditures" means expenditures in the
currency of any country other than that of the Borrower for goods
or services supplied from the territory of any country other than
that of 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.
3. Notwithstanding the provisions of paragraph 1 above, no
withdrawals shall be made in respect of payments made for
expenditures:
(a) prior to the date of this Agreement; and
(b) under Categories (l)(b) and (3)(b), unless the Borrower has
furnished evidence, satisfactory to the Bank, that the Sub-
loan/Supply and Credit Agreement, in respect of which withdrawal
is sought, has been entered into with an Eligible Beneficiary
pursuant to Section 3.07(b) of this Agreement.
4. The Bank may require withdrawals from the Loan Account to be
made on the basis of statements of expenditure for expenditures
for:
(a) goods under contracts costing less than 300,000 USD
equivalent; and
(b) services under contracts, in case of Firms, costing less
than 100,000 USD equivalent and, in case of individuals, costing
less than 50,000 USD equivalent, under such terms and conditions
as the Bank shall specify by notice to the Borrower.
SCHEDULE 2
DESCRIPTION OF THE PROJECT
The objective of the Project is to assist the Borrower to:
(a) develop its capital market by:
(i) building a comprehensive policy and legal framework for
securities;
(ii) building a core institutional capacity in regulation of
the securities market and self-regulation of securities market
institutions; and
(iii) improving the efficiency, transparency and systemic
stability of the securities market; and
(b) establish a federal domestic debt tracking system. The
Project consists of the following parts, subject to such
modifications thereof as the Borrower and the Bank may agree upon
from time to time to achieve such objectives:
Part A
Regulatory Infrastructure
1. Building of RFCSCM's institutional capacity through human
resource development, including management support and staff
training.
2. Designing and provision of information systems, including
computer hardware, software, local area networks, and
telecommunications and office equipment to RFCSCM to enable it to
carry out and exercise its functions and powers, including the
establishment by RFCSCM of an operational system and market
information database.
3. Development of RFCSCM's regulatory programs, including:
(a) the formulation of policies concerning capital market
activity and drafting laws and regulations to put the said
policies into effect;
(b) the development of specific guidelines, interpretations and
procedures for conducting the principal regulatory operations of
RFCSCM; and
(c) the provision of advisory services and information to the
public through the media and through public education materials
and regulatory handbooks.
Part B
Market Architecture
1. Development of agreements, procedures and protocols for: (a)
Commercial Organizations; and (b) non-commercial organizations,
and the provision of equipment thereto related to building a
stable and transparent national secondary market in private sector
securities, including the expansion and up-grading of over-the-
counter market and stock exchanges.
2. Development of agreements, procedures and protocols for:
(a) Commercial Organizations; and
(b) non-commercial organizations, and the provision of
equipment thereto related to building a stable and transparent
national clearance, settlement and registration system for private
sector securities, including the expansion and up-grading of the
depository, clearance settlement, and registration system.
Part C
Debt Tracking System
1. Institutional strengthening of DSFM through the carrying out
of studies and provision of services related to DSFM's debt
tracking system.
2. Installation and operation of DSFM's debt tracking system
through the provision of services and equipment.
3. Provision and installation of computer hardware,
telecommunications networking, and related software for
information systems supporting DSFM's debt tracking system.
Part D
Project Administration
Provision of technical assistance and training to RFCSCM for
management and administration, including procurement,
disbursement, accounting, monitoring and reporting activities
under the Project.
The Project is expected to be completed by December 31, 2000.
SCHEDULE 3
AMORTIZATION SCHEDULE
------------------------------------T----------------------------¬
¦ Date Payment Due ¦ Payment of Principal ¦
¦ ¦(expressed in dollars) <*> ¦
+-----------------------------------+----------------------------+
¦December 1,2001 ¦ 3,710,000 ¦
¦June 1,2002 ¦ 3,710,000 ¦
¦December 1,2002 ¦ 3,710,000 ¦
¦June 1,2003 ¦ 3,710,000 ¦
¦December 1,2003 ¦ 3,710,000 ¦
¦June 1,2004 ¦ 3,710,000 ¦
¦December 1,2004 ¦ 3,710,000 ¦
¦June 1,2005 ¦ 3,710,000 ¦
¦December 1,2005 ¦ 3,710,000 ¦
¦June 1,2006 ¦ 3,710,000 ¦
¦December 1, 2006 ¦ 3,710,000 ¦
¦June 1,2007 ¦ 3,710,000 ¦
¦December 1,2007 ¦ 3,710,000 ¦
¦June 1,2008 ¦ 3,710,000 ¦
¦December 1,2008 ¦ 3,710,000 ¦
¦June 1,2009 ¦ 3,710,000 ¦
¦December 1,2009 ¦ 3,710,000 ¦
¦June 1,2010 ¦ 3,710,000 ¦
¦December 1,2010 ¦ 3,710,000 ¦
¦June 1, 201 1 ¦ 3,710,000 ¦
¦December 1, 201 1 ¦ 3,710,000 ¦
¦June 1,2012 ¦ 3,710,000 ¦
¦December 1,2012 ¦ 3,710,000 ¦
¦June 1, 2013 ¦ 3,670,000 ¦
L-----------------------------------+-----------------------------
--------------------------------
<*> The figures in this column represent dollar equivalents
determined as of the respective dates of withdrawal. See General
Conditions, Sections 3.04 and 4.03.
PREMIUMS ON PREPAYMENT
Pursuant to Section 3.04 (b) of the General Conditions, the
premium payable on the principal amount of any maturity of the
Loan to be prepaid shall be the percentage specified for the
applicable time of prepayment below:
--------------------------------T--------------------------------¬
¦ Time of Prepayment ¦ Premium ¦
¦ ¦The interest rate (expressed ¦
¦ ¦as a percentage per annum) ¦
¦ ¦applicable to the Loan on the ¦
¦ ¦day of prepayment multiplied by:¦
+-------------------------------+--------------------------------+
¦Not more than three years ¦ 0.18 ¦
¦before maturity ¦ ¦
¦ ¦ ¦
¦More than three years but ¦ 0.35 ¦
¦not more than six years ¦ ¦
¦before maturity ¦ ¦
¦ ¦ ¦
¦More than six years but ¦ 0.65 ¦
¦not more than 11 years ¦ ¦
¦before maturity ¦ ¦
¦ ¦ ¦
¦More than 11 years but not ¦ 0.88 ¦
¦more than 15 years ¦ ¦
¦before maturity ¦ ¦
¦ ¦ ¦
¦More than 15 years before ¦ 1.00 ¦
¦maturity ¦ ¦
L-------------------------------+---------------------------------
SCHEDULE 4
PROCUREMENT AND CONSULTANTS' SERVICES
Section I. PROCUREMENT OF GOODS
Part A
General
Goods and Technical Services shall be procured in accordance
with the provisions of Section I of the "Guidelines for
Procurement under IBRD Loans and IDA Credits" published by the
Bank in January 1995 and revised in January 1996 (the Guidelines)
and the following provisions of this Section, as applicable.
Part B
International Competitive Bidding
1. Except as otherwise provided in Part C of this Section,
goods and Technical Services shall be procured under contracts
awarded in accordance with the provisions of Section II of the
Guidelines and paragraph 5 of Appendix I thereto.
2. The following provision shall apply to goods to be procured
under contracts awarded in accordance with the provisions of
paragraph 1 of this Part B:
Preference for domestically manufactured goods
The provisions of paragraphs 2.54 and 2.55 of the Guidelines
and Appendix 2 thereto shall apply to goods manufactured in the
territory of the Borrower.
Part C
Other Procurement Procedures
1. International Shopping
Office equipment, including telephone exchanges, copiers, fax
machines, and micro computers, estimated to cost 300,000 USD
equivalent or less per contract and 3,800,000 USD equivalent or
less in the aggregate, may be procured under contracts awarded on
the basis of international shopping procedures in accordance with
the provisions of paragraphs 3.5 and 3.6 of the Guidelines.
2. National Shopping
Telephones, local area networks wiring, library supplies, and
office supplies, estimated to cost 50,000 USD equivalent or less
per contract and 800,000 USD equivalent or less in the aggregate,
may be procured under contracts awarded on the basis of national
shopping procedures in accordance with the provisions of
paragraphs 3.5 and 3.6 of the Guidelines.
3. Direct Contracting
Database systems which are of a proprietary nature may, with
the Bank's prior agreement, be procured in accordance with the
provisions of paragraph 3.7 of the Guidelines.
4. Technical Services
Technical Services shall be procured in accordance with
procedures acceptable to the Bank.
Part D
Review by the Bank of Procurement Decisions
1. Procurement Planning
Prior to the issuance of any invitations to prequalify for
bidding or to bid for contracts, the proposed procurement plan for
the Project shall be furnished to the Bank for its review and
approval, in accordance with the provisions of paragraph 1 of
Appendix 1 to the Guidelines. Procurement of all goods and works
shall be undertaken in accordance with such procurement plan as
shall have been approved by the Bank, and with the provisions of
said paragraph 1.
2. Prior Review
With respect to: (a) the First contract for goods under Parts
C.I and C.2 hereof; and (b) each contract for goods and Technical
Services under Parts B, C.3 and C.4 hereof, the procedures set
forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall
apply.
3. Post Review
With respect to each contract not governed by paragraph 2 of
this Part, the procedures set forth in paragraph 4 of Appendix 1
to the Guidelines shall apply.
Section II. EMPLOYMENT OF CONSULTANTS
1. Consultants' services shall be procured under contracts
awarded in accordance with the provisions of the "Guidelines for
the Use of Consultants by World Bank Borrowers and by The World
Bank as Executing Agency" published by the Bank in August 1981
(the Consultant Guidelines). For complex, time-based assignments,
such contracts shall be based on the standard form of contract for
consultants' services issued by the Bank, with such modifications
as shall have been agreed by the Bank. Where no relevant standard
contract documents have been issued by the Bank, other standard
forms acceptable to the Bank shall be used.
2. Notwithstanding the provisions of paragraph 1 of this
Section, the provisions of the Consultant Guidelines requiring
prior Bank review or approval of budgets, short lists, selection
procedures, letters of invitation, proposals, evaluation reports
and contracts shall not apply to:
(a) contracts for the employment of consulting firms estimated
to cost less than 100,000 USD equivalent each; or
(b) contracts for the employment of individuals estimated to
cost less than 50,000 USD equivalent each. However, said
exceptions to prior Bank review shall not apply to:
(a) the terms of reference for such contracts;
(b) single-source selection of consulting Firms;
(c) assignments of a critical nature, as reasonably determined
by the Bank;
(d) amendments to contracts for the employment of consulting
firms raising the contract value to 100,000 USD equivalent or
above; or
(e) amendments to contracts for the employment of individual
consultants raising the contract value to 50,000 USD equivalent or
above.
SCHEDULE 5
SPECIAL ACCOUNT
1. For the purposes of this Schedule:
(a) the term "eligible Categories" means Categories (1), (2),
(3) and (4) set forth in the table in paragraph I of Schedule I to
this Agreement;
(b) the term "eligible expenditures" means expenditures in
respect of the reasonable cost of goods and services required for
the Project and to be financed out of the proceeds of the Loan
allocated from time to time to the eligible Categories in
accordance with the provisions of Schedule 1 to this Agreement;
and
(c) the term "Authorized Allocation" means an amount equivalent
to 3,000,000 USD to be withdrawn from the Loan Account and
deposited into the Special Account pursuant to paragraph 3 (a) of
this Schedule, provided, however, that unless the Bank shall
otherwise agree, the Authorized Allocation shall be limited to an
amount equivalent to 500,000 USD until the aggregate amount of
withdrawals from the Loan Account plus the total amount of all
outstanding special commitments entered into by the Bank pursuant
to Section 5.02 of the General Conditions shall be equal to or
exceed the equivalent of 5,000,000 USD.
2. Payments out of the Special Account shall be made
exclusively for eligible expenditures in accordance with the
provisions of this Schedule.
3. After the Bank has received evidence satisfactory to it that
the Special Account has been duly opened, withdrawals of the
Authorized Allocation and subsequent withdrawals to replenish the
Special Account shall be made as follows:
(a) For withdrawals of the Authorized Allocation, the Borrower
shall furnish to the Bank a request or requests for a deposit or
deposits which do not exceed the aggregate amount of the
Authorized Allocation. On the basis of such request or requests,
the Bank shall, on behalf of the Borrower, withdraw from the Loan
Account and deposit into the Special Account such amount or
amounts as the Borrower shall have requested.
(b) (i) For replenishment of the Special Account, the Borrower
shall furnish to the Bank requests for deposits into the Special
Account at such intervals as the Bank shall specify.
(ii) Prior to or at the time of each such request, the Borrower
shall furnish to the Bank the documents and other evidence
required pursuant to paragraph 4 of this Schedule for the payment
or payments in respect of which replenishment is requested. On the
basis of each such request, the Bank shall, on behalf of the
Borrower, withdraw from the Loan Account and deposit into the
Special Account such amount as the Borrower shall have requested
and as shall have been shown by said documents and other evidence
to have been paid out of the Special Account for eligible
expenditures.
All such deposits shall be withdrawn by the Bank from the Loan
Account under the respective eligible Categories, and in the
respective equivalent amounts, as shall have been justified by
said documents and other evidence.
4. For each payment made by the Borrower out of the Special
Account, the Borrower shall, at such time as the Bank shall
reasonably request, furnish to the Bank such documents and other
evidence showing that such payment was made exclusively for
eligible expenditures.
5. Notwithstanding the provisions of paragraph 3 of this
Schedule, the Bank shall not be required to make further deposits
into the Special Account:
(a) if, at any time, the Bank shall have determined that all
further withdrawals should be made by the Borrower directly from
the Loan Account in accordance with the provisions of Article V of
the General Conditions and paragraph (a) of Section 2.02 of this
Agreement; or
(b) if the Borrower shall have failed to furnish to the Bank,
within the period of time specified in Section 4.01(b)(ii) of this
Agreement, any of the audit reports required to be furnished to
the Bank pursuant to said Section in respect of the audit of the
records and accounts for the Special Account;
(c) if, at any time, the Bank shall have notified the Borrower
of its intention to suspend in whole or in part the right of the
Borrower to make withdrawals from the Loan Account pursuant to the
provisions of Section 6.02 of the General Conditions; or
(d) once the total unwithdrawn amount of the Loan allocated to
the eligible Categories, less the amount of any outstanding
special commitment entered into by the Bank pursuant to Section
5.02 of the General Conditions with respect to the Project, shall
equal the equivalent of twice the amount of the Authorized
Allocation.
Thereafter, withdrawal from the Loan Account of the remaining
unwithdrawn amount of the Loan allocated to the eligible
Categories shall follow such procedures as the Bank shall specify
by notice to the Borrower. Such further withdrawals shall be made
only after and to the extent that the Bank shall have been
satisfied that all such amounts remaining on deposit in the
Special Account as of the date of such notice will be utilized in
making payments for eligible expenditures.
6. (a) If the Bank shall have determined at any time that any
payment out of the Special Account:
(i) was made for an expenditure or in an amount not eligible
pursuant to paragraph 2 of this Schedule; or
(ii) was not justified by the evidence furnished to the Bank,
the Borrower shall, promptly upon notice from the Bank:
(A) provide such additional evidence as the Bank may request;
or
(B) deposit into the Special Account (or, if the Bank shall so
request, refund to the Bank) an amount equal to the amount of such
payment or the portion thereof not so eligible or justified.
Unless the Bank shall otherwise agree, no further deposit by the
Bank into the Special Account shall be made until the Borrower has
provided such evidence or made such deposit or refund, as the case
may be.
(b) If the Bank shall have determined at any time that any
amount outstanding in the Special Account will not be required to
cover further payments for eligible expenditures, the Borrower
shall, promptly upon notice from the Bank, refund to the Bank such
outstanding amount.
(c) The Borrower may, upon notice to the Bank, refund to the
Bank all or any portion of the funds on deposit in the Special
Account.
(d) Refunds to the Bank made pursuant to paragraphs 6(a), (b)
and (c) of this Schedule shall be credited to the Loan Account for
subsequent withdrawal or for cancellation in accordance with the
relevant provisions of this Agreement, including the General
Conditions.
|
