CONFORMED COPY

CREDIT NUMBER 583 DA

Development Credit

Agreement(Rural Education and Training Project)

BETWEEN

REPUBLIC OF DAHOMEY

AND

INTERNATIONAL DEVELOPMENT ASSOCIATION

DATED SEPTEMBER 3, 1975

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CONFORMED COPY

CREDIT NUMBER 583 DA

Development Credit

Agreement(Rural Education and Training Project)

BETWEEN

REPUBLIC OF DAHOMEY

AND

INTERNATIONAL DEVELOPMENT ASSOCIATION

DATED SEPTEMBER 3, 1975

DEVELOPMENT CREDIT AGREEMENT

AGREEMENT, dated September 3, 1975, between REPUBLIC OFDAHOMEY (hereinafter called the Borrower) and INTERNATIONALDEVELOPMENT ASSOCIATION (hereinafter called the Association).

WHEREAS (A) The Borrower has requested the Association to assist in thefinancing of the Project described in Schedule 2 to thi.; Agreement by extendingthe Credit as hereinafter provided;

(B) The Borrower has requested the United Nations DevelopmentProgramme (hereinafter called UNDP) and the International Labour Organisation(hereinafter called ILO) to provide assistance in respect of the skills upgradingcenter included under Part A of the Project, and the UNDP and the ILO haveagreed to provide such assistance;

(C) The Borrower is currently receiving assistance fromn the UNDP andthe Food and Agriculture Organisation (hereinafter called FAO) inter alia in respectof a rural youth settlement project, and has requested the United Nations Children'sFund (hereinafter called UNICEF) for assistance inter alia in respect of a projectto finance equipment, materials and training for rural women, which projects arecomplementary to the Borrower's rural youth trai.,ing program inCluded inder PartB of the Project, and are intended to be carried out on a coordinated basis; and

WHEREAS the Association has agreed, oii the basis inter alia of the foregoing,to extend the Credit to the Borrower upon the terms and conditions hereinafterset forth;

NOW THEREFORE the parties hereto hereby agree as follows:

ARTICLE I

General Conditions; Definitions

Section 1.01. The parties to this Agreement accept all the provisions of theGeneral Conditions Applicable to Development Credit Agreements of theAssociation, dated March 15, 1974, with the same force and effect as if they werefully set forth herein (said General Conditions Applicable to Development CreditAgreements of the Association being hereinafter called the General Conditions).

4

Section 1.02. Wherever used in this Agreement, unless the context otherwiserequires, the several terms defined in the General Conditions have the respectivemeanings therein set forth and the following additional terms have the followingmeanings:

(a) the letters "NSC" mean the National Support Center, to be establishedunder Part B.1(i) of the Project;

(b) the letters "RSC" mean any of the Regional Support Centers, to beestablished under Part B.2(i) of the Project;

(c) "4-D Clubs" mean any of the voluntary groups known by that name,established in villages of the Borrower to provide adolescent boys and girls withcomprehensive training in functional literacy and numeracy, in improved agriculturaltechniques and in nutrition, health and hygiene, within the framework of integratedrural development schemes. 4-D stands for Decision, Duty, Development, Dahomey;

(d) "Groupement Villageois" means any of the voluntary pre-cooperativeor cooperative groups of farmers known by that name, established in the villagesof the Borrower;

(e) the letters "SONACO" mean the Socih Nationale Agricole pour leCoton, a "Societ* d'Etat" existing under the laws of the Borrower pursuant toBorrower's Decree No. 71-238 of December 6, 1971;

(f) the letters "MRD" mean the Borrower's Ministry of Rural Developmentand Cooperative Action;

(g) the letters "ODAA" mean the Operation de Developpement Agricolede l'Atacora, a regional development organization for the Province of Atacoraestablished and existing under MRD, pursuant to Presidential Decree No. 72-22of February 8, 1972;

(h) the letters "ODIZ" mean the Operation pour de Developpenent Integredu Zou, a regional development organization for the Province of Zou, establishedand existing within SONACO;

(i) the term "regional development organization" means an integratedregional development organization of the Borrower, and shall be deemed to refer,unless the context otherwise requires, to ODIZ in relation to the Province of Zou,

5

to ODAA in relation to the Province of Atacora, and to a similar organizationestablished pursuant to Presidential Decree No. 74-273 of October 21, 1974 forthe Province of Atlantique;

(j) "Chef de Projet for Part A of the Project" means the person appointedto the position referred to by that name in accordance with Section 3.02(a) ofand Schedule 4 to this Agreement;

(k) "Chef de Projet for Part B of the Project" means the person appointedto the position referred to by that name in accordance with Section 3.02(b) ofand Schedule 5 to this Agreement;

(1) "Project Account A" and "Project Account B" mean, respectively, theaccounts referred to in Section 3.08 of this Agreement;

(m) "Skills Center" means the skills upgrading center referred to underPart A.l of the Project; and

(n) The letters "CFAF" mean the Franc de la Communaute FinancidreAfricaine, the common currency of the Borrower and the other members of theWest African Monetary Union.

ARTICLE II

The Credit

Section 2.01. The Association agrees to lend to the Borrower, on the termsand conditions in the Development Credit Agreement set forth or referred to, anamount in various currencies equivalent to four million dollars ($4,000,000),

Section 2.02. The amount of the Credit may be withdrawn from the CreditAccount in accordance with the provisions of Schedule 1 to this Agreement, assuch Schedule may be amended from time to time, for expenditures made (or,if the Association shall so agree, to be made) in respect of the reasonable costof goods and services required for the Project and to be financed out of the proceedsof the Credit.

Section 2.03. Except as the Association shall otherwise agree, the goods,works and services (other than consultants' services) for the Project to be financedout of the proceeds of the Credit, shall be procured in accordance with theprovisions of Schedule 3 to this Agreement.

I

6

Section 2.04. The Closing Date shall be June 30, 1981 or such later dateas the Association shall establish. The Association shall promptly notify theBorrower of such later date.

Section 2.05. The Borrower shall pay to the Association a service chargeat the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principalamount of the Credit withdrawn and outstanding from time to time.

Section 2.06. Service charges shall be payable semi-annually on April 1 andOctober 1 in each year.

Section 2.07. The Borrower shall repay the principal amount of the Creditin semi-annual installments payable on each April 1 and October 1 commencingOctober 1, 1985, and ending April 1, 2025, each installment to and includingthe installment payable on April 1, 1995 to be one-half of one per cent (1/2of 1%) of such principal amount, and each installment thereafter to be one andone-half per cent (1-1/2%) of such principal amount.

Section 2.08. The currency of the Republic of France is hereby specifiedfor the purposes of Section 4.02 of the General Conditions.

ARTICLE III

Execution of the Project

Section 3.01. The Borrower shall carry out the Project with due diligenceand efficiency and in conformity with appropriate administrative, financial,educational and technical practices, and shall provide, promptly as needed, thefunds, facilities, services and other resources required for the purpose.

Section 3.02. (a) Except as the Borrower and the Association shall otherwisemutually agree, Part A of the Project shall be carried out under the direction ofthe Director of Vocational Training of the Borrower's Ministry of Civil Serviceand Labor, supported by such organization and staff, and in accordance with suchoperating policies and procedures, as are set forth in Schedule 4 to this Agreement.

(b) Except as the Borrower and the Association shall otherwise mutuallyagree, Part B of the Project shall be carried out under the direction of the "DirecteurGen6ral de l'Action Rurale" of the MRD, supported by such organization and staff,and in accordance with such operating policies and procedures, as are set fortlhin Schedule 5 to this Agreement.

7

Section 3.03. (a) In order to assist the Borrower in carrying out the Project,the Borrower shall employ consultants and specialists whose qualifications,experience and terms and conditions of employment shall be mutually satisfactoryto the Borrower and the Association.

(b) Without limitation upon the provisions of paragraph (a) of this Section3.03, candidates for appointment to the positions of Chef de Projet for Part Aof the Project and Chef de Projet for Part B of the Project, shall have qualificationsand experience, and shall be employed upon terms and conditions, mutuallysatisfactory to the Borrower and the Association.

Section 3.04. Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall take all necessary steps to ensure that for eachspecialist appointed for the National Support Center under Part B. (iii) of theProject, there shall be appointed, prior to the time such specialist shall take uphis duties, a Dahomean counterpart with qualifications acceptable to theAssociation; provided, however, that the counterpart to the Chef de Projet forPart B of the Project shall be appointed not later than one month after the Chefde Projet shall have taken up his duties.

Section 3.05. Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall take all necessary steps to ensure that theRegional Support Centers to be established under Part B.2(i) of the Project, willbe fully integrated in the respective regional development organizations of theProvinces of Zou, Atacora, and Atlantique, and that in the case of Atlantique,said regional development organization will be mutually acceptable to the Borrowerand the Association.

Section 3.06. Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall restrict entry in each of the 4-D Clubsparticipating under Part B.3 of the Project to youths who are normally 13 yearsof age or over.

Section 3.07. Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall take all necessary steps to ensure that each4-D Club participating under Part B.3 of the Project will have available to it (i)an appropriate area of suitable land on a permanent basis, and (ii) all necessaryagricultural inputs (in particular, but not limited to, seeds, fertilizers andinsecticides) on terms and conditions not less favorable than such inputs areavailable to the neighboring "Groupement Villageois".

0

8

Section 3.08. Without limitation upon the Borrower's obligations referredto in Section 3.01 of this Agreement, except as the Borrower and the Associationshall otherwise mutually agree, the Borrower shall (i) establish and thereaftermaintain in a banking institution or institutions acceptable to the Borrower andthe Association, during the implementation period of the Project, two separaterevolving accounts, for the purpose of channelling to the respective departmentsand agencies concerned, the amounts required to be provided by the Borrowerfrom time to time for the purposes of Part A of the Project and Part B of theProject, respectively (said accounts are called hereinafter Project Account "A" andProject Account "B" respectively); and (ii) deposit in Project Account "A" andProject Account "B", on or before January 1, April 1, July 1 and October Iin each year until the Project is completed, such amounts as shall have beenrequested by the Chef de Projet for Part A of the Project and the Chef de Projetfor Part B of the Project and approved by the Borrower in consultation with theAssociation, and as shall be necessary during the next three months for the carryingout respectively of Part A and Part B of the Project including but not limitedto the recurrent expenditures to be incurred by the administrative units responsiblefor implementing respectively Part A and Part B of the Project, exclusive, however,of all such amounts as the Association may from time to time agree to pay duringsuch period out of the proceeds of the Credit directly to suppliers, contractorsor consultants employed for purposes of the Project, and except for the initial .deposit required for purposes of Section 6.01(c) of this Development CreditAgreement.

Section 3.09. (a) The Borrower undertakes to insure, or make adequateprovision for the insurance of, the imported goods to be financed out of theproceeds of the Credit against hazards incident to the acquisition, transportationand delivery thereof to the place of use or installation, and for such insuranceany indemnity shall be payable in a currency freely usable by the Borrower toreplace or repair such goods.

(b) Except as the Borrower and the Association shall otherwise mutuallyagree, all goods and services financed out of the proceeds of the Credit shall beused exclusively for the Project until its completion.

Section 3.10. (a) The Borrower shall furnish to the Association, promptlyupon their preparation (i) for approval, the plans, specifications, contract documentsand work and procurement schedules for the Project, and any material modificationsthereof or additions thereto, in such detail as the Association shall reasonablyrequest; and (ii) the periodic or special reports prepared for the Borrower by thespecialists employcd for the purposes of the Project.

w 9

(b) The Borrower: (i) shall maintain records adequate to record theprogress of the Project (including the cost thereof) and to identify the goods andservices financed out of the proceeds of the Credit, and to disclose the use thereofin the Project; (ii) shall enable the Association's accredited representatives to visitthe facilities and construction sites included in the Project and to examine thegoods financed out of the proceeds of the Credit and any relevant records anddocuments; and (iii) shall furnish to the Association all such information as theAssociation shall reasonably request concerning the Project, the expenditure of theproceeds of the Credit and the goods and services financed out of such proceeds.

Section 3.11. The Borrower shall take or cause to be taken all such actionas shall be necessary to acquire as and when needed all such land and rights inrespect of land as shall be required for the construction and operation of thefacilities included in the Project.

Section 3.12. (a) Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall submit to the Association for its approval, onor before June 1, 1978, plans for the establishment of a "tracer system" for PartA of the Project, designed to evaluate the effectiveness of the training programsincluded under Part A of the Project, by providing, inter alia, data on changesin employers, income, and types of jobs performed, and shall thereafter carry outsuch plans as shall have been mutually agreed upon between the Borrower andthe Association.

(b) The Borrower and the Association shall (i) evaluate the progress madeunder Part B of the Project about 18 months after the date of this Agreement,and (ii) carry out a final evaluation of Part B of the Project in or about January,1980, each in such scope and detail as shall be mutually agreed between theBorrower and the Association.

Section 3.13. Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall within one year of the date of this Agreement,prepare for the Association's review and comment a comprehensive developmentplan for the Skills Center, including, inter alia, an analysis of the financialimplications of such plan and proposals for the financing of the Center's recurrentcosts.

Section 3.14. Except as the Borrower and the Association shall otherwisemutually agree, the Borrower shall (i) within three years of the date of thisAgreement, prepare for the Association's review and comment a study of its"training tax" with a view to determining (A) its role in promoting vocational

10

training in public and private sector enterprises; (B) its impact on employment;and (C) its incidence and its relationship to the benefits provided by the SkillsCenter; and (ii) thereafter adopt such measures in relation to the foregoing as aresuggested by the findings of said study and as shall be mutually agreed betweenthe Borrower and the Association.

ARTICLE IV

Other Covenants

Section 4.01. (a) The Borrower shall cause the institutions included in theProject to carry out their operations and manage their affairs in accordance withappropriate administrative, financial, technical and educational policies andpractices, and so as to promote the Borrower's training objectives, and shall provide,promptly as needed, the funds, facilities, services and other resources required forthe purpose.

(b) The Borrower shall: (i) cause the buildings, furniture and equipmentof the institutions included in the Project to be adequately maintained and shallcause all necessary renewals and repairs thereof to be made; and (ii) establishappropriate administrative and financial procedures for the purpose of suchmaintenance.

(c) Without limitation of the obligations of the Borrower under paragraph(a) of this Section the Borrower shall ensure that staff in adequate numbers andwith appropriate skills are made available to operate the facilities and performthe services required for Parts A and B of this Project.

Section 4.02. The Borrower shall maintain or cause to be maintained recordsadequate to reflect in accordance with consistently maintained appropriateaccounting practices the operations, resources and expenditures, in respect of theProject, of the departments or agencies of the Borrower responsible for carryingout the Project or any part thereof.

ARTICLE V

Remedies of the Association

Section 5.01. For the purposes of Section 6.02 of the General Conditions,the following additional events are specified pursuant to paragraph (h) thereof:

(a) Any of the laws and/or decrees adopted for purposes of paragraph4(ii) of Schedule 1 to this Agreement, shall have been amended, suspended,

- 11

abrogated, repealed or waived in such a way as to materially and adversely affectthe operations of the Skills Center;

(b) Any of the laws and/or decrees adopted for purposes of paragraph4(iii)(A) of Schedule 1 to this Agreement, shall have been amended, suspended,abrogated, repealed or waived in such a way as to materially and adversely affectthe operations of the National Support Center established under Part B of theProject, or the Borrower's rural youth training program administered through the

NSC; and

(c) (i) Subject to subparagraph (ii) of this paragraph:

(A) The right of the Borrower to withdraw the proceedsof any grant or loan made to the Borrower for thefinancing of the Project shall have been suspended,cancelled or terminated in whole or Jn part,pursuant to the terms of the agreement providingtherefor, or

(B) any such loan shall have become due and payableprior to the agreed maturity thereof.

(ii) Subparagraph (i) of this paragraph shall not apply if theBorrower establishes to the satisfaction of the Associationthat: (A) such suspension, cancellation, termination orprematuring is not caused by the failure of the Borrowerto perform any of its obligations under such agreement,and (B) adequate funds for the Project are available tothe Borrower from other sources on terms and conditions

consistent with the obligations of the Borrower under this

Agreement.

Section 5.02. For the purposes of Section 7.01 of the General Conditions,the following additional events are specified pursuant to paragraph (d) thereof,namely, any of the events specified in paragraphs (a), (b) or (c)(i)(B) of Section5.01 of this Agreement shall occur.

ARTICLE VI

Effective Date; Termination

Section 6.01. The following events are specified as additional conditions tothe effectiveness of the Development Credit Agreement within the meaning ofSection 12.01(b) of the General Conditions:

12

(a) The Borrower, UNDP and ILO have entered into an agreement, inform and substance acceptable to the Association, providing for the financing byUNDP of specialists under terms of reference acceptable to the Association andequipment required for Part A of the Project;

(b) The Borrower has appointed the Chef de Projet for Part A of theProject, with qualifications and experience, and upon terms and conditions,mutually acceptable to the Borrower and the Association; and

(c) The Borrower has established Project Account "A" and ProjectAccount "B" referred to in Section 3.08 of this Agreement, and has depositedin each such account at least CFAF2,000,000 and CFAFI,000,000, respectively.

Section 6.02. The date January 5, 1976 is hereby specified for the purposesof Section 12.04 of the General Conditions.

Section 6.03. The obligations of the Borrower under Sections 3.05, 3.06,3.07, 3.10(b), 3.11 and under Article IV of this Agreement and the provisionsof paragraphs (a) and (b) of Section 5.01 of this Agreement shall cease anddetermine on the date on which the Development Credit Agreement shall terminateor on a date 25 years after the date of this Agreement, whichever shall be theearlier.

ARTICLE VH1

Representative of the Borrower; Addresses

Section 7.01. The Minister of the Borrower at the time responsible forFinance is designated as representative of the Borrower for the purposes of Section11.03 of the General Conditions.

Section 7.02. The following addresses are specified for the purposes ofSection 11.01 of the General Conditions:

For the Borrower:

Ministry of FinanceCotonouDa homey

Cable address:

MINIFINANCESCOTONOU

13

For the Association:

International Development Association

1818 H Street, N.W.Washington, D.C. 20433United States of America

Cable address:

INDEVASWASHINGTON, D. C.

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.

REPUBLIC OF DAHOMEY

By /s / Adjibade TiamiouAuthorized Representative

INTERNATIONAL DEVELOPMENT ASSOCIATION

By /s / Xavier de la RenaudiereDirector, Country Programs Departient

Western Africa Regional Office

14 w

SCHEDULE 1

Withdrawal of the Proceeds of the Credit

1. The table below sets forth the Categories of items to be financed out ofthe proceeds of the Credit, the allocation of the amounts of the Credit to eachCategory and the percentage of expenditures for items so to be financed in eachCategory:

Amount of theCredit Allocated % of(Expressed in Expenditures

Category Dollar Equivalent) to be Financed

(1) Skills UpgradingCenter - Cotonou(Part A of theProject)

(a) Civil Works 360,000 85%

(b) Equipment and 55,000materials(other thanfurniture)

(i) locally 80%procured

(ii) imported 100% of foreignexpenditures(c.i.f. cost)

(c) Furniture 25,000 80%

Subtotal 440,000

(2) Rural Youth Train-ing (Part B of theProject)

(a) Civil Works 950,000 85%

15

Armount of theCredit Allocated % of

(Expressed in ExpendituresCategory Dollar Equivalent) to be Financed

(b) Equipment and 350,000materials(other thanfurniture)

(i) locally 80%procured

(ii) imported 100% of foreignexpenditures(c.i.f. cost)

(c) Furniture 45,000 80%

(d) Consultants' 770,000 100% of foreignServices expenditures

Subtotal 2,115,000

(3) Consultants' Ser- 220,000 100% of foreignvices for Part C expendituresof the Project

(4) Unallocated 1,225,000

TOTAL 4,000,000

2. For the purposes of this Schedule, the term "foreign expenditures" meansexpenditures in the currency of any country other than the Borrower and forgoods or services supplied from the territory of any country other than theBorrower; provided, however, that if the currency of the Borrower is also thatof another country from the territory of which goods or services are supplied,expenditures in such currency for such goods or services shall be deemed to be"foreign expenditures".

16

3. The disbursement percentages have been calculated in compliance with thepolicy of the Association that no proceeds of the Credit shall be disbursed onaccount of payments for taxes levied by, or in the territory of, the Borrower ongoods or services, or on the importation, manufacture, procurement or supplythereof; to that end, if the amount of any such taxes levied on or in respectof 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 thedisbursement percentage then applicable to such item as required to be consistentwith the aforementioned policy of the Association.

4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shallbe made in respect of:

(i) expenditures prior to the date of this Agreement;

(ii) expenditures for goods or services included under Category (1)of the allocation of the proceeds of the Credit, until all necessarymeasures, in form and substance mutually satisfactory to theBorrower and the Association, have been taken:

(A) for the establishment of the Skills Center, with an W

appropriate administrative structure, including provisionfor a governing body (Administrative Council) in whichthe representation of Government, employers and workerswill be reasonably assured in a manner satisfactory to theAssociation, and with adequate autonomy, including thepower to establish recruitment standards, programs andtesting and certification rules; and

(B) to provide that all revenues from the Borrower's "trainingtax" shall be allocated to support the operations of theSkills Center, to the extent required to enable the SkillsCenter to carry on its operations.

(iii) expenditures for goods or services included under Category (2)of the allocation of the proceeds of the Credit:

(A) until all necessary measures, in form and substancemutually satisfactory to the Borrower and the Association,shall have been taken for the establishment of theadministrative structure described under Part B. 1(i) of theProject;

17

(B) until the Borrower has appointed the Chef de Projet forPart B of the Project, with qualifications and experience,and upon terms and conditions, mutually satisfactory tothe Borrower and the Association; and

(C) until an agreement or agreements shall have beenconcluded, in form and substance mutually satisfactoryto the Borrower and the Association, among the Borrower,UNDP, FAO, and UNICEF, by which the NationalSupport Center to be established under Part B.1(i) of theProject shall be designated as the institution having overallresponsibility for coordination of rural youth training andsettlement programs financed by said agencies in the areascovered by the Project;

(iv) expenditures in respect of goods and services for Part B.2 orPart B.3 of the Project, until all necessary measures shall havebeen taken, to integrate at least one of the three RegionalSupport Centers to be established under Part B.2(i) of theProject, within its respective regional development organization;or

(v) expenditures in respect of goods and services required for thesecond phase referred to under Part B.3 of the Project, untilthe Borrower and the Association shall have completed aninterim field evaluation of the results achieved during the firstphase in each of the three Provinces, and shall have agreed thatthe results justify proceeding with the second phase in suchProvince.

5. Notwithstanding the allocation of an amount of the Credit or thedisbursement percentages set forth in the table in paragraph I above, if theAssociation has reasonably estimated that the amount of the Credit then allocatedto any Category will be insufficient to finance the agreed percentage of allexpenditures in that Category, the Association may, by notice to the Borrower:(i) reallocate to such Category, to the extent required to meet the estimatedshortfall, proceeds of the Credit which are then allocated to another Category andwhich 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 thedisbursement percentage then applicable to such expenditures in order that furtherwithdrawals under such Category may continue until all expenditures thereunder. shall have been made.

18

6. If the Association shall have reasonably determined that the procurementof any item in any Category is inconsistent with the procedures set forth or referredto in Section 2.03 and Schedule 3 of this Agreement, no expenditures for suchitem 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 ofthe Association under the Development Credit Agreement, by notice to theBorrower, cancel such amount of the Credit as, in the Association's reasonableopinion, represents the amount of such expenditures which would otherwise havebeen eligible for financing out of the proceeds of the Credit.

Mw

19

SCHEDULE 2

Description of the Project

The Project is a part of the Borrower's program to help meet its mostfundamentl non-formal training needs. In the urban sector, it includes theestablishment of a skills upgrading center which will incorporate existing vocationaltraining programs and provide new programs for employed industrial and clericalworkers in the private and public sectors. In the rural sector, it consists of thestrengthening of the existing rural youth training program carried out through theBorrower's 4-D Clubs.

The Project consists of the following Parts:

Part A. Skills Upgrading Center at Cotonou

1. The construction of, and the provision of ai initial stock of, trainingmaterials for a skills upgrading center at Cotonou, including workshops,a classroom and administrative offices, and designed for a capacityof about 190 places.

2. The incorporation by the Center of existing programs for training ofclerical personnel, and the design and implementation by the Centerof new vocational training programs for development of industrialskills, including initially, programs in general mechanics, generalmetalwork, and business and commerce (mainly bookkeeping,shorthand and typing), and to be followed by programs in automechanics, electricity, and the building trades. Following completionof construction, it is estimated the Center will accommodate about500 workers per week and at full operation will offer training forabout 2,200 workers annually.

3. The provision of technical assistance and equipment for Part A.1 andPart A.2 of the Project.

Part B. Rural Youth Training

The reorganization and strengthening of the rural youth training programof the Borrower carried out through its 4-D Clubs, including:

1. At the national level:

(i) the establishment of a new central administrative structureconsisting of (A) a national governmental body, with a

20

composition mutually acceptable to the Borrower and theAssociation, which shall be responsible for setting thepolicy for rural youth training and approving therecommendations for the implementation thereof of theNational Support Center; and (B) a National SupportCenter to be located in Cotonou, responsible, subject tothe general policy directions of such body, inter alia, forthe preparation of a phased long-term development planfor the rural youth training program, the design ofimplementation programs, the preparation of budgets, thesupervision of implementation of rural youth trainingprograms, the evaluation of progress achieved, and theprovision of supporting services to the Regional SupportCenters;

(ii) the construction of buildings and other facilities and theprovision of equipment for the National Support Center;and

(iii) the provision of about 15 man-years of technical assistancefor the National Support Center, consisting mainly ofspecialists in management and administration.agro-pedagogy, veterinary/zoo-technology, functionalliteracy, rural crafts, health, nutrition and projectevaluation.

2. At the provincial level:

(i) the establishment of a Regional Support Center, integratedwithin its respective regional development organization, in,each of the Provinces of Zou, Atlantique and Atacora,to strengthen the regional rural youth services presentlyprovided through the regional development organizations,with responsibilities inter alia for- (A) assisting the NSCin developing specific regional programs, (B) implementingthese programs, (C) developing training and budget modelsfor the 4-D Clubs in its respective province, (D) providingthe 4-D Clubs with the necessary inputs and specializedtechnical assistance, (E) assisting youths leaving the 4-1)Clubs in starting their own farms or in joining existingcooperatives, and (F) upgrading the training of extensionagents;

I

21

(ii) the construction of buildings and other facilities and theprovision of equipment for each of the Regionai SupportCenters including in the case of Zou, a training annex for"encadreurs" at Logozohe; and

(iii) training for the staff of each of the Regional SupportCenters and for the "encadreurs" with the assistance ofexperts of the National Support Center.

3. At the 4-D Club level:

A program to consolidate the 4-D Club networks in the provinces of Zou,Atacora and Atlantique, to test the operation of the NSC and the RSCs in relationto the 4-D Clubs, and to test training models. This Part of the Project includesthe provision of necessary technical and material inputs to test and apply modeltraining programs in about 45 Clubs in each of the Provinces of Zou, Atacoraand Atlantique, involving in the aggregate about 2,000 youths, to be carried outby the respective RSC over a period of about five years, in two phases: the firstphase to consist of the testing and application of training programs for about ten4-D Clubs in each Province, to develop and test complementary programs andstaffing and material requirements; the second phase to consist of the testing andapplication of training programs for about 35 additional 4-D Clubs in each Province,to test logistical and administrative arrangements developed during the first phaseand to assess the cost implications (both capital and recurrent) of the rural youthtraining program as a whole.

Part C. Follow-up Project

The preparation, with the assistance of consultants, of an education and/ortraining project, under terms of reference to be agreed between the Borrower andthe Association.

* * P e r

The Project is expected to be completed by December 31, 1980.

I22 W

SCHEDULE 3

Procurement

A. General Procedures

1. Except as provided in Part A.3 hereof, contracts shall be let under proceduresconsistent with those set forth in the "Guidelines for Procurement under WorldBank Loans and IDA Credits" published by the Bank in April 1972, as revisedin October 1972 (hereinafter called the Guidelines), on the basis of internationalcompetitive bidding.

2. (i) Bidders for civil works contracts estimated to cost the equivalentof $100,000 or more, or for which it is intended to afford a domestic preferencein accordance with Part C of this Schedule, shall be prequalified as described inpart 2.2 of the Guidelines;

(ii) Civil works contracts for Part B of the Project may be awardedon the basis of local advertising only; and

(iii) Contracts for transport, office and instructional equipment shallbe grouped insofar as practicable in packages having a value of at least $20,000equivalent.

3. Notwithstanding the provisions of paragraph 1 under this Part A, contractsfor draught animals, and for small agricultural implements required for Part B ofthe Project and which cannot conveniently be grouped in packages having a valueof at least $5,000 equivalent, may be procured locally on the basis of quotationsand in accordance with the Borrower's normal procedures; provided, however, thatthe aggregate value of all items procured in accordance with this paragraph 3 shallnot exceed the equivalent of $200,000 over the duration of the implementationperiod of the Project.

B. Evaluation and Comparison of Bids for Goods; Preference for DomesticManufacturers

1. For the purpose of evaluation and comparison of bids for the supply ofgoods: (i) bidders shall be required to state in their bids the c.i.f. (port of entry)price for imported goods, or the ex-factory price for domestically-manufacturedgoods; (ii) customs duties and other import taxes on imported goods, and salesand similar taxes on domestically-supplied goods, shall be excluded; and (iii) thecost to the Borrower of inland freight and other expenditures incidental to thedelivery of goods to the place of their use or installation shall be included.

23

2. Goods manufactured in Dahomey may be granted a margin of preferencein accordance with, and subject to, the following provisions:

(a) All bidding documents for the procurement of goods shall clearlyindicate any preference which will be granted, the information required to establishthe eligibility of a bid for such preference and the following methods and stagesthat will be followed in the evaluation and comparison of bids.

(b) After evaluation, responsive bids will be classified in one of thefollowing three groups:

(1) Group A: bids offering goods manufactured in Dahomey if thebidder shall have established to the satisfaction of the Borrowerand the Association that the manufacturing cost of such goodsincludes a value added in Dahomey equal to at least 20% ofthe ex-factory bid price of such goods.

(2) Group B: all other bids offering goods manufactured inDahomey.

(3) Group C: bids offering any other goods.

(c) All evaluated bids in each group shall be first compared amongthemselves, excluding any customs duties and other import taxes on goods to beimported and any sales or similar taxes on goods to be supplied domestically, todetermine the lowest evaluated bid of each group. Such lowest evaluated bids shallthen be compared with each other, and if, as a result of this comparison, a bidfrom group A or group B is the lowest, it shall be selected for the award.

(d) If, as a result of the comparison under paragraph (c) above, the lowestbid is a bid from group C, all group C bids shall be further compared with thelowest evaluated bid from group A after adding to the c.i.f. bid price of theimported goods offered in each group C bid, for the purpose of this furthercomparison only, an amount equal to (i) the amount of customs duties and otherimport taxes which a non-exempt importer would have to pay for the importationof the goods offered in such group C bid, or (ii) 15% of the c.i.f. bid price ofsuch goods if said customs duties and taxes exceed 15% of such price. If the groupA bid in such further comparison is the lowest, it shall be selected for the award;if not, the bid from group C which as a result of the comparison under paragraph(c) is the lowest evaluated bid shall be selected.

24

C. Evaluation and Comparison of Bids for Civil Works; Preferences for DomesticContractors

1. With respect to any contract for civil works included under Category I ofthe table set forth in Schedule I to the Credit Agreement, the Borrower maygrant a margin of preference of 7-1/2% to domestic contractors, in accordancewith, and subject to, the following provisions:

(a) Contractors shall be required to prequalify as provided in Part A ofthis Schedule and applicants for qualification applying also for such preferenceshall be asked to provide, as part of the information for qualification, suchinformation, including details of ownership, as shall be required to determinewhether, according to the classification established by the Borrower and acceptedby the Association, a particular firm or group of firms qualifies for a domesticpreference. The bidding documents shall clearly indicate the preference and themethod that will be followed in the evaluation and comparison of bids to giveeffect to such preference.

(b) After bids have been received and reviewed by the Borrower, responsivebids will be classified into the folk ving groups:

(i) bids offered by domestic contractors eligible for preference; and

(ii) bids offered by other contractors.

For the purpose of evaluation and comparison of bids an amount equal to 7-1/2%of the bid amount shall be added to bids received under group (ii) above.

D. Review of Procurement Decisions by Association

1. Review of prequalification. The Borrower shall, before qualification is invited,inform the Association in detail of the procedure to be followed and shall introducesuch modifications in said procedure as the Association shall reasonably request.The list of prequalified bidders, together with a statement of their qualificationsand, where applicable, of their eligibility for domestic preference under Part C. 1above and of the reasons for the exclusion of any applicant for prequalificationand for such eligibility shall be furnished by the Borrower to the Association forits comments before the applicants are notified, and the Borrower shall make suchadditions to, deletions from, or modifications in, the said list as the Associationshall reasonably request.

2. Review of lists of civil works contracts and items of materials, furnitureand equipment. Before bids are invited, the Borrower shall furnish to the

25

Association, for its approval, (i) a list of all contracts for civil works indicatingthe estimated value of each contract and the forecast timetable for bids and awardsof such contracts, (ii) a list of all items of materials, furniture and equipment,indicating their specifications and estimated unit and total prices, indexed, codedand numbered to identify the institutions and spaces for which they are required.

3. Review of invitation to bid and of proposed awards and final contracts:

With respect to all contracts for (i) civil works estimated to cost theequivalent of $100,000 or more, and (ii) materials, furniture and equipmentestimated to cost the equivalent of $20,000 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 andother bidding documents, together with a description of the advertising proceduresto be followed for the bidding, and shall make such modifications in the saiddocuments or procedures as the Association shall reasonably request. Any furthermodification to the bidding documents shall require the Association's concurrencebefore it is issued to the prospective bidders.

(b) Procurement of materials, furniture and equipment shall be limitedto the items specified in the lists mentioned in paragraph D.2 above and identifiedin contract documents by such indexes, codes and numbers as appear in such list.

(c) Promptly after the bids have been received, the Borrower shall informthe Association of the names of the bidders and the respective amounts of thebids.

(d) After bids have been received and evaluated, the Borrower shall, beforea final decision on the award is made, inform the Association of the name ofthe bidder to which it intends to award the contract and the reasons for theintended award and shall furnish to the Association, in sufficient time for its review,a detailed report on the evaluation and comparison of the bids received, togetherwith the recommendation for award and such other information as the Associationshall reasonably request. The Association shall, if it determines that the intendedaward would be inconsistent with the Guidelines or this Schedule, promptly informthe Borrower and state the reasons for such determination.

(e) The terms and conditions of the contract shall not, without theAssociation's concurrence, materially differ from those on which bids were askedor prequalification invited, provided that any proposed change in a contractinvolving a price increase of less than 1 0% of the contract sum or less than $20,000equivalent, whichever is less, shall not be deemed to be a material change forpurposes of this paragraph (e).

26

(f) A certificate signed by the Project Director shall be furnished to the

Association promptly after the execution of a contract for materials, furniture and

equipment confirming that the goods contracted for are in accordance with the

quantities and specifications set forth in the list mentioned in paragraph D.2 above.

(g) 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 Accountin respect of such contract.

4. With respect to each contract to be financed out of the proceeds. of the

Credit and 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 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.

27

SCHEDULE 4

Organization and Operating Policies and Proceduresfor Part A of the Project

1. The Director of Vocational Training will be assisted by a group of specialistsheaded by a Chef de Projet contracted under the technical assistance providedby the International Labor Organization and the United Nations DevelopmentProgramme for purposes of Part A of the Project. The Director of VocationalTraining will be assisted by a full-time administrator/accountant and appropriateclerical and technical staff. In addition to having overall responsibility for thetechnical assistance and other personnel assigned to Part A of the Project, theDirector of Vocational Training will be responsible for all materials and equipmentprovided for Part A of the Project under agreement with the International LaborOrganization and the United Nations Development Programme in conformity withthe Plan of Operations between the Borrower and UNDP/ILO.

2. The Chef de Projet will serve as the principal advisor and assistant to theDirector of Vocational Training on all matters involving Part A of the Project,including technical assistance, personnel recruitment, the formulation of trainingprograms, the disposition of materials and tools and the layout of paysical plantand equipment.

3. The design and supervision of construction of the facilities included underPart A of the Project will be the responsibility of the Division of "Urbanismeet Habitat" of the Borrower's Ministry of Public Works.

4. The Director of Vocational Training and the Chef de Projet will be responsiblemore specifically as follows:

(a) The Director of Vocational Training

The Director of Vocational Training will be responsible for directingall aspects of the implementation of Part A of the Project. He will beresponsible to the Minister for Civil Service and Labor, inter alia, for:

(i) monitoring the design and construction of facilities in order toensure that the facilities are in accordance with specificationsagreed upon by the Borrower and the Association on the basisof the ILO report dated March, 1974, and that constructionschedules are adhered to.

28

(ii) overall supervision of the Chef de Projet;

(iii) the timely selection and recruitment of staff to assist in theimplementation of Part A of the Project;

(iv) liaison with the Association on all technical matters relating toPart A of the Project;

(v) coordinating the activities of the Borrower with those of theprivate sector and of the agencies which are participating in PartA of the Project;

(vi) taking whatever administrative actions are necessary for theestablishment of an Administrative Council for the Skills Center;

(vii) providing the Administrative Council with information,documents and such administrative support as it requires in orderto perform its functions;

(viii) implementing the policies of the Administrative Council;

(ix) preparing a development plan for the Skills Center (referred toin Section 3.13 of this Agreement), organizing and supervisinga study of the "training tax" (referred to in Section 3.14 ofthis Agreement) and ensuring the establishment of a tracersystem of the Center's graduates (referred to in Section 3.12of this Agreement);

(x) preparing all reports and documents which are required by theAssociation, including quarterly progress reports;

(xi) preparing for submission to the Association through properchannels of application for withdrawals from the Credit Account;

(xii) ensuring that quarterly project expenditure estimates areprepared in time for replenishment of the revolving accountwhich will be established in accordance with Section 3.08 ofthis Agreement; and

(xiii) overall supervision of the administrator/accountant and othersupport staff.

29

(b) The Chef de Projet

The Chef de Projet will be responsible, inter alia, to the Director ofVocational Training for:

(i) providing advice and assistance on all matters concerning PartA of the Project and the operation of the Skills Center;

(ii) administering the technical assistance provided to the SkillsCenter;

(iii) assisting the division of "Urbanisme et Habitat" of theBorrower's Ministry of Public Works with the design of the SkillsCenter to ensure that it conforms to sound pedagogicalspecifications and is reasonable in terms of price;

(iv) providing the Director of Vocational Training with assistance forpreparing the reports required by the Borrower, the InternationalLabor Organization, the United Nations DevelopmentProgramme, and the Association;

(v) ensuring that procedures acceptable to the Association arefollowed in the prequalification of contractors, and in preparingmaster lists of furniture and equipment to be procured for PartA of the Project;

(vi) making arrangements for inviting bids and awarding contracts;

(vii) taking necessary steps to ensure that items procured are deliveredand stored safely at the locations and on the dates specified;and

(viii) acting on behalf of the Director of Vocational Training onmatters concerning contracts, bidding and disbursements relativeto Part A of the Project.

30

SCHEDULE 5

Organization and Operating Policies and Proceduresfor Part B of the Project

1. The "Directeur General de l'Action Rurale" will be assisted by a group ofspecialists headed by a Chef de Projet contracted under the technical assistanceprovided for Part B of the Project. The Directeur General will be assisted by afull-time administrator/accountant and appropriate clerical and technical staff. Inaddition to having overall responsibility for the technical assistance and otherpersonnel assigned to Part B of the Project, the Directeur General will be responsiblefor ensuring that the technical assistance, buildings and materials provided for PartB of the Project are coordinated with that provided by the UNDP, FAO, UNICEFand other organizations which provide assistance for purposes of Part B of theProject.

2. The Chef de Projet will serve as the principal advisor and assistant to theDirecteur General on all matters involving Part B of the Project, including technicalassistance, personnel recruitment, the formulation of training programs, theestablishment of lists of materials, furniture, equipment and tools, and the layoutof physical plant and equipment.

3. The design and supervision of construction of the facilities included underPart B of the Project will be the responsibility of the "Direction du Genie Rural"of the MRD, assisted in matters of water supply by the "Direction de 1'Hydraulique"of the Borrower s Ministry of Public Works.

4. The Directeur General and the Chef de Projet will be responsible morespecifically as follows:

(a) The Directeur General

The Directeur General will be responsible for directing all aspects ofthe implementation of Part B of the Project. He will be responsible, interalia, to the Minister for Rural Development and Cooperative Action for:

(i) the recruitment and the supervision of the work of the Directorof the National Support Center;

(ii) coordination of all project-related activities with theadministrators of the integrated regional developmentorganizations in Atacora, Atlantique and Zou;

31

(iii) the selection, recruitment and supervision of the ProjectCoordinator and other specialists;

(iv) ensuring the timely selection of an appropriate site for the NSCin Cotonou;

(v) expediting the adoption of appropriate legislation or regulationsfor the national governmental body referred to in Part B.1(i)of Schedule 2 to this Agreement and the National SupportCenter and their effective operation;

(vi) ensuring the coordination by the NSC director of the assistanceand other support received from UNDP, UNICEF, the FAO andthe Association;

(vii) arrangements for recruiting and training staff for NSC;

(viii) preparing a long-term plan for the development of the 4-D Clubswith clearly stated targets, instruments and costs;

(ix) ensuring that regional youth services are fuily integrated withregional development organizations acceptable to the Associationin the Provinces of Zou, Atlantique and Atacora;

(x) ensuring that regional youth services in the areas covered byPart B of the Project are provided with staff in appropriatenumbers and of sufficient quality;

(xi) supervising the work of the national and regional services intraining personnel, selecting 4-D Clubs to be assisted, and inproviding services to the 4-D Clubs;

(xii) assisting in the performance of field evaluations of the ruralyouth program in the Provinces of Zou, Atacora and Atlantique;

(xiii) liaison with the Association on all technical matters relating toPart B of the Project;

(xiv) preparing all reports and documents required by the Association,including quarterly progress reports;

32

(xv) ensuring that quarterly project expenditure estimates areprepared in time for the replenishment of Project Account "B"to be established in accordance with Section 3.08 of thisAgreement;

(xvi) overall supervision of the administrator/accountant and othersupport staff;

(xvii) the formulation and monitoring of a plan and schedule forimplementation of Part B of the Project;

(xviii) drawing up, signing and administering of short-term contractsof up to two man-years for the use of specialist services necessaryfor Part B of the Project, after consultation with the Associationand with its approval; and

(xix) preparing for submission to the Association through properchannels of applications for withdrawals from the CreditAccount.

(b) The Chef de Projet

The Chef de Projet will be responsible, inter alia, to the DirecteurGeneral for:

(i) providing advice and assistance on all matters concerning PartB of the Project;

(ii) administering the technical assistance provided for Part B of theProject;

(iii) assisting the "Direction dut Genie Rural" of the MRD to ensurethat the designs of buildings are appropriate for purposes of PartB of the Project;

(iv) providing the Directeur Gen6ral with assistance for preparing thereports which are required by the Association;

(v) ensuring that procedures acceptable to the Association arefollowed in the prequalification of contractors;

(vi) assisting in the recruitment of technical assistance personnel andin the recruitment and training of other personnel;

33

(vii) ensuring that the technical assistance personnel recruited for PartB of the Project carry out appropriate training for theirDahomean counterparts;

(viii) preparing detailed lists of all material, furniture and equipmentto be provided for Part B of the Project;

(ix) ensuring that bidding procedures followed for civil works,furniture, materials, equipment, tools and transport are inaccordance with the requirements set forth or referred to inSchedule 3 to the Development Credit Agreement; makingarrangements for inviting bids and awarding contracts relatingto Part B of the Project;

(x) taking necessary steps to ensure that items procured are deliveredand stored safely at the locations and on the dates specified;and

(xi) acting on behalf of the Directeur General on matters concerningcontracts, bidding and disbursements relative to Part B of theProject.