REPOBLIKAN'I MADAGASIKARA Tanindrazana-Fahafahana-Fandrosoana law n ° 2003-049 authorizing the ratification of the development Credit Agreement concluded December 01, 2003 between the Republic of Madagascar and the International Association of development (IDA) to finance the program for good governance, institutional development and Reduction of poverty (PGDI) - Credit No. 3829 MAG.
EXPLANATORY statement the poverty reduction strategy paper defines the coherent, structured and forward-looking programs reference framework and the strategies and actions of development of Madagascar from 2004. This will of the Government, the State and the Malagasy people to put an end to decades of flight to view constitutes a decisive change in the management of the development of the country. This is the reason why, since September 2003, donors and the international community as a whole overwhelmingly supported him both in terms of the approach and content of its funding.
The succession of political crises accompanied by stagnation and sub - chronic development in Madagascar, showed the critical role of good governance. The PRSP highlights as well as good governance in Madagascar is the double condition of the reduction of poverty and growth strong, sustainable, and extended.
The reduction of poverty by half in ten years requires both a broader social security system and 8-10% growth in order to generate income to support it.
To get there, Madagascar needs a social peace, political stability, and an attractive investment climate. These conditions cannot be achieved if:-the public resources generated by and used for this growth are managed in a transparent and effective; -all public services that support private and public investments, at the base of this growth with this social security, increases in performance; -the rule of law through the strengthening of democracy, the eradication of Corruption, the strengthening of the efficiency and fairness of Justice, consolidates the development of institutions and effective mechanisms of development management.
These critical factors for the development of the country were jointly recognized by the Malagasy Government and the Association for International Development (IDA) as the priorities for which the World Bank will provide assistance to the start-up of the PRSP.
For this purpose, the attached Development Credit Agreement was signed December 01, 2003 to help Madagascar, from the beginning of the year 2004, to improve governance in the areas of transparency and efficiency as well as the management of resources at the level of institutions and public services, to create the right conditions for growth and a strong and sustainable social security.
The governance program for institutional development and reduction of poverty (PGDI) is supported financially by the IDA for a credit of SDR 21.9 million, equivalent to US $ 30 million. Its goal is to finance the operational necessary in terms of good governance in Madagascar from 2004 to 2008, in partnership between the Presidency of the Republic and the ministries, public institutions, civil society and institutional support and training centers.
The programs below will be conducted through the three components (part A, B and C) the PGDI: 2 part A: improved transparency and the management of economic and financial affairs 1. The development of an integrated system of management of public finance in order to have timely, accurate information and up-to-date, budget allocations, commitments and actual expenditures.
2. strengthening and rationalization of the respective roles of the internal and external control bodies responsible for oversight and fiduciary control, particularly of the IGE, the IGF, the TDB, COE, the CdC, the finance and the PSC.
3. consolidation of the legal, institutional and organizational framework governing the management of the public procurement in order to enhance transparency.
4. Design and use of an effective system of coordination and, follow-up and assessment of Government policy in order to facilitate the implementation of the strategy of the borrower, and support to the CSLCC in the execution of its activities to fight against corruption.
Part B: Capacity building and consolidation of national training institutions 1. Strengthening the capacity of the MEFB to manage and run the integrated financial management system referred to in part A.1 above.
2 consolidation and implementation of the legal and justice of the Ministry of Justice reform strategy.
3. Design and implementation of a limited reform initiative intended to show tangible improvements in the provision of services at the level of certain selected public services and produce visible results in the short term to support further reforms.
4. strengthening the capacity of the ENMG, the ENAM and the CNFA to offer training services meet the needs of their target groups.
5. creation of a distance learning center.
Part C: Coordination and management of the project: 3 support for the management, supervision, monitoring and evaluation of the project.
These are the reasons allowing the ratification of this development Credit Agreement under this Act.
4 REPOBLIKAN'I MADAGASIKARA Tanindrazana - Fahafahana - Fandrosoana law n ° 2003-049 authorizing the ratification of the development Credit Agreement concluded December 01, 2003 between the Republic of Madagascar and the International Association of development (IDA) to finance the program for good governance, institutional development and Reduction of poverty (PGDI) - CREDIT No. 3829 MAG.
The National Assembly and the Senate have adopted in their respective meeting dated December 19, 2003 and December 22, 2003, the law whose content follows: Article first - is authorized the ratification of the agreement of Credit for development concluded on 01 December 2003 between the Republic of Madagascar and the International Association of development (IDA) to finance the program for good governance Institutional development and reduction of poverty (PGDI) for an amount of SDR 21.9 million equivalent to USD $ 30 million.
Art. 2 - This Act shall be published in the Official Journal of the Republic and will be implemented as a law of the State.
Antananarivo, 22 December 2003, the PRESIDENT of the National Assembly, the PRESIDENT of the Senate, LAHINIRIKO Jean RAJEMISON RAKOTOMAHARO 5 Legal Department project confidential translation no official of the text English ORIGINAL who only fact faith 4 September 2003 CREDIT number 3829 MAG Credit Agreement of development project of support for good governance and institutional development between the Republic of MADAGASCAR and the ASSOCIATION of international development in date of December 1, 2003 6 CREDIT number 3829 MAG agreement of CREDIT DEVELOPMENT agreement, dated December 1, 2003, between the Republic of MADAGASCAR (the borrower) and the international development ASSOCIATION (the Association).
EXPECTED that (A) the borrower, be assured that the project described in annex 2 to this agreement is feasible and priority, has asked the Association to contribute to its financing;
EXPECTED that (B) the borrower has published a letter of development policy as of August 28, 2003, describing a program of measures, objectives and policies in order to promote transparency and sound management in the public administration (the program), and endorsing the commitment of the borrower to run the program;
WHEREAS the Association has accepted, as a result of the foregoing, a credit to the borrower to the conditions stipulated in this agreement;
FOR these reasons, the parties to this agreement have agreed to the following: ARTICLE first General Conditions; Section 1.01 definitions. The "Conditions General applicable to development Credit agreements" of the Association, as of January 1, 1985 (as amended on October 6, 1999) are an integral part of this agreement.
Section 1.02. Unless the context requires a different interpretation, the terms defined in the General Conditions and in the preamble to this agreement have the meanings contained in the General Conditions and the said preamble said. In addition, the terms here - after have the following meanings: the acronym "TDB" means the Brigade of Treasury, management of internal control of the Ministry of economy, finance and Budget;
7 the 'BNP' acronym refers to the National Project Office, the national Board responsible for the management and oversight of the project, referred to in paragraph 1 (b) (ii) of Schedule 4 to this agreement;

the initials "CdC" refers to the Court of Auditors, a body of the Supreme Court of the borrower which the responsibility of the audit of the accounts of the borrower, including accounts of State-owned enterprises;
the acronym "CDBF" means the Council of Budgetary Discipline and financial, a Council of the borrower responsible for investigating violations of the regulations governing public finances and to impose sanctions as necessary;
the acronym "PSC" means the the Finance Committee of Parliament of the borrower;
the abbreviation "CDE" means the control of expenditures, a body reporting to the Office of the President of the borrower and load control of budget execution;
the acronym "CNFA" refers to the National Centre for Administrative training of the borrower;
the acronym "CSLCC" refers to the High Council of fight against Corruption, an Advisory Board created by the borrower and to provide advice on the strategy of fight against corruption;
the acronym "ENAM" designates the school national of Administration of Madagascar of the borrower;
the acronym "ENMG" refers to the National School of the judiciary and court officers of the borrower;
the acronym "IGE" refers to the General Inspection of the State, a full inspection of internal audits and reporting to the Cabinet of the President of the borrower;
the acronym "IGF" refers to the Inspectorate General of finance, a full inspection of internal audits and reporting to the Ministry of economy, finance and Budget;
8 the acronym "MEFB" means the Department of economy, finance and Budget of the borrower;
the initials "MJ" means the Department of Justice of the borrower;
the term "Financial monitoring report" and the acronym 'RSF' refer to a report prepared in accordance with the provisions of Section 4.02 (a) of this agreement;
'Year' refers to the exercise of the borrower which starts on January 1st and ends December 31 of the calendar year;
"Project account" means the account of the project referred to in Section 3.03 (a) of this agreement;
"Project implementation Plan" means the Plan of implementation of the project, dated August 29, 2003, giving details of the guidelines and procedures agreed with the Association for enforcement, supervision, the follow-up and evaluation of the project, including changes that could be made in agreement with the Association, and the said term covers also any annex to the Plan of implementation of the project;
the term 'Advance for the Preparation of the project' means advance for the preparation of the project granted by the Association to the borrower in accordance with the letter of agreement signed on December 13, 2002 on behalf of the Association on December 12, 2002 and the borrower; and the term "Special account" means the account referred to in Section 2.02 (b) of this agreement and in Appendix 5 of this agreement.
9 ARTICLE II Section 2.01 Credit. The Association agrees to the borrower, on the conditions set forth or referred to in the agreement of development Credit, a Credit in various currencies equivalent to twenty one million nine hundred thousand special drawing rights (SDR 21.900.000).
Section 2.02. (a) the amount of the Credit may be removed from the Credit account, in accordance with the provisions of annex l to this agreement, in respect of expenditures (or, if the Association agrees, expenses to perform) for the reasonable cost of supplies, works and services required for the project, and to be financed from the funds of the Credit.
(b) for the purposes of the project, the borrower can open and maintain a special account of deposit denominated in Dollars from a commercial bank to conditions considered satisfactory by the Association, including appropriate against any compensation or seizure protections, or any blockage. The Special account deposits and payments made through the Special account are governed by the provisions of annex 5 to this agreement.
(c) promptly after the Date of entry into force, the Association, on behalf of the borrower, withdraw from the Credit account and pours herself the amount necessary to repay the principal of the advance for the removed Project Preparation and not yet repaid on that date and to set all the charges related non paid. The balance not withdrawn from the authorized amount of the advance for the Preparation of the project has now been cancelled.
Section 2.03. The closing Date is set on June 30, 2009 or any later date decided by the Association and provided to the borrower as soon as.
Section 2.04. ((a) the borrower shall pay to the Association a commitment fee on the principal of not withdrawn Credit, at a rate which is fixed by the Association on June 30 of each year, but that is not the rate of one-half of 1 percent (1/2 of 1%) a year. b) the short commitment fee: i) the date falling 60 days after the date of this agreement (the effective date) until the respective dates at which amounts are withdrawn from the account credit by the borrower or are cancelled; and (ii) the fixed rate June 30 preceding 10 immediately the effective date or at all other rates set at a later date in accordance with paragraph (a) above. The rate set on 30 June of each year is applicable from the next payment date for the year in question, as stipulated in Section 2.06 of the present agreement.
c) the commitment fee is paid: i) to places that the Association may reasonably request; (ii) without restrictions of any kind imposed by the borrower or on the territory of the borrower; and iii) in the currency specified in this agreement for the purposes of Section 4.02 of the general terms or in any other currency (acceptable (s) that may be designated (s) or chosen (s) under the provisions of that Section.
Section 2.05. The borrower pays to the Association service commission at the annual rate of three-quarters of a percent (3/4 of 1%) on the principal amount of the Credit withdrawn and not yet repaid.
Section 2.06. Commitment and service fees are payable semi-annually on May 1 and November 1 of each year.
Section 2.07. (a) subject to paragraphs (b), (c) and (d) below, the borrower pays back the principal of Credit by semi-annual maturities payable may 1 and November 1, from May 1, 2014, the last instalment being payable November 1, 2043. Each term, until November 1, 2023 understood, is equal to one percent (1%) of the principal, and each subsequent term is equal to two percent (2%) of the principal.
(b) whenever: i) the gross national product (GNP) per capita of the borrower, as determined by the Association, is higher for three consecutive years to the ceiling to access the resources of the Association, fixed each year by the Association; (and (ii) that the Bank considers that the borrower has a sufficient financial strength to be able to borrow from the Bank, the Association may, after review by the directors of the Association and with their agreement, once they have given to the level of economic development of the borrower, change the payment terms of the deadlines set forth in paragraph (a) above in: has) asking that the borrower pays back double the amount of each not yet payable due until the principal of the Credit has been repaid; and (B) asking the borrower to start paying back the 11 main credit from the first six-month deadline referred to in paragraph (a) above which falls six months or more after the date on which the Association notified the borrower that the facts set forth in this subsection (b) occurred; It is understood, however, that there will be a grace period minimum of five years before the repayment of the principal said.
(c) if the borrower so requests, the Association can review the change referred to in paragraph (b) above to replace all or part of the increase in the amount of such deadlines by the payment of interest at an annual rate agreed with the Association on the principal amount of the Credit withdrawn and not yet reimbursed, provided that, in the opinion of the Association, the review does not affect the resulting from the change of the above-mentioned repayment terms grant element.
(d) If, at any time after that the repayment terms have been modified in accordance with paragraph (b) above, the Association determines that the borrower's economic situation has deteriorated significantly, the Association may, at the request of the borrower, change repayment terms so as to meet the deadline provided for in paragraph (a) above.
Section 2.08. The currency of the United States of America is designated by the present for the purposes of Section 4.02 of the General Conditions.
ARTICLE III the project

Section 3.01. (a) the borrower declares that it fully agrees with the objectives of the project, as described in annex 2 to this agreement, and, to this end, runs the project with diligence and efficiency required and according to technical, administrative and financial methods appropriate, taking due account of environmental and ecological considerations; and it provides, as needed, funds, facilities, services and other resources required for the project.
(b) without prejudice to the provisions of paragraph (a) of this Section, and at least that the borrower and the Association agree otherwise, the borrower implements the project in accordance with the program of implementation set out in annex 4 to this agreement.
12 section 3.02. Unless the Association agrees otherwise, the procurement of supplies and work and contracts for services of consultants required for the project and to being funded from the proceeds of the Credit is governed by the provisions of annex 3 to this agreement.
Section 3.03. Without prejudice to the obligations imposed under Section 3.01 of this agreement, the borrower: has) canned from a commercial bank, in conditions considered satisfactory by the Association, an advance account in the currency of the borrower (the account of the project), run by the BNP, in which it deposits its matching contribution in local currency at the cost of the project;
(b) deposited into the account of the project an initial advance of an amount equivalent to $ 350,000, and subsequently restores the account of the project every six months and whenever the said account balance falls to a level less than or equal to a third of the amount of the initial deposit; and (c) ensure that the amounts deposited to the account of the project serve exclusively to finance the settlement of expenses for the execution of the project that are not funded on the proceeds of the Credit.
Section 3.04. For the purposes of Section 9.06 of the General Conditions, and without prejudice of the said Conditions, the borrower: has) prepare, on the basis of directives deemed satisfactory by the Association, and shall communicate to the Association no later than six (6) months after the closing Date or on any later date that can be agreed for this purpose between the borrower and the Association, a plan to ensure the systematic of the objective of the project realization; and (b) offer to the Association of reasonable opportunities for Exchange of views with the borrower on said plan.
ARTICLE IV provisions financial Section 4.01. (a) the borrower maintains a system of financial management, including writings and accounts required, and prepares a form acceptable by the Association of financial statements, allowing him to record the operations, resources and expenditures related to the project.
(13B) the borrower: i) checked the accounts and entries referred to in paragraph (a) of this Section, including the accounts and writings relating to the Special account for each fiscal year, in accordance with principles of auditing appropriate and consistently applied, by independent auditors acceptable to the Association;
(ii) provides the Association promptly, and in any case six months at the latest after the end of the year to which they relate: has) of the certified copies of the financial statements referred to in paragraph (a) of this Section for each exercise so verified; and (B) an opinion of said Auditors on the financial statements, writings and accounts of such, and the report of such audit, the scope and level of detail have been reasonably fixed by the Association; and (iii) shall provide to the Association all other information concerning such accounts and writings and their audit that the Association may reasonably request.
c) for all expenses for which Credit account withdrawals were made on the basis of statements of expenditure, the borrower: i) holds or keeps, in accordance with paragraph (a) of this Section, handwriting and accounts recording such expenses;
(ii) maintain, for at least one year after the Association has received the audit report for the financial year during which the last withdrawal of the Credit account was made, all the Scriptures (contracts, orders, invoices, notes, receipts, and other parts) for such expenses;
(iii) allows the representatives of the Association to review such postings; and iv) ensures that such accounts and entries are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains an opinion 14 separate such listeners whether they can rely on the statements of expenditure submitted during that year, and on the procedures and internal controls used to establish to justify the withdrawal of funds which relate to it.
Section 4.02. (a) without prejudice to the obligations of the borrower in the setting of progress reports stipulated in paragraph 3 of annex 4 to this agreement, the borrower prepares and communicates to the Association a report of follow-up financial judged satisfactory in shape and substance by the Association, which: i) presents the sources and uses of funds for the project, both cumulatively for the period covered by the report , showing separately funding under the Credit, and explains the differences between planned and actual jobs and sources of such funds;
(ii) describes the material progress of the execution of the project, as cumulatively for the period covered by the report, and explain the differences between the planned and actual project delivery terms; and presents the status of the procurement of the project, at the end of the period covered by the report.
(b) the first RSF is communicated to the Association at the latest 45 days after the end of the first calendar quarter following the Date of entry into force, and covers the period between the realization of the first expense in the title of the project and the end of such first calendar quarter; Subsequently, each RSF is communicated to the Association no later than 45 days after the end of each calendar quarter and cover such calendar quarter.
ARTICLE V remedies of the Association Section 5.01conformement to the provisions of Section 6.02 (1) General Conditions, the following additional fact stated, namely, that a new situation has arisen which makes it unlikely the execution of the program or a part important of the program;
15 ARTICLE VI entry into force Date; Expiration Section 6.01. Within the meaning of Section 12.01 (b) General Conditions, the entry into force of the development Credit Agreement is also subject to the following conditions, namely: the project account was duly opened, and the amount of the initial advance filed audit account in accordance with Section 3.03 (b) of this agreement; and the borrower has implemented a management system and financial accounting acceptable by the Association.
Section 6.02. The date falling ninety (90) days after the date of this agreement is specified herein for the purposes of Section 12.04 of the General Conditions.
Section 6.03. The obligations of the borrower under Articles III and IV of this agreement ends than two dates below that is the first to expire: the date the development Credit agreement expires or the date falling fifteen (15) years after the date of this agreement.
16 ARTICLE VII Representation of the borrower; Addresses Section 7.01. The Minister responsible for Finance of the borrower is the representative of the borrower for the purposes of Section 11.03 of the General Conditions.
Section 7.02. The addresses below are specified for the purposes of Section 11.01 of the General Conditions: for the borrower: Ministry of economy, finance and budget B.P. 61 Antananarivo 101-Madagascar telegraphic address: fax: (261) 20 22 34530 Antananarivo for the Association MEFB: International Association of development 1818 H Street, N.W. Washington, DC 20433 United States of America telegraphic address: Telex: fax: INDEVAS 248423 (MCI) or (202) 477-6391 Washington D.C. 64145 (MCI) 17 in faith what the parties to this agreement, acting through their representatives, duly empowered to this effect, have signed this agreement in their respective _ names *, the day and year above.
Republic of MADAGASCAR by representative ability the ASSOCIATION international of development by representative ability 18 annex 1 withdrawal of funds of Credit 1. The table below shows the Categories of works, supplies and services to be funded through the Credit, the amount of the Credit assigned to each category and the percentage of expenditure of work, supplies or services whose funding is allowed in each category: amount of the Credit affects % of (expressed in spending category DTS) funded (1) work 1.750.000 100% spending 80% of the expenditure in local currency (2) supplies 3.350.000 cash 100% expenses 80% of the expenditure in local currency foreign currency

(3) services of consultants 11,780,000 85% of expenditures and audits in foreign currency 75% of expenditure in local currency (4) training 3.060.000 100% (5) operating expenses 810,000 85% (6) reimbursement of 1,150,000 amounts due by virtue of the advance for the Preparation of the Section 2 02 (c) the project agreement _ TOTAL 21.900.000 = 19 2. For the purposes of this Annex: has) 'expenses in foreign currency' refers to expenditures in the currency of any country other than that of the borrower for supplies, works or services from the territory of any country other than that of the borrower;
(b) the term "expenditure in national currency" means expenditures in the currency of the borrower or for supplies, works or services from the territory of the borrower; and (c) 'Operating expenses' means the addition of operating expenses incurred as part of the project in respect of wages, payroll, travel and other costs of local contractual support personnel costs; rental and maintenance of equipment; operation, maintenance and repair of vehicles; costs of rental and maintenance of offices; supplies office, services of public utility, bank charges and communications charges.
3. Notwithstanding the provisions of paragraph 1 above, no amount can be withdrawn to pay for expenses made before the date of this agreement.
(4 the Association may request the account of credit withdrawals are made on the basis of statements of expenditure to address: has) obtained supplies and work done under contracts of less than the equivalent of $ 250,000 and $ 500,000 respectively. (b) services of consultants and obtained less than the equivalent of 100 000 Dollars for contracts with engineering, contracts and audit less than the equivalent of $ 50,000, for contracts with individual consultants; (c) operating expenses; and (d) training, all at the conditions reported by the Association to the borrower.
20 Appendix 2 Description of the project the objective of the project is to help the borrower to execute a strategy of poverty set out in its Strategy Document to combat poverty, causing it to streamline and modernize the management of the budget and public spending, to strengthen the responsibility of its services and the transparency of its operations, and to strengthen the capacity of public institutions to do in the face of complex changes.
Subject to the changes that the borrower and the Association may agree to bring him to achieve that objective, the project includes the following parts: part A: improved transparency and the management of economic and financial affairs 1. The development of an integrated system of management of public finances in order to have timely, specific information and up-to-date, concerning budget allocations, commitments and actual expenditures, by acquiring and to installation of equipment, the provision of technical advisory services and the rehabilitation and maintenance of offices required for the installation of the equipment.
2. strengthening and rationalization of the respective roles of the internal and external audit institutions, responsible for monitoring and controlling Trustees, in particular of the IGE, the IGF, the TDB, CDE, the CdC, the finance and the PSC, through the standardization of operational procedures and the development of manuals, and by the provision of technical advisory services training and the provision of equipment;
3. consolidation of the legal, institutional and organizational framework governing the management of the public procurement in order to enhance transparency and to ensure that this management is in line with international standards; notably, modernization of procedures of procurement by providing training and capacity-building activities, through the provision of technical advisory services and equipment.
4. Design and use of an effective system of coordination, and monitoring and evaluation of public policy to facilitate 21 execution of the strategy of the borrower, and support to the CSLCC in the execution of its activities to fight against corruption by providing training and capacity-building activities, through the provision of technical advisory services and equipment.
Part B: Capacity building and consolidation of national training institutions 1. Strengthening the capacity of the MEFB to manage and run the integrated financial management system referred to in the part A.1 above, by providing trained and activities of capacity-building, through the provision of technical advisory services, the development of operational manuals, and the acquisition of equipment.
2 consolidation and implementation of the strategy of legal and judicial reform to DOJ including modernization, codification and publication of trade laws, the strengthening of the control functions of the Department as well as its ability to make over corruption in the judiciary; review and permanent improvement of standards of service and in the judicial system evaluation criteria; and the development and execution of an action plan to address quickly and effectively civil and commercial affairs, by the provision of training and technical advice, capacity-building activities, and the acquisition of equipment.
3. Design and implementation of a limited reform initiative intended to show tangible improvements in the provision of services at the level of certain selected public services and produce visible results in the short term to support more detailed reforms, by the provision of technical advisory services, equipment, capacity-building activities workshops and assessments and impact evaluations on the beneficiaries.
4. strengthening the capacity of the ENMG, the ENAM and the CNFA to offer training services meet the needs of their groups target, by the development of new programs and the provision of teaching materials, training of trainers and other professional frameworks, capacity-building activities, the renewal of equipment, the provision of technical advisory services and financing of operating expenses.
22 5. Creation of a teaching Center remotely, including the construction of physical facilities, acquisition and installation of equipment, capacity-building activities and training, the provision of technical advisory services, the financing of operating expenses, and follow-up and evaluation of the activities of this centre in order to ensure sustainability.
Part C: Coordination and management of the project support for the management, supervision, monitoring and evaluation of the project, including the provision of technical advisory services, training and equipment, and funding for the operating expenses of the BNP.
* The completion of the project is planned for December 31, 2008.
23 Appendix 3 procurement markets and Services of Consultants Section I. procurement of markets of supplies and work part A: general supplies and works contracts are passed in accordance with the provisions of Section I of the "guidelines concerning the award of contracts financed by the Bank loans and IDA Credits" published by the Bank in January 1995 and updated in January and August 1996 in September 1997 and January 1999 (the guidelines) and in accordance with the provisions set out in the following parts of this Section.
Part B: International call for tender 1. Subject to the provisions of part C of this Section, supply contracts are awarded in accordance with the provisions of the Section II for guidelines and paragraph 5 of annex 1 such Directives.
2. the following applies to supply contracts to be awarded in accordance with the provisions of paragraph 1 of the present part B. grouping of markets wherever possible, supply contracts are grouped into lots of an estimated cost equivalent to 250,000 Dollars or more each.
Part C: Other Procedures of procurement 1. Offers National call supply contracts whose estimated cost is less than the equivalent of $ 250,000 and the work can be attributed in accordance with the provisions of paragraphs 3.3 and 3.4 of the guidelines; However, it is understood that: has) all offers are delivered in an envelope that is open in public; (b) the point system is not used for the evaluation of offers relating to works contracts; (c) the award of the contracts shall be communicated to all candidates; (d) all bidders have sufficient time (four weeks) to prepare and submit their offers;
24

(e) the assessment of eligibility of bidders and offers criteria are clearly stated in the tender files and are not applied in an arbitrary manner; (f) any eligible company is prevented to participate; (g) companies and the suppliers of the country have no margin of preference; (h) the contract is awarded to the bidder who made the final offer the less so-called according to predetermined and transparent methods; (i) the tender evaluation reports clearly indicate the reasons for which an offer is considered not compliant and rejected; and (j) before the first tender, records projects types of tender will was prepared and submitted to the Association, and acceptable by the.
2 consultation of suppliers to the National level supplies the estimated cost is less than $ 50,000 a market can be passed on the basis of consultation procedures of suppliers at the national level in accordance with the provisions laid down in paragraphs 3.5 and 3.6 of the guidelines.
3 procurement markets of small works an estimated cost less than the equivalent of 50,000 Dollars each can be made in lump sum, fixed price contracts, awarded on the basis of the comparison of the estimates obtained from three (3) contractors called the country of the borrower in response to a written opinion. The notice contains a detailed description of the work, including their basic specifications, the required completion date, a form of agreement acceptable basis by the Association, and relevant plans, if any. The contract is awarded to the contractor who offers the price low for the work requested and which has the technical and financial references required to complete the work.
Contracting with organizations of the United Nations vehicles markets can be passed to the Office (IAPSO) inter-agency procurement services in accordance with the provisions of paragraph 3.9 of the guidelines.
25 part D: review by the Association of Decisions about the procurement 1. Planning for the procurement of markets before any publication of a notice of tender for contracts, the procurement plan for the project is communicated to the Association for review and approval, in accordance with the provisions of paragraph 1 of annex 1 to the guidelines. All supplies and works contracts are passed in accordance with plan procurement audit approved by the Association, and to the provisions of paragraph 1.
2. review prior the procedures described in paragraphs 2 and 3 of annex 1 to the guidelines apply to all market of supplies to an estimated cost equal to or greater than the equivalent of $ 250,000, and to all market works an estimated cost equal or higher than the equivalent of $ 500,000.
3. review subsequently the procedures described in paragraph 4 of annex 1 to the guidelines apply to any market that is not governed by paragraph 2 of this part.
Section II. Recruitment of Consultants part has: General consulting services contracts are awarded in accordance with the provisions of the Introduction and Section IV of "guidelines: Selection and employment of Consultants by borrowers of the Bank" published by the Bank in January 1997 and updated in September 1997, January 1999 and May 2002 (guidelines for the employment of Consultants) and the provisions of the following parts of this Section II.
Part B: Selection based on technical quality and cost 1. Except as otherwise provided in part C of this Section, of consultancy contracts are awarded in accordance with the provisions of the Section II of the guidelines for the employment of Consultants, the paragraph 3 26 Annex 1 such Directives, annex 2 such guidelines, and to the provisions of paragraphs 3.13 to 3.18 of the said guidelines for the selection of consultants based on technical quality and cost.
2. the provisions below apply to consultancy services contracts to be awarded in accordance with the provisions of the preceding paragraph. For services related to the project estimated cost less than the equivalent of $ 100,000 per contract, the short list of consultants can act as consultants in the country, in accordance with the provisions of paragraph 2.7 of the guidelines for the employment of Consultants.
Part C: Other Procedures for Selection of Consultants 1. Individual consultants contracts of services related to assignments satisfying the conditions set out in paragraph 5.1 guidelines for the employment of Consultants are awarded to individual consultants in accordance with the provisions of paragraphs 5.1 to 5.3 of the guidelines for the employment of Consultants.
2. selection by agreement direct service contracts relating to missions that are the natural extension of activities funded by advance for the Preparation of the project, a cost estimated less than the equivalent of $ 100,000 per contract can, with the consent of the Association, be passed in accordance with the provisions of paragraphs 3.8 to 3.11 of the guidelines for the employment of Consultants.
Selection on the basis of the qualifications of Consultants contracts of training services, a cost estimated less than the value of $ 100,000 per contract-, can be passed in accordance with the provisions of paragraphs 3.1 and 3.7 of the guidelines for the employment of Consultants part D: review by the Association of the Selection of Consultants 1. The Selection before planning any publication of calls for proposals, selection of consultants 27 plan envisaged for the project is communicated to the Association for review and approval, in accordance with the provisions of paragraph 1 of annex 1 to the guidelines for the use of consultants. The selection of all consultants takes place in accordance with selection plan audit approved by the Association and in accordance with the provisions of paragraph 1.
2. review previously (a) the procedures described in paragraphs 2, 3 and 5 of annex 1 to the guidelines for the employment of Consultants apply to all contract with firms of consultants from an estimated cost equal to or greater than the equivalent of 100 000 Dollars.
(b) for any contract with individual consultants of an estimated cost equal or higher than the equivalent of 50,000 Dollars, the report on the comparison of the qualifications and experience of the candidates, as well as the terms of reference and the conditions of employment of consultants, are communicated to the Association for prior review and approval. The contract is awarded after receipt of such approval. The provisions of paragraph 3 of annex 1 to the guidelines for the employment of Consultants also apply such contracts.
3 ex-post review procedures described in paragraph 4 of annex 1 to the guidelines for the employment of Consultants apply to any contract which is not governed by paragraph 2 of this part.
28 Appendix 4 1 enforcement program. The borrower:) designates a coordinator of the project under the Chief of Cabinet in the Office of the President of the borrower, and assigns responsibility for the overall management of the project;
implements and/or maintains: a Coordinating Committee whose mandate, terms of reference and composition are deemed acceptable by the Association, which is called to play a role of policy-making and exercise oversight functions during execution of the project, to help in the decision making process and to facilitate the execution of the project in good time; and a national Office of the project, including the mandate, terms of reference and composition are deemed acceptable by the Association, and load the delivery on the day the day of the project activities, including the management of procurement operations contracts and disbursements, the consolidation of the work programs and annual budgets, preparing and implementing annually reports on the progress of the operations as well as financial statements , and the follow-up and evaluation of the project.
day before that: the BNP is headed by a project manager, supported by a chief accountant, a procurement specialist, and a sufficient number of staff who have the qualifications and experience required; and the positions of coordinator of the project, Project Director, Chief Accountant and specialist in procurement, covered in this paragraph, are occupied for the duration of the project by people with qualifications and experience satisfactory to the Association.
29 2. The borrower implements the project in accordance with the procedures described in the Execution of the Project Plan, and at least that the Association agrees otherwise, does not change or is an exception to no provision of the Plan if, in the opinion of the Association, such amendment or waiver to substantially jeopardize the execution of the project.
3. without prejudice to the provisions of Section 4.02 of this agreement, the borrower:

((a) submit to the Association for review and comment, no later than November 30 of each year from November 30, 2004, a proposal for a programme of work and annual budget, giving details of the activities envisaged in its programme of work and budget estimates due to the next fiscal year, b) made the necessary thereafter, for the execution of the program of work and budget annual take into account any comments made by the Association in their subject; and (c) submit to the Association a semi-annual report on the State of progress of the project at the latest 45 days after the end of each six-month. The first report will be submitted no later than 45 days after the end of the first half following the Date of entry into force.
((4. for the purposes of part B.2 of the project, the borrower: a) prepare and submit to the Association for review and comment, no later than June 30, 2004, a plan of action with a calendar, designed to facilitate fast and effective treatment of civil and commercial cases, and b) subject of the comments that may be submitted by the Association on this subject subsequently proceeds to execution of the action plan, in accordance with the timetable and other modalities contained in the plan of action.
(5. the borrower: a) has implemented policies and procedures that allow it to follow and evaluate permanently, based on indicators considered satisfactory by the Association, the execution of the project and the achievement of the goal of the project;
30 (b) prepares, under terms of reference considered satisfactory by the Association, and shall forward to the Association the or in the vicinity of 30 September 2005, a report incorporating the results of the activities of follow-up and evaluation conducted pursuant to subsection (a) of this Section, on the progress of the implementation of the project during the period preceding the date of the report and setting out the measures recommended to ensure the successful implementation of the project and the achievement of its objectives during the period following that date. and (c) consider with the Association, no later than December 31, 2005, or any later date required by the Association, the report referred to in paragraph (b) of this Section and take then all necessary measures to carry out the execution of the project and the achievement of its objectives, on the basis of the conclusions and recommendations of the report and the views of the Association in this regard.
31 Annex 5 Special account 1. For the purposes of this Annex: has) "Categories allowed" refers to Categories (1) to (5) in the table of paragraph 1 of annex 1 to this agreement;
(b) the term "authorized expenses" means expenses made for the reasonable cost of supplies, work and services for the project and to be financed from the funds of the Credit assigned to Categories allowed in accordance with the provisions of annex 1 to this agreement; and (c) "Authorized amount" means an amount equal to $ 2 000 000 that must be removed from the Credit account and deposited in the Special account in accordance with the provisions of paragraph 2 (a) of this annex. However, it is understood that, unless the Association agrees otherwise, the authorized amount is not an amount equivalent to 1 000 000 Dollars until the total of withdrawals from the Credit account, more the total outstanding of all special commitments made by the Association in accordance with Section 5.02 of the General Conditions, reaches or exceeds the equivalent of SDR 2 200 000.
2. payments made through the Special account serve exclusively to finance expenditures authorized in accordance with the provisions of this annex.
3. after that the Association has received parts setting to make it satisfactory that the Special account was duly opened, the withdrawals on the authorized amount and withdrawals later to restore the Special account may be made as follows: a) for withdrawals on the authorized amount, the borrower presents to the Association a request or requests for deposit (s) to the Special account to a maximum of the amount (s) (s). On the basis of this application or applications, the Association, on behalf of the borrower, withdraw the credit account and deposited in the Special account the amount (s) that the borrower has requested (s).
(b) i) for the replenishment of the Special account, the borrower 32 provides the case Association of deposits to the Special account, at intervals specified by the Association.
(ii) before or at the time of each of such applications, the borrower provides the Association documents and other necessary documents in accordance with paragraph 4 of this annex for the payment (s) for which / from which the replenishment is requested. Based on each of these requests, the Association, on behalf of the borrower, withdraw from the Credit account and deposited in the Special account the amount that the borrower has requested and including such documents and other supporting documents attest that he was removed from the Special account to pay authorized expenditures. The Association performs each of such deposits by withdrawals from the Credit account to the title of the respective permitted Categories, for the respective amounts justified by such documents and other evidence.
4. for each payment that the borrower has performed through the Special account, the borrower provides to the Association, at the time reasonably fixed by the Association, all documents and other parts that the Association may reasonably request, stating that the payment was made exclusively in respect of expenses authorized.
5. Notwithstanding the provisions of paragraph 3 of this annex, the Association is not required to make new deposits in the Special account then what occurred one of the following facts: a) the Association has determined that the borrower should directly perform any new withdrawal of the Credit account in accordance with the provisions of the Article V of the General Conditions and of paragraph (a) of Section 2.02 of this agreement;
(b) the borrower has not provided to the Association, within the time specified in Section 4.01 (b) (ii) of this agreement, one any of the audit reports to be submitted to the Association in accordance with this Section for the purposes of the audit of the accounts and writings from the Special account;
(c) the Association has notified its intention to suspend in whole or in part, the right of the borrower to make withdrawals from the account of Credit under the provisions of Section 6.02 of the 33 General Conditions the borrower; or (d) the total amount not withdrawn the credit assigned to the Categories authorized for the Special account, less the total outstanding of all special commitments made by the Association in accordance with Section 5.02 of the General Conditions in respect of the project, is equivalent to the double of the amount authorized.
Thereafter, the balance of the account of Credit allocated to the authorized spending is removed from the Credit account in accordance with the procedures notified to the borrower by the Association. Such withdrawals are made only after it has been established, and insofar as it is established, to the satisfaction of the Association that the balance of the Special account at the date of notification will be used to settle the expenses authorized.
6. a) if the Association determines that a payment any using the Special account: i) were made to pay an expense or an amount not authorized under the provisions of paragraph 2 of this annex; (or (ii) was not justified by the material provided to the Association, the borrower as soon as notification of the Association: has) provides any additional supporting documents as the Association may request; or (B) deposited in the Special account (or, if the Association request, reimburse the Association) an amount equal audit payment, or the fraction of payment, which was not authorized or justified (e). Unless the Association shall otherwise agree, the Association makes no new deposit in the Special account as long as the borrower did not provide such evidence or made such deposit or refund, as the case may be.
(b) if the Association estimates at a time any that any balance of the Special account is not required to perform other payments in respect of allowable expenses, the borrower as soon as notification of the Association, reimburses the said balance to the Association.
(c) the borrower may, with notice to the Association, pay to the Association all or part of the funds deposited in the Special account.
(d) refunds to the Association made in accordance with paragraphs 6 (a), (b) and (c) of this annex are paid to the Credit account to be removed later or cancelled in accordance with the appropriate provisions of this agreement, including the terms and conditions.
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