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BỘ
NGOẠI GIAO
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CỘNG
HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh phúc
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Số:
21/2011/TB-LPQT
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Hà
Nội, ngày 05 tháng 04 năm 2011
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THÔNG BÁO
VỀ VIỆC ĐIỀU ƯỚC QUỐC TẾ CÓ HIỆU LỰC
Thực
hiện quy định tại khoản 3 Điều 47 của Luật Ký kết, gia nhập và
thực hiện điều ước quốc tế năm 2005, Bộ Ngoại giao trân trọng thông báo:
Hiệp
định tài trợ cho Dự án “Hỗ trợ Nông nghiệp, Nông dân và Nông thôn tại các tỉnh
Gia Lai, Ninh Thuận và Tuyên Quang” giữa Chính phủ nước Cộng hòa xã hội chủ
nghĩa Việt Nam và Quỹ Phát triển Nông nghiệp quốc tế, ký tại Rô-ma ngày 25
tháng 02 năm 2011, có hiệu lực từ ngày 25 tháng 02 năm 2011.
Bộ
Ngoại giao trân trọng gửi Bản sao lục Hiệp định tài trợ theo quy định tại Điều 68 của Luật nêu trên.
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TL.
BỘ TRƯỞNG
KT. VỤ TRƯỞNG
VỤ LUẬT PHÁP VÀ ĐIỀU ƯỚC QUỐC TẾ
PHÓ VỤ TRƯỞNG
Lê Thị Tuyết Mai
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LOAN NO. L-I-826-VN
GRANT NO. G-I-C-826-VN
FINANCING
AGREEMENT
Agriculture, Farmers and Rural Areas Support Project in
the Gia Lai, Ninh Thuan and Tuyen Quang Provinces (TNSP)
between the
SOCIALIST REPUBLIC OF VIET NAM
and the
INTERNATIONAL FUND FOR AGRICULTURAL
DEVELOPMENT
Signed in Rome, Italy on 25 February 2011
FINANCING AGREEMENT
Loan
Number: L-I-826-VN
Grant
Number: G-I-C-826-VN
Project
Title: Agriculture, Farmers and Rural Areas Support Project in the Gia Lai,
Ninh Thuan and Tuyen Quang Provinces (TNSP) (the “Project”)
The
Socialist Republic of Viet Nam (the “Borrower/Recipient”)
and
The
International Fund for Agricultural Development (the “Fund” or “IFAD”)
(each
a “Party” and collectively, the “Parties”)
hereby
agree as follows:
Section A
1. The following documents
collectively form this Agreement: this document, the Project Description and
Implementation Arrangements (Schedule 1), the Allocation Table (Schedule 2) and
the Special Covenants (Schedule 3).
2. The Fund's General Conditions for Agricultural
Development Financing dated 29 April 2009, as may be amended from time to time
(the “General Conditions”) are annexed to this Agreement, and all provisions
thereof shall apply to this Agreement, For the purposes of this Agreement the
terms defined in the General Conditions shall have the meanings set forth
therein.
3. The Fund shall provide a Loan and a Grant to the
Borrower/Recipient (the “Financing”), which the Borrower/Recipient shall use to
implement the Project in accordance with the terms and conditions of this
Agreement.
Section B
1. The amount of the Loan Is SDR 31
500 000, allocated as follows: Gia Lai SDR 7 250 000, Ninh Thuan SDR 8 380 000,
and Tuyen Quang SDR 15 870 000.
2. The amount of the Grant is SDR 200 000, allocated to
the Ministry of Agriculture and Rural Development (MARD).
3. The Loan Is granted on highly concessional terms, as defined
in the General Conditions.
4. The Loan Service Payment Currency shall be the US
Dollar (USD).
5. The applicable Fiscal Year begins 1 January and ends 31
December.
6. Payments of principal and service charge shall be
payable on each 15 June and 15 December.
7. The Borrower/Recipient shall open four Designated
Accounts in USD, one for each province and one for the grant, in a bank
acceptable to IFAD in order to receive advance Loan and Grant. Additionally,
each province shall open a Project Account at the provincial treasury, to be
maintained in local currency.
8. The Borrower/Recipient shall ensure that the Lead
Project Agencies shall, on behalf of their respective provinces, provide
counterpart financing for the Project in the total amount of USD 10 860 000 (of
which USD 2 270 000 shall be allocated to payment of duties and taxes).
Section C
1. The Lead Project Agencies shall be
the Gia Lai Provincial People's Committee (PPC), the Ninh Thuan PPC, and the
Tuyen Quang PPC for the Loan component of the Financing, and MARD for the Grant
component of the Financing.
2. The following are designated as Project Parties:
(a) the Departments of Planning and Investment (DPI) of
Gia Lai province, Ninh Thuan province, and Tuyen Quang province, or any
successor(s) thereto;
(b) the Departments of Agriculture and Rural Development
(DARD) of Gia Lai province, Ninh Thuan province, Tuyen Quang province or any
successor(s) thereto;
(c) the District People's Committees (DPC) in the Project
Area, or, any successor(s) thereto; and
(d) the Commune People's Committees (CPC) in the Project
Area, or any successor(s) thereto.
3. The Project Completion Date shall be
the fifth anniversary of the date of entry into force of this Agreement.
Section D
The Financing shall be administered and the Project
supervised by IFAD.
Section E
1.
The following are designated as general conditions
precedent to withdrawal, in addition to those contained in Section 4.02 (b) of
the General Conditions:
(a) The Designated and Project accounts shall have been
opened.
(b) No withdrawal from the Loan Accounts shall be made
until the three Project Implementation Manuals (PIMs) referred to in paragraph
12.1, Section II of Schedule 1 hereto shall have been submitted to and approved
by the Fund and the respective PPCs.
(c) No withdrawal from the Grant Account shall be made
until the Project Director for the Grant component of the Financing is
appointed.
2.
The following are designated as specific conditions precedent to withdrawal
that are in addition to those contained in Section 4.02 (b) of the General
Conditions:
(a) No withdrawal shall be made from the Loan Accounts in
respect of expenditures under Category IV (Community Development Fund) until a
Community Development manual shall have been submitted to and approved by the
Fund and the respective PPCs.
(b) No withdrawal shall be made from the Loan Accounts in
respect of expenditures under Category V (Pro-Poor Agribusiness Promotion Fund)
until a Pro-Poor Agribusiness Promotion Fund manual shall have been submitted
to and approved by the Fund and the respective PPCs for use in all the Project
provinces.
(c) No withdrawal shall be made from the Loan Accounts In
respect of expenditures under Category VI (Financial Services) until two
manuals for the Women Economic Development Fund, one for Ninh Thuan province
and one for Gia Lai province, shall have been submitted to and approved by the
Fund and the respective PPCs.
The
following are the designated representatives and addresses to be used for any
communication related to this Agreement:
|
For the Fund:
President
International Fund for Agricultural Development
Via Paolo di Dono, 44 00142 Rome, Italy
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For the Borrower/Recipient:
Minister for Finance of the Socialist Republic of Viet Nam Ministry of
Finance
28, Tran Hung Dao Street Hoan Kiem District, Hanoi Socialist Republic
of Viet Nam
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This
Agreement, dated 25 February 2011, has been prepared in the English language in
six (6) original copies, three (3) for the Fund and three (3) for the
Borrower/Recipient
|
For
the Fund
Kanayo F. Nwanze
President
|
For the Borrower/Recipient
His Excellency
Dang Khanh Thoai
Ambassador
Permanent Representative of the Socialist Republic of Viet Nam to IFAD
|
Schedule 1
Project Description and
Implementation Arrangements
I. Project Description
1. Target Population. The Project shall target poor
households and ethnic minority households (including both the poor and the
near-poor) in 16 selected Project districts of the provinces of Gia Lai, Ninh
Thuan, and Tuyen Quang (“Project Area”)
2. Goal. The Project shall assist in implementing
the Borrower/Recipient’s recently adopted policy on Agriculture, Farmers, and
Rural Areas (Resolution 24/2008/NQ/CP dated 28 October 2008). The goal of the
Project is to Improve the quality of life for rural people, with a particular
focus on those living in the most disadvantaged areas (as described in the
policy on Agriculture, Farmers, and Rural Areas).
3. Objectives. The objective of the Project is to
increase the participation in economic activities of ethnic minority and rural
poor households living in poor communes in the Project Area.
4. Components. The Project shall consist of the
following Components:
4.1.
Component 1: Institutional Strengthening for Implementation of Pro-Poor
Initiatives under the policy on Agriculture, Farmers, and Rural Areas. This
Component focuses on strengthening the policy and institutional environment for
carrying out effective and sustainable pro-poor market-oriented innovations
with a focus on ethnic minorities, and for engaging the private sector in the
Implementation of the policy on Agriculture, Farmers, and Rural Areas.
4.1.1. Market-oriented economic management capacity
building (Sub-component 1.1). This Sub-component shall develop and use
training programs build capacities for market-oriented economic management for senior
staff members of government agencies involved in the implementation of the
policy on Agriculture, Farmers, and Rural Areas.
4.1.2. Institutionalization of market-oriented,
results-based, participatory socio-economic development planning and implementation
process (Sub-component 1.2). This Sub-component aims to institutionalize
market-oriented, results-based, participatory socio-economic development
planning and implementation processes at the village, commune, and province
levels. This institutionalization effort shall incorporate gender and climate
change issues. A Market-Oriented Participatory Soclo-Economic Development Plan Thematic Working Group (MOP-SEDP
TWG) shall be established to develop and validate MOP-SEDP methodologies
for application at the village and commune levels throughout the Project Area.
4.1.3. Private sector development and partnership in
agriculture and rural development (Sub-component 1.3). This Sub-component
aims to strengthen the business-enabling environment and facilitate private
sector development as well as public-private partnership building in
agriculture and rural development. This Sub-component shall establish a
Business Environment Reform Thematic Working Group (BER-TWG) to conduct
research on current policy and regulatory frameworks and provide advice to
reform such frameworks in order to facilitate partnerships with private sector
actors.
4.1.4. Project coordination and knowledge sharing (Sub-component
1.4). This Sub-component aims to assist the Project Area provinces in the
implementation of a key element of the policy on Agriculture, Farmers, and
Rural Areas, namely, strengthening effective cooperation among four groups of
stakeholders: government agencies, scientists and researchers, private
businessmen, and farmers.
4.1.5. Knowledge Collaboration with MARD (Sub-component
1.5). Grant activities shall include (1) collecting the experiences gathered
through the M&E process, Project progress reports, systematic consultation,
and feedback from all IFAD supported projects in Viet Nam; (2) distribution of
policy-related documentation to the central Government's policy makers,
particularly related to the National targeted Programme for New Rural
Development (NTP-NRD); and (3) providing relevant training for provincial and district
staff.
4.2.
Component 2: Promotion of Pro-Poor Value Chains. This Component focuses on
making demand-driven and value chain-focused services (public and private)
available in order to better connect poor ethnic minority households with
market opportunities.
4.2.1. Identification and prioritization of pro-poor
value chains (Sub-component 2.1). This Sub-component aims to Identify,
prioritize, and develop major pro-poor value chains in the Project Area. A
value chain action plan shall be developed for each value chain, and
interventions shall be concentrated at the district level. An Agri-Business
Promotion Working Group (APWG) shall be established to participate In the value
chain analysis prioritization and In the development of the value chain action plans.
4.2.2. Value chain technical research and extension
services (Sub-component 2.2). This Sub-component is intended to ensure the
production of value chain research and extension services (public and private
sector providers) in order to improve the livelihoods of the rural poor.
4.2.3. Promotion of pro-poor agribusiness initiatives (Sub-component
2.3). This Sub-component is intended to Increase private sector participation
In the Project Area through the establishment of a district level Pro-Poor
Agribusiness Promotion Fund. A manual shall be prepared for review and approval
by the Fund to support this establishment.
4.2.4. Improving access to financial services (Sub-component
2.4). This Sub-component aims to increase the volume of lending and availability
of credit to the Project's Target Population through the adoption of strategies
for enhancing credit access and encouraging local savings, as well as through
the provision of technical assistance. The Project shall support the Women
Development Support Fund (WDSF) in Ninh Thuan in order to extend their
operations throughout the Project Area. A Women Economic Development Fund
(WEDF) for lending to women's savings and credit groups shall be set up in Gia
Lai with the ultimate goal of setting up a microfinance institution to lend to
women's groups. Separate manuals shall be prepared for each of these two fund
initiatives, and submitted to the Fund for approval.
4.3.
Component 3: Commune Market-Oriented Socio-Economic Development Planning and
Implementation. This Component supports market-oriented planning and
Implementation by communes and villages. The objective is to enable targeted
communes to effectively implement annual market-oriented plans for
demand-driven, pro-poor rural development public investment that are integrated
into the master government planning process.
4.3.1. Planning Capacities for MOP 5EDP (Sub-component
3.1). This Sub-component aims to build local capacity at the commune and
village levels to use MOP-SEDP approaches for identifying priority investments
for socioeconomic development with a focus on poor and ethnic communities.
4.3.2. Engaging the poor in value chains (Sub-component
3.2). This Sub-component is intended to ensure that the Project's Target
Population is engaged in value chains and benefiting from profitable market
opportunities through the provision of assistance and support to various kinds
of farmers' groups.
4.3.3. Community Development Fund (Sub-component
3.3). To complement Sub-components 3.1 and 3.2, this Sub-component shall
provide the resources for putting the training received into action through the
establishment of a Community Development Fund that shall make resources
available for public infrastructure, human capacity building, and productive
infrastructure, equipment and input investments to be managed by farmers'
groups. A manual shall be prepared for review and approval by the Fund to
support this establishment. For those villages applying for public
infrastructure funding, it must be demonstrated that the economic benefits from
such funding are reaching at least 50% of the households in the village.
Evidence of such distribution shall be made available through annual reports.
II. Implementation Arrangements
5. Project Steering Committees (PSC) - Provincial
Level
5.1. Establishment and Composition. At the
provincial level, the Provincial People's Committees (PPCs) shall provide
policy guidance to the Project. The PPCs shall also approve the appointments of
key staff In the Project Coordination Unit (PCU). In each Project province the
PPCs shall issue a decision to establish Project Steering Committees (PSCs).
5.2. The PSCs shall be chaired by the chairperson or
vice-chairperson of the respective PPC and shall meet on a quarterly basis.
Members shall include those of the PSC for National Targeted Programme for New
Rural Development (NTP-NRD), as well as the Chairman of the Enterprises
Association, the Director of an agriculture research institute, chairpersons of
the Project District People's Committees (DPCs), which are responsible for
Project coordination activities at the district level or such other membership
as may be agreed from time to time with the Fund. Two or more directors of
private companies working with farmers in the Project Area shall be invited to
attend the meetings of the PSCs to express their views as observers.
5.3. Responsibilities. The PSCs in each province
shall be responsible for reviewing and approving their province's Annual Work
Plans and Budget (AWBPs) and Annual Project Financial Statements, and for
submitting these items to their respective PPC for approval. The PSCs shall
also be responsible for ensuring compliance of Project activities with the
terms and conditions of this Agreement.
6. Project Coordination Unit (PCU) - Provincial Level
6.1. Establishment and Composition. In each
province, the respective PPCs shall issue a decision to establish a PCU. Each
PCU shall be headed by a full-time Project Director and include the following
full time staff: PCU Deputy-Director, Commune SEDP Officer, Senior M&E
Officer, M&E Officer cum Knowledge Management Officer, Institution and
Capacity Building Officer, Value Chains Development Officer, Market-oriented
Economy Advisor, Chief Financial Officer/Chief Accountant, Accountant, Procurement
and Civil Work Specialist, support staff, as needed, and such other staffers as
may be agreed from time to time with the Fund.
6.2. Responsibilities. The PCUs shall assist the
PSC in coordinating the provincial agencies and the PPC in managing
governmental and IFAD resources. The PCUs shall report directly to the PSC and
act as an advisory body for the PPC. The mandate of the PCU shall be to ensure:
(i) the implementation of the Project;
(ii)
coherence of the project approaches and strategies, and integration among
project activities; (Hi) coordination and synergy of the Component Lead
Agencies (CLAs), other co-implementing agencies (CIAs), and technical service
providers, and the district and commune level agencies, and grassroots
communities; (iv) mobilization of resources from the private sector, mass
organizations, professional associations, research institutes, technical
centres, and non-government organizations; (v) accountable management of IFAD
and governmental resources through the preparation of a Project Implementation
Manual, an AWPB, and a procurement plan, and through the selection of technical
assistance and audit service providers, as well as through the establishment
and operation of the M&E system; and (vi) knowledge sharing and policy
development interventions.
6.3.
Component Lead Agencies (CLA). For each Component, the PPC shall issue a
decision designating a CLA. Whilst the CLAs will not establish separate
implementation offices for the Project within their departments, they will
appoint a director or deputy director and an accountant to work with the
Project. In addition, there shall be one focal point per province. The
functions of the CLAs Include:
(i)
preparation of a Component AWPB in cooperation with the PCU for approval by the
PSC; (ii) coordination of the implementation of the Component; and (ill)
preparation of quarterly progress reports on component Implementation for
submission to PCU.
7.
Project Coordination - District Level
7.1.
District People's Committees (DPCs) shall be responsible for coordination of
the project activities and for the integration of those activities into the
organizational structures and mandates of the district-level line agencies and
mass organizations. The DPC Chairman (or Vice-Chairman) shall be responsible for
coordination of project activities. To assist the DPC in coordinating project
activities, a District Agribusiness Support Unit (DASU) shall be established,
pursuant to a issued decision by the PPC, directly under each DPC. The DASUs
shall be directed by the respective DPC Chairmans and made up of a District
Project Coordination Assistant to the DPC, an M&E Officer, a Commune
SEDP/Community Development Fund (CDF) Planning Officer, a “Markets and Value
Chain Development officer”, an administrative assistant, and such other
staffers as shall be decided from time to time with the Fund.
8. Project Coordination - Commune Level
8.1. The DPCs shall Issue decisions establishing Commune
Development Boards (CDBs) in each commune. The CDB shall be chaired by the
Chairman of the CPC and composed of the Head of the Fanners' Union, the Head of
the Women's Union, the Head of the Youth Union, the Commune Agricultural
Officer, the Commune Extension Worker, Commune Animal Health Worker, the
Infrastructure Officer, the Village Head for each of the participating
villages, Commune Accountant, and such other members as shall be decided from
time to time with the Fund. The role of the CDB will be to coordinate all of
the Project activities at the commune and village levels.
8.2. In all of the villages in the Project Area, Village
Development Boards (VDB) will be established by the CPCs. The VDBs shall be
made up of the Village Head, the Head of the Women's Union, the Head of the
Farmers' Union, the Head of the Youth Union, and two representatives from
better-off and poor households respectively.
9. Key Project Staff
9.1.
Recruitment of Key PCU Staff. The full-time Project Directors, Deputy
Project Directors, and Chief Financial Officers/Chief Accountants in each
province shall be appointed by the PPC. The Grant activities will require the
appointment of a Project Director and a Project Coordinator within the relevant
departments, as decided by MARD.
10.
Implementation Arrangements under Project Components
10.1. Market-Oriented Economic Management Capacity
Building (Sub-component 1.1): The DPIs shall be directly responsible for
coordinating the activities under this Sub-component.
10.2. Institutionalization of market-oriented,
results-based, participatory socio-economic development planning and
implementation process (Sub-component 1.2): The PPCs shall be ultimately
responsible for issuing the guidance for the implementation of the MOP-SEDP.
The DPIs shall work with the DPCs and CPCs of IFAD-supported communes to pilot,
implement, and manage consolidation of the MOP-SEDP guidelines.
10.3. Private sector development and partnership in
agriculture and rural development (Sub-component 1.3): The BER-TWG shall
lead the activities of this Sub-component and advise the respective PPC
concerning the approval or revision of new policies and guidelines for enabling
private sector development.
10.4. Project Coordination and Knowledge Sharing
(Sub-component 1.4): The PPCs and PCUs are responsible for implementing
this Sub-component.
10.5. Knowledge Collaboration with MARD (Sub-component
1.5): The Grant activities relating to knowledge sharing will be
implemented by MARD through the relevant departments, as decided by MARD.
10.6. Identification and Prioritization of Pro-Poor
Value Chains (Sub-component 2.1): The DARDs shall be responsible for
coordinating the activities under this Sub-component, with technical assistance
from the Department of Trade and Industry (DOTI).
10.7. Value Chain Technical Research and Extension
Services (Sub-component 2.2): The DARDs and their related agencies, i.e.
Provincial Extension Center, Plant Protection Sub-Bureau and Veterinary
Sub-Bureau shall be responsible for implementing this Sub-component.
10.8. Promotion of Pro-Poor Agribusiness Initiatives
(Sub-component 2.3): District Agribusiness Support Units (DASUs) shall be
responsible for the Implementation of this Sub-component.
10.9. Improving Access to Rural Financial Services
(Sub-component 2.4): The Viet Nam Bank for Social Policy (VBSP), AgriBank,
and the Women's Union in Gia Lai and WSDF in Ninh Thuan shall be responsible
for activities under this Sub-component.
10.10. Planning Capacities for MOP-SEDP (Sub-component
3.1): The DPCs/DASUs shall have primary responsibility for organizing and
implementing the orientation and training activities planned under this
Sub-component.
10.11. Engaging the Poor in Value Chains {Sub-component
3.2): Mass organizations shall have the primary responsibility for
Identifying Common Interest Groups (CEGs) and Collaborative Groups (CGs) and
shall provide assistance in conducting basic organizational assessments. The
CPC/CDBs shall be responsible for assembling and managing the data base of
existing CIGs/CGs. The DPCs/DASUs, as well as the mass organisations, shall
provide assistance in identifying trainers to be contracted to address CIG/CG
training needs as requested by the commune.
10.12 Community Development Fund (CDF) (Sub-component
3.3): The CPCs shall be responsible for ensuring efficient and effective
use of CDF resources, Including management and oversight of commune level
investments.
11.
Project Reviews
11.1.
Mid-Term Review. The Borrower/Recipient, the PPC in each province and
the Fund shall conduct a comprehensive mid-term review to assess implementation
progress, to assess the extent to which the business environment Is
constraining the operation of value chains, and to determine appropriate
revisions to the Project Implementation arrangements and resource allocations
to be complied with by the relevant Project Parties in order to ensure
successful Project completion.
12.
Project Implementation Manual (PIM)
12.1.
Preparation and Approval. The Borrower/Recipient shall cause the PPC in
each province to prepare and approve a Project Implementation Manual (PIM) as
soon as practicable, but in no event later than 90 days after the entry into
force of this Agreement. The PIM shall detail, among other things, the Project
Implementation responsibilities for planning, budgeting, financing, Loan and
Grant disbursement, reporting, procurement, preparation of accounts and
auditing, and the Implementation of the Financial Services Sub-component
micro-grants. In addition, the PIM shall incorporate a strong governance
framework to empower the Target Population to play a bigger role In Project
implementation. The PPC in each province shall approve the PIM only with prior
agreement of the Fund, and provide a copy thereof to the Fund.
Schedule 2
Allocation Table
1.
Allocation of Loan and Grant Proceeds,
(a)
The Table below sets forth the Categories of Eligible Expenditures to be
financed by the Loan and the Grant and the allocation of the amounts of the
Loan and the Grant to each Category and the percentages of expenditures for
items to be financed in each Category:
|
Category
|
Loan Amount Allocated (SDR)
|
Grant Amount Allocated
(SDR)
|
Percentage of Eligible Expenditures
|
|
I. Vehicles,
Equipment, and Material
|
|
|
100% net of taxes or 90% of total expenditures
|
|
a. TQ
|
1 230 000
|
|
|
|
b. NT
|
625 000
|
|
|
|
C GL
|
675 000
|
|
|
|
d. MARD
|
|
20 000
|
|
|
II. Civil Works
|
|
|
100% net of taxes or 90% of total expenditures
|
|
a. TQ
|
80 000
|
|
|
|
b. GL .
|
35 000
|
|
|
|
III. Training, Courses,
Workshops, Technical assistance and Studies
|
|
|
100% of total expenditures
|
|
a. TQ
|
2 270 000
|
|
|
|
b. NT
|
1 480 000
|
|
|
|
c. GL
|
1 530 000
|
|
|
|
d. MARD
|
|
180 000
|
|
|
IV. Community
Development Fund
|
|
|
100% net of taxes and beneficiaries contribution
|
|
a. TQ
|
9 390 000
|
|
|
|
b. NT
|
4 530 000
|
|
|
|
c. GL
|
3 400 000
|
|
|
|
V. Pro-Poor
Agribusiness Promotion Fund
|
|
|
100% net of beneficiaries' contribution
|
|
a. TQ
|
985 000
|
|
|
|
b. NT
|
440 000
|
|
|
|
c. GL
|
440 000
|
|
|
|
VI. Financial
Services
|
|
|
100% of total expenditures
|
|
a. NT
|
200 000
|
|
|
|
b. GL
|
200 000
|
|
|
|
VII. Operations
and Maintenance
|
|
|
60% of total expenditures
|
|
a. TQ
|
335 000
|
|
|
|
b. NT
|
265 000
|
|
|
|
c. GL
|
245 000
|
|
|
|
Unallocated - TQ
|
1 580 000
|
|
|
|
Unallocated - NT
|
840 000
|
|
|
|
Unallocated - GL
|
725
000
|
|
|
|
TOTAL
|
31
500 000
|
200
000
|
|
(b)
The terms used in the Table above are defined as follows;
I. Vehicles, Equipment, and Material related to
sub-category I(d) means office equipment and publications.
II. Civil Works relates to the construction and
rehabilitation of the PCU buildings.
III. Technical Assistance includes consultancy services
for the Project.
IV.
The Community Development Fund (CDF) makes resources available for: (i) public
infrastructure, (ii) human capacity
development, and (iii) productive
Infrastructure, equipment and input investments managed by Common Interest
Groups (CIGs) and Collaborative Groups (CGs).
V. The Pro-Poor Agribusiness Promotion Fund (PAPF) makes
resources available for proposals received jointly from businesses and CIGs
from Project Area communes. To be considered, all proposals must contemplate
matching PAPF contributions with an investment by the business submitting the
application that is equivalent to at least 50% of the PAPF.
VI. Financial Services makes resources available for the
Women Development Support Fund (WDSF) in Ninh Thuan province and for setting up
a Women Economic Development Fund (WEDF) in Gia Lai province.
2.
Start-up Costs. Withdrawals In respect of expenditures for start-up
costs for Category III incurred before the satisfaction of the general
conditions precedent to > withdrawal shall not exceed an aggregate
amount of SDR 120 000.
Schedule 3
Special Covenants
In
accordance with Section 12.01 (a) (xxiii) of the General Conditions, the Fund
may suspend, in whole or in part, the right of the Borrower/Recipient to
request withdrawals from the Loan Account if the Borrower/Recipient has
defaulted in the performance of any covenant set forth below, and the Fund has
determined that such default has had, or is likely to have, a material adverse
effect on the Project:
i)
The PPCs in each province shall issue Guidelines on the preparation and
implementation of commune market-oriented participatory socio-economic
development planning and implementation in the Project Area before the end of
the 1st year of the
Project. The PPCs shall Issue similar Guidelines for their entire province by
the end of the 3rd year of the Project.
ii)
The PCUs in each province shall ensure that gender is mainstreamed in all
Project activities by using a guidance manual to be developed by the Project
before the end of the first year of the Project.
iii)
The PPCs in each province shall issue a Decision concerning the establishment
of the following thematic working groups: Market-Oriented Participatory
Socio-Economic Development Plan Thematic Working Group (MOP-SEDP TWG), Business
Environment Reform Thematic Working Group (BER-TWG), arid Agribusiness
Promotion Working Group (APWG) before the end of the first year of the Project.
iv)
The PCUs in each province shall develop appropriate Terms of References for
each staff position to be funded by the Project. The PCU shall organise a fair
and transparent process for Identifying and selecting candidates who are
skilled and capable of meeting all of the requirements contained in the terms
of reference. It shall further obtain IFAD's prior agreement for key staff
positions, such as Project Director, Deputy Project Director, and Chief
Financial Officer/Chief Accountant. Key staff members shall serve throughout
the entire Project Implementation Period and may only be removed by the PPC in
each province after prior consultation with the Fund.
v)
The PPCs in each province shall ensure that Project activities comply with the
Law on Environmental Protection, and the Circular on guideline for the
strategic environmental assessment, environmental impact assessment, and
environmental protection commitments in accordance with Decision No.
05/2008/TT-BTNMT , 8 December 2008.
vi)
Should there be any negative impact on the lives of the Project beneficiaries
as a result of the siting of power plants in Ninh Thuan province, the PCU shall
inform the PSC and PPC in the province and informed consent shall be sought to
ensure that the needs of affected communities are identified and that such
communities are fairly compensated (financial and non-financial), should the
need arise. A failure to adequately protect the interests of Project
beneficiaries could lead to partial loan cancellation of affected activities.
GENERAL,
CONDITIONS FOR AGRICULTURAL PEVELQPMENT FINANCING
(as amended September
20101)
ARTICLE I - APPLICATION
Section 1.01. Application of General Conditions.
(a) These General
Conditions apply to all Financing Agreements (as such term is defined in
Section 2.01). They apply to other agreements only if an agreement expressly so
provides.
(b)If a particular
provision of these General Conditions does not apply to an Agreement, the
Agreement must provide explicitly that it does not apply.
ARTICLE II - DEFINTIONS
Section 2.01. General Definitions.
The following terms have the following meanings
wherever used in these General Conditions:
“Agreement” means a Financing Agreement or other
agreement subject to these General Conditions.
“Annual Workplan and Budget* or “AWPB” means the
annual workplan and budget for carrying out a Project during a particular Project Year, which includes the Procurement
Plan.
“Borrower” means the party designated as such in
an Agreement.
“Coercive practice” means impairing or harming,
or threatening to impair or harm, directly or indirectly, any party or the property of the party to
influence improperly the actions of a party.
“Collusive practice” means an arrangement between
two or more parties designed to achieve an improper purpose, including influencing improperly the actions of
another party.
“Cooperating Institution” means an institution
designated as such in a Financing Agreement as responsible for the administration of the Financing and/or the supervision
of the Implementation of the Project.
“Cooperation Agreement” means an agreement or
agreements between the Fund and a Cooperating Institution by which a
Cooperating Institution agrees to act as such.
“Corrupt practice” means offering, giving,
receiving or soliciting, directly or indirectly, anything of value to
improperly influence the actions of another party.
“Currency” of a State or a territory means the
currency that is legal tender for the payment of public and private
debts in such State or territory.
“Eligible Expenditure” means an expenditure that
compiles with Section 4.08.
“Euro” or “EUR” mean the currency of the European
Monetary Union.
“Financing” means a Loan, a Grant, or a
combination thereof.
“Financing Agreement” means a Project Financing
Agreement or Programme Financing Agreement, pursuant to which the Fund agrees to extend Financing to the
Borrower/Recipient.
“Financing Closing Date” means the date on which
the right of the Borrower/Recipient to request withdrawals from the Loan
Account and/or Grant Account ends, which is six (6) months after the Project Completion Date or such later date as the
Fund may designate by notice to the Borrower/Recipient.
“Fiscal Year” means the twelve-month period
designated as such In an Agreement
“Fraudulent practice* means any action or
omission, including a misrepresentation, that knowingly or recklessly misleads,
or attempts to mislead, a party to obtain a financial or other benefit or to
avoid an obligation.
“Freely convertible currency” means any currency
so designated by the Fund at any time.
“Fund” means the International Fund for
Agricultural Development.
“Grant” means a grant extended to a Recipient
pursuant to a Financing Agreement or other Agreement
“Grant Account” means the account in the books of
the Fund opened in the name of the Recipient to which the amount of the
Grant is credited.
“Guarantee Agreement means an agreement between a
Member State and the Fund by which such Member State guarantees the
performance of another Agreement.
“Guarantor” means any Member State designated as
such In a Guarantee Agreement
“IFAD Procurement Guidelines” means the
Procurement Guidelines approved by the Fund's Executive Board in December 2004 (for Financing approved by the Fund's
Executive Board prior to September 2010) or the Project Procurement Guidelines
approved by the Fund's Executive Board in September 2010 (for Financing
approved by the Fund's Executive Board after September 2010) as such
guidelines may be amended by the Fund. 2
“IFAD Reference Interest Rate” means the rate
determined periodically by the Fund as its reference rate for the
computation of interest on its Loans.
“Lead Project Agency” means the entity designated
as such in an Agreement which has overall responsibility for the
execution of a Project
“Loan” means a loan extended by the Fund to the
Borrower pursuant to a Financing Agreement.
“Loan Account” means the account in the books of
the Fund opened in the name of the Borrower to which the amount of a
Loan is credited.
“Loan Service Payment” means any payment required
or permitted to be made by the Borrower or the Guarantor to the Fund under a Financing Agreement including (but not
limited to) any payment of the principal of, or Interest or service
charge on any Loan.
“Loan Service Payment Currency” means the freely
convertible currency defined as such in a Financing Agreement.
“Member State” means any Member State of the Fund.
“Round sterling” or “GBP” means the currency of
the United Kingdom of Great Britain and Northern Ireland.
“Procurement Ran* means the Borrower/Recipient's
Procurement Plan covering the initial eighteen (18) month period of Project
implementation, as the same shall be updated to cover succeeding twelve (12)
month periods.
“Project” means the agricultural development
project or programme described in an Agreement and financed, in whole or in
part, by the Financing.
“Project Account” means an account for Project
operations as described in Section 7.02(b).
“Project Agreement” means any agreement between
the Fund and any Project Party relating to the implementation of all or any
part of a Project.
“Project Completion Date” means the date specified
in an Agreement on which the implementation of the Project is to be completed,
or such later date as the Fund may designate by notice to the
Borrower/Recipient
“Project Implementation Period” means the period
during which the Project is to be carried out, beginning on the date of entry
into force of the Agreement and ending on the Project Completion Date.
“Project Member State” means the Member State in
which the Project is carried out.
“Project Party” means each entity responsible for
the implementation of the Project or any part thereof. The term “Project Party”
includes (but is not limited to) the Lead Project Agency and any entity
designated as a Project Party in an Agreement.
“Project Year” means (I) the period beginning on
the date of entry into force of an Agreement and ending on the last day of the
then-current Fiscal Year, and (ii) each period thereafter beginning on the
first day of the Fiscal Year and ending on the last day thereof, provided,
however, that if the date of entry into force of the Agreement falls after the
midpoint of the Fiscal Year, Project Year 1 snail continue through the
following Fiscal Year.
“Recipient” means the party designated as such in
an Agreement
“SDR Equivalent* means, with respect to any amount
expressed in any currency at the time of determination, the equivalent of such
amount in SDR, as determined by the Fund in accordance with Article 6.2(b) of
the Agreement Establishing IFAD.
“Special Drawing Rights” or “SDR” mean special
drawing rights as valued from time to time by the International Monetary Fund
in accordance with Its Articles of Agreement
“Subsidiary Agreement” means any agreement or
arrangement by which (i) the whole or part of the proceeds of the Financing are
made available to a Project Party and/or (ii) a Project Party undertakes to
carry out the Project in whole or in part.
Target Population* means the group of people
intended to benefit from a Project
Taxes” means all imposts, levies, fees, tariffs
and duties of any kind imposed, levied, collected, withheld or assessed by or
in the territory of the Project Member State at any time.
“US dollar” or “USD” means the currency of the
United States of America.
“Value Date” means, in respect of any withdrawal
from the Loan Account, the date on which such withdrawal is deemed made In
accordance with Section 4.06 and, in respect of any Loan Service Payment the
date on which such Loan Service Payment is deemed made In accordance with
Section 5.04.
“Yen” or “JPY” means the currency of Japan.
Section 2.02. Use of Terms.
As used in these General Conditions and any
Agreement, except as the context otherwise requires, terms in the singular
include the plural, terms in the plural include the singular, and masculine
pronouns include the feminine.
Section 2.03. References and Headings.
Unless otherwise indicated, references in these
General Conditions to Articles or Sections refer to Articles or Sections of
these General Conditions. The headings of the Articles and Sections and In the
Table of Contents of these General Conditions are given for convenience of
reference only and do not form an Integral part of these General Conditions.
ARTICLE III - THE
COOPERATING INSTITUTION
Section 3.01. Appointment of the Cooperating
Institution.
A Financing Agreement may provide that a
Cooperating Institution will be appointed to administer the Financing and
supervise the Project.
Section 3.02. Responsibilities of the Cooperating
Institution.
If appointed, the Cooperating Institution shall be
responsible for
(a) facilitating
Project implementation by assisting the Borrower/Recipient and the Project
Parties in interpreting and complying with the Financing Agreement;
(b) reviewing the
Borrower/Recipient's withdrawal applications to determine the amounts which the
Borrower/Recipient is entitled to withdraw from the Loan and/or Grant Account;
(c) reviewing and
approving on a no-objection basis the procurement of goods, civil works and
services for the Project financed by the Financing;
(d) monitoring
compliance with the Financing Agreement bringing any substantial non-compliance
to the attention of the Fund and recommending remedies therefor; and
(e) carrying out such
other functions to administer the Financing and supervise the Project as may be
set forth in the Cooperation Agreement.
Section 3.03. Cooperation Agreement.
if a Cooperating Institution is appointed, the
Fund shall enter into a Cooperation Agreement with the Cooperating Institution
setting forth the terms and conditions of its appointment.
Section 3.04. Actions by the Cooperating
Institution.
Any action by the Cooperating Institution in
accordance with a Cooperation Agreement shall be regarded and treated by the
Borrower/Recipient the Guarantor and the Project Parties as an action taken by
the Fund.
Section 3.05. Cooperation by the
Borrower/Recipient and the Project Parties.
The Borrower/Recipient, the Guarantor and the
Project Parties shall take all necessary or appropriate steps to enable the
Cooperating Institution to carry out its responsibilities smoothly and
effectively.
ARTICLE IV - LOAN ACCOUNT
AND WITHDRAWALS
Section 4.01. Loan and Grant Accounts.
Upon the entry into force of a Financing
Agreement, the Fund shall open a Loan Account and/or a Grant Account in the
name of the Borrower/Recipient and credit the principal amounts of the Loan and
the Grant respectively thereto.
Section 4.02. Withdrawals from the Loan and Grant
Accounts.
(a) Between the date of
entry into force of the Agreement and the Financing Closing Date, the
Borrower/Recipient may request withdrawals from the Loan Account and/or Grant
Account of amounts paid or to be paid for Eligible Expenditures. The Fund shall
notify the Borrower/Recipient of the minimum amount for withdrawals.
(b) No withdrawal shall
be made from the Loan and/or Grant Accounts until the first AWPB has been
approved by the Fund and the Fund has determined that all other conditions
specified in the Financing Agreement as additional general conditions precedent
to withdrawal have been fulfilled. The Financing Agreement may also establish
additional specific conditions precedent to withdrawal applicable to particular
categories or activities. Withdrawals to meet the costs of starting up the
Project may be made from the date of entry into force of the Agreement, subject
to any limits established in the Financing Agreement,
Section 4.03. Special Commitments.
Upon the Borrower/Recipient's request, the Fund
may agree to make an irrevocable commitment to pay amounts necessary to
guarantee a Letter of Credit used to finance Eligible Expenditures (a “Special
Commitment”) on such terms and conditions as the Borrower/Recipient and the
Fund may agree.
Section 4.04. Applications for Withdrawal, or
Special Commitment
(a) When the
Borrower/Recipient wishes to request a withdrawal from the Loan and/or Grant
Accounts or a Special Commitment, the Borrower/Recipient shall deliver to the
Fund an application In the form specified therefor by the Fund, together with
such documents and other evidence In support of such application as the Fund
shall reasonably request
(b) The
Borrower/Recipient shall furnish to the Fund satisfactory evidence of the
authority of the person or persons authorised to sign such applications and the
authenticated specimen signature of each such person.
(c) Each such
application, and the accompanying documents and other evidence, must be sufficient
to satisfy the Fund that the Borrower/Recipient is entitled to such withdrawal
or Special Commitment
(d) if the
Borrower/Recipient requests a withdrawal from the Loan and/or Grant Accounts foe
amounts to be paid thereafter for Eligible Expenditures, the Fund may, before
transferring such amount to the Borrower/Recipient, require that the
Borrower/Recipient provide evidence satisfactory to the Fund showing that
previous withdrawals have been properly spent for Eligible Expenditures. The
Fund may place reasonable limits on the amount that the Borrower/Recipient may
withdraw In advance or the overall balance of such advance withdrawals, and may
require that such amounts be held in a freely convertible currency and/or be
held in an account designated for that purpose in a bank acceptable to the
Fund.
Section 4.05. Transfer by the Fund.
Upon receipt of an authenticated and satisfactory
application for withdrawal from the Borrower/Recipient, the Fund shall transfer
to the account specified by the Borrower/Recipient the amount specified
therein.
Section 4.06. Value Dates of Withdrawals.
A withdrawal shall be deemed made as of the day on
which the relevant financial institution debits the account of the Fund chosen
for the purpose of disbursing such withdrawal.
Section 4.07. Allocations and Reallocations of
Financing Proceeds.
(a) A Financing
Agreement may allocate the amount of the Financing to categories of Eligible Expenditures and specify the percentages of such
Eligible Expenditures to be financed by the Financing.
(b) The Fund shall
monitor the uses of the Financing In order to determine when the allocation to
a category has been depleted or is about to be depleted.
(c) If the Fund
determines that the amount of the Financing allocated in the Financing
Agreement to a category of Eligible
Expenditures is or will be insufficient, the Fund may, by notice to the Borrower/Recipient
(i) reallocate to such category amounts of the
Financing allocated to another category to the extent required to meet
the estimated shortfall; and/or
(ii) if such reallocation will not fully meet the
estimated shortfall, reduce the percentage of such Eligible Expenditures
to be financed by the Financing.
SECTION 4.08. Eligible Expenditures. 3
(a)
The Financing shall be used exclusively to
finance expenditures meeting each of the following eligibility
requirements:
(i)
The expenditure shall meet the reasonable cost of goods, works and services required
for the Project and covered by the relevant
AWPB and procured in conformity with the Fund's Procurement Guidelines.
(ii) The expenditure shall be incurred during the
Project Implementation Period, except that expenditures to meet the costs of
winding up the Project may be incurred after the Project Completion Date and
before the Financing Closing Date.
(iii) The expenditure shall be incurred by a
Project Party.
(iv) if the Agreement allocates the amount of the
Financing to categories of Eligible Expenditures
and specifies the percentages of such Eligible Expenditures to be financed by the Financing, the expenditure must relate to
a category whose allocation has not been depleted, and shall be eligible only
up to the percentage applicable to such category.
(v) The expenditure shall be otherwise eligible
in accordance with the terms of the Financing Agreement.
(b) The Fund may from
time to time exclude certain types of expenditure from eligibility.
(c) Any payment
prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations,
shall not be eligible for financing by the Financing.
(d) Any payments to a
person or an entity, or for any goods, works or services, if making or
receiving such payment constitutes a coercive, collusive, corrupt or fraudulent
practice by any representative of the
Borrower/Recipient or any Project Party, shall not be eligible for financing by
the Financing.
Section 4.09. Refund of Withdrawals.
If the Fund determines that any amount withdrawn
from the Loan and/or Grant Accounts was not used for the purposes indicated or will not be needed thereafter to
finance Eligible Expenditures, the Borrower/Recipient
shall promptly refund such amount to the Fund upon instruction by the Fund.
Except as the Fund shall otherwise agree, such refund shall be made in the
currency used by the Fund to disburse
such withdrawal. The Fund shall credit the Loan and/or Grant Accounts by the
SDR Equivalent of the amount so refunded.
ARTICLE V - LOAN SERVICE
PAYMENTS
Section 5.01. Lending Terms.4
Loans provided by the Fund shall be given on
highly concessional, intermediate or ordinary terms, as specified in the
Financing Agreement
(a) Highly
Concessional Terms: Loans granted on highly concessional terms shall be free of
interest but bear a service charge of three fourths of one per cent (0.75%) per
annum payable semi-annually in the Loan Service Payment Currency, and shall
have a maturity period of forty (40) years, including a grace period of ten (10) years starting from the date of
approval of the Loan by the Fund's Executive Board.
(b) Hardened
Terms: Loans granted on hardened terms shall be free of interest but bear a
service charge of three fourths of
one per cent (0.75%) per annum payable semi-annually in the Loan Service Payment Currency, and shall have a maturity
period of twenty (20) years, including a grace period of ten (10) years
starting from the date of approval of the Loan by the Fund's Executive Board.
(c) Intermediate
Terms: Loans granted on intermediate terms shall be subject to interest on the
principal amount of the Loan outstanding at a rate of one half of the IFAD
Reference Interest Rate payable semi-annually in the Loan Service Payment
Currency, and shall have a maturity period of twenty (20) years, including a
grace period of five (5) years starting from the date that the Fund has determined that ail general conditions precedent
to withdrawal have been fulfilled in accordance with section 4.02(b).
(d) Ordinary Terms:
Loans granted on ordinary terms shall be subject to interest on the principal
amount of the Loan outstanding at a rate equal to the IFAD Reference Interest
Rate, payable semi-annually in the Loan Service Payment Currency, and shall
have a maturity period of fifteen (15) to eighteen (18) years, including a
grace period of three (3) years starting from the date that the Fund has determined that all general conditions
precedent to withdrawal have been fulfilled in accordance with section
4.02(b).
(e) Interest and
service charge shall accrue on the outstanding principal amount of the Loan and
shall be computed on the basis of a 360-day year of twelve 30-day months. The
Fund shall provide the Borrower with a statement of Interest and service charge
due at least four (4) weeks prior to the date upon which payment is to
be made.
(f) The Fund shall
publish the IFAD Reference Interest Rate applicable in each interest period.
(g) During the grace
period, interest and service charge shall accrue on the outstanding principal amount of the Loan and shall be payable
semi-annually, but no payments of principal shall be due.
Section 5.02. Repayments and Prepayments of
Principal.
(a) The Borrower shall repay the aggregate principal
amount of the Loan withdrawn from the Loan Account In semi-annual instalments,
calculated over the maturity period minus the grace period. The Fund shall inform the Borrower of the dates and
amounts of the payments as soon as possible after the start of the
period of maturity of the Loan.
b) The Borrower shall have the right to prepay all or any
part of the principal amount of the Loan, provided that the Borrower pays all
accrued and unpaid Interest and service charges on the amount to be prepaid which
are due as of the prepayment date. All prepayment shall be credited first
against any outstanding interest and service charge and then against the
remaining Loan instalments.
(c) Any partial cancellation of the Loan shall be applied
pro rata to any remaining payment instalments of the principal amount of the
Loan. The Fund shall notify the Borrower of such application, specifying the
dates and amounts of the remaining instalments after giving effect thereto.
Section
5.03. Manner and Place of Payment.
All
Loan Service Payments shall be paid to such account or accounts in such bank or
other financial institution as the Fund may designate by notice to the
Borrower.
Section
5.04. Value Dates of Loan Service Payments.
Loan
Service Payments shall be deemed made as of the day on which the relevant
financial institution credits the account of the Fund designated therefor.
ARTICLE Vl - CURRENCY PROVISIONS
Section
6.01. Currencies for Withdrawals.
(a) Withdrawals from the Loan and/or Grant Accounts shall
be made in the respective currencies in which expenditures to be financed out
of the proceeds of the Financing have been paid or are payable, or in such
currency or currencies as the Fund may select.
(b) The Loan and/or Grant Accounts shall be debited by the
SDR Equivalent of the amount withdrawn determined as of the value date of
withdrawal. If the currency of withdrawal has been purchased by the Fund with
another currency, the Loan and/or Grant Accounts shall be debited by the SDR
Equivalent of the amount of such other currency.
Section
6.02. Loan Service Payment Currency.
All
Loan Service Payments shall be made in the Loan Service Payment Currency
specified In the Financing Agreement The amount of any Loan Service Payment
shall be the equivalent in Loan Service Payment Currency, as of the due date,
of the SDR amount of such Loan Service Payment, as determined by the Fund in
accordance with Article 5, Section 2(b) of the Agreement Establishing IFAD.
Section
6.03. Valuation of Currencies.
Whenever
it is necessary to determine the value of one currency in terms of another, the
Fund shall determine such value in accordance with Article 5, Section 2(b) of
the Agreement Establishing IFAD.
ARTICLE VII - IMPLEMENTATION QF THE. PROJECT
Section
7.01. Project Implementation.
(a)
The Borrower and each of the Project Parties shall carry out the Project:
(i)
with due diligence and efficiency;
(ii)
in conformity with appropriate administrative, engineering, financial,
economic, operational, environmental and
agricultural development practices (including rural development
practices) and good governance;
(iii)
in accordance with plans, design standards, specifications, procurement and
work schedules and construction methods agreed by the Borrower/Recipient and
the Fund;
(iv) in accordance with the provisions of the
relevant Agreement, the AWPBs, and the Procurement Plan;
(v)
in accordance with the policies, criteria and regulations relating to
agricultural development financing laid down
from time to time by the Governing Council and Executive Board of the
Fund; and
(vi)
so as to ensure the sustainability of Its achievements over time.
(b)
(i) Projects shall be implemented on the basis of an Annual Workplan and Budget
(AWPB). The Lead Project Agency shall
prepare a draft Project AWPB for each Project based, to the extent
appropriate, on the draft AWPBs prepared by the various Project Parties. Each
draft Project AWPB shall include, among other things, a detailed description of
planned Project activities during the coming Project Year, a Procurement Plan,
and the sources and uses of funds.
(ii)
Before each Project Year, the Lead Project Agency shall, if required, submit
the draft Project AWPB to the oversight
body designated by the Borrower/Recipient for its review. When so reviewed, the
Lead Project Agency shall submit the draft Project AWPB to the Fund for
comments no later than sixty (60) days before the beginning of the relevant Project Year. If the Fund does not comment on the
draft Project AWPB within thirty (30) days of receipt, the AWPB shall be
deemed acceptable to the Fund.
(iii) The Lead Project Agency shall adopt the
Project AWPB in the form accepted by the Fund.
(iv) The Lead Project Agency may propose
adjustments in the Project AWPB during the relevant Project Year, which shall
become effective after acceptance by the Fund.
Section 7.02. Availability of Financing Proceeds.
(a) The
Borrower/Recipient shall make the proceeds of the Financing available to the
Project Parties upon terms and conditions specified in the Financing Agreement
or otherwise approved by the Fund for the purpose of carrying out the Project.
(b) The Financing
Agreement may provide that the Borrower/Recipient open and maintain one or more
Project Accounts for Project operations in a bank acceptable to the Fund, and
shall identify the Project Party responsible for operating such account or
accounts. The operation of such accounts, unless otherwise specified in the
Financing Agreement, shall be performed In accordance with the applicable rules
and regulations of the Project Party responsible therefor.
Section 7.03. Availability of Additional
Resources.
(a) In addition to the
proceeds of the Financing, the Borrower/Recipient shall make available to the
Project Parties such funds, facilities, services and other resources as may be
required to carry out the Project in accordance with Section 7.01.
(b) In addition to the
proceeds of the Financing, the Financing Agreement may provide that the
Borrower/Recipient shall make available to the Project Parties during the
Project Implementation Period counterpart funds from its own resources in
accordance with its customary national procedures for development assistance.
Section 7.04. Coordination of Activities.
In order to ensure that the Project is carried
out in accordance with Section 7.01, the Borrower/ Recipient shall ensure that the relevant
activities of its ministries, departments and agencies, and those of each Project Party, are conducted and
coordinated in accordance with sound administrative policies and
procedures.
Section 7.05. Procurement.
(a) Procurement of
goods, works and services financed by the Financing shall be carried out in
accordance with the provisions of the Borrower/Recipient's procurement
regulations, to the extent such are
consistent with the IFAD Procurement Guidelines. Each Procurement Ran shall
identify procedures which must be
implemented by the Borrower/Recipient in order to ensure consistency with
the IFAD Procurement Guidelines.
(b) By notice to the
Borrower/ Recipient, the Fund may require that all bidding documents and contracts for procurement of goods, works and
services financed by the Financing include provisions requiring bidders,
suppliers, contractors, sub-contractors and consultants to:
(i) allow full inspection by the Fund of all bid
documentation and related records;
(ii) maintain all documents and records related to
the bid or contract for three years after completion of the bid or contract;
and
(iii) cooperate with agents or representatives of
the Fund carrying out an audit or investigation.
Section 7.06. Use of Goods and Services.
All goods, services and buildings financed by the
Financing shall be used exclusively for the purposes of the Project.
Section 7.07. Maintenance.
The Borrower/Recipient shall ensure that all
facilities and civil works used in connection with the Project shall at all
times be properly operated and maintained and that all necessary repairs of
such facilities shall be made promptly as needed.^
Section 7.08. Insurance.
(a) The
Borrower/Recipient or the Lead Project Agency shall insure all goods and
buildings used in the Project against such risks and in such amounts as shall
be consistent with sound commercial practice.
(b) The
Borrower/Recipient or the Lead Project Agency shall insure the goods imported
for the Project which are financed by the Financing against hazards incident to
the acquisition, transportation and delivery thereof to the place of use or
installation in accordance with sound commercial practice.
Section 7.09. Subsidiary Agreements.
(a) The
Borrower/Recipient shall ensure that no Project Party shall enter into any
Subsidiary Agreement, or consent to any modification thereof,
inconsistent with the Financing Agreement or the Project Agreement.
(b) The
Borrower/Recipient and each Project Party shall exercise its rights under any
Subsidiary Agreement to which it is
party to ensure that the interests of the Borrower/Recipient and the Fund are fully protected and the Project is carried out In
accordance with Section 7.01.
(c) No provision of
any Subsidiary Agreement to which the Borrower/Recipient Is a party shall be assigned, waived, suspended, abrogated, amended or
otherwise modified without the prior consent of the Fund.
(d) The
Borrower/Recipient shall bear any foreign exchange risk under any Subsidiary
Agreement to which it Is party, unless otherwise agreed by the Fund.
Section 7.10. Performance of the Agreements.
(a) The
Borrower/Recipient shall be fully responsible to the Fund for the due and
timely performance of all obligations
ascribed to it, the Lead Project Agency and all other Project Parties under any
Agreement To the extent any Project
Party enjoys legal personality separate from the Borrower/Recipient, any reference to an obligation of such Project Party
in an Agreement shall be deemed an obligation of the Borrower/Recipient to
ensure that such Project Party performs such obligation. The acceptance by any Project Party of any obligation
ascribed to it in an Agreement shall not affect the responsibilities and
obligations of the Borrower/Recipient.
(b) The Borrower/Recipient shall take all necessary or
appropriate action within its powers to enable and assist the Lead Project
Agency and any other Project Party to perform its obligations under an
Agreement. The Borrower/Recipient shall not take, and shall not permit any
third party to take, any action that would interfere with such performance.
Section
7.11. Key Project Personnel.
The
Borrower/Recipient or the Lead Project Agency shall appoint the Project
Director and all other key Project personnel in the manner specified in the
Agreement or otherwise approved by the Fund. All key Project personnel shall
have qualifications and experience specified in the Agreement or otherwise
approved by the Fund. The Borrower/Recipient shall exercise best efforts to
ensure continuity in key Project personnel throughout the Project
Implementation Period. The Borrower/ Recipient or the Lead Project Agency shall
insure key Project personnel against health and accident risks to the extent
consistent with sound commercial practice or its customary practice in respect
of its national civil service, .whichever is appropriate.
Section
7.12. Project Parties.
Each
Project Party shall, as required to carry out the Project in accordance with
Section 7.01:
(a) promptly take all necessary or appropriate action to
maintain its corporate existence and to acquire, maintain and renew its rights,
properties, powers, privileges and franchises;
(b) employ competent and experienced management and
personnel;
(c) operate, maintain and replace Its plant, equipment and
other properties; and
(d) not sell, lease or otherwise dispose of any of the
Project's assets, except in the normal course of business or as agreed by the
Fund.
Section
7.13. Allocation of Project Resources.
The
Borrower/Recipient and the Project Parties shall ensure that the resources and
benefits of the Project, to the fullest extent practicable, are allocated among
the Target Population using gender disaggregated methods.
Section
7.14. Environmental Factors.
The
Borrower/Recipient and the Project Parties shall take all reasonable measures
to ensure that the Project is
carried out with due diligence in regard to environmental factors and in
conformity with national environmental laws and any international treaties to
which the Project Member State may be party.
In particular, the Project Parties shall maintain appropriate pest management
practices under the Project and, to that end, shall comply with the principles
of the International Code of Conduct on the Distribution and Use of Pesticides of the Food and Agriculture
Organisation of the United Nations (FAO), as amended, and ensure that pesticides procured under the Project do not
include any pesticide formulation
which would be classified as Extremely Hazardous (Class la) or Highly Hazardous
(Class lb) according to The WHO
Recommended Classification of Pesticides by Hazard, as amended.
Section 7.15. Relending Rates.
During the Project Implementation Period, the
Borrower/Recipient and the Fund shall periodically review the interest rates
applicable to any credits extended to members of the Target Population which
are financed (directly or indirectly) by the Financing. These reviews shall be
conducted jointly with the objective of reaching or maintaining positive
Interest rates over time. The Borrower/Recipient shall take any appropriate
measures, consistent with its policies and the Fund's policies, to achieve that
objective. Among such measures, the Borrower/Recipient and each Project Party
extending such credits shall endeavour to minimise its costs. For purposes of
this Section, the term “positive interest rate” means, in respect of any credit
extended by any Project Party, an interest rate which, after giving effect to
inflation, permits such Project Party to recover its costs and achieve
sustainability.
Section 7.16. Project Completion.
The Borrower/Recipient shall ensure that the
Project Parties complete the implementation of the Project by the Project
Completion Date. The Fund and the Borrower/Recipient shall agree on the
disposition of the assets of the Project upon its completion.
ARTICLE VIII -
IMPLEMENTATION REPORTING AND INFORMATION
Section 8.01. Implementation Records.
The Borrower/Recipient shall ensure that the
Project Parties maintain records and documents adequate to reflect their
operations in implementing the Project (including, but not limited to, copies
or originals of all correspondence, minutes of meetings and all documents
relating to procurement) until the Project Completion Date, and shall retain
such records and documents for at least ten (10) years thereafter.
Section 8.02. Monitoring of Project
Implementation.
The Lead Project Agency shall:
(a) establish and
thereafter maintain an appropriate information management system in accordance
with the Fund's Guide for Project Monitoring and Evaluation with which it shall
continuously monitor the Project;
(b) during the Project
Implementation Period, gather all data and other relevant information
(including any and ail information requested by the Fund) necessary to monitor
the progress of the implementation of the Project and the achievement of its
objectives; and
(c) during the Project
Implementation Period and for at least ten (10) years thereafter, adequately
store such information, and, promptly upon request, make such information
available to the Fund and its representatives and agents.
Section 8.03. Progress Report and Mid-Term
Reviews.
(a) The Lead Project
Agency, or other party so designated In the relevant Agreement, shall furnish
to the Fund periodic progress reports on the Project, in such form and
substance as the Fund shall reasonably request. At a minimum, such reports
shall address (i) quantitative and qualitative progress made
in implementing the Project and achieving Its objectives, (ii) problems
encountered during the reporting period, (iii) steps taken or proposed to be
taken to remedy these problems, and (iv) the proposed programme of activities
and the progress expected during the following reporting period.
(b) If specified in an
Agreement, the Lead Project Agency and the Fund shall jointly carry out a review of Project implementation no later than the
midpoint of the Project Implementation Period (the “Mid-Term Review”) based on
terms of reference prepared by the Lead Project Agency and approved by the Fund. Among other things, the Mid-Term
Review shall consider the achievement of Project objectives and the constraints
thereon, and recommend such reorientation as may be required to achieve
such objectives and remove such constraints.
(c)
The Borrower/Recipient shall ensure that the recommendations resulting from the
Mid-Term Review are implemented within the specified time therefor and to the
satisfaction of the Fund. Such recommendations may result in modifications to
the Agreement or cancellation of the Financing.
Section
8.04. Completion Report
As
promptly as possible after the Project Completion Date but In any event no
later than the Financing Closing Date, the Borrower/Recipient shall furnish to
the Fund a report on the overall implementation of the Project, in such form
and substance as may be specified in the Financing Agreement or as the Fund shall
reasonably request. At a minimum, such report shall address (i) the costs and
benefits of the Project, (ii) the achievement of its objectives, (iii) the
performance by the Borrower/Recipient, the Project Parties, the Fund of their
respective obligations under the Agreement and (iv) lessons learned from the
foregoing.
Section
8.05. Plans and Schedules.
The
Project Parties shall furnish to the Fund promptly upon their preparation, such
plans, design standards, reports, contract documents, specifications and
schedules relating to the Project, and any material modifications subsequently
made therein.
Section
8.06. Other Implementation Reports and Information.
In
addition to the reports and information required by the foregoing provisions of
this Article:
(a)
The Borrower/Recipient and the Project Parties shall promptly furnish to the
Fund such other reports and information as the Fund shall reasonably request on
any matter relating to the Project or any Project Party.
(b) The Borrower/Recipient and the Project Parties shall
promptly inform the Fund of any condition that Interferes with, or threatens to
interfere with, the implementation of the Project or the achievement of its
objectives. In particular, the Borrower/Recipient and the Project Parties shall
promptly notify the Fund of any allegations of fraud and/or corruption that are
received in relation to any of the Project activities.
ARTICLE IX - FINANCIAL REPORTING AND INFORMATION
Section
9.01. Financial Records.
The
Project Parties shall maintain separate accounts and records In accordance with
consistently maintained appropriate accounting practices adequate to reflect
the operations, resources and expenditures related to the Project until the
Financing Closing Date, and shall retain such accounts and records for at least
ten (10) years thereafter.
Section
9.02. Financial Statements.
The
Borrower/Recipient shall deliver to the Fund detailed financial statements of
the operations, resources and expenditures related to the Project for each
Fiscal Year prepared in accordance with standards and procedures acceptable to
the Fund and deliver such financial statements to the Fund within four (4)
months of the end of each Fiscal Year.
Section
9.03. Audit of Accounts.
The
Borrower/Recipient shall:
(a)
each Fiscal Year, have the accounts relating to the Project audited in
accordance with auditing standards acceptable to the Fund and the Fund's
Guidelines on Project Audits (for Borrowers' Use) by independent
auditors acceptable to the Fund;
(a) within six (6)
months of the end of each Fiscal Year, furnish to the Fund a certified copy of
the audit report. The Borrower/Recipient shall submit to the Fund the reply to
the management letter of the auditors within one month of receipt thereof;
(c) if the
Borrower/Recipient does not timely furnish any required audit report in
satisfactory form and the Fund determines that the Borrower/Recipient is
unlikely to do so within a reasonable period, the Fund may engage independent
auditors of its choice to audit the accounts relating to the Project. The Fund
may finance the cost of such audit by withdrawal from the Loan and/or Grant
Accounts.
Section 9.04. Other Financial Reports and
Information.
In addition to the reports and information
required by the foregoing provisions of this Article:
(a) The
Borrower/Recipient and the Project Parties shall promptly furnish to the Fund
such other reports and information
as the Fund shall reasonably request on any financial matter relating to the
Financing or the Project or any Project Party.
(b) The
Borrower/Recipient and the Guarantor shall promptly inform the Fund of any condition that interferes with, or threatens to
interfere with, the maintenance of Loan Service Payments.
(c) The Project Member
State shall promptly furnish to the Fund all information that the Fund may reasonably request with respect to financial
and economic conditions in its territory, including its balance of payments and its external debt.
ARTICLE X - COOPERATION
Section 10.01. Cooperation, Generally.
The Fund, the Cooperating Institution and each
Project Party shall cooperate fully to ensure that the objectives of the
Project are achieved.
Section 10.02. Exchange of Views.
The Fund, the Borrower/Recipient and the Lead
Project Agency shall, from time to time at the request of any one of them,
exchange views on the Project, the Financing, or any Project Party.
Section 10.03. Visits, Inspections and Enquiries.
The Borrower/Recipient and the Project Parties
shall enable agents and representatives of the Fund from time to time to:
(a) visit and inspect
the Project, including any and all sites, works, equipment and other goods used
for Project-related purposes;
(b) examine the
originals and take copies of any data, accounts, records and documents relevant
to the Financing, the Project, or any Project Party; and
(c) visit, communicate
with and make enquiries of all Project personnel and any staff member of any
Project Party.
Section 10.04. Audits Initiated by the Fund.
The Borrower/Recipient and the Project Parties
shall permit auditors designated by the Fund to audit the records and accounts
relating to the Project. The Borrower/Recipient and the Project Parties shall cooperate
fully with any such audit and accord the auditors the full rights and
privileges of agents or representatives of the Fund under Section 10.03. With
the exception of audits carried out in accordance with Section 9.03(c), the
Fund shall bear the cost of such audits.
Section
10.05. Evaluations of the Project
(a) The Borrower/Recipient and each Project Party shall
facilitate all evaluations and reviews of the Project that the Fund may carry
out during the Project Implementation Period and for ten {10) years thereafter.
(b) As used in this Section, the term “facilitate”, In
addition to full compliance with Articles VIII, IX and this Article X in
respect of such evaluations and reviews, includes providing timely logistical
support by making available Project personnel and equipment and promptly taking
such other action as the Fund may request in connection with such evaluations
and reviews, but does not include incurring out-of-pocket expenses.
Section
10.06. Country Portfolio Reviews.
The
Project Member State shall permit the agents and representatives of the Fund,
in consultation with the Project Member State, to enter its territory from time
to time to exchange views with such persons, visit such sites, and examine such
data, records and documents as the Fund may reasonably request in order to
carry out a general review of all projects and programmes financed, in whole or
in part, by the Fund in its territory and all financing extended by the Fund to
the Project Member State. The Project Member State shall ensure that all
concerned parties cooperate fully in such review.
ARTICLE XI -TAXATION
Section
11.01. Taxation.
(a) The Financing and all Loan Service Payments shall be
exempt from all Taxes, and all Loan Service Payments shall be made free and
clear of Taxes.
(b) The Agreement shall be exempt from any Taxes on
signature, delivery or registration.
(c) The use of any proceeds of the Financing to pay for
Taxes is subject to the Fund's policy of requiring economy and efficiency in
the use of its Financing. Therefore, if the Fund at any time determines that the
amount of any such Tax is excessive, discriminatory or otherwise unreasonable,
the Fund may, by notice to the Borrower/Recipient, reduce the percentages of
Eligible Expenditures to be financed by the Financing which are specified in
the Financing Agreement.
Section
11.02. Tax Refunds.
If
the Fund determines at any time that any amount of Financing proceeds have been
used to pay Taxes that it has determined to be excessive, discriminatory or
otherwise unreasonable, it may require the Borrower/Recipient, by written
notice, to refund such amount promptly to the Fund. Upon receipt thereof, the
Fund shall credit the Loan and/or Grant Accounts in the amount of such refund.
ARTICLE XII - REMEDIES OF THE FUND
Section
12.01. Suspension by the Fund.
(a)
Whenever any of the following events has occurred and is continuing, the Fund
may suspend, in whole or in part, the right of the Borrower/Recipient to
request withdrawals from the Loan and/or Grant Accounts:
(i)
The Borrower has failed to make any Loan Service Payment when due, whether or
not the Guarantor or any other third party has made such Loan Service Payment.
(ii) The Borrower/Recipient has failed to make
any payment due under any other Financing Agreement, Guarantee Agreement, or other financial obligation of any
kind of the Borrower/Recipient to
the Fund, whether or not any third party has made such payment.
(iii) The Guarantor has failed to make any Loan
Service Payment when due.
(iv) The Guarantor has failed to make any payment
due under any other Financing or Guarantee
Agreement between the Guarantor and the Fund, or other financial obligation of
any kind of the Guarantor to the Fund.
(v) The Fund has determined that the Project has
failed to fulfil, or is unlikely to fulfil in a timely manner, its
purposes as stated in the Agreement.
(vi) The Fund has determined that a situation has
arisen which may make it improbable that the Project can be successfully carried out or that any Project Party
will be able to perform any of its obligations under any Agreement.
(vii) The Project Member State has been suspended
from membership in the Fund or ceased to
be a Member State; or the Project Member State has delivered a notice of its
intention to withdraw from the Fund.
(viii) Any representation made by the Borrower/Recipient,
the Guarantor, or any Project Party In
any Agreement, or any statement furnished in connection therewith and relied
upon by the Fund in making the
Financing, is incorrect or misleading in any material respect.
(ix) If the Borrower/Recipient is not a Member
State, the Fund has determined that any material-adverse change in the condition of the Borrower/Recipient has
occurred.
(x) Either the Borrower/Recipient or the
Guarantor has been unable to pay its' debts generally as they come due.
(xi) Any competent authority has taken action for
the dissolution of the Lead Project Agency or suspension of its
operations.
(xii) Any competent authority has taken action for
the dissolution of any Project Party (other than the Lead Project Agency) or
suspension of its operations, and the Fund has determined that such dissolution or suspension is likely to have a
material adverse effect on the Project.
(xiii) The Borrower/Recipient has failed to make
any funds, facilities, services and other resources available to the Project Parties in accordance with Sections
7.02 or 7.03.
(xiv) The Fund has not received any audit report
or other document referred to in Article VIII (Implementation Reporting and Information) or Article IX (Financial
Reporting and Information) within the
time prescribed therefor in the Agreements, or the audit report is not fully satisfactory to the Fund, or the
Borrower/Recipient or any other Project Party has otherwise failed to perform
its obligations under Article VIII or IX.
(xv) The Lead Project Agency or any other Project
Party has failed to perform any of its obligations under a Project
Agreement.
(xvi) The Borrower/Recipient or the Lead Project
Agency has failed to perform any of its obligations under any Subsidiary
Agreement
(xvii) Any Project Party (other than the Lead
Project Agency) has failed to perform any of Its obligations under any
Subsidiary Agreement, and the Fund has determined that such failure has had, or is likely to have, a material
adverse effect on the Project.
(xviii) Any Subsidiary Agreement or any provision
thereof has been assigned, waived, suspended, terminated, amended or otherwise
modified without the prior consent of the Fund, and the Fund has determined that such assignment, waiver,
suspension, termination, amendment or modification has had, or is likely to
have, a material adverse effect on the Project.
(xix) The Fund has suspended, in whole or in
part, the right of the Borrower/Recipient or the Guarantor to request or make withdrawals under any other Agreement with
the Fund.
(xx) The Borrower/Recipient or any Project Party
has failed to perform any other obligation under the Financing Agreement
or any other Agreement, (xxi) The Fund
determines that any amount of the Financing has been used to finance an expenditure other than an Eligible Expenditure.
(xxii)
The Fund, after consultation with the Borrower/Recipient, has determined that
the material benefits of the Project are not adequately reaching the Target
Population, or are benefiting persons other than the Target Population to the
detriment of the Target Population.
(xxiii)
The Borrower/Recipient has defaulted in the performance of any Special Covenant
set forth in the relevant Agreement, and such default has continued unremedied
for a period of thirty (30) days, and the Fund has determined that such default
has had, or is likely to have, a material adverse effect on the Project.
(xxiv)
The Fund has given notice to the Borrower/Recipient that credible allegations
of coercive, collusive, corrupt or fraudulent practices in connection with the
Project have come to the attention of the Fund, and the Borrower/Recipient has
failed to take timely and appropriate action to address the matters to the
satisfaction of the Fund.
(xxv)
Procurement has not been or is not being carried out in accordance with the
IFAD Procurement Guidelines.
(xxvi)
Upon the occurrence or non-occurrence, as the case may be, of any event
specified in the relevant Agreement as an additional ground for suspension.
Such
suspension shall become effective upon dispatch of notice by the Fund to the
Borrower/Recipient and the Guarantor. Such suspension shall continue until the
Fund has notified the Borrower/Recipient that the Borrower/Recipient's right to
request withdrawals has been restored in whole or in part.
(b)
If the audit report required by Section 9.03 has not been submitted to the Fund
within six (6) months of the date on which it is due, the right of the
Borrower/Recipient to request withdrawals from the Loan and/or Grant Accounts
shall be suspended.
Section 12.02. Cancellation by the Fund.
(a)
If any of the following events has occurred, the Fund may cancel in whole or in
part the remaining amounts in the Loan and/or Grant Accounts:
(i)
The right of the Borrower/Recipient to request withdrawals from the Loan and/or
Grant Accounts has been suspended under Section 12.01 with respect to any
amount of the Financing for a continuous period of at least thirty (30) days.
(ii)
The Fund determines after consultation with the Borrower/Recipient that any
amount of the Financing will not be required to finance the Project.
(iii)
After consultation with the Borrower/Recipient, the Fund determines that
coercive, collusive, corrupt or fraudulent practices were engaged in by
representatives of the Borrower/Recipient or any Project Party in respect of
any expenditures incurred during the procurement or the carrying out of any
contract financed by the Financing, and that the Borrower/Recipient has failed
to take timely and appropriate action to remedy the situation.
(iv)
The Fund has determined that any amount of the Financing has been used to
finance an expenditure other than an Eligible Expenditure and the
Borrower/Recipient has failed to promptly refund such amount to the Fund upon
the Fund's instructions.
(v)
The Fund has received any notice from the Guarantor terminating its obligations
under the Guarantee Agreement
(vi)
The Mid-Term Review has recommended that the Project be terminated, (vii) Upon
the occurrence or non-occurrence, as the case may be, of any event specified in
the relevant Financing Agreement as an additional ground for cancellation.
Such
cancellation shall be effective upon dispatch of notice to the Borrower/Recipient.
(b)
Any amounts remaining in the Loan and/or Grant Accounts shall be cancelled on
the Financing Closing Date, except for any unwithdrawn balances of applications
for withdrawal received by the Financing Closing Date and any amounts subject
to undischarged Special Commitments, which shall be cancelled upon the full
discharge of such Special Commitments.
Section 12.03. Cancellation by the
Borrower/Recipient.
After consultation with the Fund and with the
concurrence of the Guarantor, the Borrower/Recipient may by notice to the Fund
cancel any unwithdrawn amount of the Financing, except for amounts subject to
Special Commitment Such cancellation shall become effective upon
acknowledgement thereof by the Fund.
Section 12.04. Applicability of Cancellation or
Suspension.
(a) No cancellation or
suspension shall apply to amounts subject to any Special Commitment made by the
Fund, unless such Special Commitment expressly provides otherwise.
(b) Except as
expressly provided in this Article, all provisions of the Financing Agreement
shall continue in full force and effect notwithstanding any cancellation or
suspension.
Section12.05. Acceleration of Maturity.
If
at any time any of the following events has occurred, at any subsequent time
during the continuance thereof, the Fund may declare the principal amount of
the Loan then outstanding, together with all accrued interest and other charges
thereon, to be immediately due and payable:
(a)
any event specified in paragraphs (v) through (xii), Inclusive, of Section 12.01
has occurred;
(b)
the Fund has declared the principal of any other loan to the Borrower/Recipient
or the Guarantor then outstanding to be immediately due and payable;
(c)
any event specified in paragraphs (i) through (iv), inclusive, of Section 12.01
has occurred and continues for a period of thirty (30) days;
(d)
any event specified in paragraphs (xiii) though (xxvi), inclusive, of Section
12.01 has occurred and continues for a period of sixty (60) days after notice
thereof has been given by the Fund to the Borrower/Recipient and the Guarantor;
or
(e)
any other event specified in the Financing Agreement for the purposes of this
Section has occurred and has continued for the period, if any, specified in the
Financing Agreement
Such
declaration shall be effective upon dispatch of notice to the
Borrower/Recipient and the Guarantor, whereupon such principal, interest and
other charges shall become due and payable immediately.
Section
12.06. Other Remedies.
The
remedies of the Fund set forth in this Article shall not limit or otherwise
prejudice any rights or remedies available to the Fund otherwise.
ARTICLE XIII - ENTRY INTO FORCE AND TERMINATION
Section
13.01. Entry into Force.
An
Agreement or amendment thereto shall enter into force on the date when both the
Fund and the Borrower/Recipient have signed it, unless the Agreement states
that it is subject to ratification, in which case the Agreement shall enter
into force on the date the Fund receives an instrument of ratification.
Section
13.02. Termination before Withdrawal.
The
Fund may terminate the Agreement and all rights and obligations of the parties
thereunder if:
(a) before the date of first withdrawal from the Loan
and/or Grant Accounts, any event of suspension specified in Section 12.01 has
occurred; or
(b) before the date of first withdrawal from the Loan
and/or Grant Accounts, the Borrower/Recipient, the Guarantor or any other
Project Party has taken any action inconsistent with the object and purpose of
any Agreement.
Section
13.03. Termination upon Full Performance.
An
Agreement and all obligations of the parties thereunder shall terminate when
the entire principal amount of the Loan withdrawn from the Loan Account and all
interest and other charges which shall have accrued on the Loan have been paid
and when all other obligations of the Parties have been fully performed, or
when agreed by the Parties.
ARTICLE XIV -
ENFORCEABILITY ANP R51ATEP WAITERS
Section 14.01. Enforceability.
The Agreement and the rights and obligations of
the parties thereunder shall be valid and enforceable in accordance with their
terms, regardless of any law to the contrary in the territory of the Project
Member State.
Section 14.02. Failure to Exercise Rights.
No delay in exercising, or failure to exercise,
any right, power or remedy of any party under an Agreement shall impair any
such right, power or remedy, or be construed as a waiver thereof. No action or
omission of any party in respect of any default under an Agreement shall impair
any right, power or remedy of such party in respect of any subsequent default.
Section 14.03. Rights and Remedies Cumulative.
The rights and remedies of any party under an
Agreement are cumulative and (except as otherwise expressly provided) not
exclusive of any right or remedies that such party would otherwise have.
Section 14.04. Arbitration.
(a) The parties to an Agreement shall endeavour
to settle through amicable means any controversy between them in respect of
such Agreement.
(b) Failing the
settlement of a controversy through amicable means, the controversy shall be submitted to arbitration for settlement. The
parties to the arbitration shall be the parties to the Agreement in
controversy, except that the Guarantor may intervene or be interpleaded in any
controversy that may affect its rights or obligations under the Guarantee
Agreement.
(c) The Arbitral
Tribunal shall consist of a single arbitrator appointed by agreement of the
parties or, if they do not agree
within three (3) months after proceedings are instituted under paragraph (d)
below, by the President of the International Court of Justice or, failing
appointment by him, by the Secretary-General
of the United Nations. If the arbitrator shall resign, die or become unable to
act, a successor arbitrator shall
have all the powers and duties of such original arbitrator.
(d) An arbitration
proceedings may be instituted under this Section upon notice by the party instituting such proceedings to the other party
or parties. Such notice shall contain a statement setting forth the
nature of the controversy or claim to be submitted to arbitration.
(e) The arbitration
proceedings shall take place at such time and place as shall be fixed by the arbitrator.
(f) Subject to the
provisions of this Section and except if the parties shall otherwise agree, the
arbitrator shall decide all
questions relating to his competence and shall determine the procedure for the
arbitration proceedings.
(g) The arbitrator
shall afford to all parties a fair hearing and shall render his award in
writing. Such award may be rendered
by default. A signed counterpart of the award shall be transmitted to each
party. Any such award rendered in accordance with the provisions of this
Section shall be final and binding upon the parties. Each party shall abide by
and comply with any such award rendered by the arbitrator in accordance
with the provisions of this Section.
(h) The parties shall fix the amount of the
remuneration of the arbitrator and such other persons as shall be required for
the conduct of the arbitration proceedings. If the parties shall not agree on
such amount before the arbitration proceedings begin, the arbitrator shall fix
such amount as shall be reasonable under the circumstances. Each party shall
defray its own expenses in the arbitration proceedings. The costs of the
arbitrator shall be divided between and borne equally by the Fund on the one
side and the other parties on the other side. Any question concerning the
division of the arbitrator's costs among the parties or the procedure for
payment of such costs shall be determined by the arbitrator.
(i) The provisions for arbitration set forth in
this Section shall be instead of any other procedure for the settlement of
controversies between the parties, and any claim by either party against the
other party arising thereunder.
(j) If the award has not been complied with within
thirty (30) days after the counterparts of the award have been delivered to the
parties, any party may enter judgement upon, or institute a proceeding to enforce, the award in any court of
competent jurisdiction against any other party. Such party may enforce such
judgement by execution or may pursue any other appropriate remedy against such
other party for the enforcement of the award.
(k) Service of any notice or process in connection
with any proceeding under this Section or (to the extent that such remedy shall
be available) in connection with any proceeding to enforce any award rendered pursuant to this Section may be made in
the manner provided in Section 15.01. The parties may waive any and all other requirements for the
service of any such notice or process.
ARTICLE XV -
MISCELLANEOUS PROVISIONS
Section 15.01. Communications.
All notices, requests and other communications
given or made under an Agreement shall be in writing. Except as otherwise expressly provided in the Agreement, any
such notice, request or other communication shall be deemed duly given or made
when delivered by hand, mail, telegram, cable, facsimile or email to the
party to which it is given or made at such party's address specified in the
particular Agreement, or at such other address as such party may designate by
notice to the other parties thereto.
Section
15.02. Language of Reporting.
The
Borrower/Recipient and the Project Parties shall deliver all reports and
information to the Fund in the language of the Agreement, or in any other
language agreed by the Parties.
Section
15.03. Authority to Take Action.
The
representative or agent so designated in any Agreement, or another person duly
authorized in writing by such representative or agent, may take any action and
sign any document in connection with such Agreement on behalf of such party.
Section
15.04. Evidence of Authority.
Upon
request by the Fund, the Borrower/Recipient, the Guarantor and any Project
Party shall furnish to the Fund sufficient evidence of the authority of the
person or persons referred to in Section 15.03, and the authenticated specimen
signature of each such person.
Section
15.05. Modifications of the Agreement.
The
parties may agree from time to time to modify the terms and conditions of an
Agreement (including, but not limited to, the terms and conditions of these
General Conditions as applied thereto) or the application of the Agreement. Any
amendment to an Agreement shall enter into force in accordance with the
provisions of Section 13.01 hereof, unless the parties agree otherwise.
Section
15.06. Change of Entity or Representative.
If
a party wishes to appoint any successor to, reassigns the responsibilities of,
or changes the designation or address of any of the entities specified in an
Agreement, such party shall give notice thereof to the other parties. Upon
acceptance by the other parties, such new entity shall constitute the entity
fully responsible for carrying out the functions assigned to its predecessor
under the Agreement.
Section
15.07. Signature of the Agreement
The
signature of an Agreement by a party shall constitute the expression of such
party's consent to be bound thereby, subject only to any ratification or
authorisation required by a rule of internal law of fundamental importance and
disclosed to the other party in writing before such signature.
1 These General
Conditions for Agricultural Development Financing were adopted by IFAD’s
Executive Board on 29 April 2008. Sections
2.01, 4.08(a) and 5.01 were amended by decision of the Executive Board on 17
September 2010. These General
Conditions, as amended, apply to all Financing Agreements for projects and
programmes approved by the Executive Board during and subsequent to Its
ninety-seventh session in September 2009.
2
Amended September 2010.
3 Amended September
2010.
4 Amended September
2010.