INTERNATIONAL DEVELOPMENT ASSOCIATION (RATIFICATION) ACT No. OF 1983 - Parliament of Vanuatu
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REPUBLIC OF VANUATU BILL FOR >HE LOAN AGREEMENTS (AGRICULTURAL EXTENSION AND TRAINING PROJECT) BETWEEN THE REPUBLIC OF VANUATU AND THE ASIAN.DEVELOPMENT BANK AND BETWEEN THE REPUBLIC OF VANUATU AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION (RATIFICATION) ACT No. OF 1983. AUTHENTICATION BY CLERK Signed: .. -.............. . CLERK TO PARLIAMENT 5 September 1983
REPUBLIC OF VANUATU THE LOAN AGREEMENTS (AGRICULTURAL EXTENSION AND TRAINING PROJECT) BETWEEN THE REPUBLIC OF VANUATU AND THE ASIAN DEVELOPMENT BANK AND BETWEEN THE REPUBLIC OF VANUATU AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION (RATIFICATION > ACT NO . 3 4 OP ' 19 83 Arrangement of Sections 1. Ratification. 2. Commencement. SCHEDULE 1 SCHEDULE 2
REPUBLIC OF VANUATU THE LOAN AGREEMENTS (AGRICULTURAL EXTENSION AND TRAINING PROJECT) BETWEEN THE REPUBLIC OF VANUATU AND THE ASIAN DEVELOPMENT BANK AND BETWEEN THE REPUBLIC OF VANUATU AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION (RATIFICATION) ACT NO.34 OF 1983 To ratify the loan agreement made between the Republic of Vanuatu and the Asian Development Bank signed on the Sth day of August 1983 and the loan Agreement made between the Republic of Vanuatu and the International Development Association signed on the Sth day of August 1983. BE IT ENACTED by the President and the Parliament as follows: RATIFICATION 1. (1) The loan agreement made between the Republic of Vanuatu and the Asian Development Bank signed on the 5th day of August 1983 set out in Schedule 1 hereto is hereby approved and ratified. (2) The loan agreement made between the Republic of Vanuatu and the International Development Association signed on the 5th day of August 1983 set out in Schedule 2 hereto is hereby approved and ratified. (3) The agreements shall be binding on Vanuatu in accordance with their terms. COMMENCEMENT 2* This Act shall come into force on the day of publication in the Gazette.
SCHEDULE 1 LOAN AGREEMENT (Special Operations) LOAN AGREEMENT dated 5 August 1983 between REPUBLIC OF VANUATU (hereinafter called the Borrower) and ASIAN DEVELOPMENT BANK (hereinafter called the Bank). WHEREAS (A) the Borrower has applied to the Bank for a loan for the purposes of the Project described in Schedule 1 to thi6 Loan Agreement; (B) the Borrower has also applied to the International Development Association (hereinafter called IDA) for a credit for the purposes of the Project (hereinafter called the IDA Credit); and (C) the Bank has agreed, on its part, to make a loan to the Borrower from the Bank's Special Funds resources upon the terms and conditions hereinafter set forth; NOV THEREFORE the parties hereto agree as follows: .../2
- 2 - ARTICLE I Loan Regulations; Definitions Section 1.01. All the provisions of the Special Operations Loan Regulations of the Bank, dated 1 December 1982, are hereby made applicable to this Loan Agreement with the same force and effect as if they were fully set forth herein (said Special Operations Loan Regulations being hereinafter called the Loan Regulations). Section 1.02. Wherever used in this Loan Agreement, unless the context otherwise requires, the several terms defined in the Loan Regulations have the respective meanings therein set forth, and the following additional terms have the following meanings: (a) "MLNR" means the Ministry of Land and Natural Resources of the Borrower; (b) "DALF" means the Department of Agriculture, Livestock and Forestry within MLNR; (c) "Project Executing Agency" for the purposes of, and within the meaning of the Loan Regulations means DALF, which is responsible for the carrying out of the Project; and (d) "Project facilities" means the facilities to be provided or constructed under the Project. .../3.
3 ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower from the Bank’s Special Funds resources an amount in various currencies equivalent to one million twenty-nine thousand and six hundred Special Drawing Rights (SDR 1,029,600). Section 2.02. The Borrower shall pay to the Bank a service charge at the rate of one per cent (17») per annum on the amount of the Loan withdrawn from the Loan Account and outstanding from time to time. Section 2.03. For any special commitment entered into by the Bank at the request of the Borrower pursuant to Section 5.02 of the Loan Regulations, the Borrower shall pay to the Bank a fee at the rate of one-half of one per cent (0.5%) per annum on the principal amount of such special commitment outstanding from time to time. Section 2.04. The service charge and any other charge on the Loan shall be payable semi-annually on 15 March and 15 September in each year. Section 2.05. The Borrower shall repay the principal amount of the Loan withdrawn from the Loan Account in accordance with the amortization schedule set forth in Schedule 2 to this Loan Agreement. * •. / 4.
- 4 - article iti Use of Proceeds of the Load Section 3.01. The Borrower shall cause the proceeds of the Loan to be applied to the financing of expenditure on the Project in accordance with the provisions of this Loan Agreement. Section 3.02. The goods and services and other items of expenditure to be financed out of the proceeds of the Loan and the allocation of amounts of the Loan among different categories of such goods and services and other items of expenditure shall be in accordance with the provisions of Schedule 3 to this Loan Agreement,, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank. Section 3.03. Except as the Borrower and the Bank shall otherwise agree, all goods and services to be financed out of the proceeds of the Loan shall be procured in accordance with the provisions of Schedule 4 and Schedule 5 to this Loan Agreement. Section 3.04. Except as the Borrower and the Bank shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively in the carrying out of the Project. Section 3.05. Withdrawals from the Loan Account shall be made only on account of expenditures relating to goods and services which: (a) are produced in, or are supplied from, such member countries of the Bank as shall have been specified by the Bank from time to time as eligible sources for procurement, and (b) meet such other eligibility requirements as shall have been specified by the Bank from time co time. Section 3.06. The closing date for withdrawals from the Loan Account for the purposes of Section 8.03 of the Loan Regulations shall be 30 June 1989 or such other date as may from time to time be agreed between the Borrower and the Bank, .. ./5.
- 5 - ARTICLE IV Particular Covenants Section 4.01. (a) The Borrower shall cause the Project to be carried out with due diligence and efficiency and in conformity with sound adminis trative, financial, engineering and agricultural practices. (b) In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 6 to this Loan Agreement. Section 4,02. The Borrower shall make available, promptly as needed, the funds, land, facilities, services and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of the Project facilities. Section 4.03. (a) In the carrying out of the Project, the Borrower shall cause competent and qualified consultants and contractors acceptable to the Borrower and the Bank., to be employed to an extent and upon terms and conditions satisfactory to the Borrower and the Bank. (b) The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Borrower and the Bank, The Borrower shall furnish or cause to be furnished to the Bank, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as the Bank shall reasonably request. Section 4.04. The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.
6 Section 4.05, (a) The Borrower shall make arrangements satisfactory to the Bank for insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice. (b) Without limiting the generality of the foregoing, the Borrower undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods. Section 4.06. (a) The Borrower shall maintain, or cause to he maintained, records and accounts adequate to identify the goods and services financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting practices, the opera tions and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof. (b) The Borrower shall (i) maintain, or cause to he maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with sound auditing principles, by auditors acceptable to the Bank; (iii) furnish to the Bank, as soon as available but in any event not later than six months after the end of each related fiscal year, certified copies of such audited financial statements and the report of the auditors relating thereto, all in the English language; and
7 (iv) furnish to the Bank such other information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request. Section 4.07. (a) The Borrower shall furnish, or cause to be furnished, to the Bank all such reports and information as the Bank shall reasonably request concerning * (i) the Loan, and the expenditure of the proceeds and mainte nance of the service thereof; (ii) the goods and services and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) the administration, operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof; (v) financial and economic conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vi) any other matters relating to the purposes of the Loan. (b) Without limiting the generality of the foregoing, the Borrower shall furnish or cause to be furnished to the Bank quarterly reports on the carrying out of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as the Bank shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter. * *./&.
- 8 - (c) Promptly after completion of the Project, but in any event not later than six (6) months after the closing date for withdrawals from the Loan Account or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower of its obligations under the Loan Agreement, and the accomplishment of the purposes of the Loan. Section 4.08. The Borrower shall enable the Bank's representatives to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents. Section 4.09. The Borrower shall ensure that the Project facilities are operated, maintained and repaired in accordance with sound administrative, financial, engineering, and maintenance and operational practices. Section 4.10. (a) It is the mutual intention of the Borrower and the Bank that no other external debt owed a creditor other than the Bank shall have any priority over the Loan by way of a lien on the assets of the Borrower. To that end, the Borrower undertakes (i) that, except as the Bank shall otherwise agree, if any lien shall be created on any assets of the Borrower as security for any external debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and service charge and any other charge on, the Loan; and (ii) that the Borrower, in creating or permitting the creation of any such lien, will make express provision to that effect. (b) The provisions of paragraph (a) of this Section shall not apply to . . ./9.
9 (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; or (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date, (c) The term ’’assets of the Borrower” as used in paragraph (a) of this Section includes assets of the Borrower and assets of any entity owned or controlled by, or operating for the account or benefit of the Borrower, including the Central Bank of Vanuatu and any other institution owned or controlled by the Borrower which performs the functions of a central bank for the Borrower. .../10.
10 - ARTICLE V Suspension; Cancellation; Acceleration of Maturity Section 5.01. The following is specified as an additional event for suspension of the right of the Borrower to make withdrawals from the Loan Account for the purposes of Section 8.02(1) of the Loan Regulations: The IDA Credit shall have become liable for suspension or cancellation or shall have become repayable prior to its agreed maturity date. Section 5.02. The following is specified as an additional event for acceler ation of maturity for the purposes of Secton 8.07(d) of the Loan Regulations: The event specified in Section 5.01 of this Loan Agreement shall have occurred. .. ./11.
11 - ARTICLE VI Effectiveness Section 6.01. The following is specified as an additional condition to the effectiveness of this Loan Agreement for the purposes of Section 9.01(f) of the Loan Regulations: The Borrower shall have obtained the IDA Credit or shall have made other arrangements, satisfactory to the Bank, to commit the provision of the foreign currency funds intended to be provided by the IDA Credit. Section 6.02. A date ninety (90) days after the date of this Loan Agreement is specified for the effectiveness of the Loan for the purposes of Section 9.04 of the Loan Regulations. .../12.
- 12 ARTICLE VII Miscellaneous Section 7.01. The Minister of Finance, Commerce, Industry and Tourism of the Borrower is designated as representative of the Borrower for the purposes of Section 11.02 of the Loan Regulations. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the Loan Regulations; For the Borrower Minister of Finance, Commerce, Industry and Tourism, P.O. Box 31, Port Vila, Republic of Vanuatu Telex Number: 1049 VATUBK NH For the Bank Asian Development Bank, P.O. Dox 769, Man i1a , Philippines Cable Address: ASIANBANK MANILA Telex Numbers: 23103 ADB PH (RCA) 40571 ADB PM (ITT) 63587 ADB PN (ETPI) .../13.
13 - IN WITNESS WHEREOF the parties hereto, acting through their representatives thereunto duly authorized, have cause this Loan Agreement to be signed in their respective names and to be delivered at the principal office of the Bank, as of the day and year first above written. REPUBLIC OF VANUATU By HOON-MOK CHUNG Authorised Representative ASIAN DEVELOPMENT BANK By MASAO FUJIOKA President ,../14.
14 SCHEDULE 1 Description of the Project The objective of the Project is the improvement of essential smallholder support services in Vanuatu. The Project will encourage more efficient utili zation of resources, increase smallholders' cash income, enlarge the Borrow er's revenue base and provide training facilities. The Project consists of the following: 1. Experimental Plots and Demonstration Farms Establishment and maintenance of experimental plots and demonstration farms with support services at 8 agricultural centers of DALF in the Project area. 2. Training and Fellowships (a) Provision of in-servicc training facilities for the extension divi sion, and overseas fellowships and study tours for extension staff, Agricultural teachers, agricultural information officers and veteri nary laboratory technicians; (b) Revision of post secondary education course held at the Tagabe Agric ultural School; and (c) Provision of facilities for farmers' training at the demonstration farms. 3. Extension Service Provision of houses, offices/stores, vehicles, dinghys and radio-telephone equipment for upgrading the extension service of DALF. 4• Agricultural Information Service Provision of equipment, information material, incremental salaries and material cost for improving the existing information services in the Agricultural Information Office of DALF. . ../15.
- 15 - Schedule 1 5. Livestock Service Establishment of a veterinary Laboratory through the provision of labora tory building, equipment and chemical supplies. 6. Project Office Provision of office furniture equipment and incremental salaries for the Project Office. 7. Consulting Services Provision of consulting services for agricultural training, extension services and information. The Project is expected to be completed by 31 December 1988,
16 Schedule 2 Amortization Schedule (Agricultural Extension and Training Project) Date Payment Due Payment of Principal (expressed in SDR) * 15 September 1993 10,300 15 March 1994 10,300 15 September 1994 10,300 15 March 1995 10,300 15 September 1995 10,300 15 March 1996 10,300 15 September 1996 10,300 15 March 1997 10,300 15 September 1997 10,300 15 March 1998 10,300 15 September 1998 10,300 15 March 1999 10,300 15 September 1999 10,300 15 March 2000 10,300 15 September 2000 10,300 15 March 2001 10,300 15 September 2001 10,300 15 March 2002 10,300 15 September 2002 10,300 15 March 2003 10,300 15 September 2003 20,590 15 March 2004 20,590 15 September 2004 20,590 15 March 2005 20,590 15 September 2005 20,590 15 March 2006 20,590 15 September 2006 20,590 15 March 2007 20,590 15 September 2007 20,590 The figures in this column represent SDR equivalents determined as of the respective dates of withdrawal. The arrangements for payment of each maturity are subject to the provisions of Sections 3.04 and 4.03 of the Loan Regulations. . . ./17
17 Schedule 2 Date Payment Due Payment of Principal (expressed in SDR) * 15 March 2008 20,590 15 September 2008 20,590 15 March 2009 20,590 15 September 2009 20,590 15 March 2010 20,590 15 September 2010 20,590 15 March 2011 20,590 15 September 2011 20,590 15 March 2012 20,590 15 September 2012 20,590 15 March 2013 20,590 15 September 2013 20,590 15 March 2014 20s590 15 September 2014 20,590 15 March 2015 20,590 15 September 2015 20,590 15 March 2016 20,590 15 September 2016 20,590 15 March 2017 20,590 15 September 2017 20,590 15 March 2018 20,590 15 September 2018 20,590 15 March 2019 20,590 15 September 2019 20,590 15 March 2020 20,590 15 September 2020 20,590 15 March 2021 20,590 15 September 2021 20,590 15 March 2022 20,590 15 September 2022 20,590 15 March 2023 20,590 15 September 2023 20,590 Total SDR 1,029,600 The figures in this column represent SDR equivalents determined as of the respective elates * of withdrawal The arrangements for payment of each maturity are subject to the provision of Sections 3.04 and 4.03 of the Loan Regulations,
18 SCHEDULE 3 Allocation and Withdrawal of Loan Proceeds 1. The table attached hereto sets forth the Categories of goods2 services and other items to be financed out of the proceeds of the Loan and the allocation of amounts of the Loan to each Category. 2. Except as. provided in this schedule or as>the Bank may otherwise agree, no withdrawals from the Loan Account shall be made in respect of any local expenditures on the Project. 3. The amounts allocated to each of the Categories I to VII represent the portion of the presently estimated foreign currency expenditures for each such Category which is to he financed under the Loan. For the purpose of withdrawals from the Loan Account in respect of such Categories, the following percentages shall apply: (i) Category I : 1007, of foreign expenditure (ii) Categories II-VII; 15% of total expenditure. 4. The items in Categories III, IV and V will be procured under international shopping procedures pursuant to the relevant provisions of Schedule 4 to this Loan Agreement, Any contract for such items awarded to a local supplier after effective international shopping shall be financed on the following basis: (a) where the goods procured from a local supplier are manufactured locally, 100 per cent of the ex-factory price of the goods supplied (exclusive of any duties and taxes); and (b) where the goods procured from a local supplier have been entirely imported, the foreign currency component of the contract price. ..,/19.
- 19 - Schedule 3 5. The amount of SDR 280,807 allocated to Category VIII is for financing local expenditures for the Category. Such amount may be withdrawn from the Loan Account in foreign currency on the basis of 157« of total expenditures for Categories II, III, IV and V, subject to the maxifnum amount of SDR 280,807. 6, Notwithstanding the allocation of the loan proceeds and the withdrawal percentages set forth above: (a) if the amount of the Loan then allocated to any Category (except Category VIII) appears to be insufficient to finance all agreed expenditures in that Category, the Bank may, by notice to the Borrow er, (i) reallocate to such Category, to the extent required to meet the estimated shortfall, amounts of the Loan which have been allocated to another Category (except Category VIII) but, in the opinion of the Bank, are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the withdrawal percentage applicable to such expenditures in order that further withdrawals under such Category may conti nue until all expenditures thereunder shall have been made; (b) if the amount of the Loan then allocated to any Category (except Category VIII) appears to exceed all agreed expenditures in that Category, the Bank may, by notice to the Borrower, reallocate such excess amount to any other Category (except Category VIII) as required.
- 20 - Attachment to Schedule 3 \ ALLOCATION OF PROCEEDS OF LOAN (Agricultural Extension and Training Project) Amount Allocated (SDR Equivalent) I. Consulting Services SDR 257,406 II. Civil Works 114,195 III. Machinery & Equipment 42,121 IV. Veh icles 33,697 V. Agricultural Inputs 3,744 VI. Training 66,458 VII. Incremental Operating Costs 48,673 VIII. Local expenditures 280,807 (a) Civil Works SDR229,326 (b) Machinery and 26,209 Equipment (c) Vehicles 14,040 (d) Agricultural 11,232 Inputs IX. Unallocated 182,499 SDR 1,029,600 /21
- 21 SCHEDULE 4 Procurement 1. Except as the Bank may otherwise agree, the procedures referred to in the following paragraphs of this Schedule shall apply in the procurement of goods and services to he financed out of the proceeds of the Loan. The term ’’services" in this Schedule does not include consultant services. 2. Procurement of goods and services shall he subject to the provisions of the following documents, as amended from time to time, which have been furnished to the Borrower: (i) "Guidelines for Procurement under Asian Development Bank Loans" dated May 1981; and (ii) "Eligibility Requirements under Special Funds Loans" dated June 1982. 3. Except for certain minor items (where the contract value is less than the equivalent of $10,000) which may be procured locally, each supply contract for equipment or materials shall be awarded on the basis of international shopping as described in Chapter III of the Guidelines for Procurement. 4. Civil works contracts shall be awarded on the basis of competitive bidding among local contractors in accordance with procedures acceptable to the Bank. Selection and engagement of contractors shall be subject to the approval of the Bank. After award, three copies of each such contract shall be furnished to the Bank. In cases where an award cannot be made because of lack of competition, civil works may be carried out by the Department of Public Works on a force account basis. .../22.
~ 22 - SCHEDULE 5 Consultants 1. The services of individual consultants shall he utilized in the carrying out of the Project, particularly with regard to: (a) agricultural training; (b) agricultural extension; and (c) agricultural information. The detailed terms of reference of the consultants shall be as determined by agreement between the Bank and DALF. 2. The selection, engagement and services of the consultants shall be subject to the provisions of this Schedule and the provisions of the following documents, as amended from time to time, which have been furnished to DALF: (i) "Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers" dated April 1979; and (ii) "Eligibility Requirements under Special Funds Loans" dated June 1982. 3. The consultants shall be selected and engaged by DALF in accordance with the following procedures: (a) Before selection of consultants is made, the following items shall be furnished to the Bank for its prior approval: (i) a list of the candidates, including their qualifications and experience; (ii) an evaluation of the candidates, ranked in order of preference, together with a brief justification for the selection intended to be made; and .../23.
- 23 Schedule 5 (iii) a draft contract with consultant. (b) Promptly after the contract is signed, the Bank shall be furnished with three copies of the signed contract. (c) If any substantial amendment of the contract is proposed after its execution, the proposed changes shall be submitted to the Bank for prior approval.
- 24 - SCHEDULE 6 Execution of Project and Operation of Project Facilities I. Imp1ementation and Coordination Project Implementation 1. DALF shall implement the Project under the over-all supervision of MLNR and in coordination with the Ministry of Finance, Commerce, Industry and Tourism (MFCIT) and the national Planning and Statistics Office (NPSO). For this purpose, the Borrower shall cause a suitably staffed Project Office to be established within DALF before 31 December 1983. 2. The Director of DALF shall be the Project Director and shall be responsible for the overall implementation of the Project, A Project Manager shall be appointed by the Project Director in consultation with the Bank to undertake the day-to-day management of the Project. The Project Manager shall be advised and trained on the job by the Management Information Adviser tn be provided under a technical assistance granted by the Bank. The Project Manager shall report to and work under the general control and guidance of the Project Director. He shall be assisted by a full time accountant and secretarial staff of DALF as required. 3. The responsibilities of the Project Office shall include: (i) all procurement arrangements; (ii) the engagement of consultants; (iii) the arrangements for overseas fellowships; (iv) maintenance of separate hooks of accounts for the Project; (v) monitoring Project implementation and benefits; and (vi) preparation of quarterly Project reports in a format acceptable to the Bank. . . ,/25.
25 - Schedule 6 Project Coordination 4t The Borrower shall set up a Project Coordinating Committee (PCC) before 31 December 1983 to carry out coordination of Project implementation activities. PCC shall be chaired by the First Secretary of the MLNR and shall include the First Secretary of the MFCIT, the Director of the NPSO and the Project Director. PCC shall meet at least once each quarter. PCC may, if it requires, coopt additional members. PCC shall be responsible for the over-all coordination of mattersconcerning implementation of the Project, including the resolution ofassociated policy issues, theestablishment of implementation guidelines, coordination and cooperation between government agencies and departments concerned with the Project and the monitoring and review of progress under the Project. II. Operation and Maintenance (0 & M) and Other Matters QAM 5. The Borrower shall take appropriate measures to provide the necessary funds, manpower and facilities required to ensure the continued operation and maintenance of all Project facilities during implementation and after completion of the Project. Staffing 6. The Borrower shall make available all necessary technical and administra tive staff required for the Project, on a timely basis. In particular the Borrower shall cause DALF to: (i) assign one experienced field extension officer as Farm Manager for each agricultural center provided with experimental plots and demonstration farms? (ii) recruit graduates from Tagabe Agricultural School for replacements in the extension field force; and (iii) recruit young farmers as trainees for each demonstration farm. .../26.
2b Schedule 6 7. The Borrower shall also cause the staffing of the Agricultural Information Office to be strengthened by the provision of two local staff, to ensure continued operation of its services during extended overseas training for two trainees and to increase its capacity upon completion of training. Land Acquisition 8. The Borrower shall take all actions necessary to acquire and/or make available on a timely basis and in accordance with the agreed Project implementation schedule all lands, rights of way and accesses as may be required for the Project. In particular, land required for the demon stration farms shall be specifically demarcated and acquired by the Borrower prior to the year for which implementation is scheduled. 9. The Borrower shall make available at not cost to the Project the land required for the Veterinary Laboratory. The site shall be located close to Port Vila and with access from the existing main roads and shall be provided fully with public services. Agricultural Radio 10. The Borrower shall provide a suitable short-wave radio frequency to DALF for the Project. Training 11. DALF shall, subject to the Borrower's rules and regulations and in consultation with the Bank, determine training programs required, formulate appropriate selection procedures, specify qualification requirements and select candidates for training fellowships under the Project. 12. The Borrower and DALF shall set up a system of bonding for DALF staff granted fellowships to ensure that they return to Vanuatu after comple tion of their training and provide the service for which they are trained.
SCHEDULE 2 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 5 August, 1983 between REPUBLIC OF VANUATU (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS: (A) the Borrower has requested the Association to assist in the financ ing of the Project described in Schedule 2 to this Agreement by exending the Credit as hereinafter provided; (B) the Borrower has applied to the Asian Development Bank (hereinafter called the ADB) for a loan (hereinafter called the ADB Loan) from the ADB *s Special Funds recources in various currencies equivalent to One million twenty-nine thousand and six hundred Special Drawing Rights (SDR 1,029,600) to assist in financing the Project on the terms and conditions set forth in an agreement (hereinafter called the ADB Loan Agreement)(Special Operations) to be entered into between the Borrower and the ADB; (C) the Borrower has applied to ADB for technical assistance relating to the Project in an amount not to exceed the equivalent of two hundred and sixty five thousand dollars ($265,000)(hereinafter called the ADB Grant); and (D) ADB and the Association intend to enter into an agreement, which agreement will be confirmed by the borrower (hereinafter called the Administration Letter) making arrangements for the ADB to process applications for withdrawal of the proceeds of the financing to be provided severally by ADB and the Association and regulating certain other matters of common interest in connection with such * financing WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: .../3.
2 ARTICLE 1 General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Pre amble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "MLNR" means the Ministry of Land and Natural Resources of the Borrower; (b) "DALF" means the Department of Agriculture, Livestock and Forestry within MLNR; and (c) "Project facilities" means the facilities to be provided or con structed under the Project. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to one million nine hundred thousand special Drawing Rights (SDR 1,900,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Ac count in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. ,../3.
3 Section 2.03 * Except as the Association shall otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1989 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request^ (ii) without restrictions of any kind imposed by, or in the terri tory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.06. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.07. Commitment charges and service charges shall be payable semiannually on June 15 and December 15 in each year. .../4.
- 4 - Section 2.08. The Borrower shall rfepdy the principal amount of the Credit in semiannual installments payable on each June 15 and December 15 commencing December 15, 1993, and ending June 15, 2033, each installment to and including the installment payable on June 15, 2003, to be one-half of one per cent (1/2 of 17) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.09. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project through DALE with due diligence and efficiency and in conformity with appropriate adminis trative, financial, engineering and agricultural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation on the provision of sub-section (a) above, the Borrower shall carry out or cause to be carried out all the obliga tions set forth in Schedule 6 to the ADB Loan Agreement. Notwith standing the termination of the ADB Loan Agreement or the Adminis tration Letter, the provision of this sub-section and the relevant provisions of Schedule 6 of the ADB Loan Agreement shall continue to remain in force and effect as if the said provisions of Schedule 6 of the ADB Loan Agreement are fully set forth herein. Section 3.02. In order to assist the Borrower in, among others, agricultural training, extension and information, the Borrower shall employ or cause to be employed, consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, such consultants to be selected and employed in accordance with principles and procedures of selection and employment included in Schedule 5 co the ADB Loan Agreement. .,./5.
- 5 - Section 3.03. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transpor tation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) The Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Section 3.04. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify that goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request con cerning the Project, its cost and, where appropriate, the bene fits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. *»./6.
- 6 - (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the Credit, the Association may publish a description thereof, the name and nationa lity of the party to whom the contract was awarded and the contract price. (d) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association a report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accom plishment of the purposes of the Credit. ARTICLE IV Other Covenants Section 4,01. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to be maintained separate accounts reflecting all expenditures on account of which withdrawals are requested from the Credit Account on the basis of state ments of expenditure; (ii) retain, until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other docu ments) evidencing the expenditures on account of which with drawals are requested from the Credit Account on the basis
7 of statements of expenditure; and (iii) enable the Association's representatives to examine such re cords . (c) The Borrower shall: (i) have the accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent audi tors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than six months after the end of each such year, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably requested, including without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of this Section as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of statements of expenditure have been used for the purpose for which they were provided; and (iii) furnish to the Association such other information concerning said accounts, records and expenditures and the audit thereof as the Association shall from time to time reasonably request. Section 4.02. The Borrower shall cause the Project facilities to be operated, maintained and repaired in accordance with sound administrative, financial, engineering, agricultural development and maintenance and operational practices and shall provide the funds, facilities, services and other resources for the purpose. Section 4.03. The Association may, by notice to the Borrower, delegate to the ADB under an administration letter, for the duration of such period as may be set forth in the Administration Letter, any or all of its functions and responsibilities under Articles III and IV of this Agreement and the Borrower shall comply with the provisions of the said Articles as if the ADB is substituted for the Association therein. The obligation of the Borrower .../0.
- 8 - to comply with said Articles III and IV shall continue in force and effect notwithstanding any termination or suspension of such delegated functions and responsibilities to the ADB under the Administration Letter. ARTICLE V Remedies of the Association Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that subject to paragraph (b) of this Section: (i) The right of the Borrower to withdraw the proceeds of the ADB Grant or ADB Loan made to the Borrower for the financing of the Project or any part thereof shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the ADB Grant or ADB Loan, respectively, therefor; or (ii) the ADB Loan shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that the event specified in paragraph (a)(ii) of Section 5.01 of this Agreement shall occur.
- 9 - ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the Gleaning of Section 12,01 (b) of the General Conditions, namely, that: (a) all conditions precedent to the effectiveness of the ADB Loan, other than a condition precedent for the effectiveness of this Agreement, shall have been fulfilled; and (b) all conditions precedent to the effectiveness of the ADB Grant shall have been fulfilled. Section 6.02. The date November 3, 1983, is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date 25 years after the date of this Agree ment, whichever shall be the earlier. ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The Minister of Finance, Commerce, Industry and Tourism of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. .../10.
10 - Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Minister of Finance, Commerce, Industry and Tourism, P.O. Box 31, Port Vila,Republic of Vanuatu Telex: 1049 VATUBK NH For the Association: International Development Association 1618 H Street, N.M. Washington, D.C. 20433 United States of America Cable address: INDEVAS, Washington, D.C. Telex: 440093 (ITT) 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in Manila, Republic of the Philippines, as of the day and year first above written. REPUBLIC OF VANUATU By H00N-M0K CHUNG Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By AHMED JEHANI Authorized Representative .../II.
11 SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1* The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated %of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works 719,000 100% (2) Machinery and 161,000) 100% of foreign equipment expenditures, (3) Vehicles 116,000) 100% of local ) expenditures ) (ex-factory costs) and (4) Agricultural inputs 30,000) 807o of local expen ) ditures for other ) items procured locally (5) Training 180,000 100% (6) Incremental opera- 132,000 100% ting costs (7) Unallocated 562,000 TOTAL 1,900,000
- 12 - 2. For the purposes of this Schedule: (a) the term ’’foreign expenditures” means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; (b) the term "local expenditures” means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in compliance with the policy of the Association that the proceeds of the Ctedit shall not be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; on this basis, if the amount of any such taxes levied on or in respect of items in any Category de creases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such Category as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of expenditures made prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbur sement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance rhe agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures; and . ../13.
13 (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expen ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditure for such item shall be financed out of the proceeds of the Credit, and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expendi tures which would otherwise have been eligible for financing out of the proceeds of the Credit. SCHEDULE 2 Description of the Project The objective of the Project is the improvement of essential smallholder support services in Vanuatu. The Project will encourage more efficient utilization of resources, increase smallholders' cash income, enlarge the Borrower's revenue base and provide training facilities. The Project consists of the following: 1• Experimental Plots and Demonstration Farms Establishment and maintenance of experimental plots and demonstration farms with support services at 8 agricultural centers of DALF in the Project area. 2. Training and Fellowships (a) Provision of in-service-training facilities for the extension divisions, and overseas fellowships and study tours for extension staff, agricultural teachers, agricultural information officers and veterinary laboratory technicians;
- 14 - (b) Revision of post secondary education course held at the Tag a be Agricultural School; and (c) Provision of facilities for farmers' training at the demonstration farms. 3. Extension Service Provision of houses, offices/storcs, vehicles, dinghys and radio-tele phone equipment for upgrading the extension service of DALF. 4. Agricultural Information Service Provision of equipment, information material, incremental salaries and material cost for improving the existing information services in the Agricultural Information Office of DALF. 5. Livestock Service Establishment of a veterinary laboratory through the provision of labora tory building, equipment and chemical supplies. 6. Project Office Provision of office furniture, equipment and incremental salaries for the Project Office. 7. Consu1ting Service Provision of consulting services for agricultural training, extension services and information. * * * The Project is expected to be completed by December 31, 1988, .../15.
SCHEDULE 3 Procurement Except as the Association may otherwise agree, goods and civil works to be financed out of the proceeds of the Credit shall be procured under contracts awarded in accordance with Schedule 4 of the ADB Loan Agreement, provided always that procurement of such goods and civil works shall be from suppliers and contractors in countries in respect of which withdrawals from the Credit Account may be made pursuant to Section 5.01 of the General Conditions.
RgPUBLlQUE DE VANUATU I PROJET DE LO1 ’ 54 DE 1983 RELATIF AUX CONVENTIONS D'OUVERTURE DE CREDIT (PROGRAMME DE VULGARISA TION ET DE FORMATION AGRICOLES) ENTRE LA REPUBLIQUE DE VANUATU ET LA BANQUE ASIATIQUE DE DEVELOPPEMENT ET ENTRE LA REPUBLIQUE DE VANUATU ET L'ASSOCIATION INTERNATIONALE DE DEVELOPPEMENT (RATIFICATION) CERTIFICATION PAR LE SECRETAIRE GENERAL DU PARLEMENT Signature: ............................. .................... SECRETAIRE GENERAL DU PARLEMENT 5 Septembre 19B J Signature : ............. _.... .............................. . PRESIDENT DE LA REPUBLIQUE Septembre 19® 3
REPUBLIQUE DE VANUATU LOI N° 34 DE 1983 RELATIF AUX CONVENTIONS D'OUVERTURE DE CREDIT (PROGRAMME DE VULGARISATION ET DE FORMATION AGRICOLES) ENTRE LA REPUBLIQUE DE VANUATU ET LA BANQUE ASIATIQUE DE DEVELOPPEMENT ET ENTRE LA REPUBLIQUE DE VANUATU ET L'ASSOCIATION INTERNATIONALE DE DEVELOPPEMENT (RATIFICATION) Sommaire 1. Ratification. 2. Entree en vigueur. Annexe 1 Annexe 2
REPUBLIQUE DE VANUATU LOI N° 34 DE 1983 RELATIVE AUX CONVENTIONS D'OUVERTURE DE CREDIT (PROGRAMME DE VULGARISATION ET DE FORMATION AGRICOLES) ENTRE LA REPUBLIQUE DE VANUATU ET LA BANQUE AS1ATIQUE DE DEVELOPPEMENT ET ENTRE LA REPUBLIQUE DE VANUATU ET L‘ASSOCIATION INTERNATIONALE DE DEVELOPPEMENT (RATIFICATION) Portant ratification de la Convention d'ouverture de credit signee le 5 aoQt 1983 par la R^publique de Vanuatu et la Banque Asiatique de D^veloppement et de la Convention d'ouverture de crddit signee le 5 aoOt 1983 par la R6publique de Vanuatu et 1'Association Internationale de D^veloppement. Le President de la Rdpublique et le Parlement promulguent le texte suivant : RATIFICATION 1. 1) Est approuv^e et ratifi^e par les prSsentes la Convention d'ouver ture de credit signee le 5 aoOt 1983 entre la Rgpublique de Vanuatu et la Banque Asiatique de D^veloppement, dont le texte est reproduit & 1'annexe 1. 2. 2) Est approuv^e et ratifide par les presentee la Convention d'ouverture de credit signee le 5 aoOt 1983 par la Rgpublique de Vanuatu et 1'Association Internationale de D6veloppement dont le texte est repro duit & 1'annexe 2. 3) Vanuatu s'engage irr^vocablement & respecter les conditions desdite9 Conventions. ENTREE EN VIGUEUR 2. Le present texte entrera en vigueur le jour de sa publication au Journal officiel.
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