Loan Number 4687 RU
LOAN AGREEMENT
(TUBERCULOSIS AND AIDS CONTROL PROJECT)
BETWEEN RUSSIAN FEDERATION AND INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT
(Moscow, 12.IX.2003)
Agreement, dated September 12, 2003, between Russian Federation
(the Borrower) and International Bank for Reconstruction and
Development (the Bank).
Whereas the Borrower, having satisfied itself as to the
feasibility and priority of the project described in Schedule 2 to
this Agreement (the Project), has requested the Bank to assist in
the financing of the Project;
Whereas the Bank has agreed, on the basis, inter alia, of the
foregoing, to extend the Loan to the Borrower upon the terms and
conditions set forth in this Agreement;
Now therefore the parties hereto hereby agree as follows:
Article I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Loan and
Guarantee Agreements for Single Currency Loans" of the Bank, dated
May 30, 1995 (as amended through October 6, 1999) (the General
Conditions) constitute an integral part of this Agreement.
Section 1.02. Unless the context otherwise requires, the
several terms defined in the General Conditions and in the
Preamble to this Agreement have the respective meanings therein
set forth and the following additional terms have the following
meanings:
(a) "AIDS" means the acquired immune-deficiency syndrome, a
severe life threatening disease which represents the late clinical
stage of human infection with HIV (as hereinafter defined);
(b) "CSW" means commercial sex workers;
(c) "HIV" means the human immunodeficiency virus;
(d) "Financial Monitoring Report" or "FMR" means each report
prepared in accordance with Section 4.02 of this Agreement;
(e) "IDU" means intravenous drug users;
(f) "MOF" means the Borrower's Ministry of Finance, or any
successor or successors thereto;
(g) "MOH" means the Borrower's Ministry of Health, or any
successor or successors thereto;
(h) "MOJ" means the Borrower's Ministry of Justice, or any
successor or successors thereto;
(i) "Project Operational Manual" means a manual adopted by the
Borrower pursuant to Section 6.01(c) of this Agreement and setting
forth procedures, rules and criteria related to Project
implementation, as the same may be amended from time to time;
(j) "Participating Region" means any oblast or other region of
the Russian Federation which may from time to time have been
selected by the Borrower for participation in the Project on the
basis of the selection criteria set forth in the Project
Operational Manual, and "Participating Regions" means,
collectively, all these regions;
(k) "Project Implementation Agreement" means the agreement
between the Borrower (represented by MOF, MOH and MOJ) and RHCF
(as hereinafter defined) referred to in Section 3.02 of this
Agreement, as the same may be amended from time to time, and such
term includes all schedules to the Project Implementation
Agreement;
(l) "Regional Participation Agreement" means the agreement to
be entered into between RHCF and each Participating Region
pursuant to Section 3.03 of this Agreement, as the same may be
amended from time to time, and such term includes all schedules to
the Regional Participation Agreement;
(m) "RHCF" means Russian Health Care Foundation, a non-
commercial foundation established pursuant to Resolution of the
Government of the Borrower No. 1295, dated October 31, 1996, and
registered by the Borrower's Ministry of Justice, under
Certificate of Registration No.IOP-33 dated November 28, 1996 (re-
registered November 30, 2001), which is the entity authorized to
implement the Project pursuant to the Project Implementation
Agreement, or any successor thereto;
(n) "Special Account" means the account referred to in Section
2.02(b) of this Agreement;
(o) "STI" means sexually-transmitted infections;
(p) "ТВ" means tuberculosis; and
(q) "Working Group" means the working group for preparation and
implementation of the Project established by MOH and referred to
in paragraph 2 of Schedule 5 to this Agreement.
Section 1.03. Each reference in the General Conditions to the
Project implementation entity shall be deemed as a reference to
RHCF.
Article II
The Loan
Section 2.01. The Bank agrees to lend to the Borrower, on the
terms and conditions set forth or referred to in the Loan
Agreement, an amount equal to one hundred fifty million dollars
(USD 150,000,000).
Section 2.02. (a) The amount of the Loan may be withdrawn from
the Loan Account in accordance with the provisions of Schedule 1
to this Agreement for expenditures made (or, if the Bank shall so
agree, to be made) in respect of the reasonable cost of goods and
services required for the Project and to be financed out of the
proceeds of the Loan.
(b) The Borrower may, for the purposes of the Project open and
maintain in dollars a special deposit account in a commercial
bank, acceptable to the Bank, on terms and conditions satisfactory
to the Bank, including appropriate protection against set-off,
seizure and attachment. Deposits into, and payments out of, the
Special Account shall be made in accordance with the provisions of
Schedule 6 to this Agreement.
Section 2.03. The Closing Date shall be December 31, 2008 or
such later date as the Bank shall establish. The Bank shall
promptly notify the Borrower of such later date.
Section 2.04. The Borrower shall pay to the Bank a fee in an
amount equal to one percent (1%) of the amount of the Loan. Such
fee shall be payable not later than 60 days after the Effective
Date.
Section 2.05. The Borrower shall pay to the Bank a commitment
charge at the rate of three-fourths of one percent (3/4 of 1%) per
annum on the principal amount of the Loan not withdrawn from time
to time.
Section 2.06. (a) The Borrower shall pay interest on the
principal amount of the Loan withdrawn and outstanding from time
to time, at a rate for each Interest Period equal to LIBOR Base
Rate plus LIBOR Total Spread.
(b) For the purposes of this Section:
(i) "Interest Period" means the initial period from and
including the date of this Agreement to, but excluding, the first
Interest Payment Date occurring thereafter, and after the initial
period, each period from and including an Interest Payment Date
to, but excluding the next following Interest Payment Date.
(ii) "Interest Payment Date" means any date specified in
Section 2.07 of this Agreement.
(iii) "LIBOR Base Rate" means, for each Interest Period, the
London interbank offered rate for six-month deposits in U.S.
Dollars for value the first day of such Interest Period (or, in
the case of the initial Interest Period, for value the Interest
Payment Date occurring on or next preceding the first day of such
Interest Period), as reasonably determined by the Bank and
expressed as a percentage per annum.
(iv) "LIBOR Total Spread" means, for each Interest Period: (A)
three-fourths of one percent (3/4 of 1%); (В) minus (or plus) the
weighted average margin, for such Interest Period, below (or
above) the London interbank offered rates, or other reference
rates, for six-month deposits, in respect of the Bank's
outstanding borrowings or portions thereof allocated by the Bank
to fund single currency loans or portions thereof made by it that
include the Loan; as reasonably determined by the Bank and
expressed as a percentage per annum.
(c) The Bank shall notify the Borrower of LIBOR Base Rate and
LIBOR Total Spread for each Interest Period, promptly upon the
determination thereof.
(d) Whenever, in light of changes in market practice affecting
the determination of the interest rates referred to in this
Section 2.06, the Bank determines that it is in the interest of
its borrowers as a whole and of the Bank to apply a basis for
determining the interest rates applicable to the Loan other than
as provided in said Section, the Bank may modify the basis for
determining the interest rates applicable to the Loan upon not
less than six (6) months' notice to the Borrower of the new basis.
The new basis shall become effective on the expiry of the notice
period unless the Borrower notifies the Bank during said period of
its objection thereto, in which case said modification shall not
apply to the Loan.
Section 2.07. Interest and other charges shall be payable
semiannually in arrears on January 15 and July 15 in each year.
Section 2.08. The Borrower shall repay the principal amount of
the Loan in accordance with the amortization schedule set forth in
Schedule 3 to this Agreement.
Article III
Execution of the Project
Section 3.01. (a) The Borrower declares its commitment to the
objectives of the Project, and, to this end, shall carry out the
Project through MOH and MOJ with the assistance of RHCF, with due
diligence and efficiency and in conformity with appropriate
administrative, financial and public health practices, and shall
provide, promptly as needed, the funds, facilities, services and
other resources required for the Project.
(b) Without limitation upon the provisions of paragraph (a) of
this Section and except as the Borrower and the Bank shall
otherwise agree, the Borrower shall carry out the Project in
accordance with the Project Operational Manual and the
Implementation Program set forth in Schedule 5 to this Agreement.
Section 3.02. The Borrower, represented by MOF, MOH and MOJ,
shall enter into the Project Implementation Agreement with RHCF,
under terms and conditions which shall have been approved by the
Bank, and which shall include, inter alia, the scope of RHCF's
responsibilities, description of its activities to be carried out
during the execution of the Project, project reporting, accounting
and auditing requirements.
Section 3.03. Without limitation or restriction upon any of its
other obligations under the Loan Agreement and except as the
Borrower and the Bank shall otherwise agree, the Borrower shall
cause RHCF, for the purposes of carrying out regional programs
under Parts A and В of the Project, to enter into Regional
Participation Agreements with each of the Participating Regions,
under terms and conditions which shall have been approved by the
Bank.
Section 3.04. Except as the Bank shall otherwise agree,
procurement of the goods, works and consultants' services required
for the Project and to be financed out of the proceeds of the Loan
shall be governed by the provisions of Schedule 4 to this
Agreement.
Section 3.05. For the purposes of Section 9.07 of the General
Conditions and without limitation thereto, the Borrower shall:
(a) prepare, on the basis of guidelines acceptable to the Bank,
and furnish to the Bank not later than six (6) months after the
Closing Date or such later date as may be agreed for this purpose
between the Borrower and the Bank, a plan designed to ensure the
continued achievement of the Project's objectives; and
(b) afford the Bank a reasonable opportunity to exchange views
with the Borrower on said plan.
Article IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain, or cause to be
maintained, a financial management system, including records and
accounts, and prepare or cause to be prepared, financial
statements in a format acceptable to the Bank, adequate to reflect
the operations, resources and expenditures related to the Project.
(b) The Borrower shall cause RHCF to:
(i) have the records, accounts and financial statements
(balance sheet, statements of sources and uses of funds and
related statements) referred to in paragraph (a) of this Section
and the records and accounts for the Special Account for each
fiscal year audited, in accordance with auditing standards
acceptable to the Bank, consistently applied, by independent
auditors acceptable to the Bank;
(ii) furnish to the Bank as soon as available, but in any case
not later than six months after the end of each such year, (A)
certified copies of the financial statements referred to in
paragraph (a) of this Section for such year as so audited, and (B)
an opinion on such statements, records and accounts and report of
such audit, by said auditors, of such scope and in such detail as
the Bank shall have reasonably requested; and
(iii) furnish to the Bank such other information concerning
such records and accounts, and the audit thereof, and concerning
said auditors, as the Bank may from time to time reasonably
request.
(c) For all expenditures with respect to which withdrawals from
the Loan Account were made on the basis of statements of
expenditure, the Borrower shall cause RHCF to:
(i) maintain or cause to be maintained, in accordance with
paragraph (a) of this Section, records and separate accounts
reflecting such expenditures;
(ii) retain, until at least one year after the Bank has
received the audit report for the fiscal year in which the last
withdrawal from the Loan Account was made, all records (contracts,
orders, invoices, bills, receipts and other documents) evidencing
such expenditures;
(iii) enable the Bank's representatives to examine such
records; and
(iv) ensure that such records and accounts are included in the
annual audit referred to in paragraph (b) of this Section and that
the report of such audit contains a separate opinion by said
auditors as to whether the statements of expenditure submitted
during such fiscal year, together with the procedures and internal
controls involved in their preparation, can be relied upon to
support the related withdrawals.
Section 4.02. (a) The Borrower shall cause RHCF to prepare and
furnish to the Bank a financial monitoring report, in form and
substance satisfactory to the Bank, which:
(i) sets forth sources and uses of funds for the Project, both
cumulatively and for the period covered by said report, showing
separately funds provided under the Loan and explains variances
between the actual and planned uses of such funds;
(ii) describes physical progress in Project implementation,
both cumulatively and for the period covered by said report, and
explains variances between the actual and planned Project
implementation; and
(iii) sets forth the status of procurement under the Project,
as at the end of the period covered by said report.
(b) The first FMR shall be furnished to the Bank not later than
45 days after the end of the first calendar quarter after the
Effective Date, and shall cover the period from the incurrence of
the first expenditure under the Project through the end of such
first calendar quarter; thereafter, each FMR shall be furnished to
the Bank not later than 45 days after each subsequent calendar
quarter, and shall cover such calendar quarter.
Article V
Remedies of the Bank
Section 5.01. Pursuant to Section 6.02(p) of the General
Conditions, the following additional events are specified:
(a) The Project Implementation Agreement shall have been
amended, suspended, abrogated, repealed or waived as to affect
materially and adversely the ability of RHCF to carry out the
Project; and
(b) RHCF shall have failed to perform any of its obligations
under the Project Implementation Agreement.
Section 5.02. Pursuant to Section 7.01(k) of the General
Conditions, the following additional events are specified, namely,
that any of the events specified in Section 5.01 of this Agreement
shall occur and shall continue for a period of sixty (60) days
after notice thereof shall have been given by the Bank to the
Borrower.
Article VI
Effective Date, Termination
Section 6.01. The following events are specified as additional
conditions to the effectiveness of the Loan Agreement within the
meaning of Section 12.01(c) of the General Conditions:
(a) the Project Implementation Agreement has been executed on
behalf of the Borrower, represented by MOF, MOH and MOJ, and RHCF;
(b) RHCF is fully operational with structures, functions and
staffing necessary to start the Project implementation and
satisfactory to the Bank;
(c) the Project Operational Manual, satisfactory to the Bank,
has been adopted by the Working Group; and
(d) an independent auditor, acceptable to the Bank, has been
selected in accordance with the provisions of Section II of
Schedule 4 of this Agreement to undertake the responsibilities
described in Section 4.01 of this Agreement.
Section 6.02. The following is specified as an additional
matter, within the meaning of Section 12.02(c) of the General
Conditions, to be included in the opinion or opinions to be
furnished to the Bank, namely, that the Project Implementation
Agreement referred to in Section 6.01 (a) of this Agreement has
been duly authorized or ratified by the Borrower and RHCF, and is
legally binding upon the MOF, MOH, MOJ and RHCF in accordance with
its terms.
Section 6.03. The date ninety (90) days after the date of this
Agreement is hereby specified for the purposes of Section 12.04 of
the General Conditions.
Article VII
Representative of the Borrower; Addresses
Section 7.01. The Minister of Finance of the Borrower or
authorized Deputy Minister of Finance of the Borrower is
designated as representatives of the Borrower for the purposes of
Section 11.03 of the General Conditions.
Section 7.02. The following addresses are specified for the
purposes of Section 11.01 of the General Conditions:
For the Borrower:
Ministry of Finance of the Russian Federation
Ilyinka Street, 9
103097 Moscow
Russian Federation
Telex: Facsimile:
112008 (095)925-0889
For the Bank:
International Bank for
Reconstruction and
Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address: Telex: Facsimile:
INTBAFRAD 248423 (MCI) or (202)477-6391
Washington, D.C. 64145 (MCI)
In witness whereof, the parties hereto, acting through their
duly authorized representatives, have caused this Agreement to be
signed in their respective names in Moscow, Russian Federation, as
of the day and year first above written.
SCHEDULE 1
WITHDRAWAL OF THE PROCEEDS OF THE LOAN
1. The table below sets forth the Categories of items to be
financed out of the proceeds of the Loan, the allocation of the
amounts of the Loan to each Category and the percentage of
expenditures for items so to be financed in each Category:
Category Amount of the % of
Loan Allocated Expenditures
(Expressed in to be Financed
Dollars)
(1) Goods, including 30,440,000 100% of foreign
technical services, expenditures,
but excluding goods 100% of local
and technical services expenditures
under Parts A.3 (ex-factory cost),
and A.4 of the Project 81% of local
expenditures for
other non-medical
items procured
locally, 98% of
local expenditures
for medical items
procured locally
(cost net of VAT)
(2) Goods, including 68,270,000 100% of foreign
technical services, expenditures,
under Part A.3 100% of local
of the Project expenditures
(ex-factory cost),
81% of local
expenditures for
other non-medical
items procured
locally, 98% of
local expenditures
for medical items
procured locally
(cost net of VAT)
(3) Goods, including 18,000,000 100% of foreign
technical expenditures,
services under 100% of local
Part A.4 of the expenditures
Project (ex-factory cost),
81% of local
expenditures for
other non-medical
items procured
locally, 98% of
local expenditures
for medical items
procured locally
(cost net of VAT)
(4) Consultants' services, 14,900,000 79% of expenditures
including audit for consulting
firms, 87% of
expenditures
for individual
consultants, and
100% of eligible
social charges
(5) Training 15,470,000 100%
(6) Operating costs 2,920,000 87% of expenditures
for RHCF staff
salaries, 100%
of social charges,
100% of training
costs, and 84%
of other costs
TOTAL 150,000,000
2. For the purposes of this Schedule:
(a) the term "technical services" means warehousing services,
inland transportation and insurance, monitoring and reporting,
processing of customs and other documents, and other Project
related technical services;
(b) 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;
(c) the term "local expenditures" means expenditures in the
currency of the Borrower or for goods or services supplied from
the territory of the Borrower; provided, however, that if the
currency of the Borrower is also that of another country from the
territory of which goods or services are supplied, expenditures in
such currency for such goods or services shall be deemed to be
"foreign expenditures";
(d) the term "Training" means Project related study tours,
training courses, seminars, workshops and other training
activities not included under goods or service providers'
contracts, including travel and per diem costs of trainees and
trainers, those from the ministries, administrations, and other
relevant institutions and organizations on the federal and
regional levels involved in the implementation of the Project; and
(e) the term "Operating costs" means expenditures on account of
Project implementation, management and monitoring incurred by the
RHCF, including its staff salaries, social charges, training,
including study tours and seminars, office rent, maintenance and
minor refurbishing of office and equipment, office equipment,
furniture, materials and supplies, communication costs, support
for information systems, translation costs, bank charges, and
travel and per diem costs of RHCF staff and other reasonable
expenditures directly associated with implementation of Project
activities, all based on an annual budget acceptable to the Bank.
3. Notwithstanding the provisions of paragraph 1 above, no
withdrawals shall be made in respect of: (a) payments made for
expenditures prior to the date of this Agreement, except that
withdrawals in an aggregate amount not exceeding the equivalent of
USD 450,000, may be made in respect of Category (6) set forth in
the table in paragraph 1 above on account of payments made before
that date but after May 31, 2003; (b) any expenditures under any
Category in the table in paragraph 1 above, unless the Bank has
received payment in full of the front-end fee referred to in
Section 2.04 of this Agreement; and (c) expenditures under
Categories (2) and (3) set forth in the table in paragraph 1 above
unless relevant parts of a federal strategy for ТВ control,
acceptable to the Bank, have been developed in collaboration with
WHO and are officially approved by the Borrower and ready for
country-wide implementation.
4. The Bank may require withdrawals from the Loan Account to be
made on the basis of statements of expenditure for expenditures
for: (a) goods under contracts costing less than USD 100,000
equivalent each; (b) services of consulting firms under contracts
costing less than USD 100,000 equivalent each; (c) services of
individual consultants under contracts costing less than USD
50,000 each; (d) training under contracts costing less than USD
100,000 equivalent each; and (e) operating costs, all under such
terms and conditions as the Bank shall specify by notice to the
Borrower.
SCHEDULE 2
DESCRIPTION OF THE PROJECT
The objective of the Project is to assist the Borrower with the
development and implementation of the national ТВ and HIV/AIDS
control strategies in order to: (i) contain the growth of ТВ and
HIV/AIDS epidemics in the short term; and (ii) halt and reverse
the courses of these epidemics in the medium term.
The Project consists of the following parts, subject to such
modifications thereof as the Borrower and the Bank may agree upon
from time to time to achieve such objectives:
Part A
Control of Tuberculosis
1. Provision of goods, consultants' services and training for
the development of policies, strategies and protocols for ТВ
control, including legislative and administrative measures and
public information campaign.
2. Provision of goods, consultants' services and training for
strengthening of ТВ surveillance, monitoring, quality control and
quality assurance of diagnosis and treatment.
3. Provision of consultants' services, training, laboratory,
including bacteriology and radiology equipment and supplies for
the improvement of ТВ case detection and diagnosis.
4. Provision of consultants' services and training to improve
ТВ treatment and provision of first- and second-line anti-TB
drugs.
Part B
Control of HIV/AIDS
1. Provision of goods, consultants' services and training for
the development of policies, strategies and protocols for HIV/AIDS
control, including legislative and research activities, public
information campaign, establishment of a federal HIV/AIDS
coordination center, establishment of approximately ten (10)
regional information centers, and assessment of available
prevention measures.
2. Provision of goods, consultants' services and training for
HIV/AIDS surveillance and monitoring at the federal and regional
levels, including the establishment of a federal coordination
center for diagnosis, treatment and psychological support for HIV
infected people.
3. Provision of laboratory and blood bank equipment and
supplies, consultants' services and training for laboratory
services and blood safety improvement.
4. Provision of goods, consultants' services and training to
improve STI prevention and control, including development of STI
diagnosis and treatment guidelines and protocols, establishment of
a federal STI coordination center, establishment and/or
strengthening of approximately twenty (20) STI diagnostic and
treatment centers for IDU and CSW, establishment and/or
strengthening of three (3) specialized centers for children and
teenagers with STI.
5. Provision of goods, consultants' services and training for
development and implementation of targeted HIV/AIDS and STI
prevention programs in high risk groups, including approximately
thirty (30) harm reduction programs for IDU, and for the
establishment of a federal HIV/AIDS and STI coordination center
for training in high risk group prevention activities.
6. Provision of drugs, medical equipment, consultants'
services, supplies and training for prevention of mother-to-child
transmission, including development of protocols and strengthening
of two (2) federal reference centers for HIV-infected children.
Part C
Project Management
Provision of audit services and Operating costs under the
Project.
* * *
The Project is expected to be completed by June 30, 2008.
SCHEDULE 3
AMORTIZATION SCHEDULE
Date Payment Due Payment of Principal
(Expressed in Dollars) <*>
On each January 15 and July 15
beginning July 15, 2008 6,250,000
through July 15, 2019 6,250,000
On January 15, 2020 6,250,000
--------------------------------
<*> The figures in this column represent the amount in Dollars
to be repaid, except as provided in Section 4.04 (d) of the
General Conditions.
SCHEDULE 4
PROCUREMENT
Section I. PROCUREMENT OF GOODS AND RELATED TECHNICAL
SERVICES
Part A
General
Goods shall be procured in accordance with the provisions of
Section I of the "Guidelines for Procurement under IBRD Loans and
IDA Credits" published by the Bank in January 1995 and revised in
January and August 1996, September 1997 and January 1999 (the
Procurement Guidelines) and the following provisions of Section I
of this Schedule.
Part B
International Competitive Bidding
1. Except as otherwise provided in Part С of this Section,
goods and technical services shall be procured under contracts
awarded in accordance with the provisions of Section II of the
Procurement Guidelines and paragraph 5 of Appendix 1 thereto.
2. The following provisions shall apply to goods and technical
services to be procured under contracts awarded in accordance with
the provisions of paragraph 1 of this Part B.
(a) Grouping of contracts
To the extent practicable, contracts for goods and technical
services shall be grouped in bid packages estimated to cost USD
100,000 equivalent or more each.
(b) Preference for domestically manufactured goods
The provisions of paragraphs 2.54 and 2.55 of the Procurement
Guidelines and Appendix 2 thereto shall apply to goods
manufactured in the territory of the Borrower.
(c) Notification and Advertising
The invitation to bid for each contract estimated to cost USD
10,000,000 equivalent or more shall be advertised in accordance
with the procedures applicable to large contracts under paragraph
2.8 of the Procurement Guidelines.
Part C
Other Procurement Procedures
1. National Competitive Bidding
Medical equipment and supplies, telecommunication systems
equipment, hot line equipment, surveillance and monitoring
equipment, office equipment, vehicles, furniture, communication
link, educational equipment and publishing of training and
information materials estimated to cost less than USD 300,000
equivalent per contract, up to an aggregate amount not to exceed
USD 3,484,000 equivalent may be procured under contracts awarded
in accordance with the provisions of paragraph 3.3 and 3.4 of the
Procurement Guidelines.
2. International Shopping
Goods estimated to cost less than USD 100,000 equivalent per
contract, up to an aggregate amount not to exceed USD 200,000
equivalent, may be procured under contracts awarded after
comparison of not less than three responsive quotations on the
basis of international shopping procedures in accordance with the
provisions of paragraphs 3.5 and 3.6 of the Procurement
Guidelines.
3. National Shopping
Goods estimated to cost less than USD 50,000 equivalent per
contract, up to an aggregate amount not to exceed USD 450,000
equivalent, may be procured under contracts awarded after
comparison of not less than three responsive quotations on the
basis of national shopping procedures in accordance with the
provisions of paragraphs 3.5 and 3.6 of the Procurement
Guidelines.
4. Direct Contracting
Goods of a proprietary nature, costing USD 100,000 equivalent
or less in the aggregate, may, with the Bank's prior agreement, be
procured in accordance with the provisions of paragraph 3.7 of the
Procurement Guidelines.
5. Procurement of Second-line anti-TB drugs
Drugs for treatment of multi-drug resistant ТВ and technical
services related to these drugs may be procured pursuant to the
procedures and on terms acceptable to both the Bank and the
Borrower.
6. Services to Organize Training
When appropriate, a firm will be selected to provide services
in respect of organization of training upon comparison of three
responsive price quotations presented by suitably qualified local
contractors under agreed procedures. Individual contract values
will normally not exceed the equivalent of USD 100,000. Larger
contracts estimated to cost more than USD 100,000 will be
advertised nationally or internationally and bids for such
contacts will be invited.
Part D
Review by the Bank of Procurement Decisions
1. Procurement Planning
Prior to the issuance of any invitations to prequalify for
bidding or to bid for contracts, the proposed procurement plan for
the Project shall be furnished to the Bank for its review and
approval, in accordance with the provisions of paragraph 1 of
Appendix 1 to the Procurement Guidelines. Procurement of all goods
shall be undertaken in accordance with such procurement plan as
shall have been approved by the Bank, and with the provisions of
said paragraph 1.
2. Prior Review
(a) With respect to each contract procured in accordance with
the procedures referred to in Parts В and C.1 of this Section, the
procedures set forth in paragraphs 2 and 3 of Appendix 1 to the
Procurement Guidelines shall apply.
(b) With respect to the first two contracts procured in
accordance with the procedures referred to in Parts C.2 of this
Section, the first three contracts procured in accordance with the
procedures referred to in Parts C.3 of this Section, each contract
procured in accordance with the procedures referred to in Parts
C.4 and C.5 of this Section, and each contract estimated to cost
the equivalent of USD 100,000 or more and procured in accordance
with the procedures referred to in Part C.6 of this Section, the
following procedures shall apply:
(i) prior to the selection of any supplier, the Borrower shall
provide to the Bank a report on the comparison and evaluation of
quotations received;
(ii) prior to the execution of any contract, the Borrower shall
provide to the Bank a copy of the specifications and the draft
contract; and
(iii) the procedures set forth in paragraphs 2(f), 2(g) and 3
of Appendix 1 to the Procurement Guidelines shall apply.
3. Post Review
With respect to each contract not governed by paragraph 2 of
this Part, the procedures set forth in paragraph 4 of Appendix 1
to the Procurement Guidelines shall apply.
Section II. EMPLOYMENT OF CONSULTANTS
Part A
General
1. Consultants' services shall be procured in accordance with
the provisions of Sections I and IV of the "Guidelines: Selection
and Employment of Consultants by World Bank Borrowers" published
by the Bank in January 1997 and revised in September 1997, January
1999 and May 2002 (the Consultant Guidelines), paragraph 1 of
Appendix 1 thereto, Appendix 2 thereto and the following
provisions of this Schedule.
2. In respect of consultants' services to be procured under
contracts awarded in accordance with the provisions of Parts В,
С.1 and C.2 of this Section, the short list of consultants for
services for contracts estimated to cost less than USD 200,000
equivalent per contract may comprise entirely national consultants
in accordance with the provisions of paragraph 2.7 and footnote 8
of the Consultant Guidelines.
Part B
Quality - and Cost-based Selection
Except as otherwise provided in Part С of this Section,
consultants' services shall be procured under contracts awarded in
accordance with the provisions of Section II of the Consultant
Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 thereto,
and the provisions of paragraphs 3.13 through 3.18 thereof
applicable to quality - and cost-based selection of consultants.
Part C
Other Procedures for the Selection of Consultants
1. Least-cost Selection
Auditing services estimated to cost up to an aggregate amount
not to exceed USD 254,000 equivalent, may be procured under
contracts awarded in accordance with the provisions of paragraphs
3.1 and 3.6 of the Consultant Guidelines.
2. Selection Based on Consultants' Qualifications
Services estimated to cost less than USD 100,000 equivalent per
contract, up to an aggregate amount not to exceed USD 6,715,000
equivalent, may be procured under contracts awarded in accordance
with the provisions of paragraphs 3.1 and 3.7 of the Consultant
Guidelines.
3. Individual Consultants
Services that meet requirements set forth in paragraph 5.1 of
the Consultant Guidelines, up to an aggregate amount not to exceed
USD 2,651,000 equivalent, shall be procured under contracts
awarded to individual consultants in accordance with the
provisions of paragraphs 5.1 through 5.3 of the Consultant
Guidelines.
4. Public Education, Training, and Research Institutions
Services of unique and exceptional nature may, with the Bank's
prior agreement, be procured from Borrower's public health,
training, and research institutions in accordance with the
provisions of Section II, paragraphs 3.1 through 3.4, 3.7 and 3.8
of the Consultant Guidelines if it has been satisfactorily
established that no suitably qualified private sector consultant
is available for the assignment.
Part D
Review by the Bank of the Selection of Consultants
1. Selection Planning
Prior to the issuance to consultants of any requests for
proposals, the proposed plan for the selection of consultants
under the Project shall be furnished to the Bank for its review
and approval, in accordance with the provisions of paragraph 1 of
Appendix 1 to the Consultant Guidelines. Selection of all
consultants' services shall be undertaken in accordance with such
selection plan as shall have been approved by the Bank, and with
the provisions of said paragraph 1.
2. Prior Review
(a) With respect to each contract for the employment of
consulting firms estimated to cost the equivalent of USD 100,000
or more the procedures set forth in paragraphs 1, 2 (other than
the second subparagraph of paragraph 2(a)) and 5 of Appendix 1 to
the Consultant Guidelines shall apply.
(b) With respect to each contract for the employment of
individual consultants estimated to cost the equivalent of USD
50,000 or more, the qualifications, experience, terms of reference
and terms of employment of the consultants shall be furnished to
the Bank for its prior review and approval. The contract shall be
awarded only after the said approval shall have been given.
(c) Notwithstanding the above provisions of this paragraph,
terms of reference for important assignments that might be from
time to time selected by the Bank shall be furnished to the Bank
for its prior review and approval.
3. Post Review
With respect to each contract not governed by paragraph 2 of
this Part, the procedures set forth in paragraph 4 of Appendix 1
to the Consultant Guidelines shall apply.
SCHEDULE 5
IMPLEMENTATION PROGRAM
1. MOH and MOJ shall be responsible for overall management and
implementation of the Project.
2. MOH shall maintain the Working Group for Preparation and
Implementation of the Project comprising representatives of MOH,
MOJ, MOF, the Ministry of Economic Development and Trade, the
Ministry of Science, Industry and Technology, the Federal Center
for Project Financing, RHCF, and other relevant organizations,
which shall be responsible for overall Project coordination,
defining the Project implementation strategy, ensuring approval in
accordance with its competence of the Project related documents,
and approving and controlling the fulfillment of the Project's
work programs and budgets.
3. RHCF shall be responsible for day-to-day Project management
and implementation, including financial management, procurement,
disbursement, engagement of outside auditors and preparation of
appropriate auditing reports and their dissemination to relevant
agencies of the Borrower and to the Bank, and preparation of
progress reports and annual reports related to the Project, and
shall assist the MOH and MOJ in the overall coordination of
Project activities, in accordance with the provisions of the
Project Operational Manual.
4. The Borrower shall ensure that, until the completion of the
Project, RHCF at all times functions in a manner, and with staff,
facilities and other resources, and under terms of reference
necessary and appropriate for the carrying out of the Project, and
satisfactory to the Bank.
5. The Borrower shall maintain the Project Operational Manual
in form and content satisfactory to the Bank and shall not assign,
amend, abrogate or waive the Project Operational Manual or any
provision thereof without a prior approval of the Bank.
6. The Borrower shall be responsible for selecting, through
RHCF, regions of the Borrower for inclusion in the Project, and
such selection shall be in accordance with a methodology
acceptable to the Bank and in accordance with the criteria set
forth in the Project Operational Manual.
7. RHCF shall not initiate any procurement actions in respect
of second-line anti-TB drugs for any health facility unless this
health facility is in full compliance with the requirements
approved by both MOH and WHO for use of such drugs.
8. RHCF shall, upon agreement with MOH, MOJ and each
Participating Region, establish the list of medical equipment,
drugs and other goods to be provided under Parts A and В of the
Project to a respective region, specify the training to be
provided in relation to such equipment, and promptly inform the
Bank prior to the initiation of procurement actions in accordance
with the provisions of Schedule 4 to this Agreement in respect of
any such goods or initiation of any such training.
9. RHCF shall initiate any procurement actions in respect of
health facilities in any Participating Region, only upon its
entering into a Regional Participation Agreement with such
Participating Region, which shall be acceptable to the Bank and
the Borrower and include the undertakings of the respective
Participating Region to take all necessary measures to:
(a) ensure that the medical equipment, drugs and supplies
provided under the Project shall be used at the intended
facilities exclusively for the purposes of the Project;
(b) ensure participation of the beneficiary health facilities
on ordering equipment;
(c) provide training for staff using the equipment provided
under the Project; and
(d) submit periodic reports as requested by RHCF on the status
of Project implementation and utilization of equipment.
10. The Borrower shall cause RHCF to submit to the Bank, on a
semi-annual basis, Project progress reports for its review and
approval.
11. The Borrower shall:
(a) maintain policies and procedures adequate to enable it to
monitor and evaluate on an ongoing basis, in accordance with
indicators acceptable to the Bank, the carrying out of the Project
and the achievement of the objectives thereof;
(b) prepare, under terms of reference satisfactory to the Bank,
and furnish to the Bank, on or about May 1, 2006, a report
integrating the results of the monitoring and evaluation
activities performed pursuant to paragraph (a) of this Section, on
the progress achieved in the carrying out of the Project during
the period preceding the date of said report and setting out the
measures recommended to ensure the efficient carrying out of the
Project and the achievement of the objectives thereof during the
period following such date; and
(c) review with the Bank, by June 1, 2006, or such later date
as the Bank shall request, the report referred to in paragraph (b)
of this Section, and, thereafter, take all measures required to
ensure the efficient completion of the Project and the achievement
of the objectives thereof, based on the conclusions and
recommendations of the said report and the Bank's views on the
matter.
SCHEDULE 6
SPECIAL ACCOUNT
1. For the purposes of this Schedule:
(a) the term "eligible Categories" means Categories (1) through
(6) set forth in the table in paragraph 1 of Schedule 1 to this
Agreement;
(b) the term "eligible expenditures" means expenditures in
respect of the reasonable cost of goods and services required for
the Project and to be financed out of the proceeds of the Loan
allocated from time to time to the eligible Categories in
accordance with the provisions of Schedule 1 to this Agreement;
and
(c) the term "Authorized Allocation" means an amount equivalent
to two million dollars (USD 2,000,000) to be withdrawn from the
Loan Account and deposited into the Special Account pursuant to
paragraph 3 (a) of this Schedule, provided, however, that unless
the Bank shall otherwise agree, the Authorized Allocation shall be
limited to an amount equivalent to one million dollars (USD
1,000,000) until the aggregate amount of withdrawals from the Loan
Account plus the total amount of all outstanding special
commitments entered into by the Bank pursuant to Section 5.02 of
the General Conditions shall be equal to or exceed the equivalent
of three million dollars (USD 3,000,000).
2. Payments out of the Special Account shall be made
exclusively for eligible expenditures in accordance with the
provisions of this Schedule.
3. After the Bank has received evidence satisfactory to it that
the Special Account has been duly opened, withdrawals of the
Authorized Allocation and subsequent withdrawals to replenish the
Special Account shall be made as follows:
(a) For withdrawals of the Authorized Allocation, the Borrower
shall furnish to the Bank a request or requests for deposit into
the Special Account of an amount or amounts which do not exceed
the aggregate amount of the Authorized Allocation. On the basis of
such request or requests, the Bank shall, on behalf of the
Borrower, withdraw from the Loan Account and deposit into the
Special Account such amount or amounts as the Borrower shall have
requested.
(b) (i) For replenishment of the Special Account, the Borrower
shall furnish to the Bank requests for deposits into the Special
Account at such intervals as the Bank shall specify.
(ii) Prior to or at the time of each such request, the Borrower
shall furnish to the Bank the documents and other evidence
required pursuant to paragraph 4 of this Schedule for the payment
or payments in respect of which replenishment is requested. On the
basis of each such request, the Bank shall, on behalf of the
Borrower, withdraw from the Loan Account and deposit into the
Special Account such amount as the Borrower shall have requested
and as shall have been shown by said documents and other evidence
to have been paid out of the Special Account for eligible
expenditures. All such deposits shall be withdrawn by the Bank
from the Loan Account under the respective eligible Categories,
and in the respective equivalent amounts, as shall have been
justified by said documents and other evidence.
4. For each payment made by the Borrower out of the Special
Account, the Borrower shall, at such time as the Bank shall
reasonably request, furnish to the Bank such documents and other
evidence showing that such payment was made exclusively for
eligible expenditures.
5. Notwithstanding the provisions of paragraph 3 of this
Schedule, the Bank shall not be required to make further deposits
into the Special Account:
(a) if, at any time, the Bank shall have determined that all
further withdrawals should be made by the Borrower directly from
the Loan Account in accordance with the provisions of Article V of
the General Conditions and paragraph (a) of Section 2.02 of this
Agreement;
(b) if the Borrower shall have failed to furnish to the Bank,
within the period of time specified in Section 4.01(b)(ii) of this
Agreement, any of the audit reports required to be furnished to
the Bank pursuant to said Section in respect of the audit of the
records and accounts for the Special Account;
(c) if, at any time, the Bank shall have notified the Borrower
of its intention to suspend in whole or in part the right of the
Borrower to make withdrawals from the Loan Account pursuant to the
provisions of Section 6.02 of the General Conditions; or
(d) once the total unwithdrawn amount of the Loan allocated to
the eligible Categories, minus the total amount of all outstanding
special commitments entered into by the Bank pursuant to Section
5.02 of the General Conditions, shall equal the equivalent of
twice the amount of the Authorized Allocation. Thereafter,
withdrawal from the Loan Account of the remaining unwithdrawn
amount of the Loan allocated to the eligible Categories shall
follow such procedures as the Bank shall specify by notice to the
Borrower. Such further withdrawals shall be made only after and to
the extent that the Bank shall have been satisfied that all such
amounts remaining on deposit in the Special Account as of the date
of such notice will be utilized in making payments for eligible
expenditures.
6. (a) If the Bank shall have determined at any time that any
payment out of the Special Account: (i) was made for an
expenditure or in an amount not eligible pursuant to paragraph 2
of this Schedule; or (ii) was not justified by the evidence
furnished to the Bank, the Borrower shall, promptly upon notice
from the Bank: (A) provide such additional evidence as the Bank
may request; or (B) deposit into the Special Account (or, if the
Bank shall so request, refund to the Bank) an amount equal to the
amount of such payment or the portion thereof not so eligible or
justified. Unless the Bank shall otherwise agree, no further
deposit by the Bank into the Special Account shall be made until
the Borrower has provided such evidence or made such deposit or
refund, as the case may be.
(b) If the Bank shall have determined at any time that any
amount outstanding in the Special Account will not be required to
cover further payments for eligible expenditures, the Borrower
shall, promptly upon notice from the Bank, refund to the Bank such
outstanding amount.
(c) The Borrower may, upon notice to the Bank, refund to the
Bank all or any portion of the funds on deposit in the Special
Account.
(d) Refunds to the Bank made pursuant to paragraphs 6 (a), (b)
and (c) of this Schedule shall be credited to the Loan Account for
subsequent withdrawal or for cancellation in accordance with the
relevant provisions of this Agreement, including the General
Conditions.
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