Bosnia and Herzegovina - Pilot Cultural Heritage Project
Credit/Loan/Guarantee No.: C3269
Borrower: BOSNIA AND HERZEGOVINA
Other Parties:
Sector: UH - Urban Development/Urban
Housing
Lending Instrument: LIL - Learning
Innovation Loan
Program Objective: PV - Private Sector
Development
Environment Rating: T - To Be Determined
CONFORMED
COPY
CREDIT
NUMBER 3269 BOS
(Pilot Cultural Heritage
Project)
between
INTERNATIONAL DEVELOPMENT
ASSOCIATION
and
CITY OF MOSTAR
Dated as of July 5, 1999.
CREDIT
NUMBER 3269 BOS
AGREEMENT, dated as of July 5, 1999 between the
INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and the CITY OF MOSTAR.
WHEREAS (A) by the Development Credit Agreement of even
date herewith between Bosnia and Herzegovina (the Borrower) and the
Association, the Association has agreed to lend to the Borrower an amount in
various currencies equivalent to three million Special Drawing Rights (SDR
3,000,000) on the terms and conditions set forth in the Development Credit
Agreement, but only on condition that the City of Mostar agree to undertake
such obligations toward the Association as are set forth in this Agreement;
(B) by a subsidiary credit agreement to be entered into
among the Borrower, the Federation of Bosnia and Herzegovina and the City of
Mostar (the Subsidiary Credit Agreement) the proceeds of the Credit provided
for under the Development Credit Agreement will be made available on terms and
conditions set forth in said Subsidiary Credit Agreement;
(C) the United Nations Educational, Scientific and
Cultural Organization (UNESCO) established on October 1, 1998, an International
Committee of Experts with a view to, inter alia, the reconstruction of the Old
Bridge and renovation of the Old Towers in the City of Mostar;
(D) the Association, the City of Mostar and UNESCO intend
to enter into a Memorandum of Understanding setting forth certain
understandings among the parties relating to the reconstruction of the Old
Bridge and the renovation of the Old Towers in the City of Mostar; and
WHEREAS the City of Mostar, in consideration of the
Association's entering into the Development Credit Agreement with the Borrower,
has agreed to undertake the obligations set forth in this Agreement;
NOW THEREFORE the parties hereto hereby agree as follows:
Section 1.01. Unless the context otherwise requires, the
several terms defined in the Development Credit Agreement, the Preamble to this
Agreement and in the General Conditions (as so defined) have the respective
meanings therein set forth.
Section 2.01. (a) The City of Mostar declares its
commitment to the objectives of the Project as set forth in Schedule 2 to the
Development Credit Agreement, and, to this end, shall carry out the Project
with due diligence and efficiency and in conformity with appropriate
administrative, financial, engineering, preservation and environmental
practices and shall provide or cause to be provided, 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 Association shall otherwise agree, the
City of Mostar shall carry out the Project in accordance with the
Implementation Program set forth in Schedule 1 to this Agreement.
Section 2.02. Except as the Association shall otherwise
agree, procurement of the goods and consultants' services required for the
Project and to be financed out of the proceeds of the Credit shall be governed
by the provisions of Schedule 2 to this Agreement.
Section 2.03. The City of Mostar shall duly perform its
obligations under the Subsidiary Credit Agreement. Except as the Association
shall otherwise agree, the City of Mostar shall not take or concur in any
action which would have the effect of assigning, amending, abrogating or
waiving the Subsidiary Credit Agreement or any provision thereof.
Section 2.04. (a) The City of Mostar shall, at the
request of the Association, exchange views with the Association with regard to the
progress of the Project, the performance of its obligations under this
Agreement and under the Subsidiary Credit Agreement, and other matters relating
to the purposes of the Credit.
(b) The City of Mostar shall promptly inform the
Association of any condition which interferes or threatens to interfere with
the progress of the Project, the accomplishment of the purposes of the Credit,
or the performance by the City of Mostar of their obligations under this
Agreement and under the Subsidiary Credit Agreement.
Section 2.05. (a) The City of Mostar shall carry out the
obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the
General Conditions (relating to insurance, use of goods and services, plans and
schedules, records and reports, maintenance and land acquisition) in respect of
the Project.
(b) For the purposes of Section 9.07 of the General
Conditions and without limitation thereto, the City of Mostar shall: (i)
prepare, on the basis of guidelines acceptable to the Association, and furnish
to the Association not later than six (6) months after the Closing Date or such
later date as may be agreed for this purpose between the Association and the
City of Mostar, a plan for the future operation of the Project; and
(ii) afford the Association reasonable opportunity to
exchange views with the City of Mostar on said plan.
Section 3.01. (a) The City of Mostar shall establish and
maintain a financial management system, including records and accounts, and prepare
financial statements, in a format acceptable to the Association, adequate to
reflect the operations, resources and expenditures and in connection with the
carrying out of the Project.
(b) The City of Mostar shall:
(i) have the records, accounts and financial 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
appropriate auditing principles consistently applied, by independent auditors
acceptable to the Association, who shall be appointed by December 31, 1999, on
terms and conditions satisfactory to the Association;
(ii) furnish to the Association, as soon as available,
but in any case not later than six (6) months after the end of each such year:
(A) certified copies of the financial statements referred to in paragraph (a)
above for such year as so audited; and (B) the report of such audit by said
auditors of such scope and in such detail as the Association shall have
reasonably requested; and
(iii) furnish to the Association such other information
concerning said records and accounts and financial statements as well as the
audit thereof, as the Association shall from time to time reasonably request.
Section 3.02. (a) Without limitation upon the provisions
of Section 3.01 of this Agreement, the City of Mostar shall carry out a
time-bound action plan acceptable to the Association for the strengthening of
the financial management system referred to in paragraph (a) of said Section
3.01 in order to enable the City of Mostar, not later than December 31, 1999,
or such later date as the Association shall agree, to prepare quarterly Project
management reports, acceptable to the Association, each of which:
(i) (A) sets forth actual sources and applications of
funds for the Project, both cumulatively and for the period covered by said
report, and projected sources and applications of funds for the Project for the
six-month period following the period covered by said report, and (B) shows
separately expenditures financed out of the proceeds of the Credit during the
period covered by said report and expenditures proposed to be financed out of
the proceeds of the Credit during the six-month period following the period
covered by said report;
(ii) (A) describes physical progress in Project
implementation, both cumulatively and for the period covered by said report,
and (B) explains variances between the actual and previously forecast
implementation targets; and
(iii) sets forth the status of procurement under the
Project and expenditures under contracts financed out of the proceeds of the
Credit, as at the end of the period covered by said report.
(b) Upon the completion of the action plan referred to in
paragraph (a) of this Section, the City of Mostar, in accordance with
guidelines acceptable to the Association, and furnish to the Association not
later that forty-five (45) days after the end of each calendar quarter a
Project Management Report for such period.
Effective Date; Termination
Cancellation and Suspension
Section 4.01. This Agreement shall come into force and
effect on the date upon which the Development Credit Agreement becomes
effective.
Section 4.02. (a) This Agreement and all obligations of
the Association and of the Federation and the City of Mostar thereunder shall
terminate on the earlier of the following two dates:
(i) the date on which the Development Credit Agreement
shall terminate; or
(ii) a date twenty (20) years after the date of this
Agreement.
(b) If the Development Credit Agreement terminates before
the date specified in paragraph (a) (ü) of this Section, the Association shall
promptly notify the Federation and the City of Mostar of this event.
Section 4.03. All the provisions of this Agreement shall
continue in full force and effect notwithstanding any cancellation or
suspension under the General Conditions.
Section 5.01. Any notice or request required or permitted
to be given or made under this Agreement and any agreement between the parties
contemplated by this Agreement shall be in writing. Such notice or request
shall be deemed to have been duly given or made when it shall be delivered by
hand or by mail, telegram, cable, telex or radiogram to the party to which it
is required or permitted to be given or made at such party's address
hereinafter specified or at such other addresses as such party shall have
designated by notice to the party giving such notice or making such request.
The addresses so specified are:
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United
States of America
Cable address: Telex:
INTBAFRAD 248423 (MCI) or
Washington, D.C. 64145 (MCI)
For the City of Mostar:
City of Mostar Administration
Adema Buæe 20
88000 Mostar
Section 5.02. Any action required or permitted to be
taken, and any documents required or permitted to be executed, under this
Agreement on behalf of the City of Mostar, may be taken or executed by the
Mayor and Deputy Mayor, or by such other person or persons as they shall
designate in writing, and they shall furnish to the Association sufficient
evidence of the authority and the authenticated specimen signature of each such
person.
Section 5.03. This Agreement may be executed in several
counterparts, each of which shall be an original, and all collectively but one
instrument.
IN WITNESS WHEREOF, the parties hereto, acting through
their duly authorized representatives, have caused this Agreement to be signed
in their respective names in the City of Sarajevo, Bosnia and Herzegovina, as
of the day and year first above written.
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Rory O'Sullivan
Authorized Representative
CITY OF MOSTAR
By /s/ Ivan Prskalo
Authorized Representative
By /s/ Safet Orucevic
Authorized Representative
1. The City of Mostar shall: (a) maintain the PCU until completion of the Project with adequate staff, funds, facilities and other resources required for this purpose in a manner satisfactory to the Association; and (b) cause the PCU to be responsible for the overall implementation and coordination of the Project in accordance with terms of reference satisfactory to the Association.
2. The City of Mostar shall cause the PCU to: (a)
maintain the Operations Manual in form and content satisfactory to the
Association, (b) duly perform all its obligations under said Operations Manual
and (c) not modify or waive any provision thereof without obtaining the prior
approval of the Association.
3. The City of Mostar shall by November 30, 2000, furnish
to the Association for its review and approval a plan for the operation and
maintenance of the Old Bridge and Old Towers.
4. The City of Mostar shall not amend, abrogate or waive
the agreement with the Stari Mostar Foundation, referred to in Section 6.01 (b)
of the Development Credit Agreement, without the prior approval of the
Association.
5. The City of Mostar shall, by January 31, 2001, furnish
to the Association a detailed plan, satisfactory to the Association, for the
establishment and terms of reference of the proposed International Stari Mostar
Foundation.
6. The City of Mostar shall coordinate with the
International Committee of Experts to ensure that Part A(1) of the Project is
carried out in accordance with appropriate cultural and scientific standards.
7. The City of Mostar shall, by August 31, 1999, establish
procedures necessary to ensure that the PCU coordinates with the Federation
PMAU for purposes of procurement monitoring and audit of procurement activities
for the Project.
8. The City of Mostar shall, by August 31, 1999, deposit
as counterpart funds the equivalent of $20,000 into a Project account opened
for the purpose of Project implementation.
9. The City of Mostar shall, by October 31, 1999, adopt
an environmental management plan satisfactory to the Association. 10. The City
of Mostar 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 Association, the carrying out of the Project and the
achievement of the objectives thereof;
(b) prepare, under terms of reference satisfactory to the
Association, and furnish to the Association, by September 1 of each year, a
report integrating the results of the monitoring and evaluation activities
performed pursuant to paragraph (a) above, on the progress achieved in 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 Association, by October 1 of each year, or such later date as the Association shall request, the report referred to in paragraph (b) above, 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 Association's views on the matter.
Section I. Procurement of Goods and Works
Part A: General
Goods and works shall be procured in accordance with: (a)
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 subject to the
modifications thereto set forth in paragraph 2 of this Part A (the Guidelines);
and (b) the following provisions of this Section:
Part B: International Competitive Bidding
1. Except as otherwise provided in Part C of this
Section, works shall be procured under contracts awarded in accordance with the
provisions of Section II of the Guidelines and paragraph 5 of Appendix 1
thereto.
2. The following provision shall apply to works to be
procured under contracts awarded in accordance with the provisions of paragraph
1 of this Part B, namely, that bidders for works shall be prequalified in
accordance with the provisions of paragraphs 2.9 and 2.10 of the Guidelines.
Part C: Other Procurement Procedures
1. National Competitive Bidding
Works estimated to cost less than $200,000 equivalent per
contract, up to an aggregate amount not to exceed $250,000 equivalent, may be
procured under contracts awarded in accordance with the provisions of
paragraphs 3.3 and 3.4 of the Guidelines.
2. National Shopping
Goods estimated to cost less than $50,000 equivalent per
contract, up to an aggregate amount not to exceed $ 100,000 equivalent, may be
procured under contracts awarded on the basis of national shopping procedures
in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines.
3. Procurement of Small Works
Works estimated to cost less than $50,000 equivalent per
contract, up to an aggregate amount not to exceed $200,000 equivalent, may be
procured under lump-sum, fixed-price contracts awarded on the basis of
quotations obtained from three (3) qualified domestic contractors in response
to a written invitation. The invitation shall include a detailed description of
the works, including basic specifications, the required completion date, a
basic form of agreement acceptable to the Association, and relevant drawings,
where applicable. The award shall be made to the contractor who offers the
lowest price quotation for the required work, and who has the experience and
resources to complete the contract successfully.
Part D: Procurement of Services
Limited International Bidding
Geological services estimated to cost the equivalent of
$400,000 in the aggregate, which the Association agrees can only be purchased
from a limited number of suppliers, regardless of the cost thereof, maybe
procured under contracts awarded in accordance with the provisions of paragraph
3.2 of the Guidelines.
Part E: Review by the Association 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 Association for its review and approval, in
accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines.
Procurement of all goods and works shall be undertaken in accordance with such
procurement plan as shall have been approved by the Association, and with the
provisions of said paragraph 1.
2. Prior Review
(a) With respect to each contract for works and services,
to be awarded on the basis of international competitive bidding, limited
international bidding or national competitive bidding, the procedures set forth
in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.
(b) With respect to the first five contracts for goods to
be awarded on the basis of national shopping and each contract for works to be
awarded on the basis of procurement procedures for small works, the following
procedures shall apply:
(i) prior to the execution of any contract under shopping
procedures, the Borrower shall provide to the Association a report on the
comparison and evaluation of quotations received; and
(ii) the procedures set forth in paragraphs 2(f), 2(g)
and 3 of Appendix 1 to the 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 Guidelines
shall apply.
Section II. Employment of Consultants
Part A: General
Consultants' services shall be procured in accordance
with the provisions of the Introduction and Section 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. and January 1999.
(the Consultant Guidelines) and the following provisions of Section II of this
Schedule.
Part B: Quality- and Cost-based Selection
Except as otherwise provided in Part C 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
Services for tasks that meet the requirements set forth
in paragraph 5.1 of the Consultant Guidelines shall be procured under contracts
awarded to individual consultants in accordance with the provisions of
paragraphs 5.2 through 5.3 of the Consultant Guidelines.
Part D: Review by the Association 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 Association 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
Association, and with the provisions of said paragraph 1.
2. Prior Review
(a) With respect to each contract for the employment of
consulting firms, the procedures set forth in paragraphs 1, 2 and (other than
the third 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, 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 said
approval shall have been given.
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.