Page  1
CONFORMED COPY
CREDIT NUMBER 3372 CM
Development Credit Agreement
(Petroleum Environment Capacity Enhancement (CAPECE) Project)
between
REPUBLIC OF CAMEROON 
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated  July 14, 2000
CREDIT NUMBER 3372 CM
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated July 14, 2000, between REPUBLIC OF CAMEROON (the Borrower) and 
INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association).
WHEREAS (A) 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 Association to assist in the financing of the Project; 
(B)
by an agreement to be concluded between Republic of Cameroon (the 
Borrower) and International Bank for Reconstruction and Development (the Bank) (the 
PDPP Loan Agreement), the Bank will make a loan to the Borrower in a principal amount 
of fifty-three million four hundred thousand dollars ($53,400,000) (the PDPP Loan) to 
assist in financing part of the Petroleum Development and Pipeline Project (the PDP 
Project) on the terms and conditions set forth in the PDPP Loan Agreement; and
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 set forth in this 
Agreement;
NOW THEREFORE the parties hereto hereby agree as follows:
Page  2
ARTICLE I
General Conditions; Definitions
Section 1.01. The “General Conditions Applicable to Development Credit 
Agreements” of the Association, dated January 1, 1985 (as amended through December 2, 
1997), with the modifications set forth below (the General Conditions), constitute an 
integral part of this Agreement:
(a)
A new paragraph (c) is added to Section 3.04 to read:
“If the Association shall at any time receive less than the full amount 
then due 
and payable to it under the Development Credit Agreement, the 
Association shall have the 
right to allocate and apply the amount so 
received in any manner and for such purposes 
under the Development Credit 
Agreement as the Association shall in its sole discretion 
determine.”; and
(b)
Section 11.01 is modified by replacing, in the second sentence, the word 
“radiogram” with the word “facsimile” and adding a new sentence at the end of the said 
Section to read:
“Deliveries made by facsimile transmission shall also be confirmed by 
mail.”
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:
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ARTICLE II
The Credit
Section 2.01. The Association agrees to lend to the Borrower, on the terms and 
conditions set forth or referred to in the Development Credit Agreement, an amount in 
various currencies equivalent to four million three hundred thousand Special Drawing 
Rights (SDR 4,300,000).
Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit 
Account in accordance with the provisions of Schedule 1 to this Agreement 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.
(b)
The Borrower may, for the purposes of the Project, open and maintain a 
special deposit account in a commercial bank on terms and conditions satisfactory to 
the Association, including appropriate protection against set-off, seizure or 
attachment. Deposits into, and payments out of, the Special Account shall be made in 
accordance with the provisions of Schedule 5 to this Agreement.
(c)
Promptly after the Effective Date, the Association shall, on behalf of 
the Borrower, withdraw from the Credit Account and pay to itself the amount required 
to repay the principal amount of the Project Preparation Advance withdrawn and 
outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn 
balance of the authorized amount of the Project Preparation Advance shall thereupon be 
canceled.
Section 2.03. The Closing Date shall be December 31, 2005, or such later date as 
the Association shall establish. The Association shall promptly notify the Borrower of 
such later date.
Section 2.04. (a) The Borrower shall pay to the Association a commitment charge 
on the principal amount of the Credit not withdrawn from time to time at a rate to be 
set by the Association as of June 30 of each year, but not to exceed the rate of 
one-half of one percent (1/2 of 1%) per annum.
(b)
The commitment charge shall accrue: (i) from the date sixty days after 
the date of this Agreement (the accrual date) to the respective dates on which amounts 
shall be withdrawn by the Borrower from the Credit Account or canceled; and (ii) at 
the rate set as of the June 30 immediately preceding the accrual date and at such 
Page  26
other rates as may be set from time to time thereafter pursuant to paragraph (a) 
above. The rate set as of June 30 in each year shall be applied from the next date in 
that year specified in Section 2.06 of this Agreement.
(c)
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 territory 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 2.05. The Borrower shall pay to the Association a service charge at the 
rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of 
the Credit withdrawn and outstanding from time to time.
Section 2.06. Commitment charges and service charges shall be payable 
semiannually on June 1 and December 1 in each year.
Section 2.07. (a)  Subject to paragraphs (b), (c) and (d) below, the Borrower 
shall repay the principal amount of the Credit in semiannual installments payable on 
each June 1 and December 1 commencing December 1, 2010 and ending June 1, 2040. Each 
installment to and including the installment payable on June 1, 2020 shall be one 
percent (1%) of such principal amount, and each installment thereafter shall be two 
percent (2%) of such principal amount. 
(b)
Whenever: (i) the Borrower’s per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years  the 
level established annually by the Association for determining eligibility to access 
the Association's resources; and (ii) the Bank shall consider the Borrower 
creditworthy for Bank lending, the Association may, subsequent to the review and 
approval thereof by the Executive Directors of the Association and after due 
consideration by them of the development of the Borrower's economy, modify the 
repayment of installments under paragraph (a) above by: (A) requiring the Borrower to 
repay twice the amount of each such installment not yet due until the principal amount 
of the Credit shall have been repaid; and (B) requiring the Borrower to commence 
repayment of the principal amount of the Credit as of the first semiannual payment 
date referred to in paragraph (a) above falling six months or more after the date on 
which the Association notifies the Borrower that the events set out in this paragraph 
(b) have occurred, provided, however, that there shall be a grace period of a minimum 
of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the 
modification referred to in paragraph (b) above to include, in lieu of some or all of 
the increase in the amounts of such installments, the payment of interest at an annual 
rate agreed with the Association on the principal amount of the Credit withdrawn and 
outstanding from time to time, provided that, in the judgment of the Association, such 
revision shall not change the grant element obtained under the above-mentioned 
repayment modification.
(d)
If, at any time after a modification of terms pursuant to paragraph (b) 
above, the Association determines that the Borrower's economic condition has 
deteriorated significantly, the Association may, if so requested by the Borrower, 
further modify the terms of repayment to conform to the schedule of installments as 
provided in paragraph (a) above.
Section 2.08. The currency of the French Republic is hereby specified for the 
purposes of Section 4.02 of the General Conditions.
ARTICLE III
Execution of the Project
Page  27
Section 3.01. (a) The Borrower declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out 
the Project through the PSMC with due diligence and efficiency and in conformity with 
appropriate environmental, administrative, financial and economic 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 Association shall otherwise agree, the Borrower 
shall carry out the Project in accordance with the Implementation Program set forth in 
Schedule 4 to this Agreement.
Section 3.02. 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 3 to this 
Agreement.
Section 3.03. 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 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 Borrower and the 
Association, a plan for the future operation of the Project; and  
(b)
afford the Association a reasonable opportunity to exchange views with 
the Borrower on said plan.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower 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 related to the Project.
(b)
The Borrower 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 auditing standards 
acceptable to the Association, 
consistently applied, by independent 
auditors 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 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 a 
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 such 
records 
and accounts, and the audit thereof, and concerning 
said auditors, as the 
Association may from time to time 
reasonably request.
(c)
For all expenditures with respect to which withdrawals from the Credit 
Page  28
Account were made on the basis of statements of expenditure, the Borrower shall:
(i)
maintain or cause to be maintained, in accordance with paragraph 
(a) of 
this Section, records and separate accounts 
reflecting such expenditures;
(ii)
ensure that all records (contracts, orders, invoices, bills, 
receipts and 
other documents) evidencing such expenditures are 
retained until at least 
one year after the Association has 
received the audit report for the fiscal 
year in which the last 
withdrawal from the Credit Account was made,
(iii)
enable the Association’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) Without limitation upon the provisions of Section 4.01 of this 
Agreement, the Borrower 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 4.01 in order to enable the Borrower, not later than 
December 31, 2001, 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 Borrower shall prepare, in accordance with guidelines acceptable to 
the Association, and furnish to the Association not later than 45 days after the end 
of each calendar quarter a Project Management Report for such period.
ARTICLE V 
Remedies of the Association
Section 5.01.  Pursuant to Section 6.02 (l) of the General Conditions, the 
following additional event is specified, namely, that the Borrower’s Decree No. 97/116 
dated July 7, 1997 or Order No. 433 dated August 24, 1999, shall have been amended, 
suspended, abrogated, repealed or waived so as to affect materially and adversely the 
Page  29
carrying out of the Project.
Section 5.02.  Pursuant to Section 7.01 (h) of the General Conditions, the 
following additional event is specified, namely, that the event specified in Section 
5.01 of this Agreement shall occur.
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 meaning of Section 12.01 
(b) of the General Conditions: 
(a)
the Borrower has adopted a project implementation manual in form and 
substance satisfactory to the Association; and
(b)
the Borrower has established an adequate financial management system 
including accounting procedures, satisfactory to the Association, to ensure proper 
monitoring of Project activities. 
Section 6.02. The date one hundred twenty (120) 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 the Borrower at the time responsible for public 
investments and regional development is designated as representative 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:
M
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Yaoundé, Cameroon
Cable address:
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Page  31
0
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Yaoundé
With copy to:
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Yaoundé, Cameroon
Cable address:
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Page  32
8
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Page  33
.
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Yaoundé, Cameroon
Cable address:
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Yaoundé
(237) 20 98 69
For the Association:
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Page  34
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Page  35
Cable address:
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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 
Yaoundé, Cameroon, as of the day and year first above written.
REPUBLIC OF CAMEROON
B
y 
/
s
/ 
M
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Page  36
t
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a
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
B
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A
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R
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b
a
Acting Regional Vice President
Africa
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:
A
m
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Page  37
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Page  38
S
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)
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F
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(
1
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1
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Page  39
0
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Page  40
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Page  41
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Page  42
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Page  43
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Page  44
0
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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; and
(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; 
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”.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement.
4.
The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditure for expenditures: (a) under contracts for goods 
costing less than $50,000 equivalent each; (b) under contracts for the employment of 
consulting firms or individual consultants costing less than $50,000 equivalent each; 
and (c) under contracts for training costing less than $30,000 equivalent each; all 
under such terms and conditions satisfactory to the Association.
SCHEDULE 2
Description of the Project
The objectives of the Project are: (a) to assist the Borrower to develop and 
establish a national capacity for the environmental management and monitoring of the 
PDP Project; and (b) on a medium to long-term basis, to help ensure the environmental 
sustainability of future projects, programs and policies in the Borrower’s petroleum 
sector; including strengthening the Borrower’s capacity to mitigate the negative 
social and environmental impacts of  the PDP Project and the establishment of an 
environmental regulatory framework for the petroleum sector.
The Project consists of the following parts, subject to such modifications 
thereof as the Borrower and the Association may agree upon from time to time to 
achieve such objectives:
Part A:
Strengthening the Institutional, Regulatory and Legal Framework
1.
Drafting, dissemination and enforcement of implementing regulations for 
environmental legislation:
strengthening the enforcement capacity of all agencies 
involved in the EMP implementation and monitoring, through technical advisory services 
for drafting and implementing environmental legislation and administrative procedures, 
including the training of staff, other stakeholders and judicial and legal officers, 
and public information campaigns.
2.
Long-Term Vision Study:  carrying out of a long-term vision study that will 
identify and evaluate the options for an effective and sustainable environmental 
regulatory framework for the petroleum sector, through the provision of technical 
advisory services.
Part B:
Strengthening  Coordinating Capacities for Environmental Management
1.
Central Coordination at the Permanent Secretariat of the PSMC: strengthening the 
capacity for central coordination of the Permanent Secretariat of the PSMC and 
carrying out training on environmental management, environmental assessment and 
Page  45
review, environmental monitoring, design and implementation of environmental 
mitigating measures, environmental health and administrative matters, through the 
provision of technical advisory services, training for staff specialized in 
biophysics, socio-economics and human health, and the carrying out of a program of 
public information, education and communication.
2.
PSMC Field Units: strengthening the capacity of the three field units which 
report directly to the Permanent Secretariat of the PSMC, through the provision of 
technical advisory services, carrying out training on natural resources and pollution 
prevention and management, as well as on conflict management and public health 
management, and the acquisition of equipment. 
Part C:
Strengthening Public Intervention Capacity for Environmental Management
1.
Public Health Management:  strengthening the capacity of the Borrower’s health 
centers and districts located in the vicinity of the pipeline constructed under the 
PDP Project, through the acquisition of equipment and medical supplies, the carrying 
out of building maintenance and laboratory analyses, as well as sub-contracting public 
awareness and social marketing campaigns to private voluntary organizations.
2.
Government Oil Spill Response Planning and Implementation: carrying out a study 
to design a national emergency oil spill response plan against accidental pollution by 
hydrocarbons, and initial implementation of the recommendations of said response plan, 
through the provision of technical advisory services and the acquisition of equipment.
3.
Decentralized services of the Borrower’s Administration: strengthening the 
capacity of the Borrower’s Ministries responsible for environment, mines, town 
planning and housing, and transport, and decentralized administrative units of said 
Ministries in the vicinity of the pipeline constructed under the PDP Project, through 
the provision of technical advisory services, training in natural resources and 
pollution prevention and management, as well as on conflict management, and the 
acquisition of vehicles, communications/information equipment and specialized 
equipment for measuring and monitoring environmental impacts.
Part D:
Project Management, Monitoring and Evaluation
1.
International Advisory Panel: preparation and dissemination of reports related 
to the biophysical environment, marine biology, socio-economy and environmental health 
through the provision of technical advisory services rendered by an international 
advisory panel.
2.
Project Management, Monitoring and Evaluation: establishment and maintenance of 
a Project management, monitoring and evaluation system and an environmental management 
information system to respond to the information needs of the PSMC regarding: (i) the 
management, monitoring and evaluation of the Project activities; and (ii) the 
supervision, implementation and monitoring of the EMP. 
* * *
The Project is expected to be completed by June 30, 2005.
SCHEDULE 3
Procurement and Consultants’ Services
Section I.
Procurement of Goods
Part A:
General
1.
Goods 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 (the Guidelines); and (b) the provisions of the following Parts of this 
Page  46
Section I.
Part B:
International Competitive Bidding
1.
Except as otherwise provided in Part C of this Section, goods 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 provisions shall apply to goods 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 vehicles and computer equipment shall 
be grouped in bid packages estimated to cost $250,000 equivalent or more each.
(b)
Preference for Domestically manufactured Goods
The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 
thereto shall apply to goods manufactured in the territory of the Borrower.
Part C:
Other Procurement Procedures 
1.
National Competitive Bidding
Goods mainly including office supplies and communication equipment estimated to 
cost less than $100,000 equivalent per contract, up to an aggregate amount not to 
exceed $260,000 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 $20,000 equivalent per contract, up to an 
aggregate amount not to exceed $55,000 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 from UN Agencies
Vehicles may be procured from the Inter-Agency Procurement Services Office of 
the United Nations (IAPSO) in accordance with the provisions of paragraph 3.9 of the 
Guidelines and as specified in the PIM.
Part D:
Review by the Association of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations 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 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
With respect to each contract for goods estimated to cost the equivalent of 
$50,000 or more, the procedures set forth in paragraphs 2 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.
Page  47
Section II.
Employment of Consultants
Part A:
General
1.
Consultants’ services shall be procured in accordance with: (a) the provisions 
of the Introduction and Section IV of the “Guidelines:  Selection and Employment of 
Consultants by World Bank Borrowers” published by the Association in January 1997 and 
revised in September 1997 and January 1999 (the Consultant Guidelines); and (b) the 
provisions of the following Parts of this Section II.
Part B:
Quality- and Cost-based Selection
1.
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.
2.
The following provisions shall apply to consultants’ services to be procured 
under contracts awarded in accordance with the provisions of the preceding paragraph.  
The short list of consultants for services for the Project, estimated to cost less 
than $50,000 equivalent per contract, may comprise entirely national consultants in 
accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
Part C:
Other Procedures for the Selection of Consultants 
1.
Least-cost Selection
Services for auditing and laboratory analysis estimated to cost less than 
$30,000 equivalent per contract 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 $30,000 equivalent per contract, up to an 
aggregate amount not to exceed $200,000 equivalent, may be procured under contracts 
awarded in accordance with the provisions of paragraphs 3.1 and 3.7 of the Consultant 
Guidelines.
3.
Single Source Selection
Services for training estimated to cost less than $30,000 equivalent per 
contract, up to an aggregate amount not to exceed $200,000 equivalent, may, with the 
Association's prior agreement, be procured in accordance with the provisions of 
paragraphs 3.8 through 3.11 of the Consultant Guidelines.
4.
Individual Consultants
Services for lectures and small studies and for tasks that meet the requirements 
set forth in paragraph 5.1 of the Consultant Guidelines may, with the Association’s 
prior agreement be procured under contracts awarded to individual consultants in 
accordance with the provisions of paragraphs 5.1 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 
Page  48
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 
estimated to cost the equivalent of $50,000 or more, the procedures set forth in 
paragraphs 1, 2 (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 estimated to cost the equivalent of $50,000 or more, the qualifications, 
experience, terms of reference and terms of employment of the consultants shall be 
furnished to the Association for its prior review and approval.  The contract shall be 
awarded only after the 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.
SCHEDULE 4
Implementation Program
General
1.
Except as the Association shall otherwise agree, the Borrower shall carry out 
the Project in accordance with the provisions of the PIM. The PIM shall not be amended 
or waived, in whole or in part, in a manner which, in the opinion of the Association, 
would materially and adversely affect the execution of the Project or the achievement 
of its objectives.
2.
(a) 
The PIM shall contain, inter alia: 
(i) 
a detailed description of the institutional set up for Project 
implementation and monitoring, including the definition of 
the respective 
mandates, roles, responsibilities and 
functions of the PSMC and of the 
ministries and agencies involved 
in the carrying out of the Project; 
(ii) 
a work plan and schedule for Project implementation;
(iii)
procedures for procurement, disbursement, accounting and financial 
management; 
(iv)
detailed list of Project implementation indicators; 
(v)
sources and applications of funds on an annual basis for each 
ministry and 
agency involved in the carrying out of the Project; 
and
(vi) 
other implementation arrangements for the Project, including 
standard 
bidding documents for goods and consultants, the list 
of consultants' 
services, the terms of reference of the main 
Page  49
studies and support services 
to be carried out, and estimated 
costs thereof.
(b)
The Borrower shall maintain, until the completion of the Project, the 
PSMC and its Permanent Secretariat with responsibilities satisfactory to the 
Association.
(c)
The Borrower shall adequately staff the Permanent Secretariat of the PSMC 
and its field units. To this end, the Borrower shall: (i) inter alios, not later than 
October 1, 2000, appoint, and thereafter maintain, the heads of the following sections 
of the Permanent Secretariat of the PSMC: the ERS Section, the Economy and Finance 
Section, the Administration and Accounting Section and the Engineering and Local 
Resources Mobilization Section, all with appropriate qualifications and 
responsibilities; and (ii) furnish to the Association for its approval, the 
qualifications, experience and terms of reference of the candidates for the positions 
of technical experts in biophysics, socio-economics, and human health in the field 
units and promptly upon receipt of the Association’s approval, appoint, and thereafter 
maintain, said staff in said positions with appropriate qualifications and 
responsibilities. 
3.
Not later than October 31, 2000, and thereafter by April 30 of each year, the 
Borrower shall, through the PSMC, furnish to the Association, for its review and 
approval, proposed detailed work plans and budgets in respect of Project activities 
for the forthcoming fiscal year.
Monitoring and Evaluation
4.
The Borrower shall:
(a)
maintain policies and procedures adequate to enable it to monitor and 
evaluate on an ongoing basis, in accordance with indicators satisfactory to the 
Association, the carrying out of the Project, and the achievement of the objectives 
thereof, as well as the compliance with the requirements of the EMP;
(b)
prepare, under terms of reference satisfactory to the Association, and 
furnish to the Association, beginning on or about April 30, 2001 and thereafter on or 
about April 30 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 the carrying out of the Project and in the compliance with the 
requirements of the EMP, during the period preceding the date of said report and 
setting out the measures recommended to ensure the efficient carrying out of the 
Project, the achievement of the objectives thereof and the compliance with the 
requirements of the EMP, during the period following such date; and
(c)
review with the Association, beginning July 30, 2001 and thereafter by 
July 30 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, as well as the compliance with the requirements of the EMP, based on the 
conclusions and recommendations of said report and the Association's views on the 
matter.
SCHEDULE 5
Special Account
1.
For the purposes of this Schedule:
(a)
the term “eligible Categories” means Categories (1) and (2) set forth in 
the table in paragraph 1 of Schedule 1 to this Agreement;
Page  50
(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 Credit 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 CFA Francs 
180,000,000 to be withdrawn from the Credit Account and deposited into the Special 
Account pursuant to paragraph 3 (a) of this Schedule, provided, however, that unless 
the Association shall otherwise agree, the Authorized Allocation shall be limited to 
an amount equivalent to CFA Francs 90,000,000 until the aggregate amount of 
withdrawals from the Credit Account plus the total amount of all outstanding special 
commitments entered into by the Association pursuant to Section 5.02 of the General 
Conditions with respect to the Project shall be equal to or exceed the equivalent of 
SDR 800,000.
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 Association 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 Association 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 Association shall, on behalf 
of the Borrower, withdraw from the Credit 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 
Association requests for deposits into the Special 
Account at such 
intervals as the Association shall 
specify.
(ii)
Prior to or at the time of each such request, the Borrower shall 
furnish to 
the Association 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 
Association shall, on behalf of 
the Borrower, withdraw from the Credit 
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 Association from the Credit 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 Association shall reasonably request, furnish to the 
Association 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 Association 
shall not be required to make further deposits into the Special Account:
(a)
if, at any time, the Association shall have determined that all further 
withdrawals should be made by the Borrower directly from the Credit Account in 
accordance with the provisions of Article V of the General Conditions and paragraph 
(a) of Section 2.02 of this Agreement;
Page  51
(b)
if the Borrower shall have failed to furnish to the Association, 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 Association pursuant to said Section in 
respect of the audit of the records and accounts for the Special Account;
(c)
if, at any time, the Association 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 Credit Account pursuant to the provisions of Section 6.02 of the General 
Conditions; or
(d)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories, minus the total amount of all outstanding special commitments entered into 
by the Association pursuant to Section 5.02 of the General Conditions with respect to 
the Project, shall equal the equivalent of twice the amount of the Authorized 
Allocation.
Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of 
the Credit allocated to the eligible Categories shall follow such procedures as the 
Association shall specify by notice to the Borrower. Such further withdrawals shall be 
made only after and to the extent that the Association 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 Association 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 Association, the Borrower shall, promptly upon notice from the 
Association: (A) provide such additional evidence as the Association may request; or 
(B) deposit into the Special Account (or, if the Association shall so request, refund 
to the Association) an amount equal to the amount of such payment or the portion 
thereof not so eligible or justified. Unless the Association shall otherwise agree, no 
further deposit by the Association 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 Association 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 Association, 
refund to the Association such outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the 
Association all or any portion of the funds on deposit in the Special Account.
(d)
Refunds to the Association made pursuant to paragraph 6 (a), (b) and (c) 
of this Schedule shall be credited to the Credit Account for subsequent withdrawal or 
for cancellation in accordance with the relevant provisions of this Agreement, 
including the General Conditions.
SCHEDULE 6
Implementation Indicators
Except as the Association shall otherwise agree, the main 
indicators for monitoring and evaluating the carrying out of the Project, 
referred to in paragraph 4 (a) of Schedule 4 to this Agreement are the 
following:
Project Components
Target 
dates
Part A–Strengthening the Institutional, Regulatory and
Page  52
Legal Framework
·
The following decrees and orders have been published in the 
Borrower’s Official Journal for the implementation of:
December 31, 
2001
·
articles 17-19, 31 and 33, 36, 43 and 47, 21, 
30.1 and 38.2, 57.1 and 58, 60 and 61 of the 
Borrower’s Law No. 96/12 dated August 5, 1996 
portant Loi-cadre relatif à la gestion de 
l’Environnement;
·
articles 7, 18 and 20 of the Borrower’s Law 
No. 98/15 dated July 14, 1998 related to 
Etablissements classés dangereux, insalubres 
ou incommodes; and
·
articles 5 and 10 of the Borrower’s Law No. 96/11 
dated August 5, 1996 related to Normalisation.
·
Number of trainees in the new regulatory framework:   
July 1, 2002
approximately fifty (50).
·
Long-term vision study on effective and sustainable  
July 1, 2004
environmental regulatory framework for the petroleum 
sector completed, including an assessment of the 
application of the above regulatory and legal framework.
Part B–Strengthening  Coordinating Capacities for Environmental 
Management
·
At least ten (10) PSMC trainees in biophysics, socio-
economics and health 
July 1, 2001
·
At least ten (10) civil servants assigned to PSMC field 
units in biophysics, socio-economics and health. 
July 1, 2001
Part C–Strengthening Public Intervention Capacity for 
Environmental Management
·
Health sector: twenty (20) health centers and districts 
strengthened
July 1, 
2002
·
Government Oil Spill Response Plan adopted and published
July 1, 
2002
·
At least seventy (70) civil servants trained in natural 
resources Management, Oil Spill Response Plan, conflict 
management, and pollution prevention and management
July 1, 
2002 
·
At least eighty per cent (80%) of civil servants that 
have received training under the Project stay assigned 
to the Project.
July 1, 
2004
Part D–Project Management, Monitoring and Evaluation
·
Environmental management information system (EMIS) in place 
and fully operational
July 1, 2001
·
Project management, monitoring and evaluation system fully 
operational
July 1, 2001
·
Report on EMP supervision and measures taken to ensure 
Page  53
compliance with EMP requirements.
Annual