CREDIT NUMBER 2692 CD
Development Credit Agreement
(Population and AIDS Control Project)
between
REPUBLIC OF CHAD
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated ,1995


﻿CREDIT NUMBER 2692 CD
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated                 , 1995, between REPUBLIC OF CHAD
(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, has requested the
Association to assist in the financing of the Project; and
(B)    the Borrower intends to obtain from Kreditanstalt fur Wiederaufbau
(KfW) a grant (the KfW Grant) in an amouit equivalent to about DM7,000,000 to assist
in financing the Project on the terms and conditions set forth in an agreement (the KfW
Grant Agreement) to be entered into between the Borrower and KfW;
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:
ARTICLE I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Development Credit
Agreements" of the Association, dated January 1, 1985, with the last sentence of Section
3.02 deleted (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) "ASTBEF" means the Association Tchadienne du Bien-Etre Familial,
a non-governmental organization established under the laws of the Borrower;
(b)    "CERPOD" means the Centre d'Etudes et de Recherche sur la
Population pour le D6veloppement a multilateral Sahelian research institute;


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(c)    "CFA Franc" and "CFAF" mean the currency of the Borrower;
(d)    "CNLS" means the Borrower's Comit6 National de Lutte contre le
SIDA the overall coordinator of the Borrower's AIDS control program;
(e)    "CNPRH" means Commission Nationale pour la Population et les
Resources Hlumaines, the inter-ministerial commission on population established by the
Borrower to monitor the overall process of developing, implementing and evaluating its
population policy;
(f)    "CTLS" means the Commission Technique pur La Lutte contre le SI)A,
the Borrower's technical advisory group to support the CNLS;
(g)    "DPP" means the Borrower's Declaration of Population Policy, dated
July 22, 1994;
(h)    "DSIS" meaius MOPH's division responsible for the Borrower's health
information system;
(i)    "FOSAP" means the Fonds de Soutien aux Activites en matiere de la
Population, established pursuant to the FOSAP Decree for purposes of implementing
Part D of the Project;
(j)    "FOSAP Decree" means the Borrower's Decree No. 250/PR/MPC/1994
creating FOSAP;
(k)    "HIV/AIDS/STDs" means the Human Immunodeficiency Virus/Acquired
Immunodeficiency Syndrome/Sexually Transmitted Diseases;
(1)    "IEC" means information, education and communication activities;
(M)    "MOPC" means the Borrower's Ministry of Planning and Cooperation;
(n)    "MOPH" means the Borrower's Ministry of Public Health;
(o)    "PCT" means the Project Coordination Team located in MOPC;
(p)    "PNLS" means the Borrower's Proramme National de Lutte contre le
S)A, the MOPH unit responsible for implementing the Borrower's AIDS control
activities;


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(q)    "Population Division" means the Division of Population of the
Directorate of Planning at MOPC established by the Borrower, intr Alia, to assist
CNPRH and to act as its secretariat;
(r)    "Project Preparation Advance" means the project preparation advance
granted by the Association to the Borrower pursuant to letter agreements dated April
8, 1994 and March 6, 1995, between the Borrower and the Association; and
(s)    "Special Account" means the account referred to in Section 2.02 (b) of
this Agreement.
ARTICLE H
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 thirteen million nine hundred thousand Special Drawing
Rights (SDR13,900,000).
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 described in Schedule 2
to this Agreement and to be financed out of the proceeds of the Credit.
(b)    The Borrower may, for the purposes of the Project, open and maintain
in CFA Francs 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 cancelled.


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Section 2.03. The Closing Date shall be June 30, 2001 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 cancelled; and (ii) at
the rate set as of the June 30 immediately preceding the accrual date and at such 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 April 15 and October 15 in each year.
Section 2.07. (a) Subject to paragraphs (b) and (c) below, the Borrower shall
repay the principal amount of the Credit in semiannual installments payable on each
April 15 and October 15, commencing April 15, 2005 and ending October 15, 2034.
Each installment to and including the installment payable on October 15, 2014 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 gross national product per capita, as
determined by the Association, shall have exceeded $790 in constant 1985 dollars for
five consecutive years, and (ii) the Bank shall consider the Borrower creditworthy for


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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 terms of repayment of installments
under paragraph (a) above by 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. If so requested by the Borrower, the Association may revise such modification
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.
(c)    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
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 with due diligence and efficiency and in conformity with appropriate
administrative, financial, and public health practices, and with due regard to ecological
and environmental factors, 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.
(c)    The Borrower shall operate the PCT under terms of reference and with
staffing satisfactory to the Association. The PCT shall include the following staff each
with qualifications and experience satisfactory to the Association: (i) a project
coordinator, (ii) a project administrator responsible for procurement, (iii) an accountant,


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and (iv) an administrator for the FOSAP. The Borrower shall ensure that no such staff
of the PCT is replaced at any time without the prior written consent of the Association.
(d)    The Borrower shall, for the purposes of the Project, continue to maintain
the Population Division with functions and staffing satisfactory to the Association,
including a division head, a demographer, a statistician and a sociolo'gist, each with
qualifications and experience satisfactory to the Association. The Borrower shall ensure
that no such staff of the Population Division is replaced at any time without the prior
written consent of the Association.
Section 3.02. Except as the Association 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 Credit shall be governed by the provisions of Schedule 3 to
this Agreement.
Section 3.03. For each fiscal year beginning before the Closing Date, the
Borrower: (a) shall adopt an annual budget for MOPH, and any other ministries
involved in AIDS control activities which shall include a specific budgetary item for
AIDS control activities; and (b) shall thereafter give timely effect to such budget.
Section 3.04. The Borrower shall: (a) transmit to the Association, each April and
October, semiannual progress reports regarding implementation of the Project; and (b)
carry out, jointly with the Association, annual reviews during the last quarter of each
year (other than 1997, the year of the mid-term review referred to in Section 3.05 of
this Agreement) regarding the progress made in carrying out the Project, including a
review of progress reports, annual work programs, and budgets for the next year.
Section 3.05. (a) The Borrower shall carry out, jointly with the Association,
during the last quarter of 1997, a mid-term review of the progress made in carrying out
the Project. The review shall cover, inter alia: (i) progress reports, annual work
programs, and budgets for the next yeak, (ii) training provided under the Project, (iii)
procurement under the Project, and (iv) the status of Project monitoring indicators
agreed upon with the Association.
(b)    PCT shall transmit to the Association, at least 45 days prior to the mid-
term review described in paragraph (a) above, a report, in scope and detail satisfactory
to the Association, describing the status of the items listed in such paragraph and of
Project implementation generally. In this connection, PCT shall employ independent
auditors, satisfactory to the Association, to conduct technical and financial audits of the
Project under terms of reference satisfactory to the Association.


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(c)    Based on such review, the Borrower shall promptly prepare an action
plan, acceptable to the Association, to deal with deficiencies, if any, in Project
implementation identified during the review, and shall thereafter implement such action
plan.
Section 3.06. Without limitation upon the provisions of Article IX of the General
Conditions, 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;
(b)    afford the Association a reasonable opportunity to exchange views with
the Borrower on said plan; and
(c)    thereafter, carry out said plan with due diligence and efficiency and in
accordance with appropriate practices, taking into account the Association's comments
thereon.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain or cause to be maintained records
and accounts adequate to reflect in accordance with sound accounting practices the
operations, resources and expenditures in respect of the Project of the departments or
agencies of the Borrower responsible for carrying out the Project or any part thereof.
(b)    The Borrower shall:
(i)    have the records and accounts referred to in paragraph (a) of this
Section including those for the Special Account for each fiscal
year audited in accordance with appropriate auditing principles
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 copy of the report of such audit by said auditors, of


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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, accounts and the audit thereof as the Association shall
from time to time reasonably request.
(c) For all expenditures with respect to which withdrawals from the Credit
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 accounts reflecting
such expenditures;
(ii)   retain, until at least one year after the Association has received
the audit for the fiscal year in which the last withdrawal from the
Credit Account was made, all records (contracts, orders,
invoices, bills, receipts and other documents) evidencing such
expenditures;
(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.


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ARTICLE V
Remedies of the Association
Section 5.01. Pursuant to Section 6.02 (h) of the General Conditions, the
following additional events are specified:
(a) the KfW Grant Agreement shall have failed to become effective by
December 31, 1995, or such later date as the Association may agree; provided, however,
that the provisions of this paragraph shall not apply if the Borrower establishes to the
satisfaction of the Association that adequate funds for the Project are available to the
Borrower from other sources on terms and conditions consistent with the obligations of
the Borrower under this Agreement; and
(b)    (i)    subject to subparagraph (ii) of this paragraph:
(A)    the right of the Borrower to withdraw the proceeds of
any loan or grant made to the Borrower for the
financing of the Project shall have been suspended,
cancelled or terminated in whole or in part, pursuant to
the terms of the agreement providing therefor, or
(B)    any such loan shall have become due and payable prior
to the agreed maturity thereof; and
(ii)   subparagraph (i) of this paragraph shall not apply if the
Borrower establishes to the satisfaction of the Association that:
(A) such suspension, cancellation, termination or prematuring
is not caused by the failure of the Borrower to perform any of
its obligations under such agreement; and (B) adequate funds
for the Project are available to the Borrower from other sources
on terms and conditions consistent with the obligations of the
Borrower under this Agreement.
Section 5.02. Pursuant to Section 7.01 (d) of the General Conditions, the
following additional event is specified, namely that any event specified in paragraph (b)
(i) (B) of Section 5.01 of this Agreement shall occur, subject to the proviso of
paragraph (b) (ii) of that Section.


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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 shall have entered into an agreement, in form  and
substance satisfactory to the Association, with CERPOD pursuant to which CERPOD
shall support and strengthen the operations of the Population Division;
(b)    the Borrower shall have recruited a specialist in epidemiology and
program management, with qualifications and experience and under terms and
conditions satisfactory to the Association;
(c)    the Borrower shall have entered into an agreement, in form  and
substance satisfactory to the Association, with ASTBEF and with a social marketing
firm, satisfactory to the Association, regarding the execution of Part C of the Project;
(d)    the Borrower shall have prepared bid documents, satisfactory to the
Association, for the goods and services scheduled to be procured during the first two
years of the Project;
(e)    the Borrower shall have established the PCT in accordance with Section
3.01 (c) of this Agreement, and the project coordinator and other key professional staff
listed in Section 3.01(c) of this Agreement, each with qualifications and experience
satisfactory to the Association, shall have taken up their positions within PCT;
(f)    PCT shall have in place an operational accounting and financial
management system satisfactory to the Association; and
(g)    the Borrower shall have retained the services of an independent auditor,
satisfactory to the Association, under a multi-year contract with terms and conditions
satisfactory to the Association.
Section 6.02. 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.


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ARTICLE VII
Representative of the Borrower; Addresses
Section 7.01. The Minister of Planning and Cooperation of the Borrower 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:
Ministry of Planning and Cooperation
BP 286
N'Djamena
Republic of Chad
Cable address:              Telex:
MINPLAN                       5329 KD
N'Djamena
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:              Telex:
INDEVAS                       197688 (TRT),
Washington, D.C.              248423 (RCA),
64145 (WUI) or
82987 (FTCC)]


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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 District of Columbia, United States of America, as of the day and year
first above written.
REPUBLIC OF CHAD
By                  'Kr/f                  AL24             W
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By
Regional Vice President
Africa


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SCHEDULE 1
Withdrawal of the Proceeds of the Credit
1.     The table below sets forth the Categories of items to be financed out of the
proceeds of the Credit, the allocation of the amounts of the Credit to each Category and
the percentage of expenditures for items so to be financed in each Category:
Amount of the
Credit Allocated              % of
(Expressed in           Expenditures
Category                  SDR Eguivalent)         to be Financed
(1) Goods:                                              100% of foreign
expenditures and
(a) Contraceptives               2,400,000         90% of local expenditures
(b) Other Items                   500,000
(2) Rehabilitation                      10,000         90%
of Offices
(3) Consultants'                      1,700,000         100%
Services
(4) Training                           700,000          100%
(5)  Studies                          2,700,000         100%
(6) FOSAP Grants                      2,700,000         100% of amounts
disbursed
(7) Incremental                       1,500,000        90% for expen-
Operating Costs                                    ditures incurred
during the first
three years
following the
Effective Date and
80% thereafter


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Amount of the
Credit Allocated              % of
(Expressed in          Exponditures
Category                  SDR Equivalent)        to be Financed
(8) Refunding of                       240,000        Amount due pur-
Project Preparation                               suant to Section
Advance                                           2.02 (c) hereof
(9) Unallocated                      1,450,000
TOTAL                      13,900,000
2.   For the purposes of this Schedule:
(a) the term "foreign expenditures" means expenditures in the currency of any
country other than that of the Borrower for goods or services supplied from the territory
of any country other than that of the Borrower;
(b) the term "local expenditures" means expenditures in the currency of the
Borrower or for goods or services supplied from the territory of the Borrower; provided,
however, that if the currency of the Borrower is also that of another country from the
territory of which the goods and services are supplied, expenditures in such currency
for such goods or services shall be deemed to be "foreign expenditures";
(c) the term "FOSAP Grants" means grants provided under the FOSAP; and
(d) the term "incremental operating costs" means the incremental cost of
equipment maintenance, vehicle operation and maintenance, office supplies, printing
expenses, travel allowances, and PCT office space and utilities, incurred by MOPC,
MOPH, and PCT in carrying out the Project.
3.  Notwithstanding the provisions of paragraph I 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 for goods, works and services


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under contracts not exceeding $50,000 equivalent, under such terms and conditions as
the Association shall specify by notice to the Borrower.


��-   1 6   - 
S C H E D U L E   2 
D e s c r i p t i o n   o f   t h e   P r o j e c t 
T h e   o b j e c t i v e s   o f   t h e   P r o j e c t   a r e   t o   a s s i s t   t h e   B o r r o w e r   i n   c a r r y i n g   o u t   i t s   s t r a t e g y 
i n   p o p u l a t i o n   a n d   f a m i l y   p l a n n i n g   a n d   i n   A I D S   c o n t r o l   i n c l u d i n g   i t s   p l a n   f o r :   ( i ) 
i n c r e a s i n g   t h e   u s e   o f   m o d e m   m e t h o d s   o f   c o n t r a c e p t i o n   i n   o r d e r   t o   a d v a n c e   t h e   o n s e t   o f 
f e r t i l i t y   d e c l i n e ,   a n d   ( i i )   s l o w i n g   t h e   s p r e a d   o f   I V   b y   p r o m o t i n g   b e h a v i o r a l   c h a n g e . 
T h e   P r o j e c t   c o n s i s t s   o f   t h e   f o l l o w i n g   P a r t s ,   s u b j e c t   t o   s u c h   m o d i f i c a t i o n s   t h e r e o f 
a s   t h e   B o r r o w e r   a n d   t h e   A s s o c i a t i o n   m a y   a g r e e   u p o n   f r o m   t i m e   t o   t i m e   t o   a c h i e v e   s u c h 
o b j e c t i v e s : 
P a r t   A :   R e i n f o r c e m e n t   o f   B o r r o w e r ' s   C a p a c i t y   t o   C a r r y   O u t   P o p u l a t i o n   P o l i c y 
1 .     S t r e n g t h e n i n g   M O P C ' s   c a p a c i t y   t o   p l a n ,   c o o r d i n a t e   a n d   d i s s e m i n a t e   t h e 
B o r r o w e r ' s   p o p u l a t i o n   p o l i c i e s ,   i n c l u d i n g   i n c r e a s i n g   t h e   i n s t i t u t i o n a l   c a p a c i t y   o f   t h e 
P o p u l a t i o n   D i v i s i o n ,   t h r o u g h ,   i n t e r   a l i a ,   p r o v i s i o n   o f   e q u i p m e n t ,   t r a i n i n g   o f   s t a f f ,   a n d 
r e h a b i l i t a t i o n   o f   o f f i c e s . 
2 .       I m p r o v i n g   c o m m u n i t y   a w a r e n e s s   a n d   i m p l e m e n t a t i o n   o f   p o p u l a t i o n   p o l i c i e s   a n d 
a c t i v i t i e s   t h r o u g h   t h e   e x e c u t i o n   o f   h e a l t h   i n f o r m a t i o n ,   e d u c a t i o n   a n d   c o m m u n i c a t i o n 
a c t i v i t i e s   ( I E C ) ,   a n d   t h e   d i s t r i b u t i o n   o f   c o n t r a c e p t i v e s . 
3 .       S t r e n g t h e n i n g   t h e   B o r r o w e r ' s   c a p a c i t y   t o   c a r r y   o u t   p o p u l a t i o n - r e l a t e d   r e s e a r c h 
t h r o u g h   t h e   i m p l e m e n t a t i o n   o f   a   n a t i o n a l   s t r a t e g y   t o   c o l l e c t   a n d   a n a l y z e   b a s i c 
d e m o g r a p h i c   d a t a   a n d   e v a l u a t e   r e l e v a n t   s o c i o - d e m o g r a p h i c   i n d i c a t o r s . 
P a r t   B :   S t r e n g t h e n i n g   N a t i o n a l   C a p a c i t y   t o   C o n t a i n 
H I V / A I D S / S T D s 
1 .     S t r e n g t h e n i n g   t h e   c a p a c i t y   o f   P N L S   t o   m a n a g e   a n d   c o o r d i n a t e   t h e   B o r r o w e r ' s 
n a t i o n a l   A I D S   c o n t r o l   p r o g r a m   a n d   o f   M O P H   t o   c a r r y   o u t   e p i d e m i o l o g i c a l   s u r v e i l l a n c e 
a n d   o p e r a t i o n a l   r e s e a r c h ,   t h r o u g h ,   n t e r   a l i a :   ( i )   t h e   p r o c u r e m e n t   o f   l o n g - t e r m   t e c h n i c a l 
a s s i s t a n c e   r e g a r d i n g   e p i d e m i o l o g y   a n d   p r o g r a m   m a n a g e m e n t ,   a n d   s h o r t - t e r m   s p e c i a l i s t 
s e r v i c e s   f o r   a n n u a l   p r o g r a m m i n g ,   o r g a n i z a t i o n   o f   t h e   n a t i o n a l   b l o o d   s a f e t y   p r o g r a m ,   a n d 
A I D S - r e l a t e d   t r a i n i n g   a n d   r e s e a r c h ;   ( i i )   t r a i n i n g   o f   s t a f f   i n   e p i d e m i o l o g y ,   h e a l t h 
p r o g r a m   m a n a g e m e n t ,   a n d   h e a l t h   i n f o r m a t i o n ,   e d u c a t i o n   a n d   c o m m u n i c a t i o n   a c t i v i t i e s 
( I E C ) ;   ( i i i )   o n - s i t e   t r a i n i n g   a n d   s u p e r v i s i o n   o f   h e a l t h   p e r s o n n e l   i n   t h e   B o r r o w e r ' s 
r e g i o n s   r e g a r d i n g   t h e   o p e r a t i o n   o f   M O P H ' s   h e a l t h   i n f o r m a t i o n   s y s t e m ;   ( i v )   a n n u a l 


﻿- 17 -
national workshops reviewing the AIDS control program; and (v) provision of vehicles
and other logistical and operational support.
2.   Improving MOPH's epidemiological surveillance of HIV/AIDS/STDs through,
inter alia: (a) the establishment of two additional sentinel sites; and (b) the carrying out
of (i) prevalence studies of HIV/STD, (ii) knowledge, attitude and practice (KAP)
studies, and (iii) a study regarding the priority indicators of prevention (IPP) to assess
the impact of the Borrower's initiatives to control HIV/AIDS/STDs.
3.   Improving the Borrower's ability to plan health activities through the carrying out
of operational studies aimed at improving the quality of public health services.
Part C: Establishment of a Social Marketing Program for the
Promotion of Condoms
Establishment of a condom social marketing program to be managed in an
autonomous manner by a social marketing unit under the general direction of ASTBEF
and in close coordination with PNLS, including: (i) the procurement of specialist
services in social marketing and auditing; (ii) training, including study of other condom
social marketing programs and training in IEC and promotional activities; (iii) provision
and distribution of condoms for sale; (iv) provision of equipment and vehicles; (v) the
carrying out of market studies and focus group research; (vi) promotional and
communication activities; and (vii) rehabilitation of office space.
Part D:  Population Activities Support Fund
The establishment of a fund (Fonds de Soutien aux Activit6s en matiere de
Population -- FOSAP) to provide grant financing for activities and programs that
support the Borrower's population and AIDS control programs, including:
(a) the financing of AIDS control activities that will assist in: (i) preventing sexual
transmission of HIV infections; (ii) reducing the impact of AIDS on AIDS patients,
families, and orphans; (iii) targeting population and AIDS control programs; and (iv)
the design and carrying out of a project which will provide psycho-social support for
persons afflicted with HIV/AIDS and their families; and
(b) the financing of population-related activities aimed at: (i) expanding the
delivery of maternal and child health/family planning services beyond public health
facilities; (ii) innovative IEC activities targeted to specific groups and involving
channels of communication complementary to public health channels (e.g., agricultural
extension workers, community development workers, women's associations, rural


﻿- 18 -
development cooperatives, and private employers); (iii) improving women's income-
earning capacities and their socio-economic status; and (iv) research regarding the socio-
cultural and economic characteristics of the population and the acceptability of new
contraceptive methods.
The Project is expected to be completed by December 31, 2000.


﻿-19-
SCHEDULE 3
Procurement and Consultants' Services
Section I. Procurement of Goods and Works
Part A:  International Competitive Bidding
1.  Except as provided in Part C hereof, goods shall be procured under contracts
awarded in accordance with procedures consistent with those set forth in Sections I and
II of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published
by the Bank in May 1992 (the Guidelines), and in accordance with the following
additional procedures:
(a) When contract award is delayed beyond the original bid validity period, such
period may be extended once, subject to and in accordance with the provisions of
paragraph 2.59 of the Guidelines, by the minimum amount of time required to complete
the evaluation, obtain necessary approvals and clearances and award the contract. The
bid validity period may be extended a second time only if the bidding documents or the
request for extension shall provide for appropriate adjustment of the bid price to reflect
changes in the cost of inputs for the contract over the period of extension. Such an
increase in the bid price shall not be taken into account in the bid evaluation. With
respect to each contract made subject to the Association's prior review in accordance
with the provisions of Part D.1 (a) of this Section of this Schedule, the Association's
prior approval will be required for (i) a first extension of the bid validity period if the
period of extension exceeds sixty (60) days and (ii) any subsequent extension of the bid
validity period.
(b) In the procurement of goods in accordance with this Part A, the Borrower
shall use the relevant standard bidding documents issued by the Bank, with such
modifications thereto as the Association shall have agreed to be necessary for the
purposes of the Project. Where no relevant standard bidding documents have been
issued by the Bank, the Borrower shall use bidding documents based on other
internationally recognized standard forms agreed with the Association.
2.   To the extent practicable, goods shall be grouped into bid packages estimated to
cost the equivalent of $250,000 or more each.


﻿- 20) -
Part B:  Preference for Domestic Manufacturers
In the procurement of goods in accordance with the procedures described in Part
A. 1 hereof, goods manufactured in Chad may be granted a margin of preference in
accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the
Guidelines and paragraphs 1 through 4 of Appendix 2 thereto.
Part C:  Other Procurement Procedures
1.   Goods estimated to cost the equivalent of $250,000 or less per contract, up to an
aggregate amount not to exceed the equivalent of $300,000, may be procured under
contracts awarded on the basis of competitive bidding, advertised locally, in accordance
with procedures satisfactory to the Association.
2. Small items including items for health promotion campaigns, office supplies and
spare parts estimated to cost the equivalent of $30,000 or less per contract, up to an
aggregate amount not to exceed the equivalent of $100,000, may be procured under
contracts awarded on the basis of comparison of price quotations obtained from at least
three suppliers eligible under the Guidelines in accordance with procedures satisfactory
to the Association.
3.   Goods to be financed through FOSAP grants, estimated to cost the equivalent of
$30,000 or less per contract, up to an aggregate amount not to exceed the equivalent of
$4,500,000, may be carried out on the basis of price quotations obtained from at least
three suppliers eligible under the Guidelines in accordance with procedures satisfactory
to the Association.
4.   Minor office rehabilitation works, up to an aggregate amount not to exceed the
equivalent of $20,000, may be carried out on the basis of price quotations obtained from
at least three contractors eligible under the Guidelines in accordance with procedures
satisfactory to the Association.
Part D:  Review by the Association of Procurement Decisions
1.   Review of invitations to bid and of proposed awards and final contracts:
(a) With respect to (i) each contract estimated to cost the equivalent of $250,000
or more, and (ii) the first three contracts regarding goods procured under Part C,
paragraph 1 of this Schedule, the procedures set forth in paragraphs 2 and 4 of Appendix
1 to the Guidelines shall apply. Where payments for such contract are to be made out of


﻿- 21 -
the Special Account, such procedures shall be modified to ensure that the two conformed
copies of the contract required to be furnished to the Association pursuant to said
paragraph 2 (d) shall be furnished to the Association prior to the making of the first
payment out of the Special Account in respect of such contract.
(b) With respect to each contract not governed by the preceding paragraph, the
procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply.
Where payments for such contract are to be made out of the Special Account, such
procedures shall be modified to ensure that the two conformed copies of the contract
together with the other information required to be furnished to the Association pursuant
to said paragraph 3 shall be furnished to the Association as part of the evidence to be
furnished pursuant to paragraph 4 of Schedule 5 to this Agreement.
(c) The provisions of the preceding subparagraph (b) shall not apply to contracts
on account of which withdrawals from the Credit Account are to be made on the basis
of statements of expenditure.
2.   The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1
to the Guidelines.
Section II. Employment of Consultants
1.   In order to assist the Borrower in carrying out the Project, the Borrower shall
employ consultants whose qualifications, experience and terms and conditions of
employment shall be satisfactory to the Association. Such consultants shall be selected
in accordance with principles and procedures satisfactory to the Association on the basis
of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the
World Bank as Executing Agency" published by the Bank in August 1981 (the Consultant
Guidelines). For complex, time-based assignments, the Borrower shall employ such
consultants under contracts using the standard form of contract for consultants' services
issued by the Bank, with such modifications as shall have been agreed by the Association.
Where no relevant standard contract documents have been issued by the Bank, the
Borrower shall use other standard forms agreed with the Association.
2.   Notwithstanding the provisions of paragraph 1 of this Section, the provisions of the
Consultant Guidelines requiring prior Association review or approval of budgets, short
lists, selection procedures, letters of invitation, proposals, evaluation reports and
contracts, shall not apply to (a) contracts for the employment of consulting firms
estimated to cost less than $100,000 equivalent each or (b) contracts for the employment
of individuals estimated to cost less than $50,000 equivalent each. However, said
exceptions to prior Association review shall not apply to (a) the terms of reference for


﻿-22 -
such contracts, (b) single-source selection of consulting firms, (c) assignments of a
critical nature, as reasonably determined by the Association, (d) amendments to contracts
for the employment of consulting firms raising the contract value to $100,000 equivalent
or above, or (e) amendments to contracts for the employment of individual consultants
raising the contract value to $50,000 equivalent or above.


﻿- 23 -
SCHEDULE 4
Implementation Program
Overall Project Implementation
1.  (a)  MOPH and MOPC units and directorates shall be responsible for Project
execution and management as follows: (i) the Population Division shall be responsible
for Part A of the Project; (ii) PNLS shall be responsible for Part B of the Project; (iii)
MOPC, assisted by ASTBEF, shall be responsible for Part C of the Project; and (iv) the
PCT, under the direct supervision of MOPC's Direction G6n6rale shall be responsible
for Part D of the Project.
(b) Without limitation upon the provisions of Section 3.01(c) of this Agreement,
the PCT shall be responsible for the day-to-day coordination of Project activities, related
administrative and financial matters, and Project monitoring and evaluation, and to this
end shall operate under terms of reference satisfactory to the Association which, inter
alia, shall require the PCT to be responsible for: (i) the coordination and preparation of
annual work programs and budgets for all components of the Project; (ii) the
procurement of goods and services and the recruitment of consultants; (iii) review of
impiementation progress reports prepared by the coordinators of Project components;
(iv) maintenance and consolidation of all Project accounts, including the Special
Account; (v) preparation of documentation for withdrawal of proceeds of the Credit; (vi)
ensure the establishment of adequate arrangements for the audit of Project accounts and
statements of expenditure; (vii) the preparation of semiannual and annual progress
reports for submission to the Association, the Borrower and cofinanciers; (viii) the
organization of annual and mid-term reviews of project implementation; and (ix) the
maintenance of an effective dialogue with donors and agencies in the population and
health sectors.
2.   (a) The Borrower shall carry out the Project in accordance with the timetable and
activities matrix set forth in the Multi-year Work Plan and Activities Matrix, adopted
pursuant to Circular 005/MPC/DG/DPDR/95.
(b) The Eorrower shall operate the CNLS and the CTLS in accordance with
Decree 089/PR/PMT/MSP/95, and Circular 012/PMT/95, respectively, regardit. their
functions and responsibilities.
(c) The Borrower shall carry out the radio/television information campaign in
accordance with the schedule set forth in the agreement regarding the AIDS control


﻿- 24 -
program, dated January 28, 1995, between MOPH and the Borrower's Ministry of
Communication.
(d) The Borrower shall ensure that the PNLS and the DSIS implement the
epidemiological research program set out in Circular 035/MSP/DG/PNLS/95.
3.   The Borrower shall prepare annual programs, satisfactory to the Association, for
the training to be carried out under the Project.
Part A of the Project
4.   The Borrower shall exercise its rights and comply with its obligations under the
agreement with CERPOD referred to in Section 6.01(a) of this Agreement in such a
way as to protect the interests of the Borrower and the Association and to accomplish
the purposes of the Credit and, except as the Association shall otherwise agree, the
Borrower shall not assign, amend, abrogate or waive any provision thereof.
Part B of the Project
5.   In carrying out Part B.2 of the Project, the Borrower shall carry out the studies
referred to therein under terms of reference satisfactory to the Association, which in the
case of the prevalence studies, shall specify target groups.
6.   In carrying out Part B.3 of the Project, the Borrower shall carry out studies, under
terms of reference satisfactory to the Association, regarding: (i) the development and
adoption of algorithms for the management of STD and AIDS patients; (ii) the
elaboration of a referral protocol to assist HIV positive persons and their families; (iii)
the evaluation of the clinical definition of AIDS; (iv) the relationship of HIV and
tuberculosis to improve the treatment of tuberculosis among HIV positive patients; (v)
the accessibility and utilization of health centers and district hospitals; and (vi) the
socio-economic impact of AIDS at the individual and family levels and at the
community and macro-economic levels.
Part C of the Project
7.   The Borrower shall operate the social marketing unit responsible for carrying out
Part C of the Project under terms of reference satisfactory to the Association, which
shall provide, ier alia, for (a) support from ASTBEF and a social marketing firm
satisfactory to the Association, and (b) the employment of co-directors, each with
qualifications and experience satisfactory to the Association, assisted by the following
staff, with appropriate qualifications: (i) a director of marketing, (ii) regional marketing


﻿- 25 -
representatives, (iii) an accountant/MIS specialist, (iv) an IEC specialist, (v) an
inventory specialist, and (vi) part-time contracted sales persons.
8.   The Borrower shall exercise its rights and comply with its obligations under the
agreement with ASTBEF and the social marketing firm referred to in Section 6.01(c)
of this Agreement in such a way as to protect the interests of the Borrower and the
Association and to accomplish the purposes of the Credit and, except as the Association
shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any of
provision thereof.
Part D of the Project
9.   The Borrower shall operate FOSAP under terms of reference satisfactory to the
Association, which shall include the following requirements:
(a) grants shall be made to NGOs, associations, private and public organizations
or individuals, (e.g., pharmacists, physicians and midwives) meeting eligibility criteria
satisfactory to the Association;
(b) grants may be made to support umbrella resource projects ('projets
dynamisateurs') selected by the FOSAP in collaboration with either (i) the Population
Division, for population-related sub-projects, or (ii) the CTLS and the PNLS, for AIDS
control-related sub-projects, in accordance with eligibility criteria satisfactory to the
Association, which shall take into account, intr alia, the prior experience of the sponsor
of such 'projet dynamisateurs', its success in implementing multi-sectoral projects, and
its geographical location;
(c) grants shall not exceed CFAF30,000,000 per beneficiary (except as the
Association may otherwise agree) or 80% of the total sub-project cost, whichever is
lower; and
(d) beneficiaries shall be required to enter into an agreement, in form satisfactory
to the Association, with FOSAP setting forth their obligations and the obligation of
FOSAP to make grant funds available in a timely manner; such agreement shall require,
inter alia, in the case of grants for 'projets dynamisateurs' that the sponsor thereof
provide guidance to other applicants for FOSAP grants regarding the preparation,
implementation, and evaluation of their potential sub-projects.
10.      FOSAP shall at all times be operated and administered in accordance with
regulations and procedural manuals satisfactory to the Association, which shall set forth,
inter alia, the prescriptions set out in the preceding paragraph of this Schedule 4. The


﻿- 26 -
Borrower shall not amend, repeal or otherwise modify the FOSAP Decree without the
prior written consent of the Association.


﻿- 27 -
SCHEDULE 5
Special Account
1.  For the purposes of this Schedule:
(a) the term "eligible Categories" means Categories (1) through (7) 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 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 CFAF
250,000,000 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 CFAF 125,000,000 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 shall
be equal to or excetd the equivalent of SDR700,000.
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.


﻿- 28 -
(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
haNe 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 finther 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;
(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, less 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.


﻿- 29 -
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 paragraphs 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.


﻿INTERNATIONAL DEVELOPMENT ASSOCIATION
CERTIFICATE
I hereby certify that the foregoing is a true copy
of the original in the archives of the International
Development Association.
FOR SECRETARY