Page  1
CONFORMED COPY
CREDIT NUMBER 2378 BUR
(Public Institutional Development Project)
between
BURKINA FASO
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated June 29, 1992
CREDIT NUMBER 2378 BUR
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated June 29, 1992, between BURKINA FASO (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)
by a letter of agreement, dated November 22, 1991, (the Norway Letter of 
Agreement), as amended by an amendment letter, dated May 8, 1992, the Royal Ministry 
of Foreign Affairs of the
Kingdom of Norway (Norway) has agreed to make a grant (the Norwegian Grant) to the 
Borrower in an aggregate principal amount equivalent to $300,000 to assist in 
financing the Project on the terms and conditions set forth in the Norwegian Letter of 
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;
Page  2
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)
"CFAF" or "CFA Franc" means the Borrower's currency;
 
(b)
"DCF" means Direction du Contrcle Financier;
 
(c)
"D/L" or "Direction de la Legislation" means the Direction de la 
Legislation referred to in paragraph 2 of Schedule 4 to this Agreement;
(d)
"MFP" means Ministcre des Finances et du Plan;
 
(e)
"MFPMA" means Ministcre de la Fonction Publique et de la Modernisation de 
l'Administration;
(f)
"MJ" means Ministcre de la Justice;
 
(g)
"Project Preparation Advance" means the project preparation advance 
granted by the Association to the Borrower pursuant to an exchange of letters dated 
October 25, 1991 and November 12, 1991 between the Borrower and the Association; and
(h)
"Special Account" means the account referred to in Section 2.02 (b) of 
this Agreement.
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 eleven million Special Drawing Rights (SDR 
11,000,000).
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 shall, for the purposes of the Project, open and maintain in 
CFAF 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.
Section 2.03. The Closing Date shall be March 31, 1997 or such later date as the 
Page  3
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 or 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 payment 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 January 1 and July 1 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 semi-annual installments payable on each 
January 1 and July 1, commencing July 1, 2002 and ending January 1, 2032. Each 
installment to and including the installment payable on January 1, 2012 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 
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
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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 MFPMA with due diligence and efficiency and in conformity with 
appropriate administrative, financial and technical 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, 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. (a) The Borrower and the Association shall, not later than October 
31, 1993 and, thereafter, not later than October 31 of each subsequent year, undertake 
a joint review of the
Project or, as the case may be, not later than October 31, 1994, a mid-term review, 
during which they shall exchange views generally on all matters relating to the 
progress of the Project and the
performance by the Borrower of its obligations under this Agreement and, in 
particular, (i) the progress achieved during the current fiscal year, and (ii) the 
proposed budget and work program for the forthcoming fiscal year, including (A) a 
statement of monitorable objectives and a program of activities to be undertaken to 
achieve those objectives, and (B) detailed budgets and financing plans, a schedule of 
proposed procurement actions, and staffing and training plans.
(b)
Not later than one month prior to each such review, the Borrower shall 
furnish to the Association, for its comments, a report, in such detail as the 
Association shall reasonably request, on the progress and status of the Project, and 
giving details, in particular, of the proposed budget and work program for the 
forthcoming fiscal year.
(c)
Following each such review, the Borrower undertakes to act promptly and 
diligently, in order to take any corrective action deemed necessary to remedy any 
shortcoming noted in the implementation of the Project, or to implement such other 
measures as may have been agreed upon between the parties in furtherance of the 
objectives of the Project.
(d)
Without limitation to the preceding paragraphs (a), (b) and (c) of this 
Section, the Borrower shall, throughout the period of implementation of the Project, 
submit to the Association, for its review and comments, quarterly reports on the 
progress of implementation of the Project.
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 
Page  5
copy of the 
report of such audit by said auditors, of such scope 
and in such detail as the 
Association shall have reasonably requested; 
and
(iii)
furnish to the Association such other information concerning said 
records, 
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 
report for the fiscal year in which the last withdrawal from 
the Credit 
Account or payment out of the Special 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 the said accounts and records shall be audited on a 
semiannual 
basis by said auditors, who shall prepare audit 
reports accordingly and 
furnish them to the Association, not 
later than three (3) months after the end 
of such semiannual audit 
period, along with an opinion as to whether the 
statements of 
expenditure submitted during such period, together with the 
procedures and internal controls involved in their preparation, can be relied 
upon to support the related withdrawals.
ARTICLE V
Remedies of the Association
Section 5.01. Pursuant to Section 6.02 (h) of the General Conditions, the 
following additional event is specified, namely that:
(a)
Subject to paragraph (b) of this Section:
 
(i)
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 thereof, or
(ii)
any such loan shall have become due and payable prior to the 
agreed maturity 
thereof.
 
(b)
Paragraph (a) of this Section shall not apply if the Borrower establishes 
to the satisfaction of the Association that: (i) such suspension, cancellation, 
termination or prematuring is not caused by the failure of the Borrower to perform any 
of its obligations under such agreement; and (ii) adequate funds for the Project are 
available to the Borrower from other sources on terms and conditions consistent with 
the obligations of the Borrower under this Agreement.
Section 5.02. Pursuant to Section 7.01 (d) of the General Conditions, the 
following additional event is specified, namely that the event specified in Section 
5.01 (a) (ii) of this Agreement shall occur, subject to the proviso of Section 5.01 
(b) of this Agreement.
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 
Page  6
(b) of the General Conditions:
(a)
The Borrower has recruited an accounting firm, having qualifications and 
experience acceptable to the Association, to assist MFPMA in the performance of its 
financial and accounting
obligations under Section 4.01 (a) of this Agreement.
(b)
The Borrower has selected independent auditors, acceptable to the 
Association, to audit the Project accounts in accordance with the requirements of 
paragraphs (b) and (c) of Section 4.01 of this Agreement.
(c)
The procurement committee referred to in paragraph 1 of Schedule 4 to 
this Agreement has been established.
(d)
The Borrower has set up the Direction de la Legislation, and the 
sub-committee referred to in paragraph 4 of Schedule 4 to this Agreement, and 
appointed the D/L Director and his complement of magistrates, as well as members of 
the sub-committee.
(e)
The Borrower has adopted legislation, referred to in paragraph 5 of 
Schedule 4 to this Agreement, for the creation of a separate commercial jurisdiction 
in Ouagadougou and Bobo-Dioulasso.
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.
ARTICLE VII
Representatives of the Borrower; Addresses
Section 7.01. The Minister of Finance and Planning 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:
Ministcre des Finances et du Plan
B.P. 7050
Ouagadougou
Burkina Faso
Telex:
5555 SEGEGOUV
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
 
INDEVAS
248423 (RCA)
Washington, D.C.
 82987 (FTCC)
 64145 (WUI) or
197688 (TRT)
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.
Page  7
BURKINA FASO
By /s/ Paul Desire Kabore
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Edward V. K. Jaycox
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:
                             Amount of the
                           Credit Allocated          % of
                             (Expressed in       Expenditures
     Category               SDR Equivalent)     to be Financed
(1)   Training:                                 100%
      (a) under Part E.1          700,000
          of the Project
      (b) other                   920,000
(2)   Consultants'               2,200,000      100%
      services and
      studies
(3)   Civil works                2,150,000      100%
(4)   Equipment,                                100%
      vehicles and
      materials
      (a) under Part E.5           440,000
          of the Project
      (b) other                  2,560,000
(5)  Refunding of                  550,000      Amount due
     Project                                    pursuant to
     Preparation                                Section 2.02 (c)
     Advance                                    of this Agreement
(6)   Unallocated                1,480,000
                                 _________
      TOTAL                     11,000,000
                                ==========
2.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made:
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(a)
in respect of payments made for expenditures prior to the date of this 
Agreement, except that withdrawals, in an aggregate amount not to exceed SDR 
1,100,000, may be made on account of payments made for expenditures before that date 
but after January 31, 1992;
(b)
under Category (1) (a) of the table in paragraph 1 of this Schedule, 
unless the Borrower has: (i) confirmed that all outstanding applications for admission 
to the Bar have been disposed of; (ii) adopted legislation for the reinstatement of 
the liberal practice of the professions of notaries and court ushers, and to review 
the rules governing access to the Bar, with a view to facilitating access thereto; and 
(iii) submitted a training program giving details of proposed training courses for 
magistrates, advocates and other branches of the legal profession, the criteria to be 
used for the selection of candidates for the courses and, in the case of trainee 
advocates, the measures being taken to identify suitable training positions for each 
of the candidates for the completion of their practical training; and
(c)
under Category (4) (a) of the table in paragraph 1 of this Schedule, 
unless the Borrower has (i) identified adequate premises to serve as law library, (ii) 
recruited a suitably
qualified and experienced librarian to serve as law librarian, and (iii) issued 
appropriate instructions for the use of library facilities.
SCHEDULE 2
Description of the Project
The objective of the Project is to support the Borrower's efforts to reinforce 
the major public institutions charged with economic and sector management and, thus, 
to bring about sustained
and equitable economic growth. 
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:
Information and Data Management
 
1.
Strengthening of National Institute of Statistics and Demography (INSD): (a) 
establish a Conseil Superieur de la Statistique, replacing the Statistics and General 
Studies Coordination Committee established in 1967, to design and monitor a long term 
strategy and work program for data collection and analysis; (b) conduct a 
comprehensive audit of INSD leading to improved operations; (c) conduct a series of 
economic and poverty focussed SDA (Social Dimensions of Adjustment) surveys and 
studies identified as part of the adjustment program; and (d) design and implement a 
training program in statistics for staff of INSD and of the Departments responsible 
for Research and Planning, and Administration and Financial Matters, in key 
Ministries.
2.
Information Management: (a) create a central civil service file; and (b) prepare 
a unified financial information management system for MFP, including review and 
updating of nomenclature,
notably for the budget.
3.
Analysis: Improve monitoring of public investments, through reforms of the 
budgetary expenditure process and production of better public investment data.
Part B:
Budget Management
 
1.
Construct a central tax services building and install a computerized management 
system in the customs service.
2.
Conduct a global audit of the budgetary expenditure cycle. 
 
3.
Review recurrent and investment expenditures made by MFP and other Ministries 
and Government agencies.
Page  9
4.
Reinforce DCF, thereby extending its reach of effective control to the whole 
budget, including public procurement, while streamlining complex control procedures 
and allowing more effective delegation to technical Ministries.
5.
Strengthen public accounting through harmonization of budgetary nomenclature 
with the new public accounting framework, and develop a computerized accounting 
system.
Part C:
Public Procurement
 
1.
Revise and consolidate procurement laws and regulations, with a view to (a) 
clarifying and rationalizing the respective roles and functions of the different 
agencies involved in public procurement, (b) streamlining the procurement process 
through the introduction of procedures which are transparent and, at the same time, 
expeditious, and (c) ensuring that such procedures are applied consistently, and in a 
non-discriminatory, efficient and transparent manner.
2.
Promote better understanding and efficiency in the practical application of the 
procurement rules.
3.
Develop and implement a staff development and training plan.
 
Part D:
Civil Service Management
 
1.
Conduct a civil service census, as well as preparatory studies based on the 
central civil service file.
2.
Revise civil service wages and remuneration, on the basis of studies of civil 
service remuneration and grading.
3.
Establish a system of wage planning and forecasting linking personnel management 
to budgetary objectives.
4.
Examine alternative approaches to a career civil service.
 
5.
Conduct training seminars to better associate unions and other key social groups 
with the Borrower's wage and civil service policies.
6.
Strengthen the capacity of the Borrower's schools for public administration to 
provide appropriate training to a transformed civil service.
7.
Undertake pilot actions intended to directly increase productivity and improve 
service quality in the public administration, and support the Borrower's Consumer 
Association with a view to developing a broader constituency of users of public 
services.
Part E:
Legal and Judicial Reforms
 
1.
Consolidate the legal profession as a whole through training and retraining, as 
the case may be, of magistrates, advocates, notaries and ushers.
2.
Revise and consolidate body of commercial legislation, including mining laws and 
land tenure legislation.
3.
Rehabilitate the process of publication of the Official Journal and Supreme 
Court decisions (including, in the case of the Official Journal, renovation of its 
physical facilities), and establish a legal database.
4.
Strengthen the commercial law jurisdiction of lower courts.
 
5.
Reconstitute law library facilities.
 
6.
Commission a study on a proposed legal and institutional framework for the 
establishment of commercial arbitration facilities in Ouagadougou, and implement the 
findings thereof.
Part F:
Communication of Economic Reform
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Training of Burkinabe journalists in basic economics and the adjustment process.
* * *
The Project is expected to be completed by September 30, 1996.
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 1985 (the Guidelines).
2.
To the extent practicable, contracts for goods shall be grouped into bid 
packages estimated to cost the equivalent of $100,000 or more.
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 Burkina Faso 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
 
Vehicles, small equipment and materials estimated to cost the equivalent of 
$100,000 or less per contract, up to an aggregate amount equivalent to $800,000, as 
well as civil works, estimated to cost the equivalent of $1,000,000 or less per 
contract, up to an aggregate amount equivalent to $1,700,000, may be procured under 
contracts awarded on the basis of competitive bidding, advertised
locally, 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 each contract estimated to cost the equivalent of 
$100,000 or more, 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 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 10% is hereby specified for purposes of paragraph 4 of Appendix 1 
Page  11
to the Guidelines.
Part E:
Pre-shipment Inspection
 
All goods imported under the Project shall be subject to pre-shipment inspection 
for price, quantity and quality verification by a suitably qualified and experienced 
pre-shipment inspection firm; provided, however, that no price verification shall be 
conducted in respect of goods to which Part A of this Section applies.
Section II.
Employment of Consultants
 
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.
SCHEDULE 4
Implementation Program
1.
(a)
The Borrower shall set up a procurement committee, consisting of the 
Minister in charge of the Budget, who shall be the chairman thereof, the DCF Director, 
the Commissaire General 
l'Inspection d'Etat, and representatives of MJ, the private sector, and other 
concerned Ministries and agencies, to review the existing procurement rules and 
procedures and, in the light thereof, to
submit a consolidated draft of proposed procurement legislation for adoption by the 
competent authorities.
(b)
The Borrower shall, not later than January 1, 1994:
 
(i)
have the proposed legislation referred to in sub-paragraph (a) of 
this paragraph 
adopted;
 
(ii)
have a procurement unit, acceptable to the Association, 
established within 
DCF, to be responsible for the overall 
supervision of public procurement; and
(iii)
dissolve, abrogate or eliminate, as the case may be, any competing 
unit or 
agency within the public service, which has similar 
attributions, or performs 
similar functions, as the unit referred to 
under paragraph (ii) of this 
sub-paragraph.
 
2.
The Borrower shall establish and maintain a coordinating commission, consisting 
of a representative of the Borrower, who shall be the chairman thereof, and of 
representatives of interested donors, to provide a mechanism for the coordination of 
all technical assistance activities for economic management supported by donors for 
institutional development purposes, and to monitor the progress, and evaluate the 
results, thereof.
3.
The Borrower shall set up a Direction de la Legislation (D/L), consisting of a 
Director, having qualifications and experience acceptable to the Association, and not 
less than three suitably qualified and experienced magistrates, to advise Government 
Ministries generally on the content of proposed legislation and be responsible, in 
particular, for the preparation of commercial and business legislation under the 
Project.
4.
The Borrower shall establish a sub-committee of the Law Revision Committee, 
consisting of the D/L Director, who shall be the chairman thereof, and other 
recognized business and business law
experts, to review the commercial code and related legislation, including the land 
tenure law, make proposals for amendments and modifications thereof, and prepare 
revised legislation accordingly for adoption by the competent authorities.
Page  12
5.
The Borrower shall adopt legislation and take other steps needed for the 
creation of a separate commercial jurisdiction to ensure the prompt and efficient 
handling of commercial cases within the lower courts of Ouagadougou and 
Bobo-Dioulasso, together with a specially equipped registry, which will serve both as 
secretariat for the commercial law cases, and as the companies' registry, in each of 
the two jurisdictions.
6.
The Borrower shall, with effect from January 1, 1993, (a) require all sitting 
magistrates (i) to submit through their supervisors monthly returns, pertaining to 
their output and performance, giving details, in particular, of those cases within 
their jurisdiction, which have either remained pending for more than a reasonable 
period of time or been postponed for more than a
reasonable number of times, and (ii) to comply with specific deadlines both for 
delivery and for issue of judgments; and (b) revise the rules governing promotions and 
advancements, and disciplinary sanctions, within the Judiciary in order to take ccount 
of magistrates' compliance, or otherwise, with the requirements specified in 
sub-paragraph (a) of this paragraph.
7.
The Borrower shall, not later than September 30, 1993, issue administrative 
instructions governing the preparation and proper processing of draft legislation, and 
for the distribution, sale and storage of copies of the Official Journal.
8.
The Borrower shall have the study referred to under Part E.6 of the Project 
completed, not later than June 30, 1994, in order to have commercial arbitration 
facilities established, not later than December 31, 1994, in Ouagadougou.
9.
The Borrower shall, not later than December 31, 1993, adopt legislation for the 
establishment of a legal aid mechanism in favor of the poorer sections of the 
population.
10.
The Borrower shall establish a Project procurement committee, consisting of the 
DCF Director, who shall be the chairman thereof, and of representatives of MFP, MFPMA 
and, if need be, MJ, to be responsible for the award of all contracts under the 
Project, that are estimated to cost the equivalent of FCFA 50,000,000 or less.
SCHEDULE 5
Special Account
1.
For the purposes of this Schedule:
 
(a)
the term "eligible Categories" means Categories (1) through (4) 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 
300,000,000 to be withdrawn from the Credit Account and deposited into the Special 
Account pursuant to paragraph 3 (a) of this Schedule.
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 a deposit or deposits 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 
Page  13
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; or
(b)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories, less the amount of any outstanding special commitment 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 paragraphs 6 (a), (b) and (c) 
Page  14
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.