Page  1
CONFORMED COPY
CREDIT NUMBER 3100 IVC
Development Credit Agreement
(Transport Sector Adjustment and Investment Project) 
between 
REPUBLIC OF COTE D’IVOIRE 
and 
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated September 16, 1998
CREDIT NUMBER 3100 IVC
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated September 16, 1998, between REPUBLIC OF COTE D’IVOIRE (the 
Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). 
WHEREAS (A)  the Association has received a letter, dated May 13, 1998, (the 
Letter of Sector Policy or LSP) from the Borrower describing a program of actions, 
objectives and policies designed to achieve an adjustment of the Borrower’s transport 
sector (the Program) and declaring the Borrower's commitment to the execution of the 
Program; 
(B)
the Borrower, having committed itself to the execution of the Program 
and, as part of the Program, 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 of urgently needed imports 
required during the execution thereof; 
(C)
the Borrower has contracted from Agence Française de Développement (AFD) 
two loans (the AFD Loans) in an amount equivalent to $55,100,000 to assist in 
financing part of the Program on the terms and conditions set forth in an agreement 
(the AFD Loan Agreement) to be entered into between the Borrower and AFD; and
WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, 
to extend the Credit to the Borrower upon the terms and conditions set forth in this 
Agreement;
NOW THEREFORE the parties hereto hereby agree as follows:
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 modifications set 
forth below (the General Conditions) constitute an integral part of this Agreement: 
(a)
the last sentence of Section 3.02 is deleted;
(b)
Section 4.01 is modified to read: "Except as the Borrower and the 
Association shall otherwise agree, withdrawals from the Credit Account for payments 
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made in respect of Category (5) of the table set forth in paragraph 1 of Schedule 1 to 
the Credit Agreement shall be made in the currency of the deposit account specified in 
Section 2.02 (a) of the Credit Agreement.";
(c)
the second sentence of Section 5.01 is modified to read:
"Except as the Borrower and the Association shall otherwise agree, no 
withdrawals shall be made: (a) on account of expenditures in the territories 
of any country which is not a member of the Bank or for goods produced in, or 
services supplied from, such territories; or (b) for the purpose of any 
payment to persons or entities, or for any import of goods, if such payment or 
import, to the knowledge of the Association, is prohibited by a decision of 
the United Nations Security Council taken under Chapter VII of the Charter of 
the 
United Nations;" and
(d)
Section 6.03 is modified to read as follows:
"Section 6.03.  Cancellation by the Association.  If (a) the right of 
the Borrower to make withdrawals from the Credit Account shall have been 
suspended with respect to any amount of the Credit for a continuous period of 
thirty 
days, or (b) at any time, the Association determines, after 
consultation with the Borrower, that an amount of the Credit will not be 
required to finance the Project's costs to be financed out of the proceeds of 
the 
Credit, or (c) at any time the Association determines, with respect to any 
contract to be financed out of the proceeds of the Credit, that corrupt or 
fraudulent practices were engaged in by representatives of the Borrower or of 
a 
beneficiary of the Credit during the procurement or the execution of such 
contract, without the Borrower having taken timely and appropriate action 
satisfactory to the Association to remedy the situation, and establishes the 
amount of expenditures in respect of such contract which would otherwise have 
been 
eligible for financing out of the proceeds of the Credit, or (d) at any 
time, 
the Association determines that the procurement of any contract to be 
financed out of the proceeds of the Credit is inconsistent with the procedures 
set 
forth or referred to in the Development Credit Agreement and establishes 
the 
amount of expenditures in respect of such contract which would otherwise 
have 
been eligible for financing out of the proceeds of the Credit, or (e) 
after 
the Closing Date, an amount of the Credit shall remain unwithdrawn from 
the Credit 
Account, the Association may, by notice to the Borrower, terminate 
the right of 
the Borrower to make withdrawals with respect to such amount.  
Upon the 
giving of such notice, such amount of the Credit shall be canceled.".
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)
"Franc de la Communauté Financière Africaine" and "CFAF" mean the 
currency of the Borrower; 
(b)
"Deposit Account" means the account referred to in Section 2.02 (a) of 
this Agreement; 
(c)
"Special Account" means the account referred to in Section 2.03 (b) of 
this Agreement; 
(d)
"Project Preparation Advance" means the project preparation advance 
granted by the Bank to the Borrower pursuant to an exchange of letters dated July 11, 
1991, and September 30, 1991, between the Borrower and the Bank, and the project 
preparation advance granted by the Association to the Borrower pursuant to an exchange 
of letters dated October 3, 1997, and October 13, 1997, between the Borrower and the 
Association; 
(e)
"CAA" means Caisse Autonome d’Amortissement, a public financial 
institution of the Borrower;
(f)
"Tranche" means any of the following: the First Tranche, the Second 
Tranche, the Third Tranche, and the Floating Tranche, as defined in this Section; 
(g)
"First Tranche" means the amount of the proceeds of the Credit allocated 
to Category (5) (a) of paragraph 1 of Schedule 1 to this Agreement, to be released by 
the Association on or after the Effective Date; 
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(h)
"Second Tranche" means the amount of the proceeds of the Credit allocated 
to Category (5) (b) of paragraph 1 of Schedule 1 to this Agreement, to be released by 
the Association on or after the date on which the conditions referred to in paragraph 
5 (a) of Schedule 1 to this Agreement have been met; 
(i)
"Third Tranche" means the amount of the proceeds of the Credit allocated 
to Category (5) (c) of paragraph 1 of Schedule 1 to this Agreement, to be released by 
the Association on or after the date on which the conditions referred to in paragraph 
5 (b) of Schedule 1 to this Agreement have been met;
(j)
"Floating Tranche" means the amount of the proceeds of the Credit 
allocated to Category (5) (d) of paragraph 1 of Schedule 1 to this Agreement, to be 
released by the Association on or after the date on which the conditions referred to 
in paragraph 6 of Schedule 1 to this Agreement have been met;
(k)
"Project Implementation Manual" or "PIM" means the manual adopted by the 
Borrower on May 5, 1998, describing the Project reporting and monitoring procedures, 
plans, environmental impact assessment guidelines, and other implementation 
arrangements and specifying the performance indicators to be followed in assessing the 
progress achieved in the execution of the Project;
(l)
"PAA" means Port Autonome d’Abidjan, a public enterprise of the Borrower 
established and operating pursuant to the Borrower’s Decree No. 92/940, dated December 
23, 1992;
(m)
"PASP" means Port Autonome de San Pedro, a public enterprise of the 
Borrower, established and operating pursuant to the Borrower’s Decree No. 95/818, 
dated September 29, 1995;
(n)
"SOTRA" means Société des Transports d’Abidjan, a société anonyme 
established and operating pursuant to the commercial laws of the Borrower;
(o)
"MIE" means Ministère des Infrastructures Economiques, the Borrower’s 
Ministry responsible for economic infrastructure;
(p)
"MEF" means Ministère de l’Economie et des Finances, the Borrower’s 
Ministry responsible for economy and finance;
(q)
"DPPGP" means the Direction de la Programmation, Planification et Gestion 
des Projets within MIE;
(r)
"DRV" means the Direction des Routes et Voiries within MIE;
(s)
"DTT" means the Direction des Transports Terrestres within MT;
(t)
"SGMTP" means Société de Gestion du Matériel des Travaux Publics, a 
public enterprise of the Borrower established and operating pursuant to the Borrower’s 
Decree No. 97/534, dated September 11, 1997;
(u)
"MT" means Ministère des Transports, the Borrower’s Ministry responsible 
for transport;
(v)
"OSER" means the Office de Sécurité Routière, an agency established and 
operating pursuant to the Borrower’s Law No. 78/661, dated August 4, 1978;
(w)
"PCU" means the Project Coordination Unit referred to in Section 3.01 (c) 
of this Agreement;
(x)
"Fiscal Year" or "FY" means the fiscal year of the Borrower which runs 
from January 1 through December 31 of each year; and
(y)
"Program Launching Seminars" means the seminars referred to in paragraph 
1 (d) of Schedule 4 to 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 this Agreement, an amount in various currencies 
equivalent to one hundred thirty million six hundred thousand Special Drawing Rights 
(SDR 130,600,000). 
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Section 2.02.  (a) The Borrower shall open, prior to furnishing to the 
Association the first request for withdrawal from the Credit Account of the proceeds 
of the Credit allocated in support of the Program, and thereafter maintain in its 
central bank, a deposit account in CFAF on terms and conditions satisfactory to the 
Association. All proceeds of the Credit allocated to Category (5) of the table set 
forth in paragraph 1 of Schedule 1 to this Agreement shall be deposited by the 
Association in the Deposit Account. 
(b)
Subject to the provisions of paragraph (c) of this Section and the 
provisions of paragraphs 5, 6, 7 and 8 of Schedule 1 to this Agreement, the Borrower 
shall be entitled to use the proceeds of the Credit withdrawn from the Credit Account 
and deposited into the Deposit Account in support of the Program.
(c)
The Borrower undertakes that the proceeds of the Credit deposited in the 
Deposit Account shall not be used to finance expenditures excluded pursuant to the 
provisions of paragraph 8 of Schedule 1 to this Agreement. If the Association shall 
have determined at any time that any proceeds of the Credit shall have been used to 
make a payment for an expenditure so excluded, the Borrower shall, promptly upon 
notice from the Association: (i) deposit into the Deposit Account an amount equal to 
the amount of said payment; or (ii) if the Association shall so request, refund such 
amount to the Association. Amounts refunded to the Association upon such request shall 
be credited to the Credit Account for cancellation. 
Section 2.03. (a) Without any prejudice to the provisions of Section 2.02 of 
this Agreement, the amount of the Credit (excluding the proceeds allocated to Category 
(5) of the table set forth in paragraph 1 of Schedule 1 to this Agreement) may be 
withdrawn from the Credit Account in accordance with the provisions of said Schedule 1 
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 
CFAF a special deposit account in the CAA on terms and conditions satisfactory to the 
Association.  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 the Bank and to itself the 
amount required to repay the principal amount of the Project Preparation Advance 
withdrawn and outstanding as of such date and to pay all unpaid charges thereon. The 
unwithdrawn balance of the authorized amount of the Project Preparation Advance shall 
thereupon be canceled. 
Section 2.04. 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 2.05. (a) The Borrower shall pay to the Association a commitment charge 
on the principal amount of the Credit not withdrawn from time to time at a rate to be 
set by the Association as of June 30 of each year, but not to exceed the rate of 
one-half of one percent (1/2 of 1%) per annum.
(b)
The commitment charge shall accrue: (i) from the date sixty days after 
the date of this Agreement (the accrual date) to the respective dates on which amounts 
shall be withdrawn by the Borrower from the Credit Account or canceled; and (ii) at 
the rate set as of the June 30 immediately preceding the accrual date and at such 
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 2.07 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 2.06. 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. 
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Section 2.07. Commitment and service charges shall be payable semiannually on 
July 15 and January 15 in each year. 
Section 2.08. (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 
July 15 and January 15 commencing July 15, 2008, and ending January 15, 2038. Each 
installment to and including the installment payable on January 15, 2018, shall be one 
percent (1%) of such principal amount, and each installment thereafter shall be two 
percent (2%) of such principal amount.
(b)
Whenever (i) the Borrower's per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years  the 
level established annually by the Association for determining eligibility to access 
the Association's resources, and (ii) the Bank shall consider the Borrower 
creditworthy for Bank lending, the Association may, subsequent to the review and 
approval thereof by the Executive Directors of the Association and after due 
consideration by the Association of the development of the Borrower's economy, modify 
the repayment of installments under paragraph (a) above by: (A) requiring the Borrower 
to repay twice the amount of each such installment not yet due until the principal 
amount of the Credit shall have been repaid; and (B) requiring the Borrower to 
commence repayment of the principal amount of the Credit as of the first semiannual 
payment date referred to in paragraph (a) above falling six months or more after the 
date on which the Association notifies the Borrower that the events set out in this 
paragraph (b) have occurred, provided, however, that there shall be a grace period of 
a minimum of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the 
modification referred to in paragraph (b) above to include, in lieu of some or all of 
the increase in the amounts of such installments, the payment of interest at an annual 
rate agreed with the Association on the principal amount of the Credit withdrawn and 
outstanding from time to time, provided that, in the judgment of the Association, such 
revision shall not change the grant element obtained under the above-mentioned 
repayment modification.
(d)
If, at any time after a modification of terms pursuant to paragraph (b) 
above, the Association determines that the Borrower's economic condition has 
deteriorated significantly, the Association may, if so requested by the Borrower, 
further modify the terms of repayment to conform to the schedule of installments as 
provided in paragraph (a) above.
Section 2.09. 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, engineering, environmental, 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. 
(c)
The Borrower shall establish the PCU and thereafter maintain it until the 
completion of the Project with functions and responsibilities and staff in adequate 
numbers, all satisfactory to 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 (except for the proceeds of the Credit 
allocated to Category 5 of the table set forth in paragraph 1 of Schedule 1 to this 
Agreement) shall be governed by the provisions of Schedule 3 to this Agreement.
Section 3.03. For the purposes of Section 9.07 of the General Conditions and 
without limitation thereto, the Borrower shall:
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(a)
prepare, on the basis of guidelines acceptable to the Association, and 
furnish to the Association not later than six (6) months after the Closing Date or 
such later date as may be agreed for this purpose between the Borrower and the 
Association, a plan for the future operation of the Project; and 
(b)
afford the Association a reasonable opportunity to exchange views with 
the Borrower on said plan. 
ARTICLE IV 
Other Covenants 
Section 4.01 (a)  The Borrower and the Association shall from time to time, at 
the request of either party, exchange views on the progress achieved in carrying out 
the Program and the actions specified in Schedule 6 to this Agreement. 
(b)
Prior to each such exchange of views, the Borrower shall furnish to the 
Association for its review and comment a report on the progress achieved in carrying 
out the Program, in such detail as the Association shall reasonably request.
(c)
Without limitation upon the provisions of paragraph (a) of this Section, 
the Borrower shall exchange views with the Association on any proposed action to be 
taken after the disbursement of the proceeds of the Credit allocated to Category (5) 
of the table in paragraph 1 of Schedule 1 to this Agreement which would have the 
effect of materially reversing the objectives of the Program, or any action taken 
under the Program, including any action specified in Schedule 6 to this Agreement. 
ARTICLE V 
Financial Covenants 
Section 5.01. (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 Deposit Account and 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 four months after the end of each such year, the 
report of such audit by said auditors, of such scope and in such 
detail as the Association shall have reasonably requested; and 
(iii)
furnish to the Association such other information concerning said 
records and accounts and 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 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 
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as to whether the statements of expenditure submitted during such 
fiscal year, together with the procedures and internal controls 
involved in their preparation, can be relied upon to support the 
related withdrawals.
Section. 5.02. Before undertaking any new investment for road construction 
estimated to cost the equivalent of more than five million dollars ($5,000,000), the 
Borrower shall: (a) ensure that any such proposed investment has been included in its 
rolling public investment program; (b) carry out a feasibility study based on a 
methodology acceptable to the Association aimed at showing inter alia that the 
proposed investment will have an economic rate of return of at least 12%; and (c) 
unless it shall have been agreed otherwise with the Association, refrain from carrying 
out the proposed investment if its expected economic rate of return is estimated to be 
less than 12%. 
ARTICLE VI 
Remedies of the Association
Section 6.01. Pursuant to Section 6.02 (h) of the General Conditions, the 
following additional events are specified: 
(a)
A situation shall have arisen which shall make it improbable that the 
Program or a significant part thereof will be carried out. 
(b)
The Borrower’s Decree No. 0154, dated September 2, 1997, establishing the 
procedures to be followed in the processing of payment for road maintenance works 
carried out by small contractors, shall have been amended, abrogated, repealed or 
waived, in a manner which may materially and adversely affect the implementation of 
the Project.
(c)
(i)
Subject to subparagraph (ii) of this paragraph: (A) the right of 
the Borrower to withdraw the proceeds of any of any grant or loan 
made to the Borrower for the financing of the Project shall have 
been suspended, canceled 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.
(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 6.02. Pursuant to Section 7.01 (d) of the General Conditions, the 
following additional events are specified namely that the events specified in 
paragraphs (b) or (c) (i) (B) of Section 6.01 of this Agreement shall occur, subject 
to the proviso of paragraph (c) (ii) of that Section. 
ARTICLE VII 
Effective date; Termination
Section 7.01. The following events are specified as additional conditions to the 
effectiveness of this Agreement within the meaning of Section 12.01 (b) of the General 
Conditions: 
(a)
the Borrower has adopted a road rehabilitation and maintenance program 
for FY 1998 satisfactory to the Association;
(b)
the Borrower has appropriated in its budget for FY 1998 amounts 
equivalent to at least: (i) $26,300,000 for routine road and ferry maintenance; (ii) 
$15,200,000 for periodic road maintenance; and (iii) $8,400,000 to finance DRV’s 
operating costs and acquisition of required equipment; 
(c)
the Borrower has established, for the purposes of the Project, an 
accounting and auditing system satisfactory to the Association; 
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(d)
the Borrower has liquidated all SGMTP’s heavy road maintenance equipment. 
For the purposes of this paragraph, the term "liquidation" means the sale and transfer 
of equipment to qualified bidders; and 
(e)
the Borrower has carried out the Program Launching Seminars in accordance 
with the provisions of paragraph 1(d) of Schedule 4 to this Agreement. 
Section 7.02. 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. 
Section 7.03. The obligations of the Borrower under Section 5.02 of this 
Agreement shall cease and determine on the date on which the Development Credit 
Agreement shall terminate or on the date fifteen years after the date of this 
Agreement, whichever shall be the earlier.
ARTICLE VIII 
Representative of the Borrower; Addresses 
Section 8.01. The Minister of the Borrower responsible for finance is designated 
as representative of the Borrower for the purposes of Section 11.03 of the General 
Conditions.
Section 8.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Borrower:
Ministry of Economy and Finance
B.P. V 125
Abidjan
Republic of Côte d'Ivoire
Cable address: 
Telex:
23747 MINFIN
For the Association:
International Development Association
1818 H Street, NW
Washington, DC 20433
United States of America
Cable address: 
Telex:
INDEVAS
248423 (MCI) or
Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in 
the District of Columbia, United States of America, as of the day and year first above 
written.
REPUBLIC OF COTE D’IVOIRE
By /s/ Koumoué Koffi 
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Callisto Madavo 
Regional Vice President 
Page  9
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)
Civil works under Parts
   29,700,000
70%
A and B of the Project
(excluding those refer-
red to in Category (2))
(2)
Civil works for build-
    2,200,000
70%
ing and facilities 
under Part B of the
Project
(3)
Goods, equipment and
80%
materials:
(a) under Part B of
600,000
the Project
(b) under Part D.2 of
140,000
the Project
(c) under Part D.4 of
680,000
the Project
(d) under Part E of
 80,000
the Project
(4)
Consultants' services:
80%
materials:
(a) under Part A of
   13,000,000
the Project
(b) under Part B of
    1,300,000
the Project
(c) under Part C of
500,000
the Project
(d) under Part D of
    2,300,000
the Project
(e) under Parts E.1
400,000
and E.4 of the Project
(f) under Parts E.2
    1,500,000
and E.3 of the Project
(5)
Goods required during
100% of foreign
the execution of the
expenditures
Program:
(a) under the First
   36,300,000
Tranche
(b) under the Second
   14,500,000
Tranche
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(c) under the Third
   14,500,000
Tranche
(d) under the Floating
    7,000,000
Tranche
(6)
Refunding of Project
900,000
Amounts due pursuant
Preparation Advance
to Section 2.03 (c)
of this Agreement
(7)
Unallocated
    5,000,000
TOTAL
  130,600,000
2.
For the purposes of this Schedule, 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; provided, however, that if the currency of the Borrower is also that of 
another country, expenditures in such currency for goods or services supplied from the 
territory of such other country shall be deemed to be "foreign expenditures". 
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement.
4.
The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditure for expenditures: (a) for works under contracts 
not exceeding $500,000 equivalent; (b) for goods under contracts not exceeding $50,000 
equivalent; (c) for services provided by consulting firms under contracts not 
exceeding $100,000 equivalent; and (d) for services provided by individual consultants 
under contracts not exceeding $50,000 equivalent, under such terms and conditions as 
the Association shall specify by notice to the Borrower.
5.
No withdrawal shall be made from the Credit Account:
(a)
under Category (5) (b) of the table in paragraph 1 of this Schedule 
unless the amount specified in Category (5) (a) has been withdrawn by the Borrower and 
the Association shall be satisfied after an exchange of views as described in Section 
4.01 of this Agreement based on evidence satisfactory to it: 
(i)
that the requirements of Part A of Schedule 6 to this Agreement 
have been fulfilled; and 
(ii)
that the actions described in Part B of Schedule 6 to this 
Agreement have been taken in form and substance satisfactory to 
the Association; and
(b)
under Category (5) (c) of the table in paragraph 1 of this Schedule 
unless the amounts specified in Categories (5) (a) and 5 (b) have been withdrawn by 
the Borrower and the Association shall be satisfied after an exchange of views as 
described in Section 4.01 of this Agreement based on evidence satisfactory to it: 
(i)
that the requirements of Part A of Schedule 6 to this Agreement 
have been fulfilled; and 
(ii)
that the actions described in Part C of Schedule 6 to this 
Agreement have been taken in form and substance satisfactory to 
the Association.
6.
Notwithstanding the provisions of paragraph 5 above, withdrawals may be made by 
the Borrower in respect of Category (5) (d) of the table set forth in paragraph 1 of 
this Schedule at any time when the Association shall be satisfied after an exchange of 
views as described in Section 4.01 of this Agreement, based on evidence satisfactory 
to it that: (a) the requirements of Part A of Schedule 6 to this Agreement have been 
fulfilled; and (b) the actions described in Part D of Schedule 6 to this Agreement 
have been taken in form and substance satisfactory to the Association. 
7.
If, after any of the exchange of views referred to in paragraphs 5 and 6 above, 
the Association shall have given notice to the Borrower that the requirements of Part 
A of Schedule 6 to this Agreement, or the actions taken under Parts B, C, or D of 
Schedule 6 to this Agreement, as the case may be, are not satisfactory and, within 
ninety (90) days after such notice, the Borrower shall not have met the requirements 
of Part A of said Schedule 6 or taken the actions under Parts B, C, or D of said 
Page  11
Schedule 6, as the case may be, then the Association may, by notice to the Borrower, 
cancel the unwithdrawn amount of the Credit or any part thereof.
8.
The proceeds of the Credit allocated to Category (5) of the table in paragraph 1 
above shall not be used to finance any of the following expenditures:
(a)
expenditures in the currency of the Borrower or for goods or services 
supplied from the territory of the Borrower;
(b)
expenditures for goods or services supplied under a contract which any 
national or international financing institution or agency other than the Bank or the 
Association shall have financed or agreed to finance, or which the Bank or the 
Association shall have financed or agreed to finance under another loan, or credit;
(c)
expenditures for goods included in the following groups or subgroups of 
the Standard International Trade Classification, Revision 3 (SITC, Rev.3), published 
by the United Nations in Statistical Papers, Series M, No. 34./Rev.3 (1986) (the 
SITC), or any successor groups or subgroups under future revisions to the SITC, as 
designated by the Association by notice to the Borrower.
Group
Subgroup
Description of Items
112
  -
Alcoholic beverages
121
  -
Tobacco, unmanufactured, tobacco
refuse
122
  -
Tobacco, manufactured (whether or not
containing tobacco substitutes)
525
  -
Radioactive and associated materials
667
  -
Pearls, precious and semiprecious
stones, unworked or worked
718
718.7
Nuclear reactors, and parts thereof; fuel
elements (cartridges), non-irradiated, for
nuclear reactors
728
728.43
Tobacco processing machinery
897
897.3
Jewelry of gold,silver or platinum
group metals (except watches and watch
cases) and goldsmiths’ or silversmiths’
wares (including set gems)
971
  -
Gold, non-monetary (excluding gold
ores and concentrates) 
(d)
expenditures for goods intended for a military or paramilitary purpose or 
for luxury consumption;
(e)
expenditures for environmentally hazardous goods.  For purposes of this 
paragraph the term "environmentally hazardous goods" means goods, the manufacture, use 
or import of which is prohibited under the laws of the Borrower or international 
agreements to which the Borrower is a party and any other goods designated as 
environmentally hazardous by agreement between the Borrower and the Association;
(f)
expenditures: (i) in the territories of any country which is not a member 
of the Bank or for goods procured in, or services supplied from, such territories; or 
(ii) on account of any payment to persons or entities, or any import of goods, if such 
payment or import is prohibited by a decision of the United Nations Security Council 
taken under Chapter VII of the Charter of the United Nations; and
(g)
expenditures under a contract in respect of which the Association 
determines that corrupt or fraudulent practices were engaged in by representatives of 
the Borrower or of a beneficiary of the Credit during the procurement or execution of 
such contract, without the Borrower having taken timely and appropriate action 
satisfactory to the Association to remedy the situation.
SCHEDULE 2 
Page  12
Description of the Project
The objectives of the Project are to: (a) improve the condition and efficiency 
of the Borrower’s transport infrastructure; (b) build capacity for planning, 
programming and mobilizing funding required for the execution of investments in the 
Borrower’s transport sector; and (c) strengthen the legal and regulatory framework of 
the Borrower’s transport sector.
The Project consists of the following parts, subject to such modifications 
thereof as the Borrower and the Association may agree upon from time to time to 
achieve such objectives:
Part A:
Road Construction, Rehabilitation and Maintenance
Execution of a five-year road works program including: 
1.
(a)
routine maintenance on about 5,300 km of paved roads and about 62,750 km 
of unpaved roads;
(b)
periodic maintenance on the unpaved road network including: (i) full or 
spot regravelling for about 14,800 km; (ii) spot improvement on about 59,700  km; and 
(iii) construction or rehabilitation of about 1,600 small bridges and culverts;
(c)
rehabilitation of about 470 km of paved roads; and
(d)
construction of about 175 km of paved roads and about 30 bridges. 
2.
(a)
Strengthening the capacity of the Borrower’s agency responsible for road 
sector management and maintenance operations.
(b)
Developing and strengthening the capacity of small local contractors to 
carry out road maintenance works. 
3.
Carrying out of works supervision and engineering studies required to execute 
annual road maintenance programs, rehabilitation of paved roads and construction of 
new roads and bridges.
Part B:
Road Transport Component  
1.
(a)
Updating of the legal, regulatory and institutional framework for the 
transport sector;
(b)
dissemination of the revised legislation and regulations among the 
relevant staff of the Borrower responsible for road transport matters; and
(c)
dissemination of the revised legislation and regulations among the 
general public. 
2.
(a)
Streamlining of road control procedures with a view to improving the flow 
of road traffic;
(b)
carrying out sensitization and media campaigns aimed at enhancing the 
transparency of road transport control procedures; and
(c)
rehabilitation and equipping of border control posts and security 
corridors. 
3.
(a)
Provision of technical advisory services and ad hoc training to 
professional organizations of road transporters as required to improve their 
performance; and
(b)
rehabilitation of (i) a specialized driver training center, and (ii) a 
training center for teachers of driving schools.
4.
Carrying out of a study aimed at:
(a)
formulating technical specifications to be followed for the construction 
and equipping of road transport stations; and
(b)
drafting a cahier des charges spelling out the terms and conditions 
applicable to the concessioning of road transport stations to private operators. 
Page  13
5.
Carrying out a study to determine the optimum level of taxes and user charges to 
be assessed against road users.
Part C:
Urban Transport Component 
1.
Carrying out of a study related the establishment of an agency to be responsible 
for the institutional coordination of urban transport. 
2.
Preparation of a possible urban transport improvement project.
Part D:
Port Component 
1.
Updating of the regulatory framework governing port activities and operations. 
2.
Modernization of infrastructure and acquisition of equipment for PAA and PASP. 
3.
Carrying out of feasibility and detailed engineering studies required to expand 
PAA’s facilities. 
4.
Formulation of an action plan and acquisition of equipment required to 
strengthen the Borrower’s capacity to carry out emergency interventions aimed at 
preventing marine pollution from shipping operations at PAA and PASP.
Part E:
Transport Sector Administration Component 
1.
Provision of logistical and technical support as required to create a transport 
sector data bank within MIE. 
2.
Provision of logistical and technical support to the PCU. 
3.
Preparation of a maritime code. 
4.
Carrying out of studies aimed at improving the performance of DTT and OSER, 
respectively. 
***** 
The Project is expected to be completed by December 31, 2000.
SCHEDULE 3 
Procurement and Consultants' Services 
Section I.
Procurement of Goods and Works
Part A:
General 
Goods and works shall be procured in accordance with the provisions of Section I 
of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the 
Bank in January 1995 and revised in January and August 1996 and September 1997 (the 
Guidelines) and the following provisions of this Section, as applicable.
Part B:
International Competitive Bidding 
1.
Except as otherwise provided in Part C of this Section, goods and works shall be 
procured under contracts awarded in accordance with the provisions of Section II of 
the Guidelines and paragraph 5 of Appendix 1 thereto. 
2.
The following provisions shall apply to goods and works to be procured under 
contracts awarded in accordance with the provisions of paragraph 1 of this Part B.
(a)
Grouping of contracts 
To the extent practicable, contracts for works shall be grouped in bid packages 
estimated to cost $1,000,000 equivalent or more each. 
(b)
Preference for domestic contractors 
The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 
thereto shall apply to works to be carried out by domestic contractors. 
(c)
Notification and Advertising 
Page  14
The invitation to bid for each contract estimated to cost $10,000,000 equivalent 
or more shall be advertised in accordance with the procedures applicable to large 
contracts under paragraph 2.8 of the Guidelines.
Part C:
Other Procurement Procedures 
1.
National Competitive Bidding
Works estimated to cost less than $1,000,000 equivalent per contract, up to an 
aggregate amount not to exceed $16,000,000 equivalent, and goods estimated to cost 
less than $200,000 equivalent per contract, up to an aggregate amount not to exceed 
$2,000,000 equivalent, may be procured under contracts awarded in accordance with the 
provisions of paragraphs 3.3 and 3.4 of the Guidelines. 
2.
National or International Shopping
Goods estimated to cost less than $20,000 equivalent per contract, up to an 
aggregate amount not to exceed $100,000 equivalent, may be procured under contracts 
awarded on the basis of national or international shopping procedures in accordance 
with the provisions of paragraphs 3.5 and 3.6 of the Guidelines.
Part D:
Review by the Association of Procurement Decisions 
1.
Procurement Planning 
Prior to the issuance of any invitations to bid for contracts, the proposed 
procurement plan for the Project shall be furnished to the Association for its review 
and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the 
Guidelines. Procurement of all goods and works shall be undertaken in accordance with 
such procurement plan as shall have been approved by the Association, and with the 
provisions of said paragraph. 
2.
Prior Review
With respect to each contract for road works, estimated to cost the equivalent 
of $500,000 or more, and each contract for goods, estimated to cost the equivalent of 
$100,000 or more, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the 
Guidelines shall apply. 
3.
Post Review 
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply. 
Section II.
Employment of Consultants
Part A:
General
Consultants’ services shall be procured in accordance with the provisions of the 
Introduction and Section IV of the "Guidelines:  Selection and Employment of 
Consultants by World Bank Borrowers" published by the Bank in January 1997 and revised 
in September 1997 (the Consultant Guidelines) and the following provisions of Section 
II of this Schedule.
Part B:
Quality- and Cost-based Selection 
1.
Except as otherwise provided in Part C of this Section, consultants’ services 
shall be procured under contracts awarded in accordance with the provisions of Section 
II of the Consultant Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 
thereto, and the provisions of paragraphs 3.13 through 3.18 thereof applicable to 
quality- and cost-based selection of consultants. 
2.
The following provisions shall apply to consultants’ services to be procured 
under contracts awarded in accordance with the provisions of the preceding paragraph.  
The short list of consultants for services for engineering studies and works 
supervision, estimated to cost less than $200,000 equivalent per contract, up to an 
aggregate amount not to exceed $3,400,000 equivalent, may comprise entirely national 
consultants in accordance with the provisions of paragraph 2.7 of the Consultant 
Guidelines.
Part C:
Other Procedures for the Selection of Consultants 
Page  15
1.
Single Source Selection
Services for construction of border control posts under Part B.2 (c) of the 
Project estimated to cost less than $100,000 equivalent per contract, may, with the 
Association's prior agreement, be procured in accordance with the provisions of 
paragraphs 3.8 through 3.11 of the Consultant Guidelines. 
2.
Individual Consultants
Services for capacity building under Parts A, B and C of the Project may be 
procured under contracts awarded to individual consultants in accordance with the 
provisions of paragraphs 5.1 through 5.3 of the Consultant Guidelines.
Part D:
Review by the Association of the Selection of Consultants 
1.
Selection Planning 
Prior to the issuance to consultants of any requests for proposals, the proposed 
plan for the selection of consultants under the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Consultant Guidelines.  Selection of all consultants’ 
services shall be undertaken in accordance with such selection plan as shall have been 
approved by the Association, and with the provisions of said paragraph 1. 
2.
Prior Review
With respect to each contract for consultants’ services, the procedures set 
forth in paragraphs 1, 2 (other than the third subparagraph of paragraph 2 (a)) and 5 
of Appendix 1 to the Consultant Guidelines shall apply.
SCHEDULE 4 
Implementation Program 
1.
Overall Coordination
(a)
The Borrower shall implement the Project, in accordance with the 
procedures set out in the Project Implementation Manual, and, except as the 
Association shall otherwise agree, the Borrower shall not amend, or waive any 
provision thereof which, in the opinion of the Association, may materially and 
adversely affect the implementation of the Project.
(b)
The Borrower shall maintain a Project Coordinator with experience and 
terms of reference, satisfactory to the Association, who shall be responsible for the 
overall coordination of the Project.
(c)
The Borrower shall carry out the Project through the executing agencies 
(the Executing Agencies) referred to below:  (i) Parts A and E.1 of the Project shall 
be carried out through MIE; (ii) Parts B.1, B.3 (a), B.4, B.5, C, E.3 and E.4 shall be 
carried out through MT; (iii) Parts B.2 and E.2 shall be carried out through MEF; (iv) 
Part B.3 (b) shall be carried out through OSER; and (v) Part D shall be carried out 
through PAA and PASP, respectively.
(d)
The Borrower shall, by December 31, 1998, carry out the following 
seminars and workshops: (i) a seminar to launch the transport sector program; (ii) a 
seminar to familiarize selected road engineers with appropriate techniques for the 
programming of road maintenance works; (iii) a seminar to familiarize selected road 
engineers and staff with appropriate techniques for the procurement of road 
maintenance works; and (vi) a workshop to familiarize selected staff with relevant 
techniques for the management of road maintenance contracts.
(e)
The Borrower shall:  (i) not later than December 31, 1998, carry out the 
study referred to under Part B.5 of the Project; (ii) not later than December 31, 
1998, carry out the study referred to under Part E.4 of the Project; (iii) submit the 
results and recommendations of said studies to the Association for its review and 
comments as soon as they become available; and (iv) promptly implement the 
recommendations of said studies as agreed upon with the Association. \0c
(f)
Upon the completion of the studies referred to under Part D.3 of the 
Project, the Borrower shall organize a donors’ round table to disseminate the results 
of said studies with a view to mobilizing the required funding to further increase the 
Page  16
handling capacity of PAA. 
2.
Quarterly Reports
The Executing Agencies shall prepare and furnish to the Association through the 
Project Coordinator, for its review and comments, quarterly reports on the progress of 
Project implementation for their respective parts of the Project, including:
(a)
supervision reports;
(b)
monitoring of the performance indicators as agreed upon with the 
Association;
(c)
a statement of commitments entered into and disbursements made under the 
Project; and
(d)
progress in the carrying out of civil works, acquisition  of goods, 
technical studies and institutional accomplishments. 
3.
Annual Reviews
The Borrower shall:
(a)
by October 31 of each year, furnish to the Association for review and 
comments: (i) the Borrower’s three-year rolling public investment program for its 
transport sector; (ii) the Borrower’s draft annual transport sector expenditure 
program and training program and supporting budget for its road sector (including the 
road works to be carried out under Part A of the Project) for the following calendar 
year; (iii) a complete listing of all border control posts and security corridors 
identifying check points and their geographic locations; and (iv) a technical audit 
report related to the dismantlement of informal road check points;
(b)
by November 30 of each year: (i) review with the Association the 
documents referred to in paragraph (a) above; (ii) identify implementation issues and 
propose appropriate solutions; and (iii) where necessary, update Project timetables 
and performance indicators accordingly;
(c)
by December 31 of each year, furnish to the Association the investment 
programs, annual work and training programs and supporting budgets referred to in 
paragraph (a) above, as such programs and budgets shall have been revised, to the 
satisfaction of the Association, in the course of the review referred to in paragraph 
(b) hereof and, except as the Association shall otherwise agree, carry out the Project 
in the year in question on the basis of said programs and budgets as so revised; and
(d)
by April 30 of each year, furnish to the Association evidence, 
satisfactory to the Association, that it has carried out the routine road maintenance 
provided for in the Program for the previous year. 
4.
Midterm Review
(a)
The Borrower shall, not later than 30 months after the Effective Date and  
not earlier than 18 months after the Effective Date, carry out, jointly with the 
Association, a review (hereinafter referred to as the Midterm Review) of the progress 
made in the carrying out of the Project.
(b)
The Midterm Review shall cover, inter alia: (i) overall progress made in 
the Project implementation, including the extent to which the development and other 
objectives of the Project have been achieved; (ii) the performance of the Executing 
Agencies for their respective parts of the  Project; (iii) the adequacy of the 
Borrower's funding and of the level of budgetary allocations and actual expenditure 
for routine and periodic road maintenance; and (iv) the need to redesign or 
restructure any Project components experiencing implementation difficulties.
(c)
Not later than one month prior to the Midterm Review, the Borrower shall, 
through the PCU, furnish to the Association, for its review and comments, a report 
covering items specified in paragraph (b) above, including an evaluation of the 
progress achieved in the execution of the Project and recommendations resulting from 
the studies conducted under the Project.
(d)
Promptly after completing such review, the Borrower shall carry out the 
recommendations emanating from said review, as agreed between the Borrower and the 
Association.
Page  17
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 
2,500,000,000 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 1,250,000,000 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 exceed the equivalent of SDR 29,150,000.
2.
Payments out of the Special Account shall be made exclusively for eligible 
expenditures in accordance with the provisions of this Schedule.
3.
After the Association has received evidence satisfactory to it that the Special 
Account has been duly opened, withdrawals of the Authorized Allocation and subsequent 
withdrawals to replenish the Special Account shall be made as follows: 
(a)
For withdrawals of the Authorized Allocation, the Borrower shall furnish 
to the Association a request or requests for deposit into the Special Account of an 
amount or amounts which do not exceed the aggregate amount of the Authorized 
Allocation. On the basis of such request or requests, the Association shall, on behalf 
of the Borrower, withdraw from the Credit Account and deposit into the Special Account 
such amount or amounts as the Borrower shall have requested. 
(b)
(i)
For replenishment of the Special Account, the Borrower shall 
furnish to the Association requests for deposits into the Special 
Account at such intervals as the Association shall specify.
(ii)
Prior to or at the time of each such request, the Borrower shall 
furnish to the Association the documents and other evidence 
required pursuant to paragraph 4 of this Schedule for the payment 
or payments in respect of which replenishment is requested. On the 
basis of each such request, the Association shall, on behalf of 
the Borrower, withdraw from the Credit Account and deposit into 
the Special Account such amount as the Borrower shall have 
requested and as shall have been shown by said documents and other 
evidence to have been 
paid out of the Special Account for 
eligible expenditures. All such deposits shall be withdrawn by the 
Association from the Credit Account under the respective eligible 
Categories, and in the respective equivalent amounts, as shall 
have been justified by said documents and other evidence. 
4.
For each payment made by the Borrower out of the Special Account, the Borrower 
shall, at such time as the Association shall reasonably request, furnish to the 
Association such documents and other evidence showing that such payment was made 
exclusively for eligible expenditures.
5.
Notwithstanding the provisions of paragraph 3 of this Schedule, the Association 
shall not be required to make further deposits into the Special Account: 
(a)
if, at any time, the Association shall have determined that all further 
withdrawals should be made by the Borrower directly from the Credit Account in 
accordance with the provisions of Article V of the General Conditions and paragraph 
(a) of Section 2.03 of this Agreement; 
(b)
if the Borrower shall have failed to furnish to the Association, within 
the period of time specified in Section 5.01 (b) (ii) of this Agreement, any of the 
audit reports required to be furnished to the Association pursuant to said Section in 
Page  18
respect of the audit of the records and accounts for the Special Account; 
(c)
if, at any time, the Association shall have notified the Borrower of its 
intention to suspend in whole or in part the right of the Borrower to make withdrawals 
from the Credit Account pursuant to the provisions of Section 6.02 of the General 
Conditions; or
(d)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories, minus the total amount of all outstanding special commitments entered into 
by the Association pursuant to Section 5.02 of the General Conditions with respect to 
the Project, shall equal the equivalent of twice the amount of the Authorized 
Allocation. Thereafter, withdrawal from the Credit Account of the remaining 
unwithdrawn amount of the Credit allocated to the eligible Categories shall follow 
such procedures as the Association shall specify by notice to the Borrower.  Such 
further withdrawals shall be made only after and to the extent that the Association 
shall have been satisfied that all such amounts remaining on deposit in the Special 
Account as of the date of such notice will be utilized in making payments for eligible 
expenditures.
6.
(a)
If the Association shall have determined at any time that any payment out 
of the Special Account: (i) was made for an expenditure or in an amount not eligible 
pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the evidence 
furnished to the Association, the Borrower shall, promptly upon notice from the 
Association: (A) provide such additional evidence as the Association may request; or 
(B) deposit into the Special Account (or, if the Association shall so request, refund 
to the Association) an amount equal to the amount of such payment or the portion 
thereof not so eligible or justified. Unless the Association shall otherwise agree, no 
further deposit by the Association into the Special Account shall be made until the 
Borrower has provided such evidence or made such deposit or refund, as the case may 
be. 
(b)
If the Association shall have determined at any time that any amount 
outstanding in the Special Account will not be required to cover further payments for 
eligible expenditures, the Borrower shall, promptly upon notice from the Association, 
refund to the Association such outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the 
Association all or any portion of the funds on deposit in the Special Account. 
(d)
Refunds to the Association made pursuant to 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.
SCHEDULE 6 
Conditions for Withdrawals under Category (5) 
of Paragraph 1 of the Table in Schedule 1 to this Agreement
Part A:
General 
1.
The Borrower has achieved progress satisfactory to the Association in the 
carrying out of the Program. 
2.
The macroeconomic policy framework of the Borrower is consistent with the 
objectives of the Program.
Part B:
Actions referred to in paragraph 5 (a) of Schedule 1 to this Agreement
(Conditions for Release of Second Tranche) 
1.
The Borrower has submitted to the Association its transport sector program of 
investments and public expenditures for FY 1999, which shall be satisfactory to the 
Association. 
2.
The Borrower has appropriated in its budget for FY 1999 adequate funds, in 
amounts acceptable the Association, for the purposes of road rehabilitation and 
maintenance under a program of works agreed upon with the Association. 
3. 
The Borrower has provided evidence satisfactory to the Association that all 
funds allocated by the Borrower for road maintenance operations in its budget for FY 
1998 have been committed for road maintenance purposes under a program of works agreed 
Page  19
upon with the Association.
4.
The Borrower has provided evidence satisfactory to the Association that: (a) the 
Borrower has ceased to undertake any road maintenance works by force account; and (b) 
the Borrower has not delayed payments to private contractors for works performed by 
more than one month after the due date for said payments. 
5.
The Borrower has furnished to the Association a technical audit report based on 
terms of reference satisfactory to the Association showing that informal road check 
points are found only exceptionally. 
6.
The Borrower has furnished to the Association evidence satisfactory to it 
showing that vehicles inspection rates have been increased to levels acceptable to the 
Association as specified in paragraph 2.3 of the LSP. 
7.
The Borrower has restructured DTT in accordance with the provisions of paragraph 
1(e) (iv) of Schedule 4 to this Agreement so as to improve DTT’s performance, in a 
manner satisfactory to the Association. 
8.
The Borrower has submitted to the Association an action plan including an 
implementation timetable satisfactory to the Association, based on the recommendations 
of the study referred to under Part B.5 of the Project.
Part C:
Actions referred to in paragraph 5 (b) of Schedule 1 to this Agreement
(Conditions for Release of Third Tranche) 
1.
The Borrower has submitted to the Association its transport sector program of 
investments and public expenditures for FY 2000, which shall be satisfactory to the 
Association. 
2.
The Borrower has appropriated in its budget for FY 2000 adequate funds, in 
amounts acceptable to the Association, for the purposes of road rehabilitation and 
maintenance under a program of works agreed upon with the Association. 
3.
The Borrower has provided evidence, satisfactory to the Association, that all 
funds allocated by the Borrower for road maintenance operations in its budget for FY 
1999 have been committed for road maintenance purposes under a program of works agreed 
upon with the Association. 
4.
The Borrower has implemented the action plan referred to in paragraph 8 of 
Part B of this Schedule, in accordance with the timetable set forth in said action 
plan.
Part D:
Actions referred to in paragraph 6 (c) of Schedule 1 to this Agreement
(Conditions for Release of Floating Tranche)
1.
The Borrower has: (a) enacted a law governing road passenger and freight 
transport activities in a manner satisfactory to the Association; and (b) has 
published a compendium of updated regulations governing land transport activities.
2.
The Borrower has: (a) enacted a Maritime Code satisfactory to the Association; 
and (b) has amended its port regulations in a manner satisfactory to the Association. 
3.
The Borrower has established the Urban Transport Agency, with functions and 
responsibilities satisfactory to the Association, and has appointed the senior 
officials of said Agency. 
4.
The Borrower has concluded with a qualified and experienced operator, selected 
on the basis of procedures satisfactory to the Association, an arrangement 
satisfactory to the Association for the operation and management of the PAA’s 
ship-to-shore gantry cranes. 
5.
The Borrower has restructured OSER in a manner satisfactory to the Association 
in accordance with the provisions of paragraph 1 (e) (iv) of Schedule 4 to this 
Agreement. 
6.
The Borrower has concluded with qualified and experienced private operators 
contractual arrangements satisfactory to the Association for the provision of bus 
transport services for Abobo and Yopougon suburbs.
Page  20