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CONFORMED COPY
CREDIT NUMBER 3199 GH
Development Credit Agreement
(Public Sector Management Reform Project)
between
REPUBLIC OF GHANA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated July 30, 1999
CREDIT NUMBER 3199 GH 
DEVELOPMENT CREDIT AGREEMENT 
AGREEMENT, dated July 30 1999, between the REPUBLIC OF GHANA (the Borrower) and 
the 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; 
(B)
the Association has received a letter dated January 12, 1999 from the 
Borrower describing a program of actions, objectives and policies designed to reform 
the Borrower’s public sector (the Program) and declaring the Borrower's commitment to 
the execution of the Program; 
(C)
the Borrower has requested that the Association support its execution of 
the Program through a series of Credits over a period of eleven years, the proceeds of 
such Credits to be utilized by the Borrower for implementing the Program; and 
WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, 
to extend the Credit to the Borrower in support of the first phase of the Program 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 
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Agreements" of the Association, dated January 1, 1985 (as amended through December 2, 
1997), with the modifications set forth below (the General Conditions) constitute an 
integral part of this Agreement:
(a)
A new paragraph 12 is added to Section 2.01 to read as set forth below, 
and the existing paragraphs 12 through 14 of said Section are accordingly renumbered 
as paragraphs 13 through 15:  
"12.
‘Participating Country’ means any country that the Association 
determines meets the requirements set forth in Section 10 of Resolution No. 
183 of the Board of Governors of the Association, adopted on June 26, 1996; 
and ‘Participating Countries’ means, collectively, all such countries."
(b)
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 Participating Country 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."
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)
"Ghanaian Cedi" and "C" mean the currency of the Borrower; 
(b)
"NIRP" means the Borrower’s National Institutional Renewal Program 
adopted by the Borrower in 1994 for the purpose of carrying out reform in its public 
sector; 
(c)
"NIRP Secretariat" means the secretariat  within  NIRP;  
(d)
"NOC" means the National Overview Committee established by the Borrower 
in 1994 to implement NIRP; 
(e)
"Project Preparation Advance" means the two project preparation advances 
granted by the Association to the Borrower pursuant to an exchange of letters dated 
April 18, 1996; October 8, 1998 and October 9, 1998 between the Borrower and the 
Association;  
(f)
"Special Account" means the account referred to in Section 2.02 (b) of 
this Agreement; 
(g)
"Subvented Agencies" means any of the agencies established by legislation 
or other legal or administrative instruments to carry out a public function and which 
receive budgetary support from the Borrower;
(h)
"Implementation Manual" means the manual of procedures referred to in 
paragraph 1 of Schedule 4 to this Agreement containing, inter alia, work plans, 
training plans, monitoring and performance indicators, and procedures to be used for 
the purposes of implementation of the Program, as they may be amended from time to 
time, in consultation with the Association, and such item includes any schedules to 
the Implementation Manual; 
(i)
"Project Management Reports" means the reports to be prepared by the 
Borrower pursuant to Section 4.02 of this Agreement; and 
(j)
"Central Management Agencies" or "CMAs" mean the Ministry of Finance, the 
Public Service Commission, the National Development Planning Commission, the Office of 
the Head of the Civil Service, and other ministries and agencies designated as such by 
the Borrower. 
ARTICLE II 
The Credit 
Section 2.01. The Association agrees to lend to the Borrower, on the terms and 
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conditions set forth or referred to in the Development Credit Agreement, an amount in 
various currencies equivalent to ten million five hundred thousand Special Drawing 
Rights (SDR 10,500,000).
Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit 
Account in accordance with the provisions of Schedule 1 to this Agreement for 
expenditures made (or, if the Association shall so agree, to be made) in respect of 
the reasonable cost of goods and services required for the Project described in 
Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. 
(b) 
The Borrower may, for the purposes of the Project, open and maintain in 
dollars a special deposit account in a commercial bank or any other bank acceptable to 
the Association on terms and conditions satisfactory to the Association, including 
appropriate protection against set-off, seizure or attachment.  Deposits into, and 
payments out of, the Special Account shall be made in accordance with the provisions 
of Schedule 5 to this Agreement. 
(c)
Promptly after the Effective Date, the Association shall, on behalf of 
the Borrower, withdraw from the Credit Account and pay to itself the amount required 
to repay the principal amount of the Project Preparation Advance withdrawn and 
outstanding as of such date and to pay all unpaid charges thereon.  The unwithdrawn 
balance of the authorized amount of the Project Preparation Advance shall thereupon be 
canceled.
Section 2.03. The Closing Date shall be July 31, 2002 or such later date as the 
Association shall establish.  The Association shall promptly notify the Borrower of 
such later date. 
Section 2.04. (a) The Borrower shall pay to the Association a commitment charge 
on the principal amount of the Credit not withdrawn from time to time at a rate to be 
set by the Association as of June 30 of each year, but not to exceed the rate of 
one-half of one percent (1/2 of 1%) per annum.
(b)
The commitment charge shall accrue: (i) from the date sixty days after 
the date of this Agreement (the accrual date) to the respective dates on which amounts 
shall be withdrawn by the Borrower from the Credit Account or canceled; and (ii) at 
the rate set as of the June 30 immediately preceding the accrual date and at such 
other rates as may be set from time to time thereafter pursuant to paragraph (a) 
above. The rate set as of June 30 in each year shall be applied from the next date in 
that year specified in Section 2.06 of this Agreement.
(c)
The commitment charge shall be paid: (i) at such places as the 
Association shall reasonably request; (ii) without restrictions of any kind imposed 
by, or in the territory of, the Borrower; and (iii) in the currency specified in this 
Agreement for the purposes of Section 4.02 of the General Conditions or in such other 
eligible currency or currencies as may from time to time be designated or selected 
pursuant to the provisions of that Section. 
Section 2.05. The Borrower shall pay to the Association a service charge at the 
rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of 
the Credit withdrawn and outstanding from time to time. 
Section 2.06. Commitment charges and service charges shall be payable 
semiannually on September 15 and March 15 in each year. 
Section 2.07. (a) Subject to paragraphs (b), (c) and (d) below, the Borrower 
shall repay the principal amount of the Credit in semiannual installments payable on 
each September 15 and March 15, commencing September 15, 2009 and ending March 15, 
2039. Each installment to and including the installment payable on March 15, 2019 
shall be one percent (1%) of such principal amount, and each installment thereafter 
shall be two percent (2%) of such principal amount.
(b)
Whenever:  (i) the Borrower's per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years the 
level established annually by the Association for determining eligibility to access 
the Association's resources; and (ii) the Bank shall consider the Borrower 
creditworthy for Bank lending, the Association may, subsequent to the review and 
approval thereof by the Executive Directors of the Association and after due 
consideration by them of the development of the Borrower's economy, modify the 
repayment of installments under paragraph (a) above by: (A) requiring the Borrower to 
repay twice the amount of each such installment not yet due until the principal amount 
of the Credit shall have been repaid; and (B) requiring the Borrower to commence 
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repayment of the principal amount of the Credit as of the first semiannual payment 
date referred to in paragraph (a) above falling six months or more after the date on 
which the Association notifies the Borrower that the events set out in this paragraph 
(b) have occurred, provided, however, that there shall be a grace period of a minimum 
of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the 
modification referred to in paragraph (b) above to include, in lieu of some or all of 
the increase in the amounts of such installments, the payment of interest at an annual 
rate agreed with the Association on the principal amount of the Credit withdrawn and 
outstanding from time to time, provided that, in the judgment of the Association, such 
revision shall not change the grant element obtained under the above-mentioned 
repayment modification. 
(d)
If, at any time after a modification of terms pursuant to paragraph (b) 
above, the Association determines that the Borrower's economic condition has 
deteriorated significantly, the Association may, if so requested by the Borrower, 
further modify the terms of repayment to conform to the schedule of installments as 
provided in paragraph (a) above. 
Section 2.08. The currency of the United States of America is hereby specified 
for the purposes of Section 4.02 of the General Conditions. 
ARTICLE III 
Execution of the Project
Section 3.01. (a) The Borrower declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry 
out the Project with due diligence and efficiency and in conformity with appropriate 
administrative, financial, and 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 and consultants' services required for the Project and to be financed out of 
the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this 
Agreement. 
Section 3.03. For the purposes of Section 9.07 of the General Conditions and 
without limitation thereto, the Borrower shall: 
(a)
prepare, on the basis of guidelines acceptable to the Association and 
furnish to the Association not later than six (6) months after the Closing Date or 
such later date as may be agreed for this purpose between the Borrower and the 
Association, a plan for the future operation of the Project; and 
(b)
afford the Association a reasonable opportunity to exchange views with 
the Borrower on said plan.
Section 3.04. The Borrower shall (i) maintain, until the completion of the 
Project, adequate staffing and logistical support in the NIRP Secretariat; and (ii) 
not later than 12 months after the Effective Date, furnish to the Association, for 
review and approval, details on the amount, scope, and focus of retraining activities 
and retrenchment benefits to be distributed to redundant staff of its public sector. 
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: 
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(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, 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 Project Management Reports or 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 
as to whether the statements of expenditure or Project Management 
Reports submitted during such fiscal year, together with the 
procedures and internal controls involved in their preparation, 
can be relied upon to support the related withdrawals.
Section 4.02. (a) Without limitations upon the provisions of Section 4.01 of 
this Agreement, the Borrower shall carry out a time-bound action plan acceptable to 
the Association for the strengthening of its financial system for the Project in order 
to enable the Borrower, not later than twenty months after the Effective Date, or such 
later date as the Association shall agree, to prepare quarterly Project Management 
Reports, acceptable to the Association.  Each such report shall: 
(i)
set forth actual sources and application of funds for the Project, 
both cumulatively and for the period covered by said report, and 
projected sources and application of funds for the Project for the 
six-month period following the period covered by said report, and 
show separately expenditures financed out of the proceeds of the 
Credit during the six-month period following the period covered by 
said report;
(ii)
describe physical progress in Project implementation, both 
cumulatively and for the period covered by said report, and 
explain variances between the actual and previously forecast 
implementation targets; and
(iii)
set forth the status of procurement under the Project and 
expenditures under contracts financed out of the proceeds of the 
Credit, as at the end of the period covered by said report.
(b)
Upon completion of the action plan referred to in paragraph (a) of this 
Section, the Borrower shall prepare, in accordance with guidelines acceptable to the 
Association, and furnish to the Association, not later than 45 days after the end of 
each calendar quarter, a Project Management Report for such period. 
ARTICLE V 
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Remedies of the Association 
Section 5.01. Pursuant to Section 6.02 (l) of the General Conditions, the 
following additional event is specified, namely, that a situation shall have arisen 
which shall make it improbable that the Program or a significant part thereof will be 
carried out. 
ARTICLE VI 
Effective Date; Termination
Section 6.01. The following events are specified as additional conditions to the 
effectiveness of the Development Credit Agreement within the meaning of Section 12.01 
(b) of the General Conditions: 
(a)
the Borrower has developed and furnished to the Association a policy 
paper articulating the principles of a comprehensive public sector remuneration 
policy; 
(b)
the Borrower’s cabinet has approved the legal framework for the reform of 
Subvented Agencies, satisfactory to the Association; 
(c)
the Borrower has adopted and furnished to the Association the policy 
setting forth the roles and responsibilities to be fulfilled by CMAs under the 
Program; 
(d)
the Borrower has appointed at least the core management staff to run the 
NIRP Secretariat, comprising (i) the national coordinator, (ii) two technical staff, 
and (iii) one financial management and procurement specialist, under terms and 
conditions satisfactory to the Association and in accordance with Section II of 
Schedule 3 to this Agreement;  
(e)
the Borrower has adopted the Implementation Manual, in form and substance 
satisfactory to the Association; and
(f)
the Borrower has implemented a financial management and accounting system 
for the Project satisfactory to the Association. 
Section 6.02. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions. 
ARTICLE VII 
Representative of the Borrower; Addresses 
Section 7.01. The Minister of Finance 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:
Minister of Finance
Ministry of Finance
P.O. Box M.40
Accra, Ghana
Cable address: 
Telex:
ECONOMICON
2205 MIFAEPGH
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address: 
Telex:
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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 
Accra, Ghana, as of the day and year first above written.
REPUBLIC OF GHANA
By /s/ Richard Kwame Peprah 
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Peter C. Harold 
Acting Regional Vice President 
Africa
SCHEDULE 1
Withdrawal of the Proceeds of the Credit 
1.
The table below sets forth the Categories of items to be financed out of the 
proceeds of the Credit, the allocation of the amounts of the Credit to each Category 
and the percentage of expenditures for items so to be financed in each Category:
Amount of the
Credit Allocated
   % of
(Expressed in
Expenditures
Category
SDR Equivalent)
to be Financed
(1)
Consultants' services,
   7,000,000
100%
including training
(2)
Goods
     300,000
100% of foreign
expenditures and 
90% of local
expenditures
(3)
Operating costs
     250,000
100% of foreign
expenditures and
90% of local
expenditures
(4)
Severance payments
     400,000
100%
(5)
Refunding of 
     700,000
Amounts due pursuant
Project Preparation 
to Section 2.02 (c)
Advance
of this Agreement
(6)
Unallocated
   1,850,000
TOTAL
  10,500,000
2.
For the purposes of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Borrower for goods or services supplied from the 
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territory of any country other than that of the Borrower;
(b)
the term "local expenditures" means expenditures in the currency of the 
Borrower or for goods or services supplied from the territory of the Borrower;
(c)
the term "operating costs" means the incremental expenses incurred by the 
NIRP Secretariat on account of Project implementation, management and monitoring, 
including office supplies, vehicle operation, and travel costs, but excluding salaries 
of officials of the Borrower’s public services; and
(d)
the term "severance payments" means payments made by the Subvented 
Agencies selected for restructuring or commercialization to their employees who have 
been retrenched as a result of implementation of the Program. 
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 under contracts costing less 
than $100,000 equivalent for goods, less than $100,000 equivalent for consulting firms 
and less than $50,000 equivalent for individual consultants, all under such terms and 
conditions as the Association shall specify by notice to the Borrower.
SCHEDULE 2 
Description of the Project 
The objective of the Project is to improve the efficiency, effectiveness, and 
quality of public service delivery and to increase customer orientation, transparency, 
and the accountability of public servants by reorganizing structures, systems, and 
processes within the Borrower’s public 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:
Reform of the Subvented Agencies
Carrying out of a program to reform and restructure the Subvented Agencies 
through the provision of technical advisory services, including: 
(a)
preparation of a regulatory and legal framework for the reform of the 
Subvented Agencies; 
(b)
establishment of monitoring guidelines for institutions which are 
responsible for overseeing the Subvented Agencies; 
(c)
preparation of a strategy for outplacement and alternative employment for 
redundant employees of the restructured Subvented Agencies; 
(d)
provision of training and conducting of workshops for employees of 
Subvented Agencies to facilitate the transition process; and 
(e)
implementation of a program to facilitate the retrenchment of redundant 
staff of Subvented Agencies selected for restructuring and commercialization through 
the provision of severance payments, training, and the acquisition of computer 
equipment.
Part B:
Restructuring of Central Management Agencies (CMAs)
Carrying out of a functional analysis of the role and function of CMAs through 
the provision of technical advisory services, including: 
(a)
development of a mission statement for each CMA; 
(b)
review of the organizational structure of each CMA; 
(c)
preparation of medium-term financing for the modernization of each CMA; 
(d)
carrying out of an inventory of assets and liabilities of all CMAs, 
including an inventory of staff and identification of redundant employees; and 
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(e)
identification of training needs and development of a training plan for 
the CMAs.
Part C:
Public Sector Systems and Processes 
1.
Development of a comprehensive human resource management system of the public 
sector. 
2.
Development of a strategy for enhancing public-private cooperation, including 
the identification of private sector standards to be piloted in the public sector. 
3.
Provision of training and carrying out of workshops for employees in the public 
sector. 
4.
Preparation and implementation of a communication strategy for informing the 
public of public sector reforms. 
5.
Carrying out of a comprehensive social assessment to assess the impact of the 
Program. 
* * * 
The Project is expected to be completed by January 31, 2002.
SCHEDULE 3 
Procurement and Consultants' Services 
Section I.
Procurement of Goods
Part A:
General 
1.
Goods and works shall be procured in accordance with (a) the provisions of 
Section I of the "Guidelines for Procurement under IBRD Loans and IDA Credits" 
published by the Bank in January 1995 and revised in January and August 1996 and 
September 1997 and January 1999, subject to the modifications thereto set forth in 
paragraph 2 of this Part A (the Guidelines), and (b) the provisions of the following 
Parts of this Section I.  
2.
In paragraphs 1.6 and 1.8 of the Guidelines, the references to "Bank member 
countries" and "member country" shall be deemed to be references, respectively, to 
"Participating Countries" and "Participating Country."
Part B:
International Competitive Bidding 
1.
Except as otherwise provided in Part C of this Section, goods shall be procured 
under contracts awarded in accordance with the provisions of Section II of the 
Guidelines and paragraph 5 of Appendix 1 thereto. 
2.
The following provisions shall apply to goods to be procured under contracts 
awarded in accordance with the provisions of paragraph 1 of this Part B.  
(a)
Grouping of Contracts 
To the extent practicable, contracts for goods shall be grouped in bid packages 
estimated to cost $200,000 equivalent or more each. 
(b)
Preference for Domestically Manufactured Goods 
The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 
thereto shall apply to goods manufactured in the territory of the Borrower. 
(c)
Notification and Advertising 
The invitation to prequalify or 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
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Goods estimated to cost less than $200,000 equivalent per contract, up to an 
aggregate amount not to exceed $200,000 equivalent, may be procured under contracts 
awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines. 
2.
National Shopping
Goods estimated to cost less than $30,000 equivalent per contract, up to an 
aggregate amount not to exceed $100,000 equivalent, may be procured under contracts 
awarded on the basis of national shopping procedures in accordance with the provisions 
of paragraphs 3.5 and 3.6 of the Guidelines.
Part D:
Review by the Association of Procurement Decisions 
1.
Procurement Planning 
Prior to the issuance of any invitations to prequalify for bidding or to bid for 
contracts, the proposed procurement plan for the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall 
be undertaken in accordance with such procurement plan as shall have been approved by 
the Association and with the provisions of said paragraph 1. 
2.
Prior Review  
With respect to 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
1.
Consultants’ services shall be procured in accordance with (a) the provisions of 
the Introduction and Section IV of the "Guidelines:  Selection and Employment of 
Consultants by World Bank Borrowers" published by the Bank in January 1997 and revised 
in September 1997 and January 1999, subject to the modifications thereto set forth in 
paragraph 2 of this Part A (the Consultant Guidelines), and (b) the provisions of the 
following Parts of this Section II.  
2.
In paragraph 1.10 of the Consultant Guidelines, the references to "Bank member 
countries" and "member country" shall be deemed to be references, respectively, to 
"Participating Countries" and "Participating Country."
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 shortlist of consultants for services for the Project, estimated to cost less than 
$200,000 equivalent per contract, may comprise entirely national consultants in 
accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
Part C:
Other Procedures for the Selection of Consultants 
1.
Selection Based on Consultants’ Qualifications
Services for consultants estimated to cost less than $50,000 equivalent per 
contract may be procured under contracts awarded in accordance with the provisions of 
paragraphs 3.1 and 3.7 of the Consultant Guidelines. 
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2.
Single-Source Selection
Services which are estimated to cost less than $50,000 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. 
3.
Individual Consultants
Services that meet the requirements set forth in paragraph 5.01 of the 
Consultant Guidelines shall be procured under contracts awarded to individual 
consultants in accordance with the provisions of paragraphs 5.1 through 5.3 of the 
Consultant Guidelines. 
4.
Least-Cost Selection
Services for auditing may be procured under contracts awarded in accordance with 
the provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.
Part D:
Review by the Association of the Selection of Consultants 
1.
Selection Planning  
Prior to the issuance to consultants of any requests for proposals, the proposed 
plan for the selection of consultants under the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Consultant Guidelines.  Selection of all consultants’ 
services shall be undertaken in accordance with such selection plan as shall have been 
approved by the Association and with the provisions of said paragraph 1. 
2.
Prior Review
(a)
With respect to each contract for the employment of consulting firms 
estimated to cost the equivalent of $50,000 or more, the procedures set forth in 
paragraphs 1, 2 (other than the third subparagraph of paragraph 2 (a)) and 5 of 
Appendix 1 to the Consultant Guidelines shall apply.
(b)
With respect to each contract for the employment of individual 
consultants estimated to cost the equivalent of $20,000 or more, the qualifications, 
experience, terms of reference and terms of employment of the consultants shall be 
furnished to the Association for its prior review and approval. The contract shall be 
awarded only after said approval shall have been given. 
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall 
apply.
SCHEDULE 4 
Implementation Program  
1.
Except as the Association shall otherwise agree, the Borrower shall carry out 
the Program in accordance with the Implementation Manual and shall not amend the 
Implementation Manual or waive any provision thereof which, in the opinion of the 
Association, will materially and adversely affect the implementation of the Program. 
2.
The Project shall be coordinated by the Office of the Vice President through a 
National Coordinator.  The National Coordinator will be responsible for the functions 
of the NIRP Secretariat, which shall carry out the day-to-day operations. The National 
Coordinator shall report to the NOC. 
3.
(a)
The NIRP Secretariat shall be responsible for monitoring and evaluating 
the reform process and publishing progress reports on a regular basis.
(b)
The NIRP Secretariat shall, not later than three months after the end of 
each year, submit to the Association a progress report on implementation of the 
Project.
4.
The Borrower shall: 
(a)
maintain policies and procedures adequate to enable it to monitor and 
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evaluate on an ongoing basis, in accordance with the indicators set forth in the 
Implementation Manual, the carrying out of the Project and the achievement of the 
objectives thereof; 
(b)
prepare, under terms of reference satisfactory to the Association, and 
furnish to the Association, on or about August 30 of each year, a report integrating 
the results of the monitoring and evaluation activities performed, pursuant to 
paragraph (a) of this Section, on the progress achieved in carrying out the Project 
during the period preceding the date of said report and setting out the measures 
recommended to ensure the efficient carrying out of the Project and the achievement of 
the objectives thereof during the period following such date; and 
(c)
review with the Association, by January 31, 2001, or such later date as 
the Association shall request, the report referred to in subparagraph (b) of this 
paragraph, and, thereafter, take all measures required to ensure the efficient 
completion of the Project and the achievement of the objectives thereof, based on the 
conclusions and recommendations of the said report and the Association’s views on the 
matter.
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 $1,500,000 
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 $750,000 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 2,000,000.
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 
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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; 
(b)
if the Borrower shall have failed to furnish to the Association, within 
the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the 
audit reports required to be furnished to the Association pursuant to said Section in 
respect of the audit of the records and accounts for the Special Account; 
(c)
if, at any time, the Association shall have notified the Borrower of its 
intention to suspend in whole or in part the right of the Borrower to make withdrawals 
from the Credit Account pursuant to the provisions of Section 6.02 of the General 
Conditions; or
(d)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories, minus the total amount of all outstanding special commitments entered into 
by the Association pursuant to Section 5.02 of the General Conditions with respect to 
the Project, shall equal the equivalent of twice the amount of the Authorized 
Allocation.  Thereafter, withdrawal from the Credit Account of the remaining 
unwithdrawn amount of the Credit allocated to the eligible Categories shall follow 
such procedures as the Association shall specify by notice to the Borrower.  Such 
further withdrawals shall be made only after and to the extent that the Association 
shall have been satisfied that all such amounts remaining on deposit in the Special 
Account as of the date of such notice will be utilized in making payments for eligible 
expenditures.
6.
(a)
If the Association shall have determined at any time that any payment out 
of the Special Account: (i) was made for an expenditure or in an amount not eligible 
pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the evidence 
furnished to the Association, the Borrower shall, promptly upon notice from the 
Association: (A) provide such additional evidence as the Association may request; or 
(B) deposit into the Special Account (or, if the Association shall so request, refund 
to the Association) an amount equal to the amount of such payment or the portion 
thereof not so eligible or justified. Unless the Association shall otherwise agree, no 
further deposit by the Association into the Special Account shall be made until the 
Borrower has provided such evidence or made such deposit or refund, as the case may 
be. 
(b)
If the Association shall have determined at any time that any amount 
outstanding in the Special Account will not be required to cover further payments for 
eligible expenditures, the Borrower shall, promptly upon notice from the Association, 
refund to the Association such outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the 
Association all or any portion of the funds on deposit in the Special Account. 
(d)
Refunds to the Association made pursuant to 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.