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CONFORMED COPY
CREDIT NUMBER 4379-BO
Financing Agreement(Lakc Titicaca Local Sustainablc Devclopmcnt
Project)
bctwccn
REPUBLIC OF BOLIVIA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated Fcbruary 11,2008
ln, /vr." B.llt Kalteis.rtq rolro ot COlYltl0S 3tl,arltt\
.i.$rtrtcrr"Ys@i,
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CREDIT NUMBER 4379.BO
FINANCING AGREEMENT
AGREEMENT datcd Fcbruary I l, 2008, cntcrcd into bctwccn
REpUBLIC OFBOLIVIA ("Rccipicnt") and INTERNATIONAL DEVELOPMENT
ASSOCIATION("Association"). The Recipient and thc Association
hereby agree as follows:
ARTICLE I - GENERAL CONDITIONS; DEFINITIONS
1.01. Thc Gencal Conditions (as defined in thc Appcndix to this
Agrccmenr)constitute an integral part of this Agrecment.
1.02. Unless the context requires othcrwise, thc capitalizcd
tcrms uscd in thisAgreement have the meanings ascribed to them in
the Geneal Conditions o inthe Appendix to this Agreement.
ARTICLE II - FINANCING
2.01. Thc Association agrees to cxtcnd to thc Recipient, on thc
tcrms and conditionssct foth or cfcrrcd to in this Agrecment, a
crcdit in an amount cquivalent totwelve rnill ion cight hundrcd
thousand Spccial Drawing fughts (SDR12,800,000) (variously,
"Credit" and "Financing") to assisr in financing thcproject
dcscribed in Schcdule I to this Agrccmcnt ("Projcct'..
2.02. Thc Rccipient may withdraw the procceds of thc Financing
in accordancc withSection IV of Schcdulc 2 to this Asrecment.
2.03. Thc Maximum Commitment Chargc Rate payablc by the
Rccipicnt on thcUnwithdrawn Financing Balancc shall bc
onc-halfofone pcrccnt (l12 of l%) pcrannum.
2.04. The Scrvice Chargc payable by thc Rccipient on thc
Withdrawn Crcdit Balanccshall bc cqual to thrcc-fourths of onc
pcrccnt (3/4 of I %) pcr annum.
2.05. Thc Payrcnt Datcs arc Fcbruary l5 and August l5 in cach
ycar.
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22.06. The principal amount of thc Crcdit shall bc rcpaid in
accordance with thcrepaymcnt schedulc sct forth in Schcdulc 3 to
this Agrccmcnt.
2.07. Thc Paymcnt Currcncy is Dollars.
ARTICLE III - PROJECT
3.01. The Recipient declarcs its commitment to the objective of
thc Project. To thiscnd, the Recipicnt shall carry out thc Projcct
though MPM and VMT and withthe assistance of FPS, the Recipient's
Ministry of Watcr through its Vicc-Ministry of Basic Scrvices, and
the Implcmenting Entities, in accordance withthc provisions of
Aficle IV ofthe Gcneral Conditions.
3.02. Without limitation upon thc provisions of Section 3.01 of
this Agrcemcnt, andexcept as thc Rccipicnt and the Association
shall otherwise agrcc, thc Recipientshall ensure that thc Projcct
is carricd out in accordancc with the provisions ofSchcdulc 2 to
this Asrcemcnt.
ARTICLE IV - REMEDIES OF THE ASSOCIATION
4.01. Thc Additional Evcnts ofSuspcnsion consist ofthc
following;
FPS or the Lnplcmcnting Entities shall have failed, in thc
opinion of thcAssociation, to pcrform any of their obligations
undcr the SubsidiaryAgreement or the Implementation Agreements, as
thc case may be.
The Procuremcnt Supreme Decrcc has bccn amcndcd,
suspended,abrogatcd, rcpcalcd or waivcd so as to rcndcr its Aiclc
42 (a)ineffective, in thc opinion of the Association, and no
provision analogousto such Article 42 (a) has becn adoptcd to
rcplacc said provision.
(c) Any Implementation Agrcemcnt or any of its provisions has
bcenamended, suspcnded, abrogated, tenninatcd, waived or not
cnforccd, soas to affect materially and advcrsely, in thc opinion
of the Association,the abiliiy of the FPS and thc Implementing
Entrties to perfonn theirobligations as contemplatcd under thc
provisions of this Agrcemcnt.
4.02- The Additional Evcnt of Acceleration consists ofthc
following, namcly, that anyevent spccified in Section 4.01 of this
Agreemcnt occus and is continuing for apcriod of 60 days after
noticc of the cvcnt has been given by the Association tothe
Recipient.
(a)
(b)
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3ARTICLE V - EFFECTIVENESS; TERMINATION
5.01 . The Additional Conditions of Effcctivcncss consist of thc
following:
(a) The Subsidiary Agrecment has bccn executcd on bchalf of the
Recipicntand FPS.
Thc Opcrational Manual has bccn adoptcd in a anncr satisfactory
ro rncAssociation.
ARTICLE VI - REPRXSENTATIVE; ADDRESSES
6.01 . The Recipient's Representative is its Minister of
Dcvelopment planning.
6.02. Thc Rccipient's Addrcss is:
Ministerio de Planificacin del DcsarrolloViccministcrio dc
Invcrsin Pblica y Financiamicnto Extcmo (VIPFE)Palacio dc
Comunicaciones, piso I ILa Paz, Bolivia
Facsimilc:
0l I-591-2-231-7408 (with a copy ro: 0tI-591_2_239_289 t)
(b)
5.02. The Additional Legal Mattcr consists of the following,
namcly, that thcSubsidiary Agrccment has been duly authorizcd o
ratificd by thc Rccipicnt andFPS and is lcgally binding upon the
Recipicnt and the FpS in accordancc with itstcns.
5.03. without prcjudicc to the provisions of thc Gencral
conditions, the EffectivcncssDeadline is thc datc onc hundred
twenty (120) days aftcr thl: datc of thisAgrccment, but in no case
later than thc eightcen (lg) months aftcr thcAssociation's approval
ofthe Credit which expire on June 22, 2009.
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46.03. The Association's Address is:
Intcrnational Dcvclopmcnt Associationl8 l8 H Strect ,
N.W.Washingron, D.C.20433Unitcd Statcs of Arncrica
Cable: Telcx: Facsimilc:
INDEVAS 248423 (MCt) t-202477 _6391Washington, D.C.
AGREED at thc District of Columbia, Unitcd States of Amcrica, as
of thc dayand year first abovc writtcn.
REPUBLIC OF BOLIVIA
By /s/ Mario Gustavo Guznrn Saldaa
Authorizcd Rcprcscntativc
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s / C. Fc l ipc Jarami l loAuthorized Rcprcscntativc
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5SCHEDULE I
Projcct Dcscription
Thc objcctivc of thc Projcct is to contributc to Iocl
sustainabli dcvclopmcnt inthe Recipient's sidc of thc Lake Titicaca
watcrshed.
Thc Projcct consists of thc following parts:
Part l.
(a)
Part 2.
(a)
(b)
(cJ
(d)
Support to Tourism Devcloomcnt and Cultural Potection
Carrying out by Municipalitics and Rccipicnt's community groups
withFPS support, of infrastructurc investments to facilitatc thc
cnhancemcntof cultural, social, economic and cnvironmcntal asscts,
including iirrclalia: (i) the impovement of tourist sitcs; (ii) the
provision of public rcstareas and bathroorns; and (iii) thc
cstablishment of interpretation ccntcrs,bike paths and small
docks.
Carrying out of communify investments with VMT support to
cniancccultural, social, economic, and cnvironmental assets,
including, lirlcralia: (i) local environmental improvcmcnts; (ii)
gucst houscs; and (iii)markets and tourist ttractions.
(i) Protcction of cultural hcritagc monumcnts in Lakc Titicaca's
Islq del.So1 and .Is/a de la Luna; and (ii) rcstoration of
prc-Hispanic agriculturallandscapcs, trails and artistic and
historic assets in colonial churches
Provision of grants for community dcvclopmcnt for tourism
activitcs,including thc production of handicrafts and thc financing
of cultualcvcnts and stratcgic studics.
Basic Scrviccs
Carrying out of: (i) water and sanitation infrastructurc for
Lakc Titicaca'ssrnall rural communitics; and (ii) training and
provision of tcchnicalassistance to thc EPSA.
Provision of technical assistance, goods and works to devclop
sanitarionfacilities and cxtend and rchabilitatc existing scweragc
networks andtreatment plans in thc cities of Copacabana, Tiquina,
Achacachi,Tiwanaku and Viacha.
Provision of technical assistancc, goods and works to improve
solidwaste collection for the cities of Copacabana, Achacachi and
Tirvanaku,including: (i) street cleaning: (ii) transponation; (ii
i) recycling; and (iv)final disposal in sanitary landfills.
(b)
(c)
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(d) Povision of tcchnical assistancc to ensurc sustainablc
service provision,through thc crcation of EPSA that will rnanagc
watcr, wastcwatcr andsolid wastc scrviccs and whosc opcrating and
maintenancc costs arc to bccovcrcd by thc uscs fccs by thc cnd of
thc projcct.
(e) Provision of FPS Operating Costs for the carrying out of
basic serviccactivitics undcr Parts 2 and I (a) of the project and
financing ofaudits forthc pans of the Projcct cxecutcd by FpS.
Part 3. Institutional Strcngthenins and Proiect Managcment
(a) Provision of teclurical assistance to: (i) carry out tourism
studics tosupport a long tcrm program for tourism devclopment in
thc LakcTiticaca basin and neighboring areas; and (ii) devclop a
nurKenngstrategy to promote the Recipicnt's intcrnational tourism
potcntial,including the provision oftraining in communications and
tcchnology forVMT.
(b)
(cl
(d)
Provision of tecturical assistance to strcngthcn thc
Rccipicnt'srnunicipalitics' capacity, including thc dcsign of
mcdium tcnn and lonqtcrm plans fo their sustainable
dcvclopment.
Provision of tcchnical assistance to strengthen the local
communitics'capacity to participate in tourism developmcnt
activitics.
Provision of technical assistancc to strengthcn thc capacity of
theImplemcnting Entitics, including thc crcation of an advisory
group onlakc managcment compriscd of Rccipient's rcprcscntatives
andinternational expcrts.
(i) Provision of tcchnical assistancc to update annually thc
technrcar,touism and social data ofthe State ofthe Lakc Reportt and
(ii) executionof a communication stratgy summarizing thc State of
thc Lakc Rcporr,with a spccific focus on thc community living
within rhc projcct Area.Provision of technical assistance to thc
VMT to strcngthcn its capacrryfor projcct coordination and
nanagemcnt, including thc opcration of itsPCU and thc carrying out
ofaudits
(e)
(0
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lSCHEDULE 2
Projcct ExccutionScction I. I mDlcnrcntaton Arrrnqcnrcnts
A. Subsidiary Agrecmcnt and Implemcntation Agrccmcnts
l. To facilitatc the carrying out of thc Projcct, the Recipient
shall make part of theprocccds of the Financing available to FPS
through a subsidiary agrecmenrbetween tbe Recipient and FPS, under
tcnns satisfactory to the Association("Subsidiary Agecrnent"),
including, inter alia, FPS's obligation to providc allthe necessary
information and documentation to VMT relatcd to
FPS'sresponsibilities undr the Project (including but not limited
to, thc informationrequired for compliancc with Section III.D of
Schcdulc 2 to this Agreemcnt).
2. The Recipicnt shall maintain all of thc nccessary conditions
for FPS to complywith its obligations undcr thc Subsidiary
Agrecmcnt.
3. Without lirl itation to the provisions ofparagraph I abovc,
FPS shall cntcr into anagrcemcnt with cach of thc Implcmcnting
Entities ("ImplcmentationAgrecment"), under tenns and conditions
satisfactory to the Association,including those set forth in thc
Operational Manual, with respcct to thc role andresponsibilities of
thc Implcmcnting Entitics.
4. Thc Recipient shall exccise its rights under the Subsidiary
Agrccment, and causcFPS to cxercisc its rights undcr the
Implemcntation Agrecmcnts, in such amanncr as to protect the
interests of thc Rccipient and thc Association and toaccomplish thc
purposcs of thc Financing. Exccpt as thc Association shallotherwisc
agrce, the Recipicnt shall not assign, amend, abrogatc, waivc or
fail toenfoce thc Subsidiary Agreemcnt or any of its
provisions.
5. In thc case of a conflict bctween the provisions of the
Subsidiary Agrccmcnt orthe Implcmcntation Agrcements and the
provisions of this Agcemcnt, thcRecipicnt will ensure that the
provisions of this Agrccmcnt will prevail.
B. Institutional and Othcr Arrangcmcnts
l. The Recipient shall, with thc assistance of FPS and thc
Implcmcnting Entities,carry out thc Project, or causc thc Projcct
to bc caricd out, in accordancc withthe povisions of:
(a) this Agrecment;(b) the Subsidiary Agreement;
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2.
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(c) the Implementation Agrcemcnts; and
(d) thc Opcrational Manual.
At all tinlcs during thc cxccution of thc Projcct, VMT shll
maintain a qualificdteam responsible fo the implementation of thc
Project ("PCU"), with staffingqualifications, functions and
responsibilities satisfactory to the Association,including, inter
alia, the following rcsponsibilities:
(a) overall planning, coordination, monitoring and evaluation of
Projcctactivities; and
(b) the updating of the Procurement Plan and the elaboration of
thc annualimplementation plan.
At all times during the execution of the Projcct, the Rccipient
shall cause FPS tomaintain qualified staff responsiblc fol thc
implemcntation ofParts I (a) and 2 ofthe Poject with staffing
qualifications, functions and responsibilitics satisfactoryto the
Association. The above-mentioncd staff shall carry out quality
controlactivities, coordination, monitoring and oversight of Parts
1 (a) and 2 of thcPrqect.
Thc Recipient shall cstablish not later than three months aftcr
the Effcctivc Datc,and thercaftc maintain throughout the
implementation of the Project, acommittcc (lnter-lnstitutional
Comrnittec) to facilitatc information sharingamong rclevant
stakcholdes. The Intcrlnstitutional Comrnittcc shall rnect atlcast
twicc per yea to discuss activities in the Lake Titicaca watcrshcd
andprogress on the ProJect.
Opcrational Manual
Thc Recrpicnt, through MPM and VMT, shall carry out thc Projcct,
or cause thcProjcct to be canied out, in accodancc with thc tcrms
of a manual satisfactory tothe Association (the Operational
Manual). Except as the Association shallotherwise agree, the
Recipicnt shall not amcnd, waive or fail to cnforcc tbcOperational
Manual or any provision thercof. In case of any conflict between
thctenns of this Agrcement and those of the Operational Manual, thc
tcrms of thisAgreemcnt shall prevail.
The Opcrational Manual shall include provisions dctailing
proccdurcs andguidclincs for thc carrying out ofthc Projcct,
including, inler ala:
(a) thc procedures fo the preparation, rcview and approval of
rcportspursuant to thc Projcct's financial managcmcnt
arrangcmcnts;
4.
3 .
c.
2.
l .
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(b) procuement and contracting procedurcs consistent with
Schedule 2 tothis Agrccment, to bc applicablc to tltc contracts for
thc works, goods,and consultants'serviccs required for thc Projcct
and to bc financcd outof Lhc procccds of thc Crcdit;
(c) Project impact and implementation indicators and the
procedures for themonitoring and evaluation of the Projcct,
including for compliancc withScction II ofSchedulc 2 to this
Agrecment;
(d) the procedurcs for the Recipicnt's preparation, rcvicw and
approval ofCrcdit procccds withdrawal applications to thc
Association, inconformity with the instructions that the
Association may givc to theRecipient in this rcspect; and
(e) the cnvironmental managcmcnt criteria and procedures for thc
carryingout of rehabilitation and construction works undcr the
Projcct, thcResettlement Framework, and thc mcchanisms to address
the culturallyspecific nceds of the Aymara to ensurc that the
bcnefits of thc Project arcculturally appropriate and that there is
broad community support for theProjcct.
Anti-Corruption
The Recipient shall cnsue that the Projcct is carried out in
accordancc with thcprovisions of tbe Anti-Corruption
Guidclincs.
Othcr Covcnants
2.
Not latcr than one year aftcr thc Effcctive Datc, thc Rccipient
and thcAssociation shall carry out a comprehensive review of thc
Projcctfocused on Project pcrfomancc. Aftcr said rcvicw is
complctcd, thcRecipient shall take, if necessary, any actions
recommendcd to cmedyany problcrns idcntificd during thc revicw.
Thc Recipient shall maintain throughout thc implementation of
thcProject, thc units referred to in paragraph B.4 of Scction IV to
thisSchedulc.
Scction II. Proicct Monitorinq. Rcoorting and Evaluation
A, Projcct Rcports
Thc Rccipicnt shall rronitor and cvaluatc thc progrcss of thc
Projcct and prcparcor cause to be preparcd Projcct Rcports in
accordance with thc provisions ofSection 4.08 of the Gcncral
Conditions and on thc basis of the Indicators. Eacb
D.
E.
l .
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t 0
Projcct Rcport shall cover the period of one calcnda scmester,
and shall befumished to thc Association not later than one month
aftcr thc cnd of thc pcriodcovered by such report. Thc Rccipicnt
shall rcvicw thc mosl rcccnt ProjectRcport with thc Association
during thc Association's sctni-annual ncctngs withthe Rccipicnt, or
on such latcr datcs as thc Association lnay rcqtlcst.
B. Financial Managcmcnt, Financial Reports and Audits
l. Thc Rccipient shall maintain (or causc to be maintained) a
financial managcmcntsystcm in accodancc with thc provisions of
Scction 4.09 of thc GeneralConditions.
2. The Recipient shall prepare (or cause to bc prcparcd) and
fumish to thcAssociation not latcr than 45 days after the end of
cach calendar qualer, intcrimun-auditcd financial reports for each
Part of the Projcct covcring the calcndarquartcr, in form and
substancc satisfactory to the Association.
3. The Rccipient shall, though VMT, and cause FPS to, ltave thc
FinancialStatements for each part of the projcct to be audiied in
accodancc with thcprovisions of Section 4.09 (b) of the Gcncral
Conditions. Each audit of thcFinancial Statemcnts shall cover the
period of one fiscal year of the Rccipicnt forthe respcctive part
of the Project, commencing with the carlier of: (a) the fiscalyear
in which thc first withdrawal undcr the Project Prcparation Advancc
wasmade; and (b) the fiscal ycar in which the first withdrawal
under this Agreemcntwas made. The audited Financial Statements for
cach such pcriod shall bcfumishcd to the Association not later than
six months afte the end of suchperiod.
Scct ionI I I . Procurcmcnt
2.
l .
Gcncral
Goods, Works and Non-Consultant Scrvices, All goods, works and
non-consultant serviccs rcquircd for thc Projcct and to be financcd
out of the proceedsof the Financing shall be procured in accordance
with the rcquircmcnts sct forthor rcfcrred to in Section I of thc
Procurcmcnt Guidclincs, and with thc provisionsof this Scction.
Consultants' Scrviccs. All consultants' services requircd for
thc Project and tobe financcd out of thc procccds of thc Financing
shall bc procurcd in accordanccwith thc rcquircments sct forth or
cferred to in Sections I and IV of theConsultant Guidclincs, with
the provisions of this Section and with the provisionsof Scction II
of Anncx A to this Schcdulc.
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B.
3 .
2.
2 .
c.
l .
Dcfinitions. The capitalized tcrms used bclow in this Section to
describeparticular procurcmcnt mcthods or rethods of rcview by thc
Association ofparticular contracts, refcr to the corrcsponding
method dcscribcd in thcProcurcnrcnt Guidclircs, or Consultant
Cuidclincs, as thc casc rrray trc.
Particulr Mcthods of Procurcmcnt of Goods, Works and
Non-ConsultantScrviccs
Intcrnational Compctitivc Bidding. Except as orherwise provided
in paragraph2 bclow, goods and works shall be procured under
contracts awardcd on the basisof Iternational Compctitive
Bidding.
Othcr Mcthods of Procurcmcnt of Goods, Works and
Non-ConsultantScrvices. The following table specifies the methods
of procurement, other thanIntemational Competitive Bidding, which
may be uscd for goods, works andnon-consultant serviccs. The
Procurcmcnt Plan shall spccify thc cicumstancesunder which such
methods may be uscd:
Procuremcnt Mcthod
(a) National Compctitivc Bidding, subjccr to theadditional
provisions set forth in Scction I of AnnexA to this Schcdulc 2.
(b) Shopping.
(c) DirectContracting.
(d) Community Participation in Procurement.
Particular Mcthods of Procurcmcnt of Consultants' Scrviccs
Quality- and Cost-bascd Sclcction. Exccpt as othcrwise provided
in paragraph2 bclow, consultants'scrvices shall be procurcd undcr
contacts awarded on thcbasis of Quality and Cosrbased
Sclcction.
Othcr Mcthods of Procurcmcnt of Consultants' Scrviccs. Thc
follorving tablcspecifics rnethods of procuremcnt, othe than
Quality and Cost-based Sclection,which may be used for consultants'
seviccs. The Procuremcnt Plan shall soccithe circunstances undcr
which such mcthods may bc used.
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D.
l 2
I Procu romcnt McthodI
(a) Quality-bascdSclcction.(b) Sclcction undc a Fixcd Budgcr.(c)
Least Cost Selection.(d) Sclcction Based on Consultant's
eualifications.(c) Single Source Sclection.(t) Procedures set forth
in paragraphs 5.2 and 5.3
the Consultant Guidelines fo thc SclcctionIndividual
Consultants.
(S) Sole Source Proccdurcs for thcIndividual Consultants.
ofof
Sclcction of
Revicw by thc Association of procurcmcnt Dccisions
Thc Pocurcment Plan shall set forth thosc contracts which shall
bcAssociation's Prior Rcview. All othcr contracts shall bc subjcct
toby the Association.
Annual Procurement Audits. The Rccipient, through VMT shall:2
.
l . subjcct to thePost Rcvicw
(a)
(b)
not later than April 30 of cach ycar during thc implctncntation
of thcProjcct, beginning on April 30,2009, contrait indepcndcnt
auditors witl.)expenence and qualifications satisfactory to the
Association, opcratingunde terms of efeence satisfactory to the
Association, to'perform aprocurcment audit of all thc procurcment
records and documcntation lorthe
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Project, relating to thc Recipient's previous fiscal year
ofilnplcmentation of the projcct, in accdance with procurcmcnt
iuditingprinciples acceptable to the Association (..procurement
Audit,,);not latcr.than July 3l ofeach year during thc
implcmcntation of thel'roject, beglnnng on July 31, 2009 and
continuing for cach yearthcreafte during thc implcmentation of the
projccf furnish to thcAssociation thc report, in fonn and substance
satisfactory to thcAssociation, on thc Pocurcmcnt Audit completcd
for thc Rcipicnt,sprior fiscal year;
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(c,
(d)
J
at all times during the implcmentation of thc Project, funish to
thcAssociation and to the auditors pcrforming a Procurcmcnt Audit,
suchother information conccrning thc procurcmcnt rccords
anddocumcntation for thc Projcct as thc Association or thc auditors
nrayll onr timc to tinlc fcasonably rccucst; lnd
not latcr than Septembcr 30 of each year during the
implemcntation ofthe Project, beginning on September 30,2009,
cxchangc views with thcAssociation on thc rcsults of thc
Procurcmcnt Audit cornolctcd for thcRecipient's prior fiscal ycar
and thereafter implerncnt such iccommendedmeasurcs, taking into
account thc Association's vicws on thc mattcr.
Wi thdrawal of thc Procccds of thc FnancinsScction IV.
2.
Gencral
The Recipient may withdraw the proceeds of thc Financing in
accordance rviththe provisions of Article II of the Gcneral
Conditions, this Section, and suchadditional instructions as the
Association shall spccif by notice to thc Rccipicnt(including the
"World Bank Disbusement Guidelines for Projects" dated May2006, as
revised fom time to time by thc Association and as made applicablc
tothis Agrccment pursuant to such instructions), to financc
Eligiblc Expcnditurcs asset forth in the table in paragraph 2
below.
Thc following table specifies thc categorics of Eligiblc
Expenditurcs that may bcfinanced out of the proceeds of thc
Financing ("Category"), the allocations of theamounts of thc Crcdit
to each Catcgory, and thc pcrccntagc of cxpcnditurcs to bcfinanccd
for Eligible Expenditurcs in each Category:
Catcgory
Amount of the CrcditAllocatcd
Gp$!sdi!-SDB)
Pcrccntagc ofExpcnditurcs
to bc Financcd(inclusivc of Taxes)
(l) (a) Works, goods, Training,consultants services undcr Part I
(a)of the Project; and
(b) Works, goods, Training,consultants services and
\A4TOperating Costs undcr Parts I (b),(c) and (d) of thc
Project
3,450,000
1,650,000
t00%
t00%
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Catcsorv
Amount of thc CrcditAllocatcd
(cxnrcsscd in SDR)
Pcrccntagc ofExpcnditurcs
to bc Financcd( inc lus ive of Taxcs)
(2) Works, goods, consultants servrcesand Training under Part 2
of theProject, includrng audits 5,300,000 100%
(3) Goods, consultants services,Training and VMT OperatingCosts
undcr Part 3 ofthc Projcct,including audits
1,300,000 t00%
(4) FPS Operating Costs 500,000 5% of the total costof thc woks
underthc Projcct paid intranches as sct forthin the
OperationalManual
(5) Refund of Project PreparationAdvance
600,000 Amount payablcpursuant to Section2-07 ofthc
GcncralConditions
TOTAL AMOUNT 12,800,000
l. For purposes ofthe table in paragraph 2 abovc, thc tcrms:
"Training" means reasonable cxpcnditures (other than thosc
forconsultants' scrviccs) incurred by VMT for the purposcs of thc
Projcctand directly rclated to training activities describcd in the
Projccr,including, inter aliq, costs elatcd to workshops, seminars,
conferenccs,study tous, training registration fecs, facility
rcntals, and travcl costs andper dienrs for \44T and FPS civil
scrvicc officials or cmployccs;"FPS Opcrating Costs" means
reasonablc recurrcnt expcnditures (orncrthan thosc for consultants'
scrvices) incurrcd by FPS for thc purposes ofthc Projcct and
directly relatcd to thc activities dcscribcd in the
Projcct,includrng, inter alia, salaics of staff, officc matcials
and supplics,operation and maintcnancc of office cquipmcnt,
insurance, vchiclc andequipment opcration, bank chargcs on thc
Dcsignatcd Accounr,
(4,
(b)
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B.
t )
transportation, phonc and fax charges, mcdia campaigns, travcl
and per/ir of FPS officials for purposes of Project supervision and
printing ofmaterials; and
(c) "VMT Operating Costs" means reasonable recurrent
expenditures (otherthan thosc for consultants' services) incurred
by VMT for the purposesof the Project and directly related to the
activities described in theProject, including, inler alia, office
materials and supplies, oPeration andmaintcnance of officc
equipment, insurancc' vehicle and equipmentoperation, bank chargcs
on the Designated Account, util ities, rental ofoifi". ,pu"",
transportation, phone and fax charges, media campaigns'travel a;d
per diem of YMT and the Recipient's Vice Ministry of BasicServices
officials for purposes of Project supervision and printing
ofmaterials.
Withdrarval Conditions; Withdrarval Pcriod
Notwithstanding the provisions of Part A of this Scction, no
withdrawals shall bcmade for payments made prior to the date of
this Agreement, exccpt thatrvithdrawals up to an aggregate amount
not to exceed $1,000,000 equivalent maybe made for payrnents made
one year prior to such date but in no case beforeNovember 9, 2007
for Eligible Expcnditures.
No withdrawals shall be made for paymcnts under Categories ( l)
and (2) of thetable in paragraph A above, until the respective
Implementation Agreement witheach Implementing Entity has been
executed.
No rvithdrarvals shall be made for payments under Categories (
l) (b) and (3) ofthe table in paragraph A above, until a financial
management systcm withinVMT, satisfactory to the Association, is
operational.
No withdrawals shall be made for payments under Categories I (a)
and 2 of thetable in paragraph A abovc, until FPS has established
to the satisfaction of thessociation: ii) ihe control and
monitoring unit under FPS's executive officc; (ii)the environmcntal
unil; and (iii.) the procurcmcnt monitoring unit'
The Clos ing Date is June 30,2013.
The Recipient shall rcviov and adjust annually, or at any other
timc agreed withthc Association, thc FPS Opcrating Costs. Such
adjustmcnt shall be unnccessaryif the Association is satisfied that
said review revcals no change in FPSOpcrating Costs.
2 .
l .
3 .
4.
5 .
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Anncx Ato
SCHEDULE 2
Additional Provisions Rclating toParticular Methods of
Procurcment
Scction I. Goods and Works
Without limitation upon thc provisions of Schedulc 2 to this
Agreement or theProcurement Cuidelines, the following additional
provisions shall apply to all goods andworks procured for the
Project (pursuant to Section III.A.I of Schedule 2 to
thisAgreement) under contracts awarded on the basis of National
Competitive Bidding("NCB Contracts"):l. A merit point system shall
not bc used in the pre-qualification ofbids.
2. The arvard of goods and works contracts shall be based
exclusively on price and,whenever appropriate, shall also take into
account factors similar to thoseeferred to in paragraph 2.51 of the
Guidelines, providcd, however, that the bidcvaluation shall always
be based on factors that can be quantified objectively,and the
procedure for such quantification shall be disclosed in ths
invitation tobid.
3. The Recipient shall open all bids at the stipulated time and
place in accordancewith a procedure satisfactory to the
Association.
4. Thc Recipient shall use a single envelope proccdure.
5. Wheneve there is a discrepancy between the amounts in figures
and in words ofa bid, the amounts in words shall govem.
6. Except as the Associarion shall otherwise agree, the bidding
process shall not bedeclared void if only three (3) bids or less
have bcen submitted unless such bidshavc bccn dctcrmincd not to bc
rcsponsivc.
7. Any standards and technical specifications (quoted in the
bidding documents)tltat arc at least substantially cquivalent to
thc national standards and technicalspecifications shall be
acccptable.
8. Forcign bidders shall be allowed ro participate.
9. Forcign biddcrs shall not bc rcquircd to lcgalizc any
docrmcntation rclatcd totheir bids with Bolivian authorities as a
prerequisite for biddrng.
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10 .
12 .
l l .
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No margin ofpreference shall be granted for any panicular
category ofbidders.
The auction procedwe (Puja Abierta) shall not be used.
In the event that a bidder whosc bid was evaluated as the bid
with the lowestevaluatcd price withdraws its bid, thc contract may
be awardcd to the secondlou'est rcsponsive cvaluated bid.
Forcign biddcrs shall not, as a condition for submitting bids,
bc required to enterinto a joint venture agreement with local
bidders.
No other procurement rules or regulations of thc Recipient3
agcncies or of anystatc-owncd cntity shall apply without the prior
review and consent of theAssociation.
Scction II. Selection of Consultant Serviccs
Without limitation upon the provisions of Schedule 2 to this
Agreement or thc ConsultantGuidelines, the following additional
provisions shall apply to all consultants' servicesprocured lbr the
Projcct (pursuant to Section III.A.2 of Schedule 2 to this
Agrcemcnt):l- As a condition for participating in the selection
process, foreign consultants shall
not be required to cnte into a joint venture agreement with
local consultants,unless the conditions stated in paragraph I.I.2
of the Consultant Guidelines aemet.
3 .
As a condition for participating in the selection process,
foreign consultants shallnot be required to legalize their
proposals or any documcntation related to suchproposals with the
Rccipient's authorities.
Forcign consultants shall not be requircd to be registered in
the Recipient'sNational Registry ofConsultants (Iegistro Nacional
de Consultora).
1 4 .
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SCHEDULE 3
Rcpaymcnt Schedulc
* The percentages reprcsent the pcrcentage of the principal
amount of thc Credit to bercpaid, except as the Association may
otherwise specify pursuant to Scction 3.03 (b) ofthe Gcncral
Conditions.
Datc Pavmcnt Duc
Principal Amount of thc Creditrcpayablc
(cxprcsscd as a pcrcentagc)*On each February l5 and August
15:Commcncing Fcbruary 15, 2018to and including August 15,
2027.
| .251'/0
Commencing February 15,2028, to and includingAugust 15,
2042.
2.50%
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APPENDIX
Scction I. D cfi n itions
"Anti-Corruption Guidelines" means the "Guidelines on preventing
andCombating Faud and Corruption in Projects Financed by IBRD Loans
and IDACredits and Grants", dated Ocrobcr 15, 2006."Category" means
a category sct forth in the table in Section IV of Schedule 2
tothis Agrecmcnt."Consultant Guidelines" means thc "Guidelines:
Selection and Employment ofConsultants by World Bank Borowcrs"
published by the Bank in May 2004 andreviscd in October 2006."EPSA"
means a Entidqd Prestadora de Servicos de Agua Potable
yAlcantarillado Sanitario, a public or private company with legal
capacity whichprovides water and wastewater services in the
Recipient's tenitory, and whichws crcatcd prsuant to thc
Rccipicnt's law No. 2066, dated April 11, 2000, asamendcd and as in
effect on tbe date ofthis Agrcement."FPS" means Fondo Nacional de
Inversin Productiva y Social, thc Recipient'snational productive
and social investment fund established pursuant to Article l4of the
Recipient's Supreme Decree No.25984 ofNovember 16,2000;"General
Conditions" means the "lntemational DeveloDment AssociationGcneral
Conditions for Credits rnd Granrs", dated July l, 2005 (as
amendedthrough October 15, 2006)."lmplementation Agreements" means
the agreements refened to in Section I.A.3of Schedule 2 to this
Agreement, to be entcred betwcen FpS and theImplementing
Entities."lmplementing Entities" reans any of the Recipient's
municipalities,Prefecturas, other public entitics and non-govemmcnt
organizations, which meetthe eligibility crjteria set forth in the
Operational Manual to carry out activitiesundcr thc
Projcct."Indicators" mcans the impact and implementation indicators
set lorth in theOperational Manual."lntcr-lnslilutionl Comrnittcc"
is thc conrmittcc rcfcrrcd lo in Scction I.8.4 ofSchcdulc 2 to this
Agrccmcnt, compriscd of: (i) relevant public scctor agencies;and
(ii) community and private secto representatives, chaircd by the
Vice
'7.
4 .
5 .
2 .
3 .
9 .
6.
8 .
I 0 .
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1 5 .
1 3 .
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20
Minister of Tourism, in coordination with othe Ministries such
as thc Ministryof Wate.
"MPM" mcans the Recipient's Ministry of Production and Mico
enterprise,created pursuant to the Recipient's Law No. 3351, dated
February 8, 2006."Municipality" means en entity with legal
personality established pursr.lant to theRecipicnt's Larv No. 2028,
dated Octobcr 28, 1999."Operational Manual" means the manual
refened to in Section I.C of Schedule 2to this Agreement."PCU"
means the unit rcfened to in Section I.B.2 of Schcdule 2 to
thisAgreement.
"Prefectura" means the departmcntal representations of the
Recipient's executivebranch, as establishcd in thc Rccipicnt's Law
No. 1654, dated July 28, 1995 andpublishcd in thc Recipient's
Official Gazette on the same date.
16. "Procurcment Guidelines" means the "Cuidelincs: Procurement
under IBRDLoans and IDA Credits" published by the Bank in May 2004
and revised inocrober,2006.
"Procurement PIan" means thc Recipient's procurement plan for
the project,dated November 8,2007 and rcferred to in paragraph l.l6
of thc procurementCuidelines and paragraph I .24 of the Consultant
Guidelines, as the same shall beupdated from time to time in
accodance with the provisions of said paragraphs.
18. "Procurement Supreme Decree" means the Recipient's Supreme
Decree No.29190 (Decreto Supremo N" 29190) of July 11,2007, as
amended and as ineffect on the date of this Acrccment.
1 9 . "Poject Preparation Advancc" means the advance refcned to
in Section 2.07 ofthe General Conditions, granted by the
Association to the Recipient pursuant tothe letter agreement signed
on behalf of the Association on December 20, 2006and on behaff of
the Rccipient on January 22,2007 ."Resettlcment Framework" means
Marco de Reasentamento, datcd October 4,2007, published in the
VMT's wcbpage (http//lago.titikaka.googlcpages.com) onOctober 4.
2007."Statc of thc Llkc Rcport" mcans Reportc del Estado del Lago,
rn annual rcpofpublished by VMT that includcs annual social,
cnvironmental and tourismindicators for the Recipicnt's region of
Lake Titicaca.
20.
2 1 .
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2 l
"Subsidiary Agreement" mcans the agreement rcfened to in Section
I.A.l ofSchedule 2 to this Agreement, pursuant to which the
Rccipient shall make part ofthe procceds of thc Financing available
to FPS."\4VfT" means the Recipient's Vice Ministry of Tourism, a
unit within MpM,crcated pursuant to the Recipient's Law No. 1351.
dared February 8,2006.