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Folder Title: Loan Agreement between Federal Republic of and International Bank for Reconstruction and Development - August 16, 1973

Folder ID: 203551

Project ID: P002021

Dates: 08/16/1973 - 08/16/1973

Fonds: Records of the Africa Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA AFR

Digitized: 2/26/2020

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THE WORLD BANK Washington, D.C.

© International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org CONFOR M ED COPY

LOAN NUMBER 929 UNI DECL ASSIFIED WBG Archives

Loan Agreement

(Third Education Project)

BETWEEN

FEDERAL REPUBLIC OF NIGERIA

AND

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

z

DATED AUGUST 16, 1973

X - CONFORMED COPY

LOAN NUMBER 929 UNI

7

Loan Agreement

(Third Education Project)

BETWEEN

FEDERAL REPUBLIC OF NIGERIA

AND

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

DATED AUGUST 16, 1973

5 4

II Section 1.02. Wherever used in this Agreement, unless the context otherwise ARTICLE requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following The Loan meanings: Section 2.01. The Bank agrees to lend to the Borrower, on the terms and "Benue referred to, an amount in various (a) Plateau" means the Benue-Plateau State of the Borrower; conditions in the Loan Agreement set forth or currencies equivalent to fifty-four million dollars ($54,000,000). "Kano" (b) means the Kano State of the Borrower; Section 2.02. The amount of the Loan may be withdrawn from the Loan "Kwara" I as (c) means the of the Borrower; Account in accordance with the provisions of Schedule to this Agreement, such Schedule shall be amended from time to time, for expenditures made (or, "North-Central" of the reasonable cost of (d) means the North Central State of the Borrower; if the Bank shall so agree, to be made) in respect goods and services required for the Project and to be financed under the Loan Agreement; "North-Eastern" no withdrawal (e) means the North Eastern State of the Borrower; provided, however, that, except as the Bank shall otherwise agree, shall be made on account of expenditures in the territories of any country which "North-Western" or for (f) means the North Western State of the Borrower: is not a member of the Bank (other than Switzerland) goods produced in, or services supplied from, such territories. "University" (g) means the Ahmadu Bello University, a Statutory body otherwise agree, the and services established pursuant to the Ahmadu Bello University Law, dated October 14, 1962 Section 2.03. Except as the Bank shall goods of the Loan shall of the former Northern Nigeria; required for the Project and to be financed out of the proceeds in Section 2.04 be procured pursuant to the provisions set forth or referred to "Project (h) Agreement" means the agreement between the Bank and each of the Project Agreements. State and between the Bank and the University of even date herewith, as the same 1978 or such other may be amended from time to time and such term includes all schedules to the Section 2.04. The Closing Date shall be December 31, Project Agreement; date as shall be agreed between the Borrower and the Bank.

"Project to the Bank a commitment charge (i) Agreements" means all the agreements referred to in paragraph Section 2.05. The Borrower shall pay cent of 1% annum on the principal (h) of this section;, at the rate of three-fourths of one per (3/4 per amount of the Loan not withdrawn from time to time. "Subsidiary (j) Loan Agreement" means the agreement to be entered into at the rate of between the Borrower and each State pursuant to Section 3.0 1(b) of this Agreement Section 2.06. The Borrower shall pay interest amount of as the same may be amended from time to time and such term includes all schedules seven and one-fourth per cent (7-1/4%) per annum on the principal to the Subsidiary Loan Agreement; the Loan withdrawn and outstanding from time to time. "Subsidiary " (k) Loan A greements means all the agreements referred to Section 2.07. Interest and other charges shall be payable semi-annually on in paragraph (j) of this section: and February 15 and August 15 in each year. "Multilateral the Loan in (1) school" means a school which after providing students Section 2.08. The Borrower shall repay the principal of to this with a common base of general studies would afford them opportunity according accordance with the amortization schedule set forth in Schedule 3 to their aptitude, ability and interest for further schooling in district curricula Agreement. streams, such as humanities, science, technical and commercial subjects. 6 7

Section 2.09. If and when the Bank shall from time to time request, the Section 3.02. The Borrower shall continue to maintain in its Ministry of Borrower shall execute and deliver Bonds representing the amount of principal Education the Project Office established pursuant to Section 3.02 of the Loan the Loan as provided in Article VIII of the General Conditions. Agreement dated April 18, 1972 between the Borrower and the Bank with such powers, responsibilities and staff as are set forth in Schedule 4 to this Agreement, for Finance of the and Section 2.10. The Federal Commissioner Borrower shall cause the Project Office to supervise and coordinate: (i) the execution of such other or as he shall appoint in writing are designated as person persons the Project and (ii) the financial control of the Project, and shall provide to such authorized representatives of the for the of Section 8.10 of Borrower purposes Project Office adequate facilities and resources for said purposes. the General Conditions. Section 3.03. To assist the States and the University in the carrying out Section 2.11. The Federal Commissioner for Finance is designated as of the Project and to ensure coordination and uniformity among the States and for of taking any action required or representative of the Borrower the purposes the University to the maximum extent feasible, the Borrower shall cause to be to be taken under the of Section 2.02 of this Agreement permitted provisions employed, upon terms and conditions satisfactory to the Bank: (A) a firm of and Article V of the General Conditions. architectural consultants acceptable to the Bank, to, inter alia: (i) survey, plan and design schools; (ii) prepare an inventory of the plant and equipment of schools, ARTICLE III and (iii) prepare bids and supervise bidding, contract procedures and awards; and (B) educational specialists (provided for under Paragraph 1 of Exhibit B to Schedule Execution of the Project 2 to this Agreement), acceptable to the Bank.

Section 3.01. Without any limitation or restriction upon any of its other (a) Section 3.04. The Borrower shall exercise every right and recourse available obligations under the Loan Agreement, the Borrower shall exercise every right and to it to cause the educational institutions included in the Project to be operated recourse available to it to cause each State and the University to in perform in accordance with appropriate administrative and educational policies and practices accordance with the of the Project Ag to which such State or provisions greement and with due regard to economy, all as required in order to further the educational the University is a all the obligations therein set forth, shall take and cause party objectives of the Borrower, the States and the University. to be taken all action, including the provision of funds, facilities, services and other enable the University to resources, necessary or appropriate to such State and ARTICLE IV perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. Other Covenants

The Borrower shall relend the appropriate of the of (b) portion proceeds Section 4.01. (a) It is the mutual intention of the Borrower and the Bank the Loan or the equivalent thereof to each of the States on the basis of an agreement that no other external debt shall enjoy any priority over the Loan or the Bonds made between the Borrower and each State with terms and conditions satisfactory by way of a lien on governmental assets. to the Bank. (b) To that end the Borrower (i) represents that at the date of this The Borrower shall make available to the University an appropriate (c) A greement no lien exists on any governmental assets as security for any external of the of the Loan or the equivalent thereof under arrangements portion proceeds debt; (ii) undertakes that, except as the Bank shall otherwise agree, if any such satisfactory to the Bank. lien shall be created on any assets of the Borrower or of any agency of the Borrower (including assets of the Central Bank of Nigeria, or of any other institution The Borrower shall exercise its rights under any Subsidiary Loan 4 (d) performing the functions of a central bank for the Borrower) as security for any Agreement and the arrangements referred to in Section 3.01(c) of this Agreement external debt, such lien will ipso ficto equally and ratably secure the payment in such manner as to the interests of the Borrower and the Bank and protect of the principal of, and interest and other charges on, the Loan and the Bonds, to accomplish the of the Loan, and except as the Bank shall otherwise purposes and that in the creation of any such lien express provision will be made to that agree, the Borrower shall not assign, amend, abrogate or waive any such ag reement effect; and (iii) further undertakes that the Borrower will, within the limits of or arrangements or any thereof. provision its constitutional powers, make the foregoing undertaking effective with respect 8 9

to liens on assets of any of the Borrower's political subdivisions or of any agency accomplishment of the purposes of the Loan, the maintenance of the service of any such political subdivisions, and to the extent that the Borrower is unable thereof, the performance by either of them of its obligations under the Loan within the limits of its constitutional powers to make such undertaking effective, Agreement or the performance by each State and the University of their obligations the Borrower will give to the Bank an equivalent lien satisfactory to the Bank. under the Project Agreement to which such State and the University is a party. The Borrower shall promptly inform the Bank of the creation of any such lien. Section 5.03. The Borrower shall afford all reasonable opportunity for accredited representatives of the Bank to visit any of the territories of the (c) The foregoing representation and undertaking shall not apply to: (i) part any lien created on property, at the time of purchase thereof, solely as security Borrower for purposes related to the Loan. for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more ARTICLE VI than one year after its date. Taxes and Restrictions "governmental As used in this Section, the term assets" means assets of the Borrower or of any of its political subdivisions or of any agency of the Borrower Section 6.01. The principal of, and interest and other charges on, the Loan or of any such political subdivision, including the Central Bank of Nigeria or any and the Bonds shall be paid without deduction for, and free from, any taxes institution performing the functions of a central bank for the Borrower. imposed under the laws of the Borrower or laws in effect in its territories; provided, however, that the foregoing shall not apply to taxation of payments under any ARTICLE V Bond to a holder thereof other than the Bank when such Bond is beneficially owned by an individual or corporate resident of the Borrower. Consultation, Information and inspection Section 6.02. The Loan Agreement, the Project Agreements and the Bonds Section 5.01. The Borrower and the Bank shall cooperate fully to assure shall be free from any taxes on or in connection with the execution, issue, delivery that the purposes of the Loan will be accomplished. To that end, the Borrower or registration thereof imposed under the laws of the Borrower or laws in effect and the Bank shall from time to time, at the request of either party: in its territories and the Borrower shall bear the cost of any such taxes, if any, imposed under the laws of the country or countries in whose currency the Loan (a) exchange views through their representatives with regard to the and the Bonds are payable or laws in effect in the territories of such country performance of their respective obligations under the Loan Agreement, the or countries. performance by the University and each State of its obligations under the Project of the of, and interest and other charges Agreement to which the University or such State is a party, and, in respect of Section 6.03. The payment principal the Project, the administration, operations and financial condition of the on, the Loan and the Bonds shall be free from all restrictions, regulations, controls departments or agencies of the Borrower responsible for carrying out or supervision and moratoria of any nature imposed under the laws of the Borrower or laws in effect in its territories. of the Project or any part thereof, and other matters relating to the purposes of the Loan; and ARTICLE VII (b) furnish to the other all such information as it shall reasonably request Remedies of the Bank with regard to the general status of the Loan. On the part of the Borrower, such information shall include information with respect to financial and economic Section 7.01. If any event specified in Section 7.01 of the General Conditions conditions in the territories of the Borrower, including its balance of payments, or in and the external debt of the Borrower, of any of its political subdivisions and Section 7.03 of this Agreement shall occur and shall continue for the period, of any agency of the Borrower or of any such political subdivision. if any, therein set forth, then at any subsequent time during the continuance thereof, the Bank, at its option, may by notice to the Borrower declare the principal Section 5.02. The Borrower and the Bank shall promptly inform each other of the Loan and of all the Bonds then outstanding to be due and payable of any condition which interferes with, or threatens to interfere with, the immediately together with the interest and other charges thereon and upon any 10 11 such declaration such principal, interest and charges shall become due and payable Section 8.02. The following are specified as additional matters, within the immediately, anything to the contrary in the Loan Agreement or in the Bonds meaning of Section 11.02(c) of the General Conditions, to be included in the notwithstanding. opinion or opinions to be furnished to the Bank:

Section 7.02. For the purposes of Section 6.02 of the General Conditions, (a) That each Project Ag,reement to which a State is a party has been the following additional event is specified: duly authorized or ratified by, and executed and delivered on behalf of, the State concerned and constitutes a valid and binding obligation of such State in accordance Any of the States or the University shall have failed to perform any of with its terms. its obligations under the Project Agreement to which it is a party. (b) That the Project Agreement to which the University is a party has Section 7.03. For the purposes of Section 7.01 of the General Conditions, been duly authorized or ratified by, and executed and delivered on behalf of, the the following additional event is specified: University, and constitutes a valid and binding obligation of the University in accordance with its terms. The event specified in Section 7.02 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by (c) That each Subsidiary Loan Agreement to which a State is a party the Bank to the Borrower. has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and the State concerned, respectively, and constitutes a valid ARTICLE VIII and binding obligation of the Borrower and such State in accordance with its terms.

Effective Date; Termination (d) That the arrangements referred to in Section 3.0 1(c) of this Agreement have been duly authorized or ratified by, and executed and delivered oi behalf Section 8.01. The following events are specified as additional conditions to of, the Borrower and the University, respectively, and constitute a valid and binding the effectiveness of the Loan Agreement within the meaning of Section I 1.01(c) obligation of the Borrower and the University in accordance with their terms. of the General Conditions: Section 8.03. The date February 12, 1974 is hereby specified for the purposes (a) The execution and delivery of each Project Agreement on behalf of of Section 11.04 of the General Conditions. the State concerned and the University, as the case may be, have been duly authorized or ratified by all necessary corporate and governmental action. ARTICLE IX

(b) The execution and delivery of each Subsidiary Loan Agreement on Representative of the Borrower; Addresses behalf of the Borrower and the State concerned have been duly authorized or is ratified by all necessary corporate and governmental action. Section 9.01. The Federal Commissioner for Finance of the Borrower designated as representative of the Borrower for the purposes of Section 10.03 (c) The arrangements referred to in Section 3.01(c) of this Agreement of the General Conditions. have been entered into by the Borrower and the University. Section 9.02. The following addresses are specified for the purposes of (d) The firm of consultants referred to in Section 3.03 has been employed Section 10.01 of the General Conditions: by the Borrower. For the Borrower:

(e) Each of the States has employed the Project Manager referred to in The Permanent Secretary Federal Ministry of Finance Section 2.08 of the Project Agreement to which the State concerned is a party.

18 19

PART G Exhibit A to Schedule 2

North-Western State:

The construction and equipping of: Ahmadu Bello University (i) five new multilateral secondary schools and additions to five Approximate Approximate multilateral secondary schools to provide a total of Additional Area of New Approximate Approximate approximately 6,000 student places, as detailed in Paragraphs Code Enrollment Construction Boarding Staff VII(a) of Exhibit A to this Schedule; Number Institution Capacity (sq. ft.) Places Houses

(ii) additions to seven primary teacher colleges to provide a total ABUBS School of Basic 750 15,500 750 30 Studies of approximately 3,600 student places, as detailed in Paragraph VII(b) of Exhibit A to this Schedule; and ABUFE Faculty of Edu- cation 200 5,700 200 20 (iii) addition to one secondary teacher college to provide a total of approximately 300 student places, as detailed in Parag raph VII(c) Approximate Approximate of Exhibit A to this Schedule. Additional Area of New Approximate Approximate Code Name of Institution Enrollment Construction Boarding Staff Number and Location Capacity Places Houses PART H (sq. ft.)

II The provision of technical assistance for the above-mentioned Parts of the Project, as detailed in Exhibit B to this Schedule. Benue-Plateau State

(a) Multilateral Schools The Project is expected to be completed by December 31, 1977. BP1SS Wase, Wase 800 12,500 800 34 BP2SS Akwanga, Akwanga 800 12,500 800 34 BP3SS Udei, Udei 800 12,500 800 34 BP4SS Donga, Donga 800 12,500 800 34 BP5SS Pankshin, Pankshin 800 12,500 800 34 BP6SS Lafia, Lafia 800 12,500 800 34

(b) Primary Teacher Colleges

BP1PTC The Government Teacher's Colleges, Jos 400 7,700 400 27 BP2PTC To be determined 400 7,700 400 27 BP3PTC Government Teacher's College, Keffi 600 850 BP4PTC Gindir, Gindir 600 850 BPSPTC Mkar, Mkar 400 425 BP6PTC Oturkpo 400 550 BP7PTC St. Augustine's, Lafia 600 650 BP8PTC loly Rosary, Adoka 400 425 20 21

III IV

Kano State Kwara State

(a) Multilateral Schools (a) Multilateral Schools KAISS Birnin Kudu, Birnin Kudu 800 6,100 440 10 KW16SS C.M.M.L. Secondary KA 2SS Hadejia, H adejia 800 6,800 440 14 Ayangba 600 1,600 KA3SS Danbatata, 4 Danbatata 800 7,350 500 14 KW17SS Ejema Community Secondary KA4SS Kazaure, Kazaure 800 8,250 500 17 Ofugo 600 1,600 4 KA5SS Dawakin Tofa, Dawakin KW18SS Igbira Anglican, Okene 600 1,600 4 Tofa 800 8,900 KW19SS Egbe 600 18 Girls, Egbe 600 1,550 4 KA6SS Rano, Rano 800 6,850 KW20SS 440 14 St. Kizitos, Isanlu 600 1,600 4 KW21SS Government Secondary, (b) Primary Teacher Colleges Koton-Karfe 600 1,400 4 KAIPTC Mallan, Maduri 600 10,050 600 33 (b) Primary Teacher Colleges KA2PTC Gezawa, Gezawa 600 9,850 600 33 KA3PTC KW1PTC 400 2,350 Sumaila, Sumaila 600 10,050 600 33 , Ilorin 240 8 KW2PTC Women's College, Kabba KA4PTC Tudun Wada, Tudun Wada 600 10,050 600 400 2,100 100 8 33 KW3PTC Our Lady's College, Ayangba IV 400 2,225 100 8 V Kwara State North-Central State (a) Multilateral Schools Multilateral Schools KWISS Borgu Secondary, New NCISS Pambegua, Pambegua 600 9,300 600 Bussa 600 1,600 25 4 NC2SS Ruma, Ruma 600 KW2SS Fatima Community, 9,300 600 25 NC3SS Baure, Baure Ekanmeje 600 9,300 600 25 600 1,450 4 NC4SS Kankara, Kankara KW3SS 600 9,400 600 Government Secondary, NCSSS 27 Anchau, Anchau 600 9,300 600 25 Omu-Aran 600 1,450 4 NC6SS Jibia, Jibia 600 9,400 KW4SS Grammar, Omupo 600 27 600 1,150 4 NC7SS Bernin Gwari, Bernin KWSSS Playfair Memorial, Gwari 600 550 Oro-Agor 600 2 1,600 4 NC8SS Fadan Kaje, Fadan Kaje 600 KW6SS Batonu Baptist, Okuta 600 1,600 4 550 2 NC9SS Makarfi, Makarfi 600 550 KW7SS St. Anthony's Secondary 2 Ilorin NC1OSS Sardauna Memorial College, 600 1,300 4 Kaduna 600 KW8SS Ilorin Grammar, 550 Ilorin 600 1,300 4 NC1ISS Musawa, Musawa KW9SS 600 550 2 Government Secondary, NC Malete I2SS Balewa Memorial College, 2 600 1,450 4 Samaru Zonkwa 600 KW1OSS Anglican College of 550 2 NC13SS Commercial College, Commerce, Offa 600 1,450 4 KWI ISS Lafiagi Secondary, Zaria 600 NC14SS 550 2 Lafiagi 600 Daura, Daura 600 1,600 4 550 2 KW12SS Pategi Secondary, VI Pategi 600 1,600 4 KW13SS St. Charles, Ankpa 600 1,600 4 North-Eastern State KW14SS Ogugu Community Secondary, (a) Multilateral Schools Ogugu 600 1,600 4 KW15SS Bassange Anglican Secondary NElSS Damaturu, Damaturu 800 12,400 800 33 Gboloko 600 1,600 NE2SS 4 Toro, Toro 800 12,400 800 33 22 23

(b) Primary Teacher Colleges Exhibit B to Schedule 2 NE1PTC Ningi, Ningi 400 7,700 400 27 NE2PTC Little Gombi, Little 1. UniverSily Gombi 400 7,700 400 27

VII Expert services for a total of 8 man-years for the planning and operation of an education research and experimentation program included in Part A(iii) of North- Western State the Project, and evaluation of such research; such experts may include specialists in educational planning and rural and adult education. (a) Multilateral Schools

NWlSS Tangaza, Tangaza 600 9,400 600 26 2. States NW2SS Illela, Illela 600 9,400 600 26 NW3SS Kutigi, Kutigi 600 9,300 600 26 Services of six experts for three NW4SS Kuta, Kuta 600 9,400 600 26 years each to assist in the Project NW5SS Kaoje, Kaoje 600 9,400 600 26 implementation at the State level and to train architectural staff, clerks of works NW6SS Kontagora, Kontagora 600 550 26 and Nigerian personnel in Project management. An expert will be attached to the NW7SS Shinkafi, Shinkafi 600 550 2 Project Unit of each State. NW8SS Gumi, Gumi 600 550 2 NW9SS' Gwadabawa, Gwadabawa 600 550 2 NW1OSS Gusau, Gusau 600 550 2 3. Cost of Services

(b) Primary Teacher Colleges Cost of architectural services for further development of educational facilities NW1PTC Government T.C., in the Borrower's territories. Sokoto 800 1,050 2 NW2PTC College of Arts & Arabic Studies, Sokoto 600 700 2 NW3PTC , Bida 400 700 2 NW4PTC Maru, Maru 400 700 2 NW5PTC Gusau, Gusau 600 700 2 NW6PTC Nasarawa, Kainji 400 700 2 NW7PTC Kaura Namoda, Kaura Namoda 400 700 2

(c) Secondary Teacher College

NW1ATC Sokoto, Advanced T.C., Sokoto 300 550 2