D MINIAT,M"

A.J.D. Project Number 650-0043

PROJECT

GRANT AGREEMENT

BETW .a

'HE DEMOCRATIC REPUBLIC OF SUDAN

AND

THE UNITED STATES OF AMERICA

FOR

SOUTHERN ROAD MAINTENANCE AND REHABILITATION

Appropriatioflon: 72 -1131021..3

BPC: GDAA-83-21650-AG13

Allottment: 343-50-650-00-69-31

Amount: $18,237,000 A.I.D. Project Number 650-0043

Project Grant Agreement

Date: August 27, 1983

Between

The Democratic Republic of Sudan ("Grantee") and

The United States of America, acting through the Agency for International Development ("A.I.D.")

Article 1: The Agreement The purpose of this Agreement is to set out, in the context of the Economic, Technical and Related Assistance Agreement (Bilateral Agreement) between the parties named above ("Parties"), dated March 31, 1958, and reaffirmed by exchange of notes June 16, 1973, the understandings of the Parties with respect to the undertaking by the Grantee of the Project described below, and with respect to the financing of the Project by the Partiest

Article 2: The Project SECTION 2.1 Definition of Project. Th. Project, which is further described in Annex 1, will consist of road rehabilitation and maintenance a.'tivities in the Equatoria and Bahr El Ghazal Regions. Under the road rehabilitation component, the project will rehabilitate certain sections of the Juba-Torit-Kapoeta and Mundri­ Rumbek-Tonj-Wau road links. Maintenance activities will include the roads rehabilita­ ted under the project plus roads already constructed/rehabilitated in the two Regions. To support road rehabilitation and maintenance efforts, the Juba workshop will be upgraded to serve as a Erl-reg[onlal equipmeot repair anId mainltenance center. Annex 1, attached, amplifies the above definition of the Project. Within the limits of the above definition of the Project, elements of the amplified description stated in Annex I may be changed by written ,igreenknt of the authorized representatives of the Parties named in Section 8.2, without formal amendment of this Agreement.

SECTION 2.2 Incremental Nature of Project (a) A.I.D.'s contribution to the Project will be provided in increments,, the initial one being made avxailable in accordance with Section 3.1 of this Agreement. Suhsequent incremetL.s will be subject to availability of funds to AI.D. for this purpose, and to the mItual agreement of the Parties, at the time of a subsequent increment, to proceed. (b) Within the overall Project Assistance Completion Date stated in this Agreement, A.I.D., based upon consultation with the Grantee, may specify in Project Implementation Letters appropriate time periods for the utilization of funds granted by A.I.D. under,,an individaul increment of assistance. 0 2-

Article 3: Financing SECTION 3.1 The Grant. To assist the Grantee to meet the costs of carrying out the Project, A.I.D., pursuant to the Foreign Assistance Act of 1961, as amended, and the Bilateral. Agreement agrees to grant the Grantee under the terms of this Agreement not to exceed Eighteen Mil1 lion Two Hundred Thirty- Seven Thousand United States ("U.S.") Dollars ($18,237,000) ("Grant"). The Grant may be used to finance for'eign exchange co!s, as defined in Section 6.1, and local cu rency costs, as defined in Section 6.2, of oods and services required for the Project. It is anticipated that, subject to the conditions contained in Section 2.2, A.I.D. will make available an additional $ 1,463,000 to the Project.

SECTION 3.2 Grantee Resources for the Project (a) The Grantee agrees to provide or cause to be provided for the Project all funds, in addition to the Grant, and all other resources required to carry out the Project effectively and in a timely manner. (b) The resources provided by Grantee for the Project will be not less than the equivalent of U.S.$ 9,400,000, including costs borne on an "in-kind" basis.

SECTION 3.3 Project Assistance Completion Date (a) The "Project Assistance Completion Date" (PACD), which is September 30, 1989, or /su 'h other date as the Parties may agree to in writing, is the date by which the X!arties estimate that all services financed under the Grant will have been performed and all goods financed under the Grant will have been furnished for the Project as coiltempl a ted in th:; Agreement. (b) Except as A.I.D. may otherwise agree in writing, A.I.D. will not issue or approve documentation which would authorize disbursement of the Grant for services performed qubsequent co the PACD or for goods furnished for the project, as contemplated in this Agreement, subsequent to the PACD. (c) Requests for disbursement, accompanied by necessary supporting documentation prescribed in Project Implementation Letters, are to be received by A.I.D. or any bank described in Section / .1 no later than nine (9) months following the PACD, or such other period as A.I.1). agrees to in writing. After such period, A.I.D., giving notice in writing to the Grantee, may at any time or times reduce the amount of the Grant by all or any part thereof for which requests for disbursement, accompanied by necessary supporting documentation prescribed in Project Implementation Letters, were not received before the expiration of said period.

Article A: Conditions Precedent to Disbursement SECTION 4.1 ,'irst Disbursement. Prior to the first disbursement under the Grant, or to the issuance by A.I.D. of documentation pursuant to which disbursement will be made, the Grantee will, except as the Parties may otherwise agree in writing, furnish to A.I.D. in form and substance satisfactory to A.I.D.:

- A statement of the name of the person holding or acting in the office of the Grantee specified in Section 8.2, and of any additional representatives, together with a specimen signature of each person spec:ified in such statement. 3

SECTION 4.2 Add.itional. Disbiirseient. Prior to dlis lirsement under the Grant, or to issuavce by A.T.D. docltmentati.on pursuant to which disbursement will be made, for the long-te:rm construcLion ,;upervLsion technical assistance contract, the Grii.tee will , except as the Pnrt:.es may otherwise agree in writing, provide:

(a) Evidence that the Equator La and Bahr E.) Cluzz 1 Regional Ministries of Works and Communicat ions have allocated thl: land !C,-essa:jry for shops, housing and other required buildings and storage space for the Project; (b) Tho roid workshop and offfice compound fic iity in Juba (formerly known as the CIDA workshop and office) for the sole use of Project personnel.

SECTION 4.3 Notification. When A.I.D. has determined that the conditions precedent specified in Section 4.1 and 4.2 have been met, it will promptly notify the Grantee.

SECTION 4.4 Terminal Dates 'for Conditions Precedent.

(a) If all. of the conditions spec.ified in Section 4.1 have not been met within 60 days from the date of this Agreement, or such later date as A.I.D. may agree to in wri.ting, A.I.D., at its option, may terminate ri;is Agreement by written notice to Grantee. (b) If all of the conditions speci.fied in Section 4.2 have not been met within 120 days from the date of this Agreement, or such later date as A.I.D. may agree to in writing, A.I.I)., at its option, may cancel the then undisbursed balance of the Grant, to the extent not irrevocably committed to third parties, and may terminate this Agreement by written notice to the Grantee.

Article 5: Special Covenants SECTION 5.1 Project Evaluation. The Parties agree to establish an evnluation program as part of the Project. E>:cept as the Parties otherwise agree in writing, the program will include, during the implementation of the Project and at one or more points thereafter: (a) evaluation of progress toward attainment of the objectives of the Project;

(b) identification and evaluation of problem areas or constraints which may inhibit such attainment;

(c) assessment of how such information may be used to help overcome such problems; and

(d) evaluation, to the degree feasible, of the overall development impact of the Project.

SECTION 5.2 Counterprs. The Grantee shall provide the required counterparts for the PID-funded technical assistance team plus additional personnel (equipment operators, rrechanfcs, drivers, laborers, etc.) to achieve the project objectives. The required Grantee per.;onnel are listed by job category, number of staff, and time schedule in Annex 1, Amplified Project Descript ion, of thiis Agreement.

SECTION 5.3 Petroleum, Oil and Lubricants (POL). The Grantee shall provide, or cause to be provided, an adequate supply of POL for the operation of AID-funded new and rehabilitated eniipment as detailed in Annex 1, Amplified Project L-scriptlon, of rti . Agreement :,nd Afnnexes F, C and V of the Projec't Paper. - 4 -

SECTION 5.4 Budget Resources. The Grantee shall provide adequate financial resources from the Government of Sudan (GOS) FY 88/89 budget, and there­ after, to cover the annual incrementl fueI. costs reqiired to ope ra.l:e AID-funded equipment at efficient and effective levels after the life of project.

SECTION 5.5 Compensation Plan. In recognition of tle importance of compensation levels sufficient to a t.tract and kee) qualified and productive personnel, the Grantee shall work witLh the ALD-funded l:'clinica.l ass istance contractor in developing and installing a system of comnensation, benefits and discipline that will accomplish thi.; objective.

SECTION 5.6 Expenditure Estimates. The Grantee shall prepare annual estimates of expenditures utilizing a format which clearly distinguishes road maintenance expenditures from other road program expendi tire.; in the Bahr El Ghazal and Equatoria Regions and shall organize and conduct a joint annual road program budget review with USA]D.

SECTION 5.7 Radio FrUquencies. Sufficient radio communications frequeticies will be provided for the sole us of the AID-ftnded technical assistance contractor and this project. The frequencies shall be assigned prior to the mobilization of the technical assistance team.

SECTION 5.8 Participant Training. The Grantee shall select qualified candidates for AID-f ilanccd training programs in a I iimely manner.

SECTION 5.9 Use of Pro-Ject Equipment. AIl equipment, commodities, supplies, POL and other imterials finaicd tinder the project ,;hall be used solely for project purposes and object [ves as described in Anne:.: I , Amplified Project Description, of this Agreement. A'.ditional.y, all vehicles and field support equipment procured under this projocts- :;hall be re:irved e ithr for: (1) follow-on road project activities to be financed by All), if appropriate, (2) other road rehabilitation -admaintenance a.tiviiies in furtherace 0l the objectives of this project; or (3) disposed of with full consulttrion with AID.

SECTION 5.10 Project Coordin°,-ing Commlttte. The Grantee shall establish a project coordinating committc-e which will] SIICh1-edo e meetings as necessary to ensure effectlve coordinatlon of proeJCt act ivties in Equatoria a~nd Bahr El Ghazal Region.;.

SECTION 5.11 Donor Const~ltation. The Grantee shall conduct periodic consultation meeting with all donors in the southiern regions engaged in road improvement works, to discuss collectively matters of mutual interest.

SECTION 5.12 Load Limitations. The Grantee shall legaLLy enforce load limitations on project roads and, in addition, establish a procedure for limiting the movement of traffic while the roads are wet. The load limitations wil be as follows:

(a) Maximum Gross Vehicle Weight

1. 2 or 3 axles -- 22,500 kg. 2. 4 or 5 axles -- 38,000 kg. 3. 6 or more axles -- 43,000 kg. (b) K" .imumAxle Loads

1. Front Steering Axles -- 6,400 kg. 2. Single Rear Axle -- 8,000 kg. 3. Tandem Axles -- 14,500 kg. Total 4. Triple Axles -- 21,000 kg. Total SECTION 5.13 AID Review. The Grantee shall permit AID the right to review and approve in advance all plans, specifications, bid documents, contracts and subcontracts, as well as prequalification of contractors of local construction and labor contracts.

SECTION 5.14 The Parties agree to undertake an Enviromental Review of the Project for copletion by no later Lan December 31, 1983. Based ou the findingz of the review, the Grantee and AID will decide jointly on the need for and the extent of long-term monitoring of the effect of project activities on the physical. environ­ ment. If deemed necessary and as may be agreed upon between the parties, the monitoring activity will be incorporatCd into the implementat ion of the Project, tii zing fi:[anc lal resources made available by amid to the extent of availabilit under the Project.

Article 6: Procurement Source

SECTION 6.1 Foreign Exchange Costs. Wll sburseiments pursuant to Section 7.1 will be used exclusively to finance the cc..-s of goods and services required for the Project having their source and crigin in countries Lncluded in Code 941 of the A...D. Geographic Code Pook (as in cffect at tLhe time orders are placed or contracts untenred into for such ,uMods or ,orvices) ("Forei.gn Fxchange Costs"), except as A.].1). niiy otherwi.,;e agree in writ in, and ,!xcept: as provided in the Project Grant Standard Provi. ions AnineX, Sect1on C. (b) w ith CSeCCLt to marine insurance. Ocean trinszportat .onl costs will be financed under the grant only on vessels under flag registry of the Uiin ted States, Sudn or count ries iIcludud ki A.I.D. Geographic Code 941, except ati A.I.D. may otherwise ag:ree in wriLiag.

SECTION 6 .2 Local Currency Costs . Dj!h-:bursernn ts pursuant to Section 7.2 will be used exclusively to finance the costs of goods and services required for the Project having their source and, ex)cept as A.I.D. may otherwise agree in writing, their origin in Sudan ("Local. Currency Costs"). To the extent provided for under this Agreement, "Local Currency Costs" may also include the provision of ioca. currency re.ourcus requ ired f'on'the Project.

Article 7: Disbursement SECTION 7.1 Disbursement for Foreign E,(change Costs (a) After satisfacton of conditions precedent, the Grantee may obtain disbursements of funds under the Grant- for the Foreign Exchatlge Costs of goods or services required for the Project in accor(lance with th terms of this Agreement, by such of the roLlowing methods as may be mttua 1 1 v al reed upon : -"(1) by t7.'bmittii g to A.I.D., witih ne(esar, suppo)'rting documentation as prescrihbul ' Project iInplemenltation LU. t , 6e.(A) reque ,ts r reimbursement for such goods o.- s;rvi,:cs, or, (L) requsL,- for AcI,. c, procure copnrodities or services i.n Grl.mntee's be1-iaf fir the Projicct ; OU,

- (2) iy r o:'ue.iry, A.I.D. 4o issue Letters of CornritiLment for specfled amounts (A) to onta or u1orC' 1. S. ballks, sat I;facslory I, A.].1)., committing A.I.D. to reimburse such banrl or bank, for paymeits made by them to contrac tors or suppliers, under Letter of Cred:.. or otherwise, for sucti goods .r services, or (B) directly to one or more contractors or suppliers, co..mttisg A.J.D. to pay such contractors or suipliers for stw1h goods or services. (b) Banking charges incui rred by Orantee in connection with LetLurs of Comnmltment and .,t ttr,,; of Credt i ww,,] I,i:1nced lilidc t01i Cr ini unless Grantee instructs A.L.D. I:o the contrary. Such other charges as the Parties may agree to may also be financed under the Grant.

SECTION 7.2 Disbursement for Local Currency Costs (a) After sat-" tion of c.onditions precedent, the Grantee -6­ may obtain'disbursemeni:s of funds under th Grant [or Local Currency Costs required for the Project in accor'dancc with the terms of this Agreement, by submitting to A.I.D., with necessary supporting documentation as prescribed in Project Implementation Letters, reqt'ests to f Inance such co.ts. (b) The local currency needed I) such disbursements Pay be obtained:

- (1) by acquisition by A.I.1). with U.S. Dollars by purchase (or from local currency already owned by the U.S. Government); or

- (2) by A.I.D. (A) r'equesLiu, the Granteu to maklc available the local currency for such costs, and (b) t.hereafter making available to the Grantee, through the opening or amendment bIy A.T.D. of Special Letters of Credit in favor of the Grant ue or its designee' ;an,mount of U.S. D)ollars equivalent to the amount of local currency made ava ilatde by the Grantee, which dollars will be utilized for procurement from the United States under appropriate procedures described in P'rojec: lmplXmUtatlon Lrtt: r.

The U.S. dollar equivalent of the local currency made avail-­ able hereunder will be, in the case of subsection (b)(1) above, the amount of U.S. dollars required by A.[.D. to obtain tile local currency, and in the case of subsection (b)(2) ibove, an amount calculatedi at the rate of th,:chai e spec ifled in the appLicable Special Letter of Credit. Implementation Memorandum hereunder as of the date of the opening or amendment of the appl icable Special Leltter of Credit.

SECTION 7.3 Oth.r Forms of Di.bt rsenen, . Disburser..:ents of the Grant may also be made through such other means as the Parties may agree to in writing.

SECTION 7.4 Pate of Exchange.. Except as may be more specifically provided under Section 7.2, if funds provided inder the Grant are introduced into Sudan by A.I.D. or niy., public or private ai),ency for purpo:-,cs o1 carrying out obligations of A.I.D. ie:reunder, the Grantee will. make such arrangements as may be necessary so that such1 funds may be converted into ci, eCy of Sudan at the highest rate oi e-chang. which, at the t:ime t he converskian is made, is not unlawful in Sudan.

Article 8: Miscellaneous SECTION 8.1 Communications. Any notice, request, document, or other communication submtted by either Party to the other under this Agreement will be in writing or by telegram or cable, and will be deemed duly given or sent when delivered to such party at the following addresses:

To the Grantee: Under-Secretary for Planning Mail Address: Ministiy of Finance and Economic Planning Khar touti

To A.I.D.: U.S. Agency for International Development Mail Address: c/o American Embassy P.O. Box 699 Kharto,,m/Sudan

All such communications will be in English, unless the Parties )therwise agree in writing. Other addresses may be substituted for the above ipon the giving of notice. The Grantee, in dditton, will provide the USAID lission with a copy of each communication sent to A.I.D./Washington. -7-

SECTION 8.2 Representatives. For all purposes relevant to this Agreement, the Grantee will be representeCd by tho individuial holding or acting in the office of the Under-Scretary fo. Planning, Ministry of Finance and EconomiLc P1 annirig and A. I .. wil t h repres'- e.- by tlio 5ndivi.dual holding or acting in the ol ice,. 1..:m ion I)JI rt'eor , USAI1)/Stidan , "Wcl (. whol, by written notice, may designi , additional rer, ietatives 1or al! po.rposs other than exercising rhe power lunder Section 2 .1 to r':,,i ;o cul,:tits of the amplified descrIption in Atinex I. The naIe s of the reLr'Csent a L ixes of the Grantee, with speciinen si-,natul os , ,i.l be provided Lk, A.%I .I.)., clch may accept as duly authori.zed any instrome:nt s i.;ned by sti h rcpren,,itati vu in implementation of this Agreemen:, ,mtil r::(c iipt of wriLten nt i of revocVit io oof tIeir authority.

SECTION 8.3 Standard Provisioin Anncx. A "Project Grant Standard Provisions Annex" (Annex 2) is attached Lo and forms part of this Agreement.

IN WITNESS WHEREOF, the Grantee and the United States of America, each act­ ing through its duly authorized representative, have caused this Agreement to be signed I.n their names and delivered as of the day and year first above written.

THE DEMOCRATIC REPUBLIC OF THE SUDAN THE UNITED STATES OF AMERICA

BY: BY BY:______Ilume Ale.,ander Horan

TITLE: Minister of Finance and TITLE: Ambassador Extraordinary Economic Planning and Plenijpotentiary

DATE: P-AAW&' DATE: August 27, 193_

BY: Sur-W. Mudge

TITLE: Director, USAT I/udan

DATE: August 27, 1983 Annex I - Amplified Project Description

I. Project Description

A. Overview

The Southern Road Maintenance and Rehabilitation I Project (SORMAR I) is the first phase in a Long-term effort by the Gc.vernment of Sudan (GOS) and AID to improve and preserve the primary road network in southern Sudan. In addition to actual road maintenance and rehabilitation activities, the project will begin the process of improving institutional capacities to implement future maintenance and rehabilitation programs. [his first phase effort will be implettientled over a six year period and will include the following major components.

1. Road Rehabilitatior,

Approximately 290 kris of roads will be rehabil. itated to minimum commercial access standardr during the life of project. This component of the project wilt be imiipilemented by the AID-technical assistance team and GOS staff with equirpnent,. fuel and cormmriodities funded by AID. Based on economic rates of return, currenL rcad cor.ditions and other conterns, sections of the fMfndri-Wiu (south-north) road and the Juba-Torit (west­ east) road hpve bten selt-ct, d by th GOS adrid A'1) for priori ty attention during the first phase of the projcc . In total. 1W ns w-iLI h, !ehabi ­ litated or 'he Muridri-Wu rc.-ad. This act ivity will involve I iqht rehabi­ litation of the southern port ion of the road, particuLarly' to iriiprove -it enough to serve as; a supply link to tlhe northern portion betWeen Pumbek and Tonj here major rehabilitation effort. will uje concentrated. On the west-east link, 60 kms will be rehabilitated between Juba and Torit. During the major, mid-t.'rm evaluation, the desi rability of expanding the rehabilitation program from Torit to Kapoeta wit ( be examined. It is currently estimated that 80 kms of this 140 iXm road Link will require major rehabilitation.

After the rehabilitation program is conoletd, shops estabLished at Torit and Rumbek will serve as area equipment maintenance shops for both roads and will cover other road sections in addition to those rehabi­ litated during the project (e.g. the Torit shop will maintain the road eastward toward Boya Hills).

2. Road Maintenance

The road maintenance component of the project will concentrate on roads already constructed, primarily by other donor:, as well as those to be rehabilitated undei the project. Routine mainterince- will be conducted through existing labor maintenance camps which will be provided with hand­ tools and limited technical a.sistance under the project. Heavi.er maintenance activities will be covered by AID-provided equipment, technical assistance and -2­

operating cost support in conjunction with regional roads department staff. AID-funded technical assistance wilt focus on the development of a mainte­ nance program for the Juba-Yambio road. This road, constructed with id from the Federal Republic of Germany, passes through a product ire agriculturaL area, incLuding the AID-funded Southern Agricu lure ,evelopmicnt Project area which concentrates on increasingq ujgricultu ral production around Y.)mbio. An equipment maintenance shop at Mundri will .,rv, .. the cem(,or :or this activity which will maintain approximate,ty 4.9 ks of rr_,dd drinn the life of project. A second part of the maintencc cow:tmonart o he prin: w;ill. rchabititate existi g GOS road equipment furuse An roinlainin:ig -uch roads as Juba-ei and Juba-Nimute, both important cormm;ercial Iiks crnnec ius ,r ke :enters and passing through rich agrio;uLturaL arcas. The equipmunt will. : under the control of the GOS roads department with the AID-fu ,ndedt-hnbicaL, a.5;siCrtance team available to advise. on s,.ciaL CirohL emns. 1he,, two rnrdn. reprE ,qit some 406 kms of the totat I ni tzn:. prrogram. Finally, th& roid sections to be rehabilitated under the p roje't, Jui a-Tuorit -nd u,.oak-onj IL receive periodic " maintenance. Eonuinpmoei r:- ]intet arlce shopi Itlied at Torit and Rumbek during the rehab i li tal ien program' wiLt cnt inue to ,nerve. as centers for maintaining 63/, kNs atong the Juba-V.a roeta and Mindri-Tanj ruads (290 kms of which will be rma.i Ii ated durin the project).

3. Juba iorkshop

The capacity of the workshop at Juba to provide major repair and maintenance services will be improved. Tools, equipment and spare parts will be funded by AID in addition to technical assistance. Equipment that cannot be repaired ac one c,f the sub-regionaL faci, ittis (e.g. major over­ haul) wiLt be brought tio the Juba facitit>y which will service road equipment from the three southern regiuns. Equipment or,'vided and/or rehabilitated by AID for this project wiitl, ol coarse, recei-,e priority attention. The shop will be available to service read equipment from all three Ministries of Works and Communications in the Equatoria, Bahr EL Ghazal and Upper Nile Regions.

In addition to Ohe central workshop operations, a major service contract may be signed with the Sudan Tractor Co. (Caterpillar dealer) in Khartoum. The contract will include the establishment of a service center for minor repairs in Jubc; an enjine, t ranmission c:onmponent rep/acement service; dozer track rebuild service; and engine reptacement for non-Caterpillar equipment. Major equipment repairs will be conducted at the Caterpillar shop in Wad Medani,. with the level of component exchange parts and spare parts to be determined during the early phases of the project by the tec1nical assis­ tance team. Finally, Caterpillar will conduct on-the-job training at the Wad Medani center and Juba shop.

4. Private Sector Involvement

The substantial amount of construction required in connection with the various project activities provides an opportunity to involve private sector construction contractors. The activities will include sub-regional workshop and residence development, local, transportation, installation of simple drainage structures, and labor for road maintenance (e.g. road

ID) shaping, grass cutting, embankment construction). A few local contractors are already working in the south, mainly around the Juba and Torit areas. For the most part, these contractors are working und-r expatriate supervi­ sion constructing such sLructures as residential housing. local contractor capability is Limited duO to. a lack of adequ.ile capital, Criuipment and mana­ gement skilLs. However, it has been deterrined that ..,ith assistance in the form of equipment, construction inaterials and thchnical supervision, contract labor groups could undert.-ke selecl:ed construction jo:bs.

It is planned in the early stages o" project: implementaion that Local labor contracts, funded %ith loc.[ curr,.ncy, will be lei: for the con­ struction of project housing, conpound (encing, sir, t warehou;es andi rrip l e equipment maintenance facil t es. The,;e contrauts would be under project technical supervision and administration. The technical assistance team, in conjunction with the appropril.le G')S Ministries, will develop 'isimplified Labor contract package. Simple equipment needs, such as small concreLe mixers and handtooLs, wit. l:,e provided by the project along ith -onstruction materials. Logistical support witL! be p'rovided tihrough the project; labor management and supervision wilL be the responsibility of the labor contractor. If the prograr, proves satisfactory, it will be expanded to include the installation of sirrrle drainage structures as part of the road rehabili­ tation and maintenance activities. The private contractor development acti­ vities anticipated during the Phase I Project are modest, but will be expanded during the Phase II Project, if feasible. A total of $2.3 M (foreign exchange and local currency) is provided for this development activity which will include the execution :-f a ?ut25 private contracts.

5. Project Support arid Administration

To direct and support. the above activities, a project headquarters will be established in Juba at a facility to be provided by the Regional Ministry of Works and Communications and will include office space, parts, storage, fuel storage arid other project support facilities.

From the project headquarters, the techical assistance team leader and GOS counterparts will provide field level project direction and management, incLuding the development cf working relationships with the Regional Ministries of Works and Communicatiorns. Pr'oject accounts and rccord, will be kept at headquarters, including financial analyses related to cash-flow requirements, the Trust Fund Account and tocat current Project Acco'unt. Spare parts will be ordered, stored, distributed and controlled from project headquarters as will fuel, handtools aod other project-financed commodities.

'I _4 -

B. Logical Framework Narrative

.1. Goal

The goal of the project is to increase agricultural production and incomes in the southern Sudan. Goal achievement will be indicated by: (1) an increase in totaL agricultural production in the project area; (2) increased productivity per land area; and (3) increased per capita farm income.

2. Purpose

The purpose of the project is to improve and preserve critical access on primy roads within southern Sudan. Achievement of the Pro­ ject's purpose will be measured by the folLowing End of Projec'. Status (EOPS) conditions: (M) the GOS will be capable of implementing road rehabilitation programs; (2) the GOS will be capable of maintaining approx­ imately 1500 kilometei-s of road; (3) an increase in the total volume of agricultural products ard agricultural inputs marketed in the project's sphere of influence; anc (4) an increase in Lhe total volume of traffic on rehabilitated roads.

3. Project Components

For the sake of pi ssentation, the projects outputs are broken down among four major categories of activity: (1) road rehabilitation; (2) road maintenance; (3) Juba equipment workshop operations; and (4) project head­ quarters and administrative devc-lopment.

A. Road Rehabilitation

This cumponent of the project will rehabilitate key sections of the primary read nuiwork in the south. In accordance with priorities set L/ the Equatoria and Bahr il Ghazal Regional Governments as corroborated by two AID-funded transport studies, two road links have been identified for rel-' ilitation: (1) Juba-T-ri t-Kap:oeta and (2) Wati-Rumbek-Munuri. Economic analyses have defined those segments of these primary roads that will yieLd the highest economic rates of return after" being rehabilitated. The level of effort on e(ch :;eqmunt will, of course, depend on current road conditions. While some sections wilL require an intensive effort, others inay require only minor work to bring tne road up to 75 percent access standards.

In total, 290 kilometers along the above road links will be rehabilitated to Sudan'. modified minimum commercial access standard during the life of project. The rehabilitation effort will be supervised by a technical assistance team provided by a U.S. construction supervision firm in conjunction with GOS personnel. Sudanese staff ill be trained to the B.S. level in engineering and construction foremen will receive short-term training -ina third country. Additionally, the technical assistance tearm will provide on-the-job training to construction foremen, equipment opera­ tors, mechanics and other skilled workers. Inputs to support the road rehabilitation component are:

(1) Technical Assistance Person Month I - Road Construction Foreman/ Equipment Operator 51

1 - Master Mechanic/Field Operations 48

1 - Construction Supervisor 55 Third Country National (TCN)

1 - Equipment Mechanic/Trainer (TCN) 51

Total 205

(2) Equipment, Commodities, Fuel and SuppLies

(See the Project Paper TechnicilL Analysis, Section IV.A., for a description of a typical heavy equipment spread and Annex F for a detaiLed equipment List and itemized costs).

(3) Trainin

Degree, third-country and on-the-job training for GOS staff. (See Annex H of the Project Paper for details).

(4) Construction

To support road rehabilitation/maintenance efforts, area equipment maintenance shops wilL be constructed during late 1984/earLy 1985 in Torit and Rumbek. At both sites, resident housing will be buiLt with project funds.

B. Road Maintenance

Road maintenance activities wilL concenrate on previously constructed sections of the region's primary road network. Priority road links identified for the maintenance component are as follows:

1. Juba-Mundri-Maridi-Yambio 429 kms.

2. Juba-Kapoeta 275 kms.

3. Mundri-Rumbek 235 kms. (Limited "spot" maintenance to open a supply Line for the Rumbek-Tonj major rehabilitation effort)

4. Rumbek-Tonj 124 kms. 5. Juba-Nimule 187 kms.

6. Juba-Yei 219 kmns.

Total 1469 kms.

The program will allow for both road maintenance and regravell­ ing operations to be conducted concurrently over a continuous road section. Equipment and maintenance crews wit L work out of fJuur m-inti n,:nce 'abor camps to be established at Mndri, Maridi, Yambio and Juibh, (in additior 4t. those in Torit and Kapoeta for road reh.biLitation m.intenrnc,).

- Inputs required to implement road maintenance component are:

(1) Technical Assistance Person Months I - Road Construction Foreman/ Equipment Operat6*r 55

1 - Equipment Mechanic/Trainer (TCN) 55

1 - Construction Supervisor (TCN) 60

Total. 170

(2) Equipment ,-r :r.;,d ities, Fuel and Supplies

(See the Project Paper Technical Analysis, Section IV.A., for a descrIption of a typical heavy equipment spread and Annex F for a detailed equipment list and itemized costs). (3) Trairi

Degree, third-country and on-the-job training will be provided for GOS staff. (See Annex H of the Project Paper for details).

(4) Construction

The c,)n ,:ru,:t ion of one uquipment maintenance shop and resident ,ousinq at Mundri.

C. Juba Equipmint Workshop)

This component of the project wil' upgrade the Juba workshop operations in the areas of e,,uiprnent rehabilitation; e(qipmert n:ainLenance; and identification, procurement, inventorying and storage of spa,'e p:trt";. The workshop will t)rov;de major equipnent rep.7iir s:rvi :es that canrt he p: r formed at the sub-'-c-I !I~.caI'ips at Torit, i'lundr i, and ;'urnbei Cw .h Ihe exception of the Caterpillar service proqram describd b 1.ov). Wcrksh1)or construction was begun under' t;,.- IBRD Second Highw:iy -,rojeci. which is also providing technical assistance and some worlkshop toiLs and eluiF;riont. 7I•

- AID funded inputs required to upgrade the operations of the Juba workshop are:

ell Technical Assistance Person Months 1 - Shop Foreman/Master Mechanic 58

1 - Spare Parts/Warehouseman (TCN) 31

1 - Office Administration/Accountant 6 (TCN)

Total 95

(2) Shop Equipment, Tools,, C ommod ities p Fuel and Supplies

(See Annex F of thd Project Paper for details).

(3) Training

On-the-job training will be provided for mechanical engineering, shop/stores section, accounting section staff (see Annex H of the Project Paper for details).

(4) Caterpillar Component Exchajnge and Rebuild Program

In order to make maximum use of the private sector for equipment service and maintenance, the project will provide funds to establish an equipment component ex­ change program. The program ri'y be estabLished with the Sudan Tractor Company/Kh;'.rtourr (Caterpillar Agent in Sudan). This arrangement is based on the assumption that a proprietary procurement waiver will be granted to standardize on certain Lines of Caterpillar equipment for the GOS. The prograrn will include engine, trans­ mission, dozer track rebuild service, including engine replacement for non-Caterpillar equipment. Additionally the program will call for a shelf inventory to be specified by project technicians. As part rcf this component of the project, Caterpillar/Sudan will open a small shop facility in Juba for minor repairs; major repair work will be done at the main shop in Wad Medani. Caterpillar will also provide training for GOS equip­ ment operators and mchanics.

D. Project Headquarters and Administration

This component of the project wi~l focus on headquarters support in Juba for the implementation of project. activities. The Ministry of Works and Communications will provide a compound for office space, warehousing, spare parts storage and fuel storage for the project.

9 -8-

The project headquarters will be established by the technical assistance team Leader, and his counterpart from the GOS (senior engineer) during the initial stages of project implementation. The team leader will aLso continue the procurement process (begun during project mobilization) for equipment, spare parts, fuel and other commodities. The GOS countprpart engineer and team leader wilt be responsible for overall project direction and implerlentation. They will develop all working rc-laticnships for )Puject implementation including the assignment of personnel. fo field operations and determination of priorities for road maintenance and rehabilitation.

The TCNs from the technical assistance team will spend part of the time working at the project headquarters. One will establish an account­ ing and record keeping system, including a prujecteI cish flow requirements anz' ysis. The accoUntant will also maintain the Project Trust Fund and Project Account and will administer the local contracts account. A second TCN wilL establish a spare parts ordering, storage, inventory and retrieval system at project headquarters. This technician will also be responsible for supervising a security program by establishing security inspection and monitoring procedures for the project headquarters compound, r-ntral workshop and field operations.

- Inputs required to implement this component of the project are:

(1) Technical Assistance Person Months 1 - Team Leader (Senior Highway Engineer) 65

1 - Civil Engineer 55

1 - Office Administrator/Accountant 58 (TCN)

1 - Spare Parts/Warehouseman (TCN) 31

TotaL 209

2) Equipment, Commodities, Fuel and Supplies

(See Annex F of the Project Paper for details).

:3) Training

On-the-job training will be provided in the areas of spare parts management ard accounting/record keeping for 2 GOS staff members. (See Annex H of the Project Paper for detaiLs). -9.

E. Summary of Rehabilitation and Maintenance Proqrams Outputs

Road Section Toat Length Kins. Rehab. Kms. Krns. Maintained

Juba-Tori: 135 60 135 Rumbek-Tonj 124 100 124 Mundri-Rumbek 1/ 235 50 235 Torlt-Kapoeta- / 140 80 140 Juba-Yambio / 429 429 Juba-Ye 4 / 219 219 Juba-NimuLeA 187 187

Total 1469 290 1469

1/Spot rehabilitation will be necessary to open a supply line between the base camp at Mundri and the major rehabilitation program for Rumbek-Tonj (operating from Rumbek equipment center).

2/Possible rehabilitation activity for last two years project if determined feasible by the mid-term project evaluation. If not, major rehabilitation of this link will be considered during the development of the Phase II Project. In any case, once rehabilitation is compteted to Torit, the maintenance program will work in both directions from the Torit Camp (i.e. toward Juba and Boya Hills).

3/To be maintained with technical assistance, equipment, commodities, fuel, supplies and tools funded by AID.

./Spare parts to rehabilitate existing equipment to be funded by AID. Staff and operatirg costs will be under the direction of, and provided by, the Regional Ministry of Works and Communications. I1. Government of Sudan (GOS) Inputs

The GOS wilL provide or cause to be provided the following inputs for project impLementation (costs denominated in U.S. dollar equivalents but will be paid in Sudanese Pounds): A. Logistical and other Local cost support for the AID-funded technical assistance ($968,200);

B. Local Costs for Training, e.g. Airfares on Sudan Airways ($40,000);

C. Handtools ($50,000);

D. Local Salaries for Project Staff ($1,743,000);

ED Fuel, Oil, Lubricants ($2,048,000);

F. Local Construction Costs ($968,000),

G. Freight Costs in Sudan ($145,000);

H. Private Sector Contracts (e.g. for drainage structures)($1,650,000);

I. Local Costs of Environmental Monitoring Program ($50,000);

J. Contingency Account ($512,000); and

K. Inflation Account ($1,225,800).

Total GOS Contribution: $9,400,000 (LS 12,220,000) II. Implementation

A. Schedule of Major Project Activities

Activity Date Responsible Entity

Grant Agreement Signed July 1983 GOS/USAID

Request for Proposals Issued- Sept. 1983 USAID/AID/Washington Technical Assistance (TA)

Conditions Precedent to -Oct. 1983 GOS Disbursement Satisfied

Personal Services Contract Nov.. 1983 USAID Signed for Start-Up Activities

Orders Placed for Caterpillar No0V. 1983 USAID Equipment Evaluation of TA Proposals/ Nov. 1983 USAID/GOS Selection TA Contract Negotiations Dec. 1983 Contractor/USAID

Contract Signed Jan. 1984 Contractor/USAID

TA Team Leader Arrives in Feb. 1984 Contractor Sudan

Invitations for BID Issued Feb. 1984 USAID/Contractor for Project Equipment

Juba Residences Constructed June 1984- Contractor/GOS June 1985

Shelf-Item Equipment Identified/ Aug. 1984 Contractor/USAID Orders Placed

Fuel Contract Signed/Fuel Ordered Aug. 1984 Contractor/USAID

Caterpillar Equipment Arrives Aug. 1984- USAID/CAT Dec. 1984

Field Operations Underway Aug. 1984- Contractor/GOS April 1985

Shop Construction-Torit, Sept. 1984- Contractor/GOS Mundri, Rumbek Feb. 1985

All Major Equipment on Site Feb. 1985 Contractor/USAID Activity Date Responsible Entity

Road Rehabilitation and Mainte- April 1985 Contractor/GOS nance Programs Fully Operating

Major Project Evaluation April 1986 GOS/USAID/Contractor/ Outside Consultants

Prdject Implementation Plan May-June 1986 GOS/Coritractor/USAID and Schedule Developed for Remainder of Project

Note: A detailed implementation schedule is incLuded in the SORMAR I Project Paper as Annex I. - 13 ­

a. 'Implementation Responsibilities

1. GOS

Overall project direction will be provided by the Ministry of Construction and Public Works acting through the Roads and Fridges Public Corporation (RBPC). At the regional level, implementation responsibilities wilt rest with the Equatoria and Bahr El GhazaL Regional Ministries of Works and Communications. The Reqional Ministers will appoint full-time Project Managers who will serve as counterparts to the U.S. technical assistance team leader. The Project managers will also be responsible for administering the local currency project accoun, and coordinating project implementation with the l)irector of ProjectL,, RBPC, as required. The RBPC will provide assistance in such areas as: (1) review oi equipment specifications and selecti on of zupplier:;; (2) selection of the technical assistance contractor; (3) selection of GOS counterpart personnel, if necessary; and (4) technical advisory Services.

The Regional Ministries of Works and Communications will be respon­ sible for providing the personnel required to implement the project. The following is a list of the required counterparts to the AID-funded technical assistance team and other GOS personnel requirement:

AID Technical GOS Counterpart Dates Counter­ _ssistance Team Positions parts Required by

Team Leader Project Manager (2) Feb. 1984 (Senior Highway Engr.) Equatoria arid Bahr El Ghazal Regions

Civil Engineer Senior Engr. (2) June 1984 Equatoria and Bahr El Ghazal Regions

Master Mechanic/ Senior Mechanic April 1985 Field Operations Equatoria-Torit

Road Construction Foreman/ Senior Foreman Jan. 1985 Equipment Operator Equatoria-Torit

Road Construction Foreman/ Senior Foremen (2) Sept. 1984 Equipment Operator Bahr El Ghazal-Rumbek Equatori a-M ,ndri

Shop Foreman/Master Shop Foreman/ June 1984 Mechanic Senior Mechanic Juba Workshop

Equipment Mechanic/ Senior Mechanics (2) Sept. 1984 Trainer (Third Country Equatoria-Mundri National-TCN) Bahr El Ghazal-Rumbek (Maintenance/Rehab.)

Construction Supervisor Construction Foreman (2) April 1984 (TCN) (Maintenance/Rehab.) Equatoria-Mundri Bahr El Ghozal-Rumbek Equipment Mechanic/ Senic Mechanic Jan. 1985 Trainer (TCN)(Rehab.) E.-oupnoria-ror t - 14 -

AID Technical GOS Counterpart Dates Counter- Assistance Team Positions parts Required by

Construction Supervisor Construction Foreman Aug. 1984 (TCN)(rehab.) Equatoria-Torit

Administrator/Accountant Senior Accountant March 1984 (TCN) RMWC-Equatoria

Spare Parts/Warehouseman Spare Parts Supervisor/ May 1984 (TCN) Warehouseman-Juba Workshop

In addition, the following Regional Ministries of Works and Com­ munications personnel will be required to achieve oroject objectives.

a. Road Rehabilitation Component* Juba-Torit Tonj-Rumb~k Equatoria Bahr EL GhazaL Assistant Foremen -

Equipment Operators 15 7

Drivers 10 3

Mechanics 2

Mechanic Assistants 5 3

Driver Assistants 10 2

Warehousemen 5 2

Laborers 15 5

Guards, Misc. 10 4

Total. 70 30

b. Road Maintenance Component Juba-Yambio Equatoria Assistant Foremen 3

Mechanics 3

Equipment Operators 13

Drivers 7

Warehousemen 3

Mechanic/Operator Assistants 5

Laborers 5

Guards, Misc. 4

. Total 43 *Personnel listed for rehabilitation will also be utilized for the maintenance of same sections pLus additional maintenance activities as required (see Project Description). -15 ­

c.' Juba Workshop Equatoria

Mechanics 25

Welders 15

ELectricians 15

Misc. 50

Total 105

1. Project Headquaters (Juba)

Office Manager 1

CLerks 5

Typists 3

Messengers 4

Drivers 2

Guards, Misc. 8

TotaL 23

The GOS, throuqh the RBPC and Regional Ministry of Works and Com­ munications will, in conjunction with AID, selecL the technical assistance (TA) contractor and equipment suppliers for the Project. All sites for: (1) TA housing, (2) the headquarters compound, (3) wnrkshops, (4) mainte­ nance camps and (5) other required facilities wi11. be provided by the Regional Ministries of Works and Communications. Partiripants to be trained under the project will be selected by the R[3PC and RMWC.

For maintenance activities riot under the supervision of the AID­ funded technical assistance team, e.g. the Juha-Yei .-nd Juba-Nimul:. roads, supervision and all staff support requirements will he the responsibility of the Equatoria Ministry of 4..orks and Comuications.

Finally, the privwte sector contracLs ior construction activities such as housing, compound fencing, maintenance camps and drainage structures will be the responsibility of the Regional Ministries of Works and Communica­ tions in Equatoria and Bahr El Ghazal.

2. AID

Project managerial responsibility on the part of AID will rest with the Project Operations Office, USAID/Sudan. During the period between the signing of the Grant Agreement and the arrival of thF. Technical Assistance Team Leader, a Personal Service Contractor (PSC) engineer will be employed to - 16­

initiate those actions that are prerequisites to successful project imple­ menitation. The PSC will be stationed in Juba for a period of approximately one year, starting in November 1983, in order to overlap with the techi.ical assistance team. Responsibilities of the PSC. will include, inter alia,: (1) assisting in the preparations of Project .Emol'rnerntti1r ,'der,. (PIOs); (2) working with GOS authorities to select conc;tructiori sirs; (3) estb- Lising coordinating relationships amung the part ies concerned wi:th project implementation; and (4) devf!Loping a 1.ogistic.,:l 1;tip-,o'l pi,n and schedjule for the first year of project imptemtrntcalion. ( "ADI directr proj c-t manage­ ment will be the respon:oihilit, ,f the Iroqi,,ie';!ct,. u Ope.ratiors Office. USAID wi lt. monitor the pro ert ,:nplenenttion shtbdul e ard pr.,ide overall guidance to the technicai -ssi ce contractor.

3. Technical Assistance Conrtractor

The lirm selected to erovide the technical assistance wilt implement the project in accordance with the implerrentation schedule, job descriptions and overall objectives as defined in this' Agre,ment and the Prajeut Paper'. In addition to achieving road rehabilitation ari i ineonarc e ob je: tives, the contractor will conduct on-the-job training for- GOS :,tff r :l :.-i st in the selection of training locations for the de_.gree aid third-c ,u.otry training to be funded under the project. [ht? conlractor will be resporible for' ensuring that logistical sup:por t reciuii'rents for project impL (:-mer tat ion are provided in a tinely manner. A majort rt.,punsibitity of the contractor will be the procurement 3f certain project equipment items and comrmodities as described in the folowing section.

During the first three months in the field, the contractor, in conjunction with GOS counterparts, will develop and submit to USAID a detailed work plan for the first ye3r of the project. Quarterly and annual progress report,: will. be submitted to USAID by the contractor.

4. Contracting/Procurement_Methodolog~y -

a. Technical Ass-;stance

A direct All) contract will be executed with a construction supervision firm to implement the technical assistance and certain procure­ ment components of the project. The firm will be selected on a competitive basis from AID Geographic Code 000 (U.S. only). The Request for Proposals (RFP) will be prepared by USAID with technical advice provided by AID/Washington. After the RFP is iinalized by USAID, its availability vitl he advertized in the appropriate busin' s publ.ic,:it iois; the RFPs ill. t- availahte fr-m AID/ Washington. The evwluatioh of proposals will be conducted in AID/Washington by a panel of USAID and G00 stalf. The contractor selected ,ill then send a representative to Khartounm for final contract neqotiations.

b. Equipment and Comr)dities

(1) Caterci llar Equi prermnt

A proprietary procurement waiver for certain items of Caterpillar equipment wilL be requested. USAID may initiate procurement ..of.-this equipment through the Khartoum Caterpillar agent, Sudan Tractor Company. The equipment will be ordered from Caterpillar, International through a Direct Letter of Commitment.

(2) Other Equipment and Commodities

Other road equipment and certain commodities will be purchaised in the United Stares. The Invitations for Bid (IFB) will be prepared by USAID and the TA contractor and will be made available to prospective bidders by the TA contractor. Af.er rcceipt of alL bids at the home office in the Unit:ed States, thu TA contractor ,wiLl eva luate the bids and recommend surpliers. These recommenrdations will be reviewed in Khartoum by a GOS/USAID p-.inel which will make the iiaiL seLection. Based on the GOS/USAID seLec1.)rns, the TA cont.:rac o: will theQ place the e':iuip­ ment orders. A Bank letter of Comminimert v i.I be opeorecd for rhe procurement of equipment and ocean .hioping. The TA contractor i! be authorized to instruct the bank to ,pen Le:ters of Credit iM Iwor of equilpent suppliers and, along with USAID, will be responsible f,r rEviewing payment documents following normaL AID regulatieris. It should be noted that some Large equip­ ment items, e.g. dump trucks, will be bid on a Cost, Insurance, Freight (CIF)basis while smatter items may be bid only to the U.S. port of departure where the TA contractor will consolidate the equipment/commodities and arrange for shipping

(3) Fuel

Fuel to be purchased from dollar project funds will be procured from a Code 941 source. With technical advice from the TA contractor, USAID will select a fuel supplier on a competitive basis. The contract will be signed directly between the supplier and USAID. Payment will be through a USAID-issued Purchase Order.

(4) Freight

The shipment of project equipment and commodities will invoLve several mechanisms: (1) where practicable, equipment suppliers will bid on a CIF basis (e.g. Caterpillar and other major equipment);(2)for smaller U.S.-source equipment items, the TA contractor will be responsible for consolidating items and arranging ocean transport from a U.S. port; (3) inland freight to the project site will be provided by a freight for­ warder selected on a competitive basis. The contract will be signed directly between USAID and the freight forwarder.

(5) Shelf-Item Commodities and Materials

Some commodities, materials and supplies will be purchased "off-shelf" from Kenya. Procurement of these items will be through a USAID­ issued Purchase Order. 18

IV. Evaluations

Periodic in-house evaluations will be conducted as required to assess pro­ ject implementation progress. A major evaluation is scheduled for, April/ May 1986. This evaluation wi[l, inter alia, assess the performance of the GOS, TA contractor and USAID in terms of: (1) he provision of required inputs; (2) a,:hievment of project outputs; (3) rate of ins itoutj)onal development alid (4) ovEral project performance. During this major evaLua­ tion, a decision will be made on the possible expansion of the road rehabi­ litation progr-am, e.g. from Torit-Kapoeta or Tonj-Wau. V. Itlustrative Financial Plan (U.S.$000)

AID Contribution Anticipated Future Total Total Total To Date Year Contributions- AID GOS Project AID 1. TechnicaltAssistance .. 6248.6 6248.6 964.2 7216.8 2. Training 381.0 381.0 40.0 421.0 3. Commodities and Equipment 5259.3 5259.3 50.0 5309.3 4. Petroleum, OiL, Lubricants 2000.0 2000.0 2048.0 4048.0 5. Construction/Site Development 707.0 707.0 968.0 1675.0 6. Ocean/Inland Freight 1521.0 1521.0 145.0 1666.0 7. Procurement Fees 365.2 365.2 - 365.2 8. Private Sector Development 500.0 200.0 700.0 1650.0 2350.0 9. LocaL Salaries - - - 1743.0 1743.0 10. Other 270.0 100.0 370.0 50.0 420.0 (Evaluation, air charter, environ­ mental monitoring program) 11. Contingency 632.0 635.9 1267.9 512.0 1779.9 12. Inflation 352.9 527.1 880.0 1225.8 2105.8

Total 18,237.0 1463.0 19,700.0 9400.*29,100.0

*Sudanese Pounds (LS) 12,220,000 of which: (1) LS 10,283,000 CIP local currency generations (2) LS 1,937,000 from regular GOS budget

Q___7. Annax, 2

Project (rant Standard

Provisiona Annex

Definitions: As used lu hlJs Annei, the "AgLxeerfent" refers to the Project Grant Agreement to which this Annex Is attached and of which this Annex forms a part. Terms used in Lhis Annex have the same meaning or reference as in the Agreement.

Article A: Pet-oc..i!ntationlin Lette r

To assist Grantee in the iuiplementation of the Pxojkict, A.I.D., from time to time, will iseuc Project Implenaentotion Letters that will furnish additional inforntion abo.t taaLters stated in this Agreement. The parties mry also ute Jointly agreed-,3pon Pi oject Timp..men tatic Letters to cur:,:irm aii reccord thr.f' mutual undez EtaundIng on aspects of the pl,-*..-. ctlou of thi!; Agrecne.n;. i'!%:j ect. lnpementation Letters will not be used to amend the r.L):t o' the A!ree(meuL, but call be used to record3 revisions uz e),cepL1orAs -qhich are pe.ruwted by the Agreement, including the revision of e].ementc of th, amplified description of the ProJect in Annex 1.

Article B: General Covenants

SECTION B.1. Coklm.Ilt:ation. 'The Parties will cooperate to assure that the purpose of ,his Agtuaement will be accomplished. To this end, the Parties, at the requent of either, will. exchange viewi oni the progress of the Project, the performance of obligattons under this Agreement, the performance of any consultatmn, contractora, or sup-­ pliers engaged on the Projctc, and other rzattets relating :.z- the Project.

SECTION B.2. Execution of Pr~2ct. The Grantee will:

(a) carry out the P'roj-ct or cause ft tfo be carried out with due diligence and effic,-ncy, in conforrvity with sound technical, finmncial, and management pract.cus, end in ro.,rry with those documents, plans, specific-vtions, contiacts, schdulcii or other arrangements, and with any modlfications the:ein, approved by A.I.D. pursuaut to this Agreeinent; and

(b) provide qualifif d iuid c;e:eri.t'ed manages, elt for, and train such staff as may be appropriate for the maintenance and operation of the Project, and, atu,jpplicable for continuing activities, cause the Project to be oFeratedi aud maintained I" such manner as to assur . the continuinf; Lnd aucc.isful. achievement of the purposes of the Projecc. Article B: General Covenants (Continued)

(c) afford authorized representatives of a Party the opportunity at all reasonable times to inspect the Project, the utilization of goods and services financed by such Party, and books, records, and other documents relating to the Project and the Grant.

SECTION B.6. Completeness of Infor.nation. The Grantee confirns:

(a) that the facts and c.Arcumstance. of vlhich it has informed A.I.D., or cause A.I.D. to be informed, In the course of reaching agreement with A.I.D. on the Grant, are .ccurate and complate, and include aJl facts and circumstances that: wiviht riate'citlly affect the Project and the discharge of re-ponsibilitlen under this Agreement

(b) that it will inform A.I.D. In-iJ -ely fashion of any sub­ acquent facts and c:!rcumstance.s that ruIcg,.t T.t-r:LJI-; aiff':c=t or that it is 'reasonable to bJ.ieve mighc s affect, ti. Project or the discharge of rzspon--ibilities uirler thi-i Agreu en .

SECTION B.7. Other. Pymen,;s. Grninte: affi-rn that no paymento have been or will be received by any offIcial of the Grantee in con-­ nection with Lhe .rouur.: :nt of goodd o,. vi.es financed under the Grant, except fce-., tiaxes, or :lnila: paymcntj legally established in the country of the Gran.et:.

SECTION B.8. Info. iniou and Markiia.. The Grantee will give appropriate publicity to the Grant and the Project as a program to which the United States has contributed, identify the Project site, and mark goodo financed by A.I.D., as dezocribed I.n Project Tmplewen-­ tation Letters.

Article C: Irocurement Provisions

SECTION C.I. Special Rules.

(a) The source and crig.n of occan and air shipping will be deemed to be the ocean veE-, el's or aircraft's country of registry at the time of shiptent.

(b) Premiums ior marine inasuranec O.. eo. .inthe terrrory of the Grantee will be deemed an eligible 'Voreigii Exchange Coat, if otherwise eligible undcr Section C. 7(a)

(c) Any motor vehiclea financed under the Grait will be of United States manufacture, except av A.LD. may otherwise agree in writing. Article C: Procurement Provisions (CO nlp td)

(d) Transportation by air, financed under the Grant, of propert. or persons, will be on carriers holding United Staten cerlificat-on, to the extent service by such carriers Is available, Details on this requirement will be described in a Proje.t Impierentation Letter.

SECTION C.2. Eligibilit-Date. No goods or services may be financed under the Grant which are procucea pursuant to orders or contracts firmly placed or entered into prior to the date of this Agreement, except as the Parties may otherwi,.e agree Jn Writing.

SECTION C.3. Plans, SpecificationsI and Contracts. En order for there 61o be mutual agreement on the followIng matters, and except as the Parties may otherwise agree In urit.ng:

(a) The Grantee will furn'sh ,o A. ID. upon preparaLion,

(1) any plans, aptziicat.,',r.s, rxr,'ment or construction scheddles, contracts, or other documentation relating to floods or services to be financed under the Grant, inc.uding documentation relating to the prequalification and selection ci(if cortractors and to the solicitation of blds and roposal.s. Mat:eriaJ.l modlfications in such documentation will .ikewise by fuinf,;hed A.T.D. on -:eparation;

(2) such docuinrntation wil! also be furnished to A.I.D,, upon preparation, relatilg to any goode Dr Bervices, which, though not financed under thc Crant, are deemed by A.ID. to be of majoir importance to the Project. Aspects of: the Project Involving matters under this subseticn (oa)42) will ba ldentl..ed In Project Imple­ mentation Letters;

(b) Documexitt3 r -iatd to tl;e prequ .1~ifcation of contractors, and to the solicitnat.i)n of bictc or pro0,3.iln for goods and cervices financed under the ;rant will be approved by A.I.D. in writing prior to their issuance, sad th,.ir ters wI..3 Lnc.Tude United Stites standards and ricasurerint.;

(c) Contracts and cuucracta:r. fir.armed under the Grunt for engineering and ctl'r proessiorial serviceis, for con; .ructlon nerv­ ices, and for such ct.iar services, e.qui.pmeut or materials as may be specified in Project Implementation Letters, will be approved by A.I.D. in writing prior to extcutiou of the contract. Material. modifications in such contcract& will also be approved in writing by A.I.D. prior to executLon; and Article C: Procurement Provisions (Continued)

(d) Consulting firms used by the G:antee for the Project but not financed under the Griit, the scope of their services and such of their personnel assigned to J:he Projet-t as A.I.D. may specify, and construction contractors used by the Grantee for the Project but not financed under the Grant, shall be amcptbable to A.I.D.

SECTION C.4. Reazsonfeble Price. No more than reasonable prices "will be paid for any goods or serviceti fi:'nnred, in whole or in part;, under the Grant. Suah itcras iwill be pr~(cced on a fair and, to the maximum extent practicable, on a ctmpetlriv basis.

SECTION C.5. N:tificaton to Poten'Jal ji:Lrs. To permit all United States firms to have the oppgrruijity ,o patticipate in furnlshing goods and services to be financ.d undcr the Grant; -he Grantee wlll furnish .I., such iuforaat:Joi with regard thereto, and at such times, as A.I.D. may requcst in Project Implementation Letters.

SECTION C.6. Shpn.

(a) Goods which are to be trannported to the Lerrittcry of tho Grantee may not be lnanced under the G(rant if transported eit:her: (1)on an ocean vessel or air(%raft under the flag of a country which is not included in A.T.D. Georgraphic Cole 935 a, iii effect at the time of shipment, or (2) on an ocean ves-el which A.I.D., by ,written notice to the Grantee has 6esignated an fneligible; or (3) under an ocean or air charter which has not received prior A.,D. approval.

(b) Costs of ocean or air tran.portation (of goods or persons) and related delivery services may net be financed under the Grant, if such goods or persons are carried: (1) on an ocean vessel under the flag of a country not, at the time of shipment, identified under the paragraph of the Agreemet entitled 'Procurement Source: Foreign Exchange Costa," without prior wr:itteAL .!,D. ajproval; or (2) on an ocean vessel which A.I.D., by vritten notice to the Grantee, has designar.ed as ineligible; or (3) under an ocean vessel or air chrter which has not received prior A.I.D. &pproval.

(c) Unless.A.I.D. determines that privately owned United States-flag commercial ocean vessels are not ava.lable at: fair and reasonable rates for such vessels, (1)it least fifty' percent (50%) of the gross tonnage of all goods (computed separatcly for dr'y bulk carriers, dry cargo liners and tankers) financed by A.I.D. wqich may be transported on ocean vessels will be transported on pjivately ow d United States-flag ccummercial. vessels, and (2) at least fifty percent (50%) of the gross freight revewe genernted by all ship­ ments financed by A.X.D. and trinsported to the territory of the Article C: Procurement Provisions (Continued)

Grantee on dry cargo liners shall be paid to or for the benefit of privately owned United Staten-flag commercial vessels. Compliance with the requirements of (1) and (2) of this sub,,- ction wuat be achieved with respect to both any cargo tranport '-d from U.S. ports and any cargo transported from non-U.S. porte, computed separately.

SECTION C.7. Insurance.

(a) Marine insurance on goods fianced by A.I.D. which are to be transported to the territory of the Grantee may be financed as a Foreign Exchange Cost under this Agreemeint provided (1) such insurance is placed at the lowest availab,e competitive rate, and (2) claims thereunder are payable in the currency in which such goods were financed or in any freely convertible currency. If the Grantee (or goveriment of Grantee), bY satute, decree, rule, regu­ lation, or practice discrimiuates with respect to A.I.D. - financed procurement. against any marine insurance company authorized to do businese in any State of the United States, then all goods shipped to the territory of the Grantee financed by A.I.D. hereund,r will be insured against marine risks and such insurance will be placed in the United States with a company or conmpanies authorized to do a marine insurance business in a State of the United States.

(b) Except as A.I.D. may otherwise agx'e in writing, the Grantee will insure, or cause to be in-3ured, goods financc:d under the Grant imported for the ?roject agziu:L I. [v.d~t: to theit transit to the point of their use in thie i:c;. L:uraaccbr',,t" wIll be issued on terms miod cendition-3 consistent with sound com­ mercial practice and will. insure the full value of the goods. Any iadenification received by thc Grantoe under such irsurahce will be u8ed to replace or repair iny nateri, daiuage or ainy iciu of the goods insured or will be used to retimbur-se the Grantee for the replacement or repair of such good,. Any &ach replicements will be of source and origin of countries lAstu'd in A A ..). Geographic Code 935 as in effect at the Li-:., of replace.e.nt, and, e:icept as the Parties may agree in wrtin', will. be otherulse subject t-. the provisions of the Agreclnenrt.

SECTION C.8. U.S. Gcvcrrjment-,0wMid E

SECTION D.1. Termination. Either 'arty may terminate this Agree­ ment by giving the other Party 30 days written notice. Termination of this Agreement will. terminate any obligations of the.Parties to provid! financial or other rusources to the Project 1pursuant to thi-s Agreenent, except for payment which thay are eo:uirtted to m.ake purst:ant to noncan­ cellable commitments entered into ,with third parttiet prilr to the termination of this Agreement. In addi tion, upon ;-iuch termnin 'tlolt A.I.D. may, at A.f.D..'s expense, dti 'Jhat titL. ro goods financed under the Grant be transferred to A.I.0. Jh the goodt-i are fromi a source outside Grantee's country, nre in a d li.ier-ab.e state and have not been offloaded in pcrts of entry of Grantet's country.

SECTION D.2. Ref unds.

(a) In the case of any disbursement wlich is not supported by valid documentation in accordance with, this Agreement, or which is not made or used in accordance with this 4;reement, or which was for goods or services not used. In accordance with thlt Agreement, A.I.D., no:­ withstanding the availability or exercis;. of any other remedies under this.Agreement, may require the Grantee t.o refund the amount of such disbursement in U.S. Dolla::s to A.I.D. within sixty (60) days after receipt of a request thercfor.

(b) If the failure of Grantee to comply with any of its obli­ gations under this Agreement has the reault that goods or services financed under the Grant are not used effcctively in accordance with this Agreement, A.l.D. may require the C7 aitve to refund all or any part of the amount of the disbursements under this Agreement for such goods or services in U.S. Dollars to A.I.D. within sixty days after receipt of a request therefor.

(c) The right under subsection (a) or (b) to require a refund of a disbursement will continue, notwithbtanding any other provision of this Agreement, for three years from the date of the last disburse­ ment under this Agreement.

(d) (1) Any refund under subsection (a) or (b), or (2) any refund to A.I.D. fron a contractor, oupplier, bank or other third party with respect to goods or oervices financed under the Grant, which refund relates to an unreasonable price for or erroneous invoicing of goods o1 services, or to gods that did not confon to specifications, or to services chat were iuadequate, will (k.) be made available first for the cott of goorls and services required for the Project, to rh-o.extent Justified, and (B) the remainder, if any, will be applied to reduce the amount of the Grant. Article D: Termination; Remedie s (Continued)

(a) Any intereGt or other earnings on Grant funds disbursed by A.I.D. to the Grantee under this Agrecuent prior to the authorized use of such funds for the Project ill. be. rt.Lurned to A.E.D. in U.S. bl­ lars by the Crantee.

SECTION D.3. 1Nonwaiver of Rearaedits. No delay in exercising any right or remedy accruing t, a Party Jn coin(,zt:non with i; . financing under this Agreement will be construed z.L a wal.ver of- such right or remedy.

SECTION D.4. Arlhi¢cnt. The Gvtl.t, 7 .s upon roquei.r. to execute an aosignment 6o A.2.D. of any catis, of aUcioi which may accrue to the Grantee in connecticn with or arising out of the contractual performance or breach of performance ty a iparty to a direct U.S. Dol­ lar contract with A.I.D. financed -In %,,x e or in part out of funds granted by A.I.D. under this Agreement.