Post on 24-Apr-2018
CONFORMED COPY
LOAN NUMBER 1214 MA
LOAN AGREEMENT
(Second Kuala Lumpur Urban Transport Project)
between
MALAYSIA
and
INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOPMENT
Dated March 11, 1976
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LOAN AGREEMENT
AGREEMENT, dated March 11, 1976, between MALAYSIA (herein-
after called the Borrower) and INTERNATIONAL BANK FOR RECON-
STRUCTION AND DEVELOPMENT (hereinafter called the Bank).
WHEREAS (A) The Borrower has requested the Bank to assist
in the financing of the Project described in Schedule 2 to this
Agreement by making the Loan as hereinafter provided;
(B) The Project will be carried out by the Borrower, the
City of Kuala Lumpur and the Urban Development Authority with
the Borrower's assistance and, as part of such assistance, the
Borrower will make available to the City of Kuala Lumpur and the
Urban Development Authority, part of the proceeds of the Loan
as hereinafter provided; and
(C) The Bank is willing to make the Loan available upon
the terms and conditions set forth hereinafter and in a project
agreement of even date herewith between the Bank, the City of
Kuala Lumpur and the Urban Development Authority;
NOW THEREFORE the parties hereto hereby agree as follows:
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ARTICLE I
General Conditions; Definitions
Section 1.01. The parties to this Agreement accept all the
provisions of the General Conditions Applicable to Loan and Guar-
antee Agreements of the Bank, dated March 15, 1974, with the same
force and effect as if they were fully set forth herein (said
General Conditions Applicable to Loan and Guarantee Agreements
of the Bank being hereinafter called the General Conditions).
Section 1.02. Wherever used in this Agreement, unless the
context otherwise requires, the several terms defined in the
General Conditions have the respective meanings therein set forth
and the following additional terms have the following meanings:
(a) "Project Agreement" means the agreement between the
Bank and the City of Kuala Lumpur and the Urban Development
Authority of even date herewith, as the same may be amended from
time to time, and such term includes all schedules to the Project
Agreement and all agreements supplemental to the Project Agreement;
(b) "KLC" means the City of Kuala Lumpur;
(c) "UDA" means the Urban Development Authority of the
Borrower;
(d) "TMD" means the Traffic Management Department of KLC;
(e) "HP & PTU" means the Highway Planning and Public Trans-
port Unit of the Borrower's Ministry of Works and Transport;
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(f) "Project Area" means the Federal Territory, Petaling
Jaya and other parts of the State of Selangor referred to as the
'"study area" in the final report on the Urban Transport Policy
and Planning Study for Metropolitan Kuala Lumpur executed by the
Borrower in 1973 and 1974; and
(g) "M$" means Malaysian dollars, the currency of the
Borrower.
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ARTICLE II
The Loan
Section 2.01. The Bank agrees to lend to the Borrower, on
the terms and conditions in the Loan Agreement set forth or
referred to, an amount in various currencies equivalent to twenty-
six million dollars ($26,000,000).
Section 2.02. The amount of the Loan may be withdrawn from
the Loan Account in accordance with the provisions of Schedule 1
to this Agreement, as such Schedule may be amended from time to
time by agreement between the Borrower and the Bank, for expenditures
made (or, if the Bank shall so agree, to be made) in respect of
the reasonable cost of goods and services required for the Project
and to be financed out of the proceeds of the Loan.
Section 2.03. The Closing Date shall be June 30, 1981 or such
later date as the Bank shall establish. The Bank shall promptly
notify the Borrower of such later date.
Section 2.04. The Borrower shall pay to the Bank a commitment
charge at the rate of thrce-fourths of one per cent (3/4 of 1%)
per annum on the principal amount of the Loan not withdrawn from
time to time.
Section 2.05. The Borrower shall pay interest at the rate of
eight and one-half per cent (8-1/2%) per annum on the principal
amount of the Loan withdrawn and outstanding from time to time.
5
Section 2.06. Interest and other charges shall be payable
semi-annually on June 1 and December 1 in each year.
Section 2.07. The Borrower shall repay the principal of the
Loan in accordance with the amortization schedule set forth in
Schedule 3 to this Agreement.
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ARTICLE III
Execution of the Project
Section 3.01. (a) Without any limitation or restriction upon
any of its other obligations under the Loan Agreement, the Borrower
shall carry out Parts B(i) and C(i)(b), (i)(c), (i)(d) and (ii)(b)
of the Project, together with KLC carry out Part A of the Project,
and together with KLC and UDA carry out Part C(i)(a) of the Project,
and cause KLC and UDA to perform in accordance with the provisions
of the Project Agreement all the obligations therein set forth,
shall take and cause to be taken all action, including the pro-
vision of funds, facilities, services and other resources, neces-
sary or appropriate to carry out the Project and to enable KLC
and UDA to perform such obligations, and shall not take or permit
to be taken any action which would prevent or interfere with such
performance.
(b) The Borrower shall make appropriate parts of the proceeds
of the Loan available to KLC and UDA under arrangements to be en-
tered into between the Borrower, KLC and UDA, under terms and con-
ditions satisfactory to the Borrower and the Bank.
(c) The Borrower shall exercise its rights under the arrange-
ments referred to in paragraph (b) above in such manner as to
protect the interests of the Borrower and the Bank and to accomplish
the purposes of the Loan.
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Section 3.02. (a) In order to assist the Borrower in carrying
out or causing to be carried out Part C of the Project, the Borrower
shall employ or cause to be employed consultants whose qualifica-
tions, experience and terms and conditions of employment shall be
satisfactory to the Borrower and the Bank.
(b) The Borrower shall employ advisors to HP & PTU acceptable
to the Borrower and the Bank and on terms and conditions satisfac-
tory to the Borrower and the Bank.
Section 3.03. Except as the Bank shall otherwise agree, thegoods, works and services (other than consultants' services) forthe Project to be financed out of the proceeds of the Loan, shall
be procured in accordance with the provisions of Schedule 4 to
this Agreement.
Section 3.04. The Borrower shall cause HP & PTU to: (i) have
the accounts and financial statements (balance sheets, statements
of income and expenses and related statements) of the Project foreach fiscal year audited, in accordance with appropriate auditing
principles consistently applied, by the Auditor General of halaysia
or other independent auditors acceptable to the Bank; (ii) furnishto the Bank as soon as available, but in any case not later than
nine months after the end of each such year, (A) certified copies
of such financial statements for such year as so audited and (B)
the report of such audit by said auditors, of such scope and in
such detail as the Bank shall have reasonably requested; and (iii)
furnish to the Bank such other information concerning the accounts
an.- financial statements of the Project and the audit thereof as
the Bank shall from time to time reasonably request.
-8-
Section 3.05. The Borrower shall cause HP & PTU to prepare
and submit to the Bank quarterly progress reports on the Project
in a form satisfactory to the Bank.
Section 3.06. The Borrower shall implement a program acceptable
to the Bank to abolish in phases and within four years of the date
of this Agreement the bus seat tax.
Section 3.07. The Borrower shall promptly transfer to KLC
at no more than nominal cost such land in the ownership oi the
Borrower as is required for the Project and shall ensure that KLC
shall be able promptly to acquire other land required for the
Project.
Section 3.08. The Borrower shall implement as part of the
Project, lanes, routes and priorities for high-occupancy vehicles,
and shall not substantially modify them without prior exchange
of views with the Bank.
Section 3.09. The Borrower shall, together with KLC, monitor
and evaluate the progress of Parts A and B(i), (ii) and (iii) of
the Project, in accordance with the performance indicators and
targets set forth in Part 1 of Schedule 5 to this Agreement.
Section 3.10. The Borrower shall take the necessary measures
to enable KLC to carry out its obligations under Section 2.07 of
the Project Agreement.
Section 3.11. The Borrower shall tak2 measures to review
annually the structure and levels of permitted bus and mini-bus
99
fares and make such adjustments as may be necessary to permit
services required by users to be provided on a commercial basis.
Section 3.12. The Borrower shall take measures to ensure that
applications for licenses to operate a sufficient number of public
transport vehicles to implement the Project and achieve its obje"--
tives shall be approved.
Section 3.13. The Borrower shall place, or cause to be placed,
the cash surplus generated by Part B(iv) of the Project, including
all revenues from sales of land, in a separate fund and shall use
all proceeds in such fund exclusively to finance sites and services
and squatter area upgrading projects.
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ARTICLE IV
Other Covenants
Section 4.01. (a) It is the policy of the Bank, in making
loans to, or with the guarantee of, its members not to seek, in
normal circumstances, special security from the member concerned
but to ensure that no other external debt shall have priority over
its loans in the allocation, realization or distribution of foreign
exchange held under the control or for the benefit of such member.
To that end, if any lien shall be created on any public assets
(as hereinafter defined), as security for any external debt, which
will or might result in a priority for the benefit of the creditor
of such external debt in the allocation, realization or distribution
of foreign exchange, such lien shall, unless the Bank shall other-
wise agree, ipso facto and at no cost to the Bank, equally and
ratably secure the principal of, and interest and other charges on,
the Loan, and the Borrower, in creating or permitting the creation
of such lien, shall make express provision to that effect; provided,
however, that, if for any constitutional or other legal reason such
provision cannot be made with respect to any lien created on assets
of any of its political or administrative subdivisions, the Borrower
shall promptly and at no cost to the Bank secure the principal of,
and interest and other charges on, the Loan by an equivalent lien
on other public assets satisfactory to the Bank.
(b) The foregoing undertaking shall not apply to: (i) any
lien created on property, at the time of purchase thereof, solely
as security for payment of the purchase price of such property;
and (ii) any lien arising in the ordinary course of banking
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transactions and securing a debt maturing not more than one year after
after its date.
(c) As used in this Section, the term "public assets" means
assets of the Borrower, of any political or administrative sub-
division thereof and of any entity owned or controlled by, or
operating for the account or benefit of, the Borrower or any such
subdivision.
Section.4.02. The Borrower shall, (a) not later than July 1,
1976 or such other date as may be agreed between the Borrower and
the Bank, together with KLC establish, or cause to be established
by KLC, an appropriately staffed task force provided with appro-
priate specialist services, to carry out development policy analy-
) sis, broad spatial planning, capital programming and project reviews
in the territory under the jurisdiction of KLC;
(b) not later than September 1, 1976 or such other date as
may be agreed between the Borrower and the Bank, prepare or cause
to be prepared, after exchanging views with the Bank, a detailed
two-year work program, including terms of reference for the spe-
cialist services, for the task force referred to in paragraph (a)
of this Section;
(c) prepare or cause to be prepared recommendations on an
institutional framework and processes suitable over the longer
term for the continuation of the work described in paragraph (a)
of this Section and for decision-making; and
I
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(d) cause the task force referred to in paragraph (a) of
this Section, or the long-term institutional framework referred
to in paragraph (c) of this Section, to prepare not later than
January 1, 1978 or such other date as may be agreed between the
Borrower and the Bank, a ten-year spatial development plan and
five-year capital budget for the territory under the jurisdiction
of KLC.
-13 -
ARTICLE V
Remedies of the Bank
Section 5.01. For the purposes of Section 6.02 of the General
Conditions the following additional events are specified pursuant
to paragraph (k) thereof:
(a) KLC or UDA shall have failed to perform any covenant,
agreement or obligation of KLC or UDA, respectively, under the
Project Agreement.
(b) An extraordinary situation shall have arisen which shall
make it improbable that KLC or UDA will be able to perform its* obligations under the Project Agreement.
(c) The Federal Capital Act 1960 and Law No. 46 of 1971 of
the Borrower shall have been amended, suspended, abrogated, re-
pealed or waived in such a way as to materially and adversely affectthe ability of KLC and UDA to carry out the covenants, agreements
and obligations set forth in the Project Agreement.
(d) The Borrower or any other authority having jurisdiction
shall have taken any action for the dissolution or disestablishment
of KLC or UDA or for the suspension of its operations.
Section 5.02. For the purposes of Section 7.01 of the General
Conditions, the following additional events are specified pursuant
to paragraph (h) thereof:
- 14 0
(a) the event specified in paragraph (a) of Section 5.01 of
this Agreement shall occur and shall continue for a period of 60
days after notice thereof shall have been given by the Bank to the
Borrower, KLC and UDA; and
(b) the events specified in paragraphs (c) and (d) of Sec-
tion 5.01 of this Agreement shall occur.
Si
- 15 -
ARTICLE VI
Effective Date; Termination
Section 6.01. The following events are specified as additional
conditions to the effectiveness of the Loan Agreement within the
meaning of Section 12.01(c) of the General Conditions:
(a) The execution and delivery of the Project Agreement on
behalf of KLC and UDA have been duly authorized or ratified by all
necessary corporate and governmental action; and
(b) The arrangements required under Section 3.01(b) of this
Agreement have been concluded by all necessary corporate and
governmental action.
Section 6.02. The following are specified as additional mat-
ters, within the meaning of Section 12.02(c) of the General Condi-
tions, to be included in the opinion or opinions to be furnished
to the Bank:
(a) That the Project Agreement has been duly authorized or
ratified by, and executed and delivered on behalf of, KLC and UDA,
and is legally binding upon KLC and UDA in accordance with its
terms; and
(b) That the arrangements concluded as required by Section
3.01(b) of this Agreement impose legally binding obligations upon
the Borrower, KLC and UDA, respectively, in accordance with their
terms.
- 16 -
Section 6.03. The date June 14, 1976 is hereby specified for
the purposes of Section 12.04 of the General Conditions.
0
- 17 -
ARTICLE VII
Representative of the Borrower; Addresses
Section 7.01. The Minister of Finance or Deputy Minister of
Finance of the Borrower or such other person as such Minister
shall appoint in writing are designated as representative of the
Borrower for the purposes of Section 11.03 of the General Conditions.
Section 7.02. The following addresses are specified for the
purposes of Section 11.01 of the General Conditions:
For the Borrower:
The Treasury* Kuala Lumpur 01-01
Malaysia
Cable address:
TREAS URYKuala Lumpur
For the Bank:
International Bank forReconstruction and Development
1818 H Street, N.W.Washington, D.C. 20433United States of America
Cable address:
INTBAFRADWashington, D.C.
- 18-
IN WITNESS WHEREOF, the parties hereto, acting through their
representatives thereunto duly authorized, have caused this Agree-
ment to be signed in their respective names in the District of
Columbia, United States of America, as of the day and year first
above written.
MALAYSIA
By /s/ Anaitullah Karim
Authorized Representative
INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOPMENT
By Is/ Gregory B. VotawActing Regional Vice President
East Asia and Pacific
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SCHEDULE 1
Withdrawal of the Proceeds of the Loan
1. The table below sets forth the Categories of items to be
financed out of the proceeds of the Loan, the allocation of the
amounts of the Loan to each Category and the percentage of expendi-
tures for items so to be financed in each Category:
Amount of theLoan Allocated % of(Expressed in Expenditures
Category Dollar Equivalent) to be Financed
(1) Civil works for new 13,6009000 35%roads, road improve-ments and trafficengineering and con-trol
(2) Equipment for traf- 2,800,000fic engineering andcontrol
(a) directly im- 100% of foreignported expenditures
(b) imported but 70% of local ex-locally pro- penditurescured
(c) locally manu- 100% of local ex-factured enditures (ex-
actory)
(3) Sites and Services 3,100,000 45%
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Amount of theLoan Allocated % of(Expressed in Expenditures
Category Dollar Equivalent) to be Financed
(4) Consulting Ser- 41,400,000 50%vices
(5) Unallocated 2,100,000
TOTAL 26,000,000
4*
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2. The disbursement percentages have been calculated in compli-
ance with the policy of the Bank that no proceeds of the Loan shall
be disbursed on account of payments for taxes levied by, or in the
territory of, the Borrower on goods or services, or on the importa-
tion, manufacture, procurement or supply thereof; to that end, if
the amount of any such taxes levied on or in respect of any item
to be financed out of the proceeds of the Loan decreases or in-
creases, the Bank may, by notice to the Borrower, increase or
decrease the disbursement percentage then applicable to such item
as required to be consistent with the aforementioned policy of the
Bank.
3. Notwithstanding the provisions of paragraph 1 above, no with-
drawals shall be made in respect of expenditures prior to the date
of this Agreement, except that withdrawals may be made in respect
of Categories (3) and (4) on account of expenditures incurred
after June 30, 1975 in an aggregate amount not exceeding the equiva-
lent of $800,000.
4. Notwithstanding the allocation of an amount of the Loan or the
disbursement percentages set forth in the table in paragraph 1 above,
if the Bank has reasonably estimated that the amount of the Loan
then allocated to any Category will be insufficient to finance the
agreed percentage of all expenditures in that Category, the Bank
may, by notice to the Borrower: (i) reallocate to such Category,
to the extent required to meet the estimated shortfall, proceeds
of the Loan which are then allocated to another Category and which
in the opinion of the Bank are not needed to meet other expenditures,
and (ii) if such reallocation cannot fully meet the estimated short-
fall, reduce the disbursement percentage then applicable to such
- 22 -
expenditures iv, order that further withdrawals under such Category
may continue until all expenditures thereunder shall have been
made.
5. If the Bank shall have reasonably determined that the pro-
curement of any item in any Category is inconsistent with the
procedures set forth or referred to in this Agreement, no expendi-
tures for such item shall be financed out of the proceeds of the
Loan and the Bank may, without in any way restricting or limiting
any other right, power or remedy of the Bank under the Loan Agree-
ment, by notice to the Borrower, cancel such amount of the Loan
as, in the Bank's reasonable opinion, represents the amount of
such expenditures which would otherwise have been eligible for
financing out of the proceeds of the Loan.
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SCHEDULE 2
Description of the Project
The Project is designed to enable more efficient use to be
made of existing and planned transport facilities and to initiate
a program of squatter area upgrading and sites and services devel-
opment in the Project Area. It consists of:
Part A: Formulating and implementing policy measures aimed at
improving public transport services and restraining the
uneconomic use of private cars, including revision of
bus fares, abolition of the bus seat tax, introduction
of mini-bus services, introduction of traffic priorities
for high-occupancy vehicles, increased parking charges
and area road pricing of low-occupancy vehicles.
Part B: (i) Construction of new roads according to design
standards described in the Annex hereto and
improvement of existing roads, except the
Inner Ring road.
(ii) Improvement of the Inner Ring road.
(iii) Construction of works and provision of equip-
ment for traffic engineering and control.
(iv) Development of sites and services and squatter
area upgrading in three phases, and the first
two phases shall be implemented as nearly as
possible as follows:
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Phase 1 Phase 2 TotalPlots Gross acres Plots Gross acres Gross acres
Residential sites 414 26 330 23 49
Industrial sites 63 8 56 19 27
Commercial sites 10 1 10 1 2
Community facilities 1 1 3 7 8
Agricultural sites - - 18 25 25
Squatter area upgrading - - 2,100 160 160
Total 488 36 2,517 235 271
(v) Establishment and operation from January 1,
1976 to December 31, 1978 of a sites and
services and resettlement unit in UDA.
Part C: (i) Provision of the services of consultants (a)
for feasibility and engineering studies, and
for the supervision of construction work in
connection with Part B of the Project; (b) for
the preparation of an urban development project
in Kuantan; (c) for a study of water resource
development in Kuantan; and (d) for the prepara-
tion of a national sites and services program;
and
(ii) Provision of advisors (a) on traffic manage-
ment and (b) on public transport.
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ANNEX TO SCHEDULE 2
Design Standards for New Roadsand Interchange Ramps
ROADS RAMPS
Cross Sections
Pavement Width 1 lane 3.5 m (11.5 ft) 4.25 m (14.0 ft)2 lane 7.0 m (23.0 ft) -3 lane 10.5 m (34.4 ft)
Normal Crossfall 2.5% 2.5%
Shoulder Width outer 2.5 m (8.2 ft)inner .75 m (2.5 ft) .75 m (2.5 ft)
Normal Crossfall 4% 4%
Verge 1.0 m (3.3 ft) 1.0 m (3.3 ft)
Median Width 8.5 Tr (27.0 ft)
Horizontal Alignment
Design Speed 50 m..p.h. 25 m.p.h.20 m.p.h. (min)
Minimum Radius desirable 243.8 m (800 ft) 45.7 m (150 ft)absolute - 27.4 m (90 ft)
Maximum Rate ofSuperelevation 6.04 8.0%
Minimum Length ofTransition Spiral As required to develop superelevation
transition. The starting point ofsuperelevation transition and startingpoint of spiral (T.S.) are the same.
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ROADS RAMPS
Vertical Alignment
Maximum Grade desirable 4% 5%absolute 5% 8%
Minimum Grade desirable 0.5% 0.5%absolute 0.35% 0.35%
Minimum StoppingSight Distance 137.2 m (450 ft) 48.8 m (160 ft)
for 25 m.p.h.
36.6 m (120 ft)for 20 m.p.h.
Minimum Length ofVertical Curves 25 m.p.h. 20
m.p.h.
crest K=100 K=18 K=10sag K=75 K=24 K=16
Maximum RelativeGrade betweenEdges of Pave-ment in Devel-opment of Super-elevation 1% 1%
Vertical Clearancefor Structures 4.75 m (15.58 ft)
0
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SCHEDULE 3
Amortization Schedule
Payment of PrincipalDate Payment Due (expressed in dollars)*
June 1, 1981 260,000December 1, 1981 270,000June 1, 1982 280,000December 1, 1982 290,000June 1, 1983 305,000December 1, 1983 320,000June 1, 1984 330,000December 1, 1984 345,000June 1, 1985 360,000December 1, 1985 375,000June 1, 1986 390,000December 1, 1986 410,000June 1, 1987 425,000December 1, 1987 445,000June 1, 1988 460,000December 1, 1988 480,000June 1, 1989 500,000December 1, 1989 525,000June 1, 1990 545,000December 1, 1990 570,000June 1, 1991 595,000December 1, 1991 620,000June 1, 1992 645,000December 1, 1992 670,000June 1, 1993 700,000December 1, 1993 730,000June 1, 1994 760,000December 1, 1994 795,000June 1, 1995 825,000December 1, 1995 860,000
* To the extent that any portion of the Loan is repayable in acurrency other than dollars (see General Conditions, Section4.02), the figures in this column represent dollar equivalentsdetermined as for purposes of withdrawal.
-29-
Payment of PrincipalDate Payment Due (expressed in dollars)*
June 1, 1996 900,000December 1, 1996 935,000June 1, 1997 975,000December 1, 1997 1,020,000June 1, 1998 1,060,000December 1, 1998 1,105,000June 1, 1999 1,155,000December 1, 1999 1,205,000June 1, 2000 1,255,000December 1, 2000 1,305,000
* To the extent that any portion of the Loan is repayable in acurrency other than dollars (see General Conditions, Section4.02), the figures in this column represent dollar equivalentsdetermined as for purposes of withdrawal.
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Premiums on Prepayment
The following percentages are specified as the premiums pay-
able on repayment in advance of maturity of any portion of the
principal amount of the Loan pursuant to Section 3.05(b) of the
General Conditions:
Time of Prepayment Premium
Not more than three yearsbefore maturity 1%
More than three years butnot more than six yearsbefore maturity 2-1/4%
More than six years but notmore than eleven yearsbefore maturity 4%
More than eleven years but notmore than sixteen yearsbefore maturity 5-1/2%
More than sixteen years but notmore than twenty-one yearsbefore maturity 7-1/4%
More than twenty-one years butnot more than twenty-threeyears before maturity 8%
More than twenty-three yearsbefore maturity 8-1/2%
-31 -
SCHEDULE 4
Procurement
A. International Competitive Bidding
1. Except as provided in Part B hereof, goods, works and services
shall be procured under contracts to be awarded in accordance with
procedures consistent with those set forth in Part A of the "Guide-
lines for Procurement under World Bank Loans and IDA Credits" pub-
lished by the Bank in August 1975 (hereinafter called the Guidelines),
on the basis of international competitive biddiag.
2. Bidders for the works included in Part B(i), (ii) and (iii)
* of the Project shall be prequalified as described in paragraph 1.3
of Part A of the Guidelines.
B. Other Procurement Procedures
Civil works contracts for Part B(iii) and (iv) of the Project
shall be awarded in accordance with such local procedures of the
Borrower as are acceptable to the Bank.
C. Evaluation and Comparison of Bids for Goods; Preference forDomestic Manufacturers
1. For the purpose of evaluation and comparison of bids for the
supply of goods: (i) bidders shall be required to state in their
bid the c.i.f. (port of entry) price for imported goods, or the
ex-factory price for domestically-manufactured goods; (ii) customs
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duties and other import taxes on imported goods, and sales and
similar taxes on domestically-supplied goods, shall be excluded;
and (iii) the cost to the Borrower of inland freight and other
expenditures incidental to the delivery of goods to the place
of their use or installation shall be included.
2. Goods manufacturad in Malaysia may be granted a margin of
preference in accordance with, and subject to, the following
provisions:
(a) All biddin,7 documents for the procurement of goods shall
clearly indicate any preference which will be granted, the informa-
tion required to establish the eligibility of a bid for such pref-
erence and the following methods and stages that will be followed
in the evaluation and comparison of bids.
(b) After evaluation, responsive bids will be classified
in one of the following three groups:
(1) Group A: bids offering goods manufactured in Malaysia
if the bidder shall have established to the satisfac-
tion of the Borrower and the Bank that the manufac-
turing cost of such goods includes a value added
in Malaysia equal to at least 20% of the ex-factory
bid price of such goods.
(2) Group B: all other bids offering goods manufactured
in Malaysia.
(3) Group C: bids offering any other goods.
- 33 -
(c) All evaluated bids in each group shall be first compared
among themselves, excluding any customs duties and other import
taxes on goods to be imported and any sales or similar taxes on
goods to be supplied domestically, to determine the lowest evalu-
ated bid of each group. Such lowest evaluated bids shall then be
compared with each other, and if, as a result of this comparison,
a bid from group A or group B is the lowest, it shall be selected
for the award.
(d) If, as a result of the comparison under paragraph (c)
above, the lowest bid is a bid from group C, all group C bids
shall be further compared with the lowest evaluated bid from
group A after adding to the c.i.f. bid price of the imported goods
offered in each group C bid, for the purpose of this further com-
parison only, an amount equal to (i) the amount of customs duties
and other import taxes which a non-exempt importer would have to
pay for the importation of the goods offered in such group C bid,
or (ii) 15% of the c.i.f. bid price of such goods if said customs
duties and taxes exceed 15% of such price. If the group A bid in
such further comparison is the lowest, it shall be selected for
the award; if not, the bid from group C which as a result of the
comparison under paragraph (c) is the lowest evaluated bid shall
be selected.
D. Review of Procurement Decisions by Bank
1. Review of prequalification. The Borrover shall, befure quali-
fication is invited, inform the Bank in detail of the procedure
to be followed and shall introduce such modifications in said
procedure as the Bank shall reasonably request. The list of
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prequalified bidders, together with a statement of their qualifi-
cations and of the reasons for the exclusion of any applicant for
prequalification shall be furnished by the Borrower to the Bank
for its comments before the applicants are notified, and the Bor-
rower shall make such additions to, deletions from, or modifications
in, the said list as the Bank shall reasonably request.
2. Review of invitation to bid and of proposed awards and final
contracts:
With respect to all contracts for civil works estimated to
cost the equivalent of $200,000 and equipment estimated to cost
the equivalent of $100,000 or more:
(a) Before bids are invited, the Borrower shall furnish to
the Bank, for its comments, the text of the invitations to bid
and the specifications and other bidding documents, together with
a description of the advertising procedures to be followed for
the bidding, and shall make such modifications in the said docu-
ments or procedures as the Bank shall reasonably request. Any
further modification to the bidding documents shall require the
Bank's concurrence before it is issued to the prospective bidders.
(b) After bids have been received and evaluated, the Borrower
shall, before a final decision on the award is made, inform the
Bank of the name of the bidder to which it intends to award the
contract and shall furnish to the Bank, in sufficient time for
its review, a detailed report, by the consultants referred to
in Section 3.02 of this Agreement, on the evaluation and comparison
of the bids received, together with the recommendations for award
-35 -
of the said consultants and such other information as the Bank
shall reasonably request. The Bank shall, if it determines that
the intended award would be inconsistent with the Guidelines or
this Schedule, promptly inform the Borrower and state the reasons
for such determination.
(c) The terms and conditions of the contract shall not, with-
out the Bank's concurrence, materially differ from those on which
bids were asked or prequalification invited.
(d) Two conformed copies of the contract shall be furnished
to the Bank promptly after its execution and prior to the submission
to the Bank of the first application for withdrawal of funds from
the Loan Account in respect of such contract.
3. With respect to each contract to be financed out of the pro-
ceeds of the Loan and not governed by the preceding paragraph,
the Borrower shall furnish to the Bank, promptly after its execution
and prior to the submission to the Bank of the first application
for withdrawal of funds from the Loan Account in respect of such
contract, two conformed copies of such contract, together with
the analysis of bids, recommendations for award and such other
information as the Bank shall reasonably request. The Bank shall,
if it determines that the award of the contract was not consistent
with the Guideline.s or this Schedule, promptly inform the Borrower
and state the reasons for such determination.
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SCHEDULE 5
Key Performance Indicators
1. TRANSPORT
Estimated Estimated TargetsIndicator Objective 1975 Value 1980 1985
A(i):
Modal split Modal shift of 38% bus/ 48/52 53/47non-bus/bus 10% (absolute) 62% non-bustravel in peak to bus travel byperiods 1980 and a fur-
ther shift of 5%by 1985
A(ii):
Average private 10% increase by Car: 1.9 2.1 2.2car and taxi oc- 1980 and a fur-cupancy in peak ther 5% increaseperiods (persons by 1985per vehicle) Taxi: 1.1 1.2 1.3
B(i):
Average bus pas- 20% increase by 6.6 mph 7.9 8.7senger trip speed 1980 and a fur-throughout the ther 10% increaseday by 1985
B(ii):
Bus failures to Reduce to less 30% 10% 7%clear queues than 10% by 1980in peak periods(% buses toofull to take ontravellerswaiting atbus stops)
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2. SITES AND SERVICES
Indicator Objective and Target
C:
Average cost of low in- Should be (i) M$5,500 or less (1975 prices)come plot and house for 1200 square foot plots in Phase 1; (ii)
M$4,000 or less (1975 prices) for 1200 squarefoot plots in Phase 2; and (iii) M$5,500(1975 prices) or less for 1800 square footplots in Phase 2.
D:
Monthly household income Should be M$300 or less for 90% of house-of purchasers of low in- holds purchasing 1200 square foot plotscome plots (excluding and M$400 or less for 90% of householdsdisplaced squatters) purchasing 1800 square foot plots (1975 prices)
Number of employees Should through 1980 on the average increaseof businesses who have more rapidly than experienced on the previouspurchased and occupied sites over the past four years.plots
F:
Average household The income distribution within theincome community should not deteriorate,
and the average income should increase,relative to the Federal Territory average.