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(j)    Ensure that the Project Coordination Unit (PCU) functions according to terms of reference acceptable to IDA and not recruit any key Staff of the PCU without the prior consent of IDA (para. 3.53);

(k)    Budget and deposit in an account in a commercial bank in Ouagadougou by January 1, 1996 an initial amount of US$100,000 to meet expenditures under the project. The remaining amount of the Government's counterpart contribution would be deposited, ąuarterly in advance, according to a Schedule of payments agreed upon between the Borrower and the Association (para. 3.55);

G) Based on the results of the mid-term review (March 1997), prepare and implement an action plan, acceptable to IDA, for forther implementation of the project; and within six months of the Credit closing datę, transmit a completion report, prepared in accordance with terms of reference acceptable to IDA (para. 4.3);

(m) Submit to IDA annual audit reports, of reasonable scope and detail, within six months of the end of each fiscal year, and, in the case of SOEs, submit semi-aimual reports within three months after the end of each audit period (para. 4.13).

6.3 As a condition of Board presentation. the Govemment has adopted the approved letter of sector development policy and an accompanying action plan, including annual quantitative targets for the 1995-2000 period (para. 2.33).

6.4 As a condition of credit effectiyeness. the Goverament would: (i) sign the Covemment-UNICEF Agreement regarding components to promote Staff development, decentralize the health system, and reduce micronutrient deficiencies (paras. 3.19, 3.22, and 3.35); GO sign the contract with Faso Baara for the management of civil works financed under the project (para. 3.53); (iii) ensure that the PCU is folly operational, with the Director and two professional Staff in their posts (para. 3.53); 0v) recruit a ąualified accounting company, acceptable to IDA, experienced in working according to intemational accounting standards (para. 3.53); and (v) appoint an independent auditor under a multi-year contract, with terms of reference, acceptable to IDA (para. 4.13).

6.5 Recommendation. Subject to the above terms and conditions, the proposed project would be suitable for an IDA credit of US$29.2 million equivalent on standard IDA terms.