W-1812.GEFGrant.NEG.doc ; mary
Legal Department
DRAFT
(Subject to Change)
E. Gudmundsdottir/I. Kichigina
October 16, 2001
GEF TRUST FUND GRANT NUMBER _________-RO
Global Environment Facility
Trust Fund Grant Agreement
(Agricultural Pollution Control Project)
between
ROMANIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
Dated , 2001
GEF TRUST FUND GRANT NUMBER__________-RO
GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT AGREEMENT
AGREEMENT, dated , 2001, between ROMANIA (the
Recipient) and INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT (the Bank) acting as an implementing agency of the Global
Environment Facility (GEF) in respect of grant funds provided to the GEF Trust Fund by
certain members of the Bank as participants of the GEF.
WHEREAS (A) the Bank, pursuant to Resolution No. 91-5 of March 14, 1991 of
the Executive Directors of the Bank, established the GEF to assist in the protection of the
global environment and promote thereby environmentally sound and sustainable
economic development;
(B)
following the restructuring of the GEF, such arrangements continued in
place on the basis set forth in Resolution No. 94-2 of May 24, 1994, of the Executive
Directors of the Bank which, inter alia, established the GEF Trust Fund and appointed the
Bank as trustee of the GEF Trust Fund (Resolution No. 94-2);
(C)
the second replenishment of the GEF Trust Fund was approved on the
basis set forth in Resolution No. 98-2 of July 14, 1998, of the Executive Directors of the
Bank (Resolution No. 98-2);
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(D)
the Recipient, having satisfied itself as to the feasibility and priority of
the project described in Schedule 2 to this Agreement (the Project), has requested
assistance from the resources of the GEF Trust Fund for funding the Project, and said
request having been approved in accordance with the provisions of the Instrument for the
Establishment of the Restructured Global Environment Facility approved under
Resolution 94-2, and to be funded from contributions to the GEF Trust Fund under
Resolution No. 98-2, which may include funds carried over from the first replenishment
of the GEF Trust Fund under Resolution No. 94-2; and
WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to
extend the GEF Trust Fund Grant to the Recipient upon the terms and conditions set forth
in this Agreement;
NOW THEREFORE, the parties hereto hereby agree as follows:
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ARTICLE I
General Conditions; Definitions
Section 1.01 (a) The following provisions of the General Conditions Applicable
to Loan and Guarantee Agreements for Currency Pool Loans of the Bank, dated
January 1, 1985 (as amended through October 6, 1999), with the modifications set forth
in paragraph (b) of this Section (the General Conditions) constitute an integral part of this
Agreement:
(i) Article
I;
(ii)
Sections 2.01 (1), (2), (3), (4), (6), (8), (9), (10), (11), (15), (18)
and (20), 2.02 and 2.03;
(iii) Section
3.01;
(iv)
Section 4.01 and the first sentence of Section 4.09;
(v) Article
V;
(vi)
Sections 6.01, 6.02 (a), (c), (d), (e), (f), (i), (k), (l), (m), (n), (o),
and (p), 6.03, 6.04 and 6.06;
(vii)
Section 8.01 (b);
(viii) Sections 9.01 (a) and (c), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09;
(ix)
Sections 10.01, 10.03 and 10.04; and
(x)
Article XI; and
(xi)
Sections 12.01 (c), 12.03 and 12.04.
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(b)
The General Conditions shall be modified as follows:
(i)
a new paragraph shall be added to the end of Section 2.01 to read
as follows: "the term "Special Drawing Rights" and the symbol
"SDR" mean special drawing rights as valued by the
International Monetary Fund in accordance with its Articles of
Agreement";
(ii)
the term "Bank", wherever used in the General Conditions, other
than in Sections 2.01 (8) and 6.02 (f) thereof and the last use of
such term in Section 5.01 thereof, means the Bank acting as an
implementing agency of the GEF, except that in Section 6.02,
the term "Bank" shall also include the Bank acting in its own
capacity;
(iii)
the term "Borrower", wherever used in the General Conditions,
means the Recipient;
(iv)
the term "Loan Agreement", wherever used in the General
Conditions, means this Agreement;
(v)
the term "Loan" and "loan", wherever used in the General
Conditions, means the GEF Trust Fund Grant;
(vi) the term "Loan Account", wherever used in the General
Conditions, means the GEF Trust Fund Grant Account; and
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(vii)
a new subparagraph is added after subparagraph
(j) in
Section
6.02 of the General Conditions, as follows: "an
extraordinary situation shall have arisen in which any further
disbursement under the GEF Trust Fund Grant would exceed the
resources available for disbursement from the GEF."
Section 1.02. Wherever used in this Agreement, unless the context otherwise
requires, the several terms defined in the General Conditions and in the Recitals to this
Agreement have the respective meanings therein set forth; and the term and the following
additional terms have the following meanings:
(a)
"Beneficiary" means an individual, community group or community,
entity or association, eligible for a Sub-grant (hereinafter defined) in accordance with the
eligibility criteria specified in the Sub-grant Guidelines (hereinafter defined), and for
whose benefit a Sub-grant is provided or proposed to be provided;
(b)
"DGAIA" means the Directorate General for Agriculture and Food
Industry of the Calarasi Judet, established on January 4, 2001, through Government
Decision No. 12/2001;
(c)
"Eligible Categories" means categories (1) through (5); set forth in the
table in Part A.1 of Schedule 1 to this Agreement.
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(d) "Eligible
Expenditures"
means
the expenditures for goods, works,
services, Sub-grants and operating costs referred to in Section 2.02 of this Agreement.
(e)
"Environmental Management Plan" means the plan, satisfactory to the
Bank, prepared an adopted by the Recipient, describing the environmental mitigation,
monitoring, and institutional measures under the Project;
(f)
"EPI" means the Environmental Protection Inspectorate of the Calarasi
Judet established on January 4, 2001, through Government Decision No. 17/2001;
(g)
"IAPSO" means the Inter-Agency Procurement Services Office of the
United Nations Development Programme (UNDP);
(h)
"MAFF" means the Recipient's Ministry of Agriculture, Food and
Forests;
(i)
"MWEP" means the Recipient's Ministry of Waters and Environmental
Protection;
(j)
"NAEP" means the National Authority for Ecological Products of the
Recipient, established on April 17, 2000, through Government Ordinance No. 34/2000;
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(k)
"OCGC" means the Office of Cadastre, Geodezy and Cartography of the
Calarasi Judet, established on May 17, 2001 through Government Ordinance No.
70/2001;
(l)
"Operational Manual" means the manual adopted by the Borrower,
referred to in Section 5.01(a) of this Agreement, setting forth the procedures for the
implementation of the Project, including the Sub-grant Guidelines;
(m)
"OJCAC" means the Office of Judet Agricultural Consultancy of the
Calarasi Judet, established on September 30, 1998, through Government Decision No.
676/1998;
(n)
"OJSPA" means the Office of Judet Soils Unit of the Calarasi Judet,
established on May 5, 1990, through Government Decision No. 477/1990;
(p)
"PHD" means the Public Health Directorate of the Calarasi Judet,
established through Minister Order No. 954/1998, issued by the Minister of Health on
December 8, 1998;
(o)
"PMU" means the Project Management Unit to be established by the
MWEP as referred to in Section 6.01(a) of this Grant Agreement, or any legal successor
thereto;
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(q)
"Project Coordination Committee" means the committee established
pursuant to a Protocol signed in Calarasi, dated November 15, 2000;
(r)
"Project Management Report" means each report prepared in accordance
with Section 4.02 of this Agreement;
(s)
"Project Steering Committee" means the committee established pursuant
to Minister Order No. 670/2001, issued by the Minister of Waters and Environmental
Protection on July 20, 2001, and endorsed by the Minister of Public Finance, the Minister
of Agriculture, Food and Forestry and the Minister of Public Administration;
(t)
"Special Account" means the account referred to in Part B of Schedule 1
to this Agreement;
(u)
"Sub-grant" means a grant made or proposed to be made by the
Recipient, through MWEP, out of the proceeds of the GEF Trust Fund Grant to a
Beneficiary for the financing of a Sub-project;
(v)
"Sub-grant Agreement" means an agreement between the Recipient and a
Beneficiary, and referred to in paragraph 6(f) of Schedule 4 to this Agreement;
(x)
"Sub-grant Guidelines" means the guidelines referred to in paragraph 4
of Schedule 4 to this Agreement, and to be included in the Operational Manual, as such
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Sub-grant Guidelines may be amended from time to time with the agreement of the Bank;
and
(y)
"Sub-project" means an activity referred to under Part A(1)(a) of the
Project, and in respect of which a Sub-grant is provided, or proposed to be provided, for
the benefit of the Beneficiary.
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ARTICLE II
The GEF Trust Fund Grant
Section 2.01. The Bank agrees to make available to the Recipient, on the terms
and conditions set forth or referred to in this Agreement, the GEF Trust Fund Grant in an
amount in various currencies equivalent to four million Special Drawing Rights (SDR
4,000,000).
Section 2.02. The amount of the GEF Trust Fund Grant may be withdrawn from
the GEF Trust Fund Grant Account in accordance with the provisions of Schedule 1 to
this Agreement for: (i) amounts paid (or, if the Bank shall so agree, to be paid) by the
Recipient on account of Sub-grants made under Part A(1)(a) of the Project to meet the
reasonable cost of goods, works and services required for the Sub-project in respect of
which the withdrawal from the GEF Trust Fund account is requested; and (ii)
expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable
cost of goods, works, services and operating costs required for carrying out the Project,
other than Part A(1)(a), and to be financed out of the proceeds of the GEF Trust Fund
Grant.
Section 2.03. The Closing Date shall be June 30, 2007, or such later date as the
Bank shall establish. The Bank shall promptly notify the Recipient of such later date.
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ARTICLE III
Execution of the Project
Section 3.01. (a) The Recipient declares its commitment to the objectives of the
Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the
Project with due diligence and efficiency and in conformity with appropriate
agricultural, administrative, financial and technical practices and with due regard to
ecological and environmental factors, and shall provide, promptly as needed, the funds,
facilities, services and other resources required for the Project.
(b)
Without limitation upon the provisions of paragraph (a) of this Section
and except as the Recipient and the Bank shall otherwise agree, the Recipient shall carry
out the Project in accordance with the Implementation Program set forth in Schedule 4 to
this Agreement.
Section 3.02. For the purposes of Part A(1)(a) of the Project, the Recipient shall
allocate an amount of the GEF Trust Fund Grant not exceeding such amount as may be
allocated from time to time to Category (4) of the table in paragraph A.1 of Schedule 1 to
this Agreement, to provide Sub-grants to finance Sub-projects, on the terms and
conditions acceptable to the Bank, including, inter alia, those conditions specified in
paragraph 6 of Schedule 4 to this Agreement.
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Section 3.03. Except as the Bank shall otherwise agree, procurement of the
goods, works and consultants' services required for the Project and to be financed out of
the proceeds of the GEF Trust Fund Grant shall be governed by the provisions of
Schedule 3 to this Agreement.
Section 3.04. For the purposes of Section 9.08 of the General Conditions and
without limitation thereto, the Recipient shall:
(a)
prepare, on the basis of guidelines acceptable to the Bank, and furnish to
the Bank not later than six months after the Closing Date or such later date as may be
agreed for this purpose between the Recipient and the Bank, a plan for the future
operation of the Project; and
(b)
afford the Bank a reasonable opportunity to exchange views with the
Recipient on said plan.
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ARTICLE IV
Financial Conditions
Section 4.01. (a) The Recipient shall maintain or cause to be maintained a
financial management system, including records and accounts, and prepare financial
statements in a format acceptable to the Bank, adequate to reflect the operations,
resources and expenditures in respect of the Project and each Sub-project (including its
cost and the benefits to be derived from it).
(b)
The Recipient shall:
(i)
have the records, accounts and financial statements referred to in
paragraph (a) of this Section, and the records and accounts for
the Special Account for each fiscal year audited, in accordance
with auditing standards acceptable to the Bank, consistently
applied, by independent auditors acceptable to the Bank;
(ii)
furnish to the Bank as soon as available, but in any case not later
than six months after the end of each such year, (A) certified
copies of the financial statements referred to in paragraph (a) of
this Section for such year as so audited, and (B) an opinion on
such statements, records and accounts and the report of such
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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 such
records and accounts and the audit thereof as the Bank shall from
time to time reasonably request.
(c)
For all expenditures with respect to which withdrawals from the GEF
Trust Fund Grant Account were made on the basis of Project Management Reports or
statements of expenditure, the Recipient shall:
(i)
maintain or cause to be maintained, in accordance with
paragraph (a) of this Section, records and accounts reflecting
such expenditures;
(ii)
retain, until at least one year after the Bank has received the
audit report for the fiscal year in which the last withdrawal from
the GEF Trust Fund Grant Account was made, all records
(contracts, orders, invoices, bills, receipts and other documents)
evidencing such expenditures;
(iii)
enable the Bank's representatives to examine such records; and
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(iv)
ensure that such records and accounts are included in the annual
audit referred to in paragraph (b) of this Section and that the
report of such audit contains a separate opinion by said auditors
as to whether the Project Management Reports or the statements
of expenditure submitted during such fiscal year, together with
the procedures and internal controls involved in their
preparation, can be relied upon to support the related
withdrawals.
Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this
Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank
for the strengthening of the financial management system referred to in paragraph (a) of
said Section 4.01 in order to enable the Recipient, not later than May 15, 2002, or such
later date as the Bank shall agree, to prepare quarterly Project Management Reports,
acceptable to the Bank, each of which:
(i)
(A) sets forth actual sources and applications of funds for the Project,
both cumulatively and for the period covered by said report, and projected sources and
applications of funds for the Project for the six-month period following the period
covered by said report, and (B) shows separately expenditures financed out of the
proceeds of the Grant during the period covered by said report and expenditures proposed
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to be financed out of the proceeds of the Grant during the six-month period following the
period covered by said report;
(ii)
(A) describes physical progress in Project implementation, including
output by Project activity, both cumulatively and for the period covered by said report,
and (B) explains variances between the actual and previously forecast implementation
targets; and
(iii)
sets forth the status of procurement under the Project and expenditures
under contracts financed out of the proceeds of the Grant, as at the end of the period
covered by said report.
(b) Upon the completion of the action plan referred to in paragraph (a) of this
Section, the Recipient shall prepare, in accordance with guidelines acceptable to the
Bank, and furnish to the Bank not later than 45 days after the end of each calendar
quarter, a Project Management Report for such period.
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ARTICLE V
Remedies of the Bank
Section 5.01. Pursuant to Section 6.02 (p) of the General Conditions, the
following additional event is specified, namely, that the Operational Manual, including
the Sub-grant Guidelines, shall have been amended, suspended, abrogated, repealed or
waived without prior approval of the Bank.
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ARTICLE VI
Effectiveness; Termination
Section
6.01. The following events are specified as conditions to the
effectiveness of the GEF Trust Fund Grant within the meaning of Section 12.01 (c) of the
General Conditions:
(a) the PMU has been established, in accordance with the law of the Recipient,
and appropriate staff selected, in a manner satisfactory to the Bank; and
(b) the Recipient has selected the auditors referred to in Section 4.01(b)(i) of this
Agreement, with experience, qualifications and terms of reference
satisfactory to the Bank.
Section 6.02. The date one hundred and twenty (120) days after the date of this
Agreement is hereby specified for the purposes of Section 12.04 of the General
Conditions.
Section 6.03. This Agreement shall continue in effect until the GEF Trust Fund
Grant has been fully disbursed and the parties to this Agreement have fulfilled their
obligations hereunder.
ARTICLE VII
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Representative of the Recipient; Addresses
Section 7.01. The Minister of Public Finance of the Recipient is designated as
representative of the Recipient 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 Recipient:
Ministry Public Finance
17, Apolodor Street
Bucharest
Romania
Telex: Facsimile:
11239
401 312 6792
For the Bank:
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INTBAFRAD 248423
(MCI)
Washington, D.C.
64145 (MCI)
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IN WITNESS WHEREOF, the parties hereto, acting through their duly
authorized representatives, have caused this Agreement to be signed in their respective
names in ________________________, as of the day and year first above written.
ROMANIA
By
Authorized Representative
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
as an implementing agency of the Global Environment Facility
By
Authorized Representative
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SCHEDULE 1
Withdrawal of the Proceeds of the GEF Trust Fund Grant
A.
General
1.
The table below sets forth the Categories of items to be financed out of the
proceeds of the GEF Trust Fund Grant, the allocation of the amounts of the GEF Trust
Fund Grant to each Category and the percentage of expenditures for items so to be
financed in each Category:
Amount of the
GEF Trust Fund Grant Allocated
% of
(Expressed
in
Expenditures
Category
SDR Equivalent)
to be Financed
(1) Works
(a) under Part A.(1)(d)(i)
of the Project
690,000
67%
(b) under Part A(1)(d)(ii)
100,000
17%
(c) under Parts A(2) and
A(3) of the Project
60,000
84%
(2) Goods
964,340
100% of foreign
expenditures
100% of local
expenditures
(ex-factory cost)
and 84% of local
expenditures
for other items
procured
locally
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Amount of the
GEF Trust Fund Grant Allocated
% of
(Expressed
in
Expenditures
Category
SDR Equivalent)
to be Financed
(3) Consultants'
832,170
100%
services and training,
including auditing services
(4) Sub-grants under Part A(1)(a)
748,840
80%
of the Project
(5) Operating Costs
209,300
85% until
December 31, 2003;
80%
until
December 31, 2004;
and 70% thereafter
(6) Unallocated
395,350
___________
TOTAL
4,000,000
===========
2.
For the purposes of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of
any country other than that of the Recipient for goods or services supplied from the
territory of any country other than that of the Recipient;
(b)
the term "local expenditures" means expenditures in the currency of the
Recipient or for goods or services supplied from the territory of the Recipient;
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(c)
the term "operating costs" means recurrent expenditures incurred by the
PMU to manage and coordinate Project activities, including travel to Project sites, per
diem expenses, fuel, vehicle maintenance, translations, communications cost, utilities,
office refurbishment, office supplies and salaries of the PMU staff (other than
government employees) in accordance with a salary scale agreed upon with the Bank.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be
made in respect of payments made for expenditures prior to the date of this Agreement.
4.
The Bank may require withdrawals from the GEF Trust Fund Grant Account to
be made on the basis of statements of expenditure for expenditures for: (a) goods under
contracts costing less than $100,000 equivalent; (b) works under contracts costing less
than $50,000 equivalent; (c) services provided by individual consultants under contracts
costing less than $25,000 equivalent; (d) training under contracts costing less than
$25,000 equivalent; (e) sub-grants under Part A(1)(a) of the Project; and (f) operating
costs, all under such terms and conditions as the Bank shall specify by notice to the
Recipient.
5.
If the Bank shall have determined at any time that any payment made from the
GEF Trust Fund Grant Account was used for any expenditure not consistent with the
provisions of this Agreement, the Recipient shall, promptly upon notice from the Bank,
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refund to the Bank for deposit into the GEF Trust Fund Grant Account, an amount equal
to the amount so used or the portion thereof as specified by the Bank.
B.
Special Account
1.
The Recipient shall open and maintain in Dollars a special deposit account in a
commercial bank, on terms and conditions satisfactory to the Bank, including appropriate
protection against set-off, seizure and attachment.
2.
After the Bank has received evidence satisfactory to it that the Special Account
has been opened, withdrawals from the GEF Trust Fund Account of amounts to be
deposited into the Special Account shall be made as follows:
(a)
until the Bank shall have received (i) the first Project Management
Report referred to in Section 4.02(b) of this Agreement and (ii) a request from the
Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall
be made in accordance with the provisions of Annex A to this Schedule 1; and
(b)
upon receipt by the Bank of a Project Management Report pursuant to
Section 4.02(b) of this Agreement, accompanied by a request from the Recipient for
withdrawal on the basis of Project Management Reports, all further withdrawals shall be
made in accordance with the provisions of Annex B to this Schedule 1.
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3.
Payments out of the Special Account shall be made exclusively for Eligible
Expenditures. For each payment made by the Recipient out of the Special Account, the
Recipient shall, at such time as the Bank shall reasonably request, furnish to the Bank
such documents and other evidence showing that such payment was made exclusively for
Eligible Expenditures.
4.
Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not
be required to make further deposits into the Special Account:
(a)
if the Bank determines at any time that any Project Management Report
does not adequately provide the information required pursuant to Section 4.02 of this
Agreement;
(b)
if the Bank determines at any time that all further withdrawals should be
made by the Recipient directly from the GEF Trust Fund Account; or
(c)
if the Recipient shall have failed to furnish to the Bank within the period
of time specified in Section 4.01(b)(ii) of this Agreement, any of the audit reports
required to be furnished to the Bank pursuant to said Section in respect of the audit of (A)
the records and accounts for the Special Account or (B) the records and accounts
reflecting expenditures with respect to which withdrawals were made on the basis of
Project Management Reports.
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5.
The Bank shall not be required to make further deposits into the Special Account
in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank
shall have notified the Recipient of its intention to suspend in whole or in part the right of
the Recipient to make withdrawals from the GEF Trust Fund Account pursuant to Section
6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its
sole discretion, whether further deposits into the Special Account may be made and what
procedures should be followed for making such deposits, and shall notify the Recipient of
its determination.
6.
(a)
If the Bank determines at any time that any payment out of the Special
Account was made for an expenditure which is not an Eligible Expenditure, or was not
justified by the evidence furnished to the Bank, the Recipient shall, promptly upon notice
from the Bank, provide such additional evidence as the Bank may request, or deposit into
the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal
to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit
by the Bank into the Special Account shall be made until the Recipient has provided such
evidence or made such deposit or refund, as the case may be.
(b)
If the Bank determines at any time that any amount outstanding in the
Special Account will not be required to cover payments for Eligible Expenditures during
the six-month period following such determination, the Recipient shall, promptly upon
notice from the Bank, refund to the Bank such outstanding amount.
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(c)
The Recipient may, upon notice to the Bank, refund to the Bank all or
any portion of the funds on deposit in the Special Account.
(d)
Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of
this paragraph 6 shall be credited to the GEF Trust Fund Account for subsequent
withdrawal or for cancellation in accordance with the provisions of this Agreement.
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Annex A
to
SCHEDULE 1
Operation of Special Account
When Withdrawals Are Not Made
On the Basis of Project Management Reports
1.
For the purposes of this Annex:
the term "Authorized Allocation" means an amount equivalent to $500,000 to be
withdrawn from the GEF Trust Fund Account and deposited into the Special Account
pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall
otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to
$300,000 until the aggregate amount of withdrawals from the GEF Trust Fund Account,
plus the total amount of all outstanding special commitments entered into by the Bank
pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of
SDR 1,000,000.
2.
Withdrawals of Special Account's Authorized Allocation and subsequent
withdrawals to replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Special Account's Authorized Allocation, the
Recipient shall furnish to the Bank a request or requests for deposit into the Special
Account of an amount or amounts which in the aggregate do not exceed the Authorized
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Allocation. On the basis of each such request, the Bank shall, on behalf of the Recipient,
withdraw from the GEF Trust Fund Account and deposit into the Special Account such
amount as the Recipient shall have requested.
(b)
For replenishment of the Special Account, the Recipient shall furnish to
the Bank requests for deposit into the Special Account at such intervals as the Bank shall
specify. Prior to or at the time of each such request, the Recipient shall furnish to the
Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to
this Agreement for the payment or payments in respect of which replenishment is
requested. On the basis of each such request, the Bank shall, on behalf of the Recipient,
withdraw from the GEF Trust Fund Account and deposit into the Special Account such
amount as the Recipient shall have requested and as shall have been shown by said
documents and other evidence to have been paid out of the Special Account for Eligible
Expenditures. Each such deposit into the Special Account shall be withdrawn by the
Bank from the GEF Trust Fund Account under one or more of the Eligible Categories.
3.
The Bank shall not be required to make further deposits into the Special Account,
once the total unwithdrawn amount of the Grant minus the total amount of all outstanding
special commitments entered into by the Bank pursuant to Section 5.02 of the General
Conditions, shall equal the equivalent of twice the amount of the Authorized Allocation.
Thereafter, withdrawal from the GEF Trust Fund Account of the remaining unwithdrawn
amount of the Grant shall follow such procedures as the Bank shall specify by notice to
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the Recipient. Such further withdrawals shall be made only after and to the extent that
the Bank shall have been satisfied that all such amounts remaining on deposit in the
Special Account as of the date of such notice will be utilized in making payments for
Eligible Expenditures.
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Annex B
to
SCHEDULE 1
Operation of Special Account
When Withdrawals Are Made
On the Basis of Project Management Reports
1.
Except as the Bank may otherwise specify by notice to the Recipient, all
withdrawals from the GEF Trust Fund Account shall be deposited by the Bank into the
Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each
such deposit into the Special Account shall be withdrawn by the Bank from the GEF
Trust Fund Account under one or more of the Eligible Categories.
2.
Each application for withdrawal from the GEF Trust Fund Account for deposit
into the Special Account shall be supported by a Project Management Report.
3.
Upon receipt of each application for withdrawal of an amount of the Grant, the
Bank shall, on behalf of the Recipient, withdraw from the GEF Trust Fund Account and
deposit into the Special Account an amount equal to the lesser of: (a) the amount so
requested; and (b) the amount which the Bank has determined, based on the Project
Management Report accompanying said application, is required to be deposited in order
to finance Eligible Expenditures during the six-month period following the date of such
report; provided, however, that the amount so deposited, when added to the amount
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indicated by said Project Management Report to be remaining in the Special Account,
shall not exceed the equivalent of $500,000.
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SCHEDULE 2
Description of the Project
The objective of the Project is to increase the use of agricultural practices that
benefit the environment and lead to reduced nutrient discharge from agricultural sources
in Romania to the Danube River and the Black Sea.
The Project consists of the following parts, subject to such modifications thereof
as the Recipient and the Bank may agree upon from time to time to achieve such
objectives.
Part A: Activities in the Calarasi Judet:
(1) (a) Provision of Sub-grants to Beneficiaries to support: (i) the purchasing
and installment manure storage facilities and equipment, at the household
level, for manure collection and application; and (ii) the performance of pilot
organic farming, the adoption of agricultural practices that would maintain or
increase profitability from crop production while reducing non-point source
pollution.
(b) Promotion of improved agricultural practices through field-testing and
carrying out demonstration programs of integrated crop and nutrient
management.
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(c) Training of Beneficiaries on good practices for waste collection and manure
management.
(d) Installment of manure storage facilities and equipment for manure collection
and application for: (i) communas; and (ii) private farms.
(2) Supporting development of: (i) land-use management plan for the Boianu-
Sticleanu Polder; (ii) conservation management plan for the Iezer Calarasi
nature reserve; and (iii) ecological restoration of a part of the Calarasi Raul
Polder.
(3) Strengthening the capacity of relevant local and national institutions to
monitor the impact of the activities performed under the Project on water and
soil quality, through: (i) financing the selection and maintenance of
monitoring sites and development of baseline data of the current status of
surface and groundwater quality; (ii) training of field- and laboratory staff of
EPI and PHD; (iii) provision of funds to upgrade laboratory equipment of the
relevant local institutions to analyze water and soil samples from various
water quality indicators; and (iv) provision of funds to cover operating
expenses for field monitoring activities under the Project.
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Part B: Strengthening legal framework and implementation capacity at the
national level:
(1) Provision of services to: (i) assist the MWEP to prepare legislation on water
and soil protection which will meet the standards of the EU in this area; and (ii)
assist the MAFF to prepare legislation on improved agricultural practices to
benefit the environment.
(2) Provision of services to strengthen the capacity of the NAEP to promote
scientific organic farming and land use management.
Part C: Public Awareness and Replication Activities:
(1)
Carrying out of public awareness activities at the local, national and
regional level, including training, workshops and other mass media products, to introduce
the Project and its benefits and to promote replication of the activities under the Project in
other Black Sea riparian countries.
(2)
Strengthening the institutional capacity of DGAIA and EPI to deliver
public awareness activities.
Part D: Project Management and Implementation:
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Provision of consultants' services and goods and financing of operating costs to
assist the PMU in Project management and implementation.
* * *
The Project is expected to be completed by December 31, 2006.
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SCHEDULE 3
Procurement and Consultants' Services
Section I.
Procurement of Goods and Works
Part A: General
Goods and works shall be procured in accordance with the provisions of Section
I of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by
the Bank in January 1995 and revised in January and August 1996, September 1997 and
January 1999 (the Guidelines) and the following provisions of Section I of this Schedule.
Part B: International Competitive Bidding
1.
Except as otherwise provided in Part C of this Section, goods and works shall be
procured under contracts awarded in accordance with the provisions of Section II of the
Guidelines and paragraph 5 of Appendix 1 thereto.
2.
The following provisions shall apply to goods and works to be procured under
contracts awarded in accordance with the provisions of paragraph 1 of this Part B:
(a)
Grouping of contracts
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To the extent practicable, contracts for goods shall be grouped in bid packages
estimated to cost $100,000 equivalent or more each.
(b)
Preference for domestically manufactured goods
The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2
thereto shall apply to goods manufactured in the territory of the Recipient.
Part C: Other Procurement Procedures
1.
National Competitive Bidding
Works estimated to cost less than $1,000,000 equivalent per contract, up to an
aggregate amount not to exceed $2,312,400 equivalent, may be procured under contracts
awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.
2.
International Shopping
Goods estimated to cost less than $100,000 equivalent per contract, up to an
aggregate amount not to exceed $322,800 equivalent, may be procured under contracts
awarded on the basis of international shopping procedures in accordance with the
provisions of paragraphs 3.5 and 3.6 of the Guidelines.
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3.
National Shopping
Goods estimated to cost less than $50,000 equivalent per contract, up to an
aggregate amount not to exceed $550,800, may be procured under contracts awarded on
the basis of national shopping procedures in accordance with the provisions of
paragraphs 3.5 and 3.6 of the Guidelines.
4.
Procurement from UN Agencies
Goods to be procured in accordance with the provisions of Part C.2 of this
Section may be procured through IAPSO in accordance with the provisions of paragraph
3.9 of the Guidelines.
5.
Procurement of Small Works and Technical Services
Works and technical services estimated to cost less than $50,000 equivalent per
contract, up to an aggregate amount not to exceed $95,200 and $137,240 equivalent,
respectively, may be procured under lump-sum, fixed-price contracts awarded on the
basis of quotations obtained from three (3) qualified domestic contractors in response to a
written invitation. The invitation shall include a detailed description of the works,
including basic specifications, the required completion date, a basic form of agreement
acceptable to the Bank, and relevant drawings, where applicable. The award shall be
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made to the contractor who offers the lowest price quotation for the required work, and
who has the experience and resources to complete the contract successfully.
6.
Community Participation
Works required for construction of well-heads and household manure bunkers
under Part A(1)(a) of the Project, estimated to cost less than $1,000 equivalent per
contract, up to an aggregate amount not to exceed $864,600 equivalent, shall be procured
in accordance with the provisions of paragraph 3.15 of the Guidelines and in accordance
with procedures acceptable to the Bank and specified in the Operational Manual.
Part D: Additional Provisions Regarding the National Competitive Bidding Procedures
When procuring works in accordance to the procedure referred to in Section I,
C.1. of this Schedule, the following procedures shall be followed: (a) invitations to bid
shall be advertised in at least one national newspaper with a wide circulation, at least 30
days prior to the deadline for the submission of bids; (b) bid documents shall be made
available, by mail or in person, to all who are willing to pay the required fee; (c) foreign
bidders shall not be precluded from bidding and no preference of any kind shall be given
to national bidders in the bidding process; (d) bidding shall not be restricted to pre-
registered firms; (e) qualification criteria shall be stated in the bidding documents; (f)
bids shall be opened in public, immediately after the deadline for submission of bids; (g)
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bids shall not be rejected merely on the basis of a comparison with an official estimate
without the prior concurrence of the Bank; (h) before rejecting all bids and soliciting new
bids, the Bank's prior concurrence shall be obtained; (i) contracts shall be awarded to the
lowest evaluated bidders; and (j) post-bidding negotiations shall not be allowed with the
lowest evaluated or any other bidders.
Part E: Review by the Bank of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to prequalify for bidding or to bid for
contracts, the proposed procurement plan for the Project shall be furnished to the Bank
for its review and approval, in accordance with the provisions of paragraph 1 of
Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in
accordance with such procurement plan as shall have been approved by the Bank, and
with the provisions of said paragraph 1.
2.
Prior Review
(a)
With respect to: (i) each contract for goods and works procured in
accordance with the procedure referred to in Section I, Part B.1.of this Schedule; and (ii)
the first contract for works procured in accordance with the procedure referred to in
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Section I, C.1. of this Schedule; the procedures set forth in paragraphs 2 and 3 of
Appendix 1 to the Guidelines shall apply.
(b)
With respect to: (i) the first contract for goods procured in accordance
with the procedures referred to in Section I, C.2. and C.3. of this Schedule; and (ii) the
first contract for works procured in accordance with the procedures referred to in Section
I, C.5. of this Schedule, the following procedures shall apply:
(i)
prior to the selection of any supplier under shopping procedures, the
Recipient shall provide to the Bank a report on the comparison and
evaluation of quotations received;
(ii)
prior to the execution of any contract procured under shopping
procedures, the Recipient shall provide to the Bank a copy of the
specifications and the draft contract; and
(iii)
the procedures set forth in paragraphs 2(f), 2(g) and 3 of Appendix 1 to
the Guidelines shall apply.
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the
procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.
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Section II.
Employment of Consultants
Part A: General
Consultants' services shall be procured in accordance with the provisions of the
Introduction and Section IV of the "Guidelines: Selection and Employment of
Consultants by World Bank Recipients" published by the Bank in January 1997 and
revised in September 1997 and January 1999 (the Consultant Guidelines) and the
following provisions of Section II of this Schedule.
Part B: Quality- and Cost-based Selection
1.
Except as otherwise provided in Part C of this Section, consultants' services shall
be procured under contracts awarded in accordance with the provisions of Section II of
the Consultant Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 thereto, and
the provisions of paragraphs 3.13 through 3.18 thereof applicable to quality- and cost-
based selection of consultants.
2.
The following provisions shall apply to consultants' services to be procured
under contracts awarded in accordance with the provisions of the preceding paragraph.
The short list of consultants for services estimated to cost less than $200,000 equivalent
per contract, may comprise entirely national consultants in accordance with the
provisions of paragraph 2.7 of the Consultant Guidelines.
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Part C: Other Procedures for the Selection of Consultants
1.
Least-cost Selection
Services for audits and training in the field of biology and hydrology, estimated
to cost less than $200,000 equivalent per contract may be procured under contracts
awarded in accordance with the provisions of paragraphs 3.1 and 3.6 of the Consultant
Guidelines.
2.
Selection Based on Consultants' Qualifications
Services for estimated to cost less than $100,000 equivalent per contract may be
procured under contracts awarded in accordance with the provisions of paragraphs 3.1
and 3.7 of the Consultant Guidelines.
3.
Individual Consultants
Services for tasks that meet the requirements set forth in paragraph 5.1 of the
Consultant Guidelines shall be procured under contracts awarded to individual
consultants in accordance with the provisions of paragraphs 5.1 through 5.3 of the
Consultant Guidelines.
Part D: Review by the Bank of the Selection of Consultants
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1.
Selection Planning
Prior to the issuance to consultants of any requests for proposals, the proposed
plan for the selection of consultants under the Project shall be furnished to the Bank for
its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1
to the Consultant Guidelines. Selection of all consultants' services shall be undertaken in
accordance with such selection plan as shall have been approved by the Bank, and with
the provisions of said paragraph 1.
2.
Prior Review
(a)
With respect to each contract estimated to cost the equivalent of
$200,000 or more, the procedures set forth in paragraphs 1, 2 (other than the third
subparagraph of paragraph 2(a)) and 5 of Appendix 1 to the Consultant Guidelines shall
apply.
(b)
With respect to each contract for the employment of consulting firms
estimated to cost the equivalent of $100,000 or more, but less than the equivalent of
$200,000, the procedures set forth in paragraphs 1, 2 (other than the second subparagraph
of paragraph 2(a)) and 5 of Appendix 1 to the Consultant Guidelines shall apply.
(c)
With respect to each contract for the employment of individual
consultants estimated to cost the equivalent of $25,000 or more, the qualifications,
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experience, terms of reference and terms of employment of the consultants shall be
furnished to the Bank for its prior review and approval. The contract shall be awarded
only after said approval shall have been given.
3.
Post Review
With respect to each contract not governed by paragraph 1 of this Part, the
procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall
apply.
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SCHEDULE 4
Implementation Program
1.
The Recipient through MWEP shall:
(a)
maintain policies and procedures adequate to enable it to monitor and
evaluate on an ongoing basis, in accordance with indicators acceptable to the Bank, the
carrying out of the Project and the achievement of the objectives thereof;
(b)
prepare, through MWEP, under terms of reference satisfactory to the
Bank, and furnish to the Bank, on or about March 31, 2004, a report integrating the
results of the monitoring and evaluation activities performed pursuant to paragraph (a) of
this Section, on the progress achieved in the carrying out of the Project during the period
preceding the date of said report and setting out the measures recommended to ensure the
efficient carrying out of the Project and the achievement of the objectives thereof during
the period following such date; and
(c)
review with the Bank, by April 30, 2004, or such later date as the Bank
shall request, the report referred to in paragraph (b) of this Section, and, thereafter, take
all measures required to ensure the efficient completion of the Project and the
achievement of the objectives thereof, based on the conclusions and recommendations of
the said report and the Bank's views on the matter.
- 49 -
2.
The Recipient through MWEP shall:
(a) establish and maintain during the execution of the Project, the PMU, located
at DGAIA at Calarasi, with staff and resources as shall be required for the PMU to
perform its duties in respect of overall management and implementation of the Project in
accordance with the Operational Manual and satisfactory to the Bank;
(b) maintain during the execution of the Project the Project Steering Committee,
comprising of representatives from MWEP, MAFF, the Ministry of Public Finance and
the Ministry of Public Administration, which shall provide oversight and policy guidance
for overall implementation of the Project, and not amend its composition without the
prior agreement of the Bank; and
(c) maintain during the execution of the Project, the Project Coordination
Committee, comprising of the President of the Calarasi County Council, the Head of the
Calarasi County Local Administration, the Vice-President of the Calarasi County
Council, the Director General of DGAIA Calarasi, the Director of EPI Calarasi, the
Director of PHD Calarasi, the Director OCGC Calarasi, the Chief Architect of the
Calarasi County Council, the Director of OJCA Calarasi, Mayors of the Odobescu,
Ciocanesti, Cuza Voda, Gradistea, Independenta, Vilcelele and Vlad Tepes Communas,
one farmer who owns land in the project area and the Director of the PMU, and not
amend its composition without the prior agreement of the Bank, which shall provide
- 50 -
oversight and policy guidance as it applies specifically to the implementation of the
Project in the Calarasi Judet.
3.
The Recipient shall, through the MWEP, ensure that all measures necessary for
the carrying out of the Environmental Management Plan are taken in a timely manner.
4.
For the purposes of carrying out Part A(1)(a) of the Project, the Recipient has
adopted the Sub-grant Guidelines, satisfactory to the Bank, setting forth procedural
arrangements for the review, appraisal, supervision, and monitoring and evaluation, of
Sub-projects, including procedures for submission and review of requests for financing,
criteria for the review and approval of Sub-projects, and approval of Sub-grants,
applicable procurement, disbursement and other implementation guidelines, and model
forms of Sub-project Agreements and works contracts with local contractors.
5.
The Recipient shall not amend, suspend, abrogate, repeal or waive the
Operational Manual, including the Sub-grant Guidelines, without the Bank's prior
consent.
6.
Further to Section 3.02 of this Agreement, the use of the proceeds of the GEF
Trust Fund Grant allocated to Category (4) of the table in paragraph A.1 of Schedule 1 to
this Agreement shall be subject to the following additional terms and conditions:
- 51 -
(a)
the amount so allocated shall be used exclusively to provide Sub-grants
to finance Sub-projects in accordance with criteria and terms and conditions set forth in
the Sub-grant Guidelines;
(b)
no Sub-grant shall be granted except to finance a Sub-project which is to:
(i) purchase and install manure storage facilities and/or equipment for manure collection
and application; or (ii) perform pilot organic farming, adopting agricultural practices that
would maintain or increase profitability from crop production while reducing non-point
source pollution;
(c)
no Sub-project shall be considered for approval unless the Beneficiary
has provided a plan for the maintenance of any productive assets resulting from the Sub-
project, upon its completion, and for the payment of recurrent expenditures required
thereunder;
(d)
Sub-grants shall be provided for the benefit of eligible Beneficiaries, and
according to a cost-sharing formula, which may include in-kind contributions from the
Beneficiary and shall be acceptable to the Bank and specified in the Sub-grant
Guidelines; provided, however, that:
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(i)
the proceeds of a Sub-grant shall not be used to finance taxes or
duties levied on or in respect of eligible expenditures relating to
a Sub-project, or any part thereof, or land acquisition; and
(ii)
except as the Bank shall otherwise agree, the amount of each
Sub-grant shall not exceed eighty (80) percent of the total cost of
the Sub-project.
(e)
goods, services and works required for the purposes of carrying out Sub-
projects shall be procured in accordance with the procedures referred to in Schedule 3 to
this Agreement and set forth in the Sub-grant Guidelines;
(f)
for purposes of each Sub-grant, the Recipient shall, through MWEP,
conclude an agreement with the Beneficiary based on a model form provided in the Sub-
grant Guidelines (Sub-Grant Agreement), setting forth the respective obligations of the
parties thereunder, including the terms of Sub-grants set forth in paragraphs 6 (a) (e) of
this Schedule, disbursement and procurement procedures, as they may apply, the amount
of the Beneficiary's contribution to the cost of the Sub-project, and the right of the
Recipient to:
(i)
require the Beneficiary (A) to carry out the Sub-project with due
diligence and efficiency, in conformity with appropriate
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agricultural, administrative, financial, engineering and technical
practices, and with due regard to ecological and environmental
factors, and to maintain adequate records, and (B) upon
completion of the Sub-project, to make provision for the
maintenance of any productive assets resulting therefrom, and
for the payment of recurrent expenditures generated thereunder;
(ii)
obtain all such information as the Bank or the Recipient shall
reasonably request relating to the implementation of the Sub-
project and the performance of the Beneficiary thereunder; and
(iii)
suspend or terminate the right of the Beneficiary to the use of the
proceeds of a Sub-grant upon failure by such Beneficiary to
perform its obligations under such agreement.
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Document Outline