CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF091969
RS Project Agreement
(Neretva and Trebisnjica Management Project)
between
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
and
REPUBLIKA SRPSKA
Dated September 9, 2008
GEF TRUST FUND GRANT NUMBER TF091969
PROJECT AGREEMENT
Agreement dated September, 2008, entered into between INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT ("World Bank"), acting as
an implementing agency of the Global Environment Facility ("GEF"), and REPUBLIKA
SRPSKA ("RS") ("Project Agreement") in connection with the GEF Trust Fund Grant
Agreement ("Bosnia and Herzegovina GEF Agreement") of same date between BOSNIA
AND HERZEGOVINA ("Recipient") and the World Bank. The World Bank and
Republika Srpska hereby agree as follows:
ARTICLE I -- GENERAL CONDITIONS; DEFINITIONS
1.01
The Standard Conditions for Grants Made by the World Bank Out of Various
Funds, dated July 20, 2006 ("Standard Conditions") constitute an integral part of
this Agreement.
1.02 Unless the context requires otherwise, the capitalized terms used in this
Agreement have the meanings ascribed to them in the Standard Conditions, or in
the Appendix to the Bosnia and Herzegovina GEF Agreement.
ARTICLE II -- PROJECT
2.01. Republika Srpska declares its commitment to the objectives of the Project. To
this end, the RS: (a) through its representatives on the ISCW, CC and TA, shall
participate in coordinating activities under the Project between the Recipient and
the Republic of Croatia, and for giving guidance on solving common problems
for Parts 1. A (iii), 3.A (ii) and 3.C (i) of the Project in accordance with the
MOU; and (b) through the RS MAFWM, the RS MSPCEE, the Republika Srpska
Water Directorate, as the case may be, and the RS PIT, shall carry out Part 3 of
the Project in accordance with the provisions of Article II of the Standard
Conditions, and shall provide promptly as needed, the funds, facilities, services
and other resources required for its respective part of the Project.
2.02. Without limitation upon the provisions of Section 2.01 of this Agreement, and
except as the World Bank and RS shall otherwise agree, RS shall carry out its
respective part of the Project in accordance with the provisions of the Schedule to
this Agreement.
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ARTICLE III -- REPRESENTATIVE; ADDRESSES
3.01.
The Republika Srpska's Representative is the RS Minister of Agriculture,
Forestry and Water Management.
3.02.
The World Bank's Address is:
International Bank for Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable:
Telex:
Facsimile:
INDEVAS
248423
(MCI)
or 1-202-477-6391
Washington, D.C.
64145 (MCI)
3.03.
The Republika Srpska's Address is:
RS Ministry of Agriculture, Forestry and Water Management
Trg Republike 1
78000 Banja Luka
Bosnia and Herzegovina
Facsimile:
387 51 338865
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AGREED at Zagreb, Republic of Croatia, as of the day and year first above
written.
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global
Environment Facility
By /s/ Andras Horvai
Authorized Representative
REPUBLIKA SRPSKA
By /s/ Radivoje Bratic
Authorized Representative
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SCHEDULE
Execution of the Republika Srpska's Respective Part of the Project
Section I.
Institutional Arrangements
The RS shall carry out its respective part of the Project in accordance with the
following institutional arrangements:
1.
The ISWC and the CC, with the technical guidance of TA, as necessary, shall be
responsible for coordinating activities under the Project between the Recipient and the
Republic of Croatia, and for giving guidance on solving common problems in a manner
consistent with the provisions of the MOU.
2.
The RS, through the RS MAFWM, the RS MSPCEE and the RS PIT,
respectively, shall appoint and thereafter maintain at all times during Project
implementation, three (3) duly qualified representatives on the CC and representatives on
the TA from time to time, as necessary, all with terms of reference and resources
satisfactory to the World Bank, and shall cause the representatives to, at all times,
participate in the performance of the obligations of the CC and TA under the Project in a
timely and effective manner, and in accordance with the terms of the Operational Manual
and the MOU.
3.
The RS shall maintain the RS PIT at all times during Project implementation,
with terms of reference and resources satisfactory to the World Bank, and with competent
staff in adequate numbers.
4.
The RS MAFWM, the RS MSPCEE and the Republika Srpska Water
Directorate, through the RS PIT, shall have responsibility for implementation, financial
management, procurement, reporting and evaluation of Part 3 of the Project, and for
purposes of Parts 3.A (ii) and 3.C (i) of the Project, shall be supported by the ISWC, the
CC and TA, as necessary, in accordance with the MOU.
Section II.
Implementation Covenants
1.
The RS MAFWM, the RS MSPCEE, the Republika Srpska Water Directorate
and the RS PIT shall:
(a)
duly perform their obligations under the Operational Manual, the EMP,
the EMF and the MOU in a timely manner and in accordance with their
respective terms, and apply and implement, as the case may be, the
actions, criteria, policies, procedures and arrangements therein set forth;
and
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(b)
not amend or waive, or permit to be amended or waived the Operational
Manual, the EMP, the EMF or the MOU or any provisions of any one
thereof, except with the prior written approval of the World Bank.
2.
The RS shall, through the Waste Water Utilities, not later than November 30 of
each year, during the implementation of the Project, submit to the World Bank an Annual
Business Plan for the following calendar year, and shall agree with the World Bank on
activities to be undertaken under the Project in the following year and the related budget.
3.
The RS shall, through the RS PIT: (a) duly perform its obligations under this
Agreement and the RS Subsidiary Grant Agreement, as the case may be, in accordance
with the river basin management plan to be prepared under Part 1.A (iii) of the Project
and acceptable to the World Bank; and (b) in the event that said plan is amended or
waived, ensure that any such amendment or waiver is acceptable to the World Bank.
Section III.
Subsidiary Agreement
1.
To facilitate the carrying out and financing of Part 3 of the Project, the RS shall
enter into a subsidiary agreement with the Recipient pursuant to which the Recipient shall
make part of the proceeds of the Grant available to the RS ("RS Subsidiary Grant
Agreement"), under terms and conditions approved by the World Bank, which shall
include the following: the Recipient shall on-grant to the RS an amount equivalent to one
million eight hundred thousand Dollars ($1,800,000) of the amount of the Grant allocated
to Categories 6, 7, 8 and 9 set forth in the table in Part A.2, Section IV of Schedule 2 to
the Bosnia and Herzegovina GEF Agreement.
2.
The RS shall exercise its rights under the RS Subsidiary Grant Agreement in
such manner as to protect the interests of the Recipient and the World Bank and to
accomplish the purposes of the Grant. Except as the World Bank shall otherwise agree,
the RS shall not assign, amend, abrogate or waive the RS Subsidiary Grant Agreement or
any of its provisions.
Section IV.
Sub-Projects
1.
For purposes of Part 3.C(ii)(b) of the Project, the RS shall make grants to
Beneficiaries under the Small Grants Program in accordance with eligibility criteria and
procedures set forth in the Operational Manual, and acceptable to the World Bank, which
shall include, inter alia, the following: grants made under the Small Grants Program shall
be selected, appraised, implemented and evaluated in accordance with the principles and
procedures set forth in the Operational Manual, the Procurement Guidelines, the EMP
and the EMF.
2.
The RS shall make grants under the Small Grants Program under a Small Grants
Program Grant Agreement with the respective Beneficiary on terms and conditions
approved by the World Bank, which shall include the following:
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(a)
grants made under the Small Grants Program shall be denominated in
KM; and
(b)
the RS shall obtain rights adequate to protect its interests and those of the
World Bank, including the right to:
(i)
suspend or terminate the right of the Beneficiary to use the
proceeds of the grant made under the Small Grants Program, or
obtain a refund of all or any part of the amount of the grant made
under the Small Grants Program, upon the Beneficiary's failure
to perform any of its obligations under the Small Grants Program
Grant Agreement; and
(ii)
require each Beneficiary to: (A) carry out its obligations under
the Small Grants Program Grant Agreement with due diligence
and efficiency and in accordance with sound technical,
economic, financial, managerial, environmental and social
standards and practices satisfactory to the World Bank, including
in accordance with the EMF and the EMP; (B) provide, promptly
as needed, the resources required for the purpose; (C) procure
the goods, works and services to be financed out of the Small
Grants Program Grant Agreement in accordance with the
provisions of this Agreement and the Procurement Guidelines;
(D) maintain policies and procedures adequate to enable it to
monitor and evaluate in accordance with indicators acceptable to
the World Bank, the progress of the sub-project and the
achievement of its objectives; (E) (1) maintain a financial
management system and prepare financial statements in
accordance with consistently applied accounting standards
acceptable to the World Bank, both in a manner adequate to
reflect the operations, resources and expenditures related to the
sub-project; and (2) at the World Bank's or the Recipient's
request, have such financial statements audited by independent
auditors acceptable to the World Bank, in accordance with
consistently applied auditing standards acceptable to the World
Bank, and promptly furnish the statements as so audited to the
Recipient and the World Bank; (F) enable the Recipient and the
World Bank to inspect the sub-project, its operation and any
relevant records and documents; and (G) prepare and furnish to
the Recipient and the World Bank all such information as the
Recipient or the World Bank shall reasonably request relating to
the foregoing.
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3.
The RS shall exercise its rights under each Small Grants Program Grant
Agreement in such manner as to protect the interests of the Recipient and the World Bank
and to accomplish the purposes of the Grant. Except as the World Bank shall otherwise
agree, the RS shall not assign, amend, abrogate or waive any Small Grants Program
Grant Agreement or any of its provisions.
Section V.
Project Monitoring, Reporting and Evaluation
A. Project
Reports
1.
The RS, through the RS PIT, shall provide to the MOFTER PMT the support
required to monitor and evaluate the progress of its respective part of the Project and
prepare Project Reports in accordance with Section 2.06 of the Standard Conditions and
on the basis of indicators agreed with the World Bank. Each Project Report shall cover
the period of one (1) calendar semester, and shall be furnished to the World Bank not
later than forty five (45) days after the end of the period covered by such report.
2.
The RS, through the RS PIT, shall provide to the MOFTER PMT the support
required to:
(a)
prepare, under terms of reference satisfactory to the World Bank, and
furnish to the World Bank, on or about thirty (30) months after the Effective
Date, a report integrating the results of the monitoring and evaluation activities
performed pursuant to the preceding paragraph 1, on the progress achieved in the
carrying out the Project during the period preceding the date of said report and
setting out the measures recommended to ensure the efficient carrying out the
Project and the achievement of the objectives thereof during the period following
such date; and
(b)
review with the World Bank, by thirty one (31) months after the
Effective Date, or such later date as the World Bank shall request, the report
referred to in the preceding sub-paragraph (a), 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 World Bank's views on the matter.
3.
The RS, through the RS PIT, shall provide to the MOFTER PMT the support
required to prepare the Completion Report in accordance with the provisions of Section
2.06 of the Standard Conditions. The Completion Report shall be furnished to the World
Bank not later than six (6) months after the Closing Date.
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B.
Financial Management, Financial Reports and Audits
1.
The RS, through the RS PIT, shall maintain a financial management system in
accordance with the provisions of Section 2.07 of the Standard Conditions.
2.
The RS, through the RS PIT, shall prepare and furnish to the World Bank not
later than forty five (45) days after the end of each calendar quarter, interim unaudited
financial reports for the Project, covering such quarter, in form and substance satisfactory
to the World Bank.
3.
The RS, through the RS PIT, shall have the Financial Statements for the Project
audited by independent auditors acceptable to the World Bank and on terms of reference
acceptable to the World Bank in accordance with the provisions of Section 2.07 (b) of the
Standard Conditions. Such audits of the Financial Statements shall cover the period of
one (1) fiscal year. The audited Financial Statements for each such period shall be
furnished to the World Bank not later than six (6) months after the end of such period.
Section VI.
Procurement
All goods, works and services required for RS's respective part of the Project and to be
financed out of the proceeds of the Grant shall be procured in accordance with the
provisions of Section III of Schedule 2 to the Bosnia and Herzegovina GEF Agreement.