CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF091967
HV 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
HRVATSKE VODE
Dated September 9, 2008
GEF TRUST FUND GRANT NUMBER TF091967
PROJECT AGREEMENT
Agreement dated September 9, 2008, entered into between INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT ("World Bank"), acting as
an implementing agency of the Global Environment Facility ("GEF"), and HRVATSKE
VODE ("HV") ("Project Agreement") in connection with the GEF Trust Fund Grant
Agreement ("Croatia GEF Agreement") of same date between REPUBLIC OF
CROATIA ("Recipient") and the World Bank. The World Bank and HV 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 Croatia GEF Agreement.
ARTICLE II - PROJECT
2.01. HV declares its commitment to the objectives of the Project. To this end, HV
shall: (a) through its representatives on the ISCW, CC and TA, participate in
coordinating activities under the Project between the Recipient and Bosnia and
Herzegovina, and for giving guidance on solving common problems for Parts A.
(iii), B.(ii) and D.(i) of the Project in accordance with the MOU; and (b), through
the Croatia PIT, carry out the Project in accordance with the provisions of Article
II of the Standard Conditions and 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 HV shall otherwise agree, HV shall carry out the
Project in accordance with the provisions of the Schedule to this Agreement.
ARTICLE III - REPRESENTATIVE; ADDRESSES
3.01.
HV's Representative is the General Director.
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3.02.
The Bank's Address is:
International Bank for
Reconstruction and Development
1818 H Street, NW
Washington, DC 20433
United States of America
Cable:
Telex:
Facsimile:
INTBAFRAD
248423(MCI)
or
1-202-477-6391
Washington,
D.C.
64145(MCI)
3.03. HV's
Address
is:
Hrvatske Vode
Ulica grada Vukovara 220
10000 Zagreb
Republic of Croatia
Facsimile:
+385-1-6151-793
AGREED at Zagreb, Republic of Croatia, as of the day and year first above written.
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
By /s/ Andras Horvai
Authorized Representative
HRVATSKE VODE
By /s/ Jadranko Husaric
Authorized Representative
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SCHEDULE
Execution of the Project
Section I.
Institutional Arrangements
HV shall carry out the Project in accordance with the following institutional
arrangements:
1.
The ISWC and the CC, with the technical guidance of the TA, as necessary, shall
be responsible for coordinating activities under the Project between the Recipient and
Bosnia and Herzegovina, and for giving guidance on solving common problems in a
manner consistent with the provisions of the MOU.
2.
HV, through the Croatia PIT, shall appoint and thereafter maintain at all times
during Project implementation, a qualified representative 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 at all times to
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.
HV shall maintain the Croatia 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.
HV, through the Croatia PIT, shall have responsibility for implementation,
financial management, procurement, reporting and evaluation of the Project, and for
purposes of Parts A. (iii), B.(ii) and D.(i) of the Project, shall be supported by the ISWC,
the CC and the TA, as necessary, in accordance with the MOU.
Section II.
Implementation Covenants
1.
HV and the Croatia 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
(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.
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2.
HV, through the Croatia PIT, shall: (a) duly perform its obligations under this
Agreement and the HV Subsidiary Grant Agreement, as the case may be, in accordance
with the river basin management plan to be prepared under Part 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 the Project, HV shall enter into a
subsidiary agreement with the Recipient pursuant to which the Recipient shall make the
proceeds of the Grant available to HV ("HV Subsidiary Grant Agreement"), under terms
and conditions approved by the World Bank, which shall include the following: the
Recipient shall on-grant the proceeds of the Grant to HV in United States Dollars as set
forth in the table in Part A.2, Section IV of Schedule 2 to the Croatia GEF Agreement.
2.
HV shall exercise its rights under the HV 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, HV shall not
assign, amend, abrogate or waive the HV Subsidiary Grant Agreement or any of its
provisions.
Section IV.
Sub-Projects
1.
For purposes of Part D.(ii)(b) of the Project, HV 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.
HV 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:
(a)
grants made under the Small Grants Program shall be denominated in
HRK; and
(b)
HV 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
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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.
3.
HV 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,
HV shall not assign, amend, abrogate or waive any Small Grants Program Grant
Agreement or any of its provisions.
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Section V.
Project Monitoring, Reporting and Evaluation
A. Project
Reports
1.
HV, through the Croatia PIT, shall monitor and evaluate the progress 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
Recipient not later than forty five (45) days after the end of the period covered by such
report for incorporation and forwarding by the Recipient to the World Bank of the overall
Project Report.
2.
HV, through the Croatia PIT, shall:
(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 said report and the World Bank's views on the
matter.
3.
HV, through the Croatia PIT, shall 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.
B.
Financial Management, Financial Reports and Audits
1.
HV, through the Croatia PIT, shall maintain a financial management system in
accordance with the provisions of Section 2.07 of the Standard Conditions.
2.
HV, through the Croatia 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.
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3.
HV, through the Croatia 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 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 Croatia
GEF Agreement.