CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF091937 ALB
Global Environment Facility
Trust Fund Grant Agreement
(Lake Skadar-Shkoder Integrated Ecosystem Management Project)
between
ALBANIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
Dated July 1, 2008
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GEF TRUST FUND GRANT NUMBER TF091937 ALB
GLOBAL ENVIRONMENT FACILITYGRANT AGREEMENT
AGREEMENT dated July 1, 2008, entered into between: ALBANIA
("Recipient"); and INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT ("World Bank"), acting as an implementing agency of the Global
Environment Facility ("GEF").
The Recipient and the World Bank hereby agree as follows:
Article I
Standard 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 this
Agreement.
Article II
The Project
2.01.
The Recipient declares its commitment to the objectives of the project described
in Schedule 1 to this Agreement ("Project"). To this end, the Recipient shall
carry out the Project through the MEFWA in accordance with the provisions of
Article II of the Standard Conditions.
2.02. Without limitation upon the provisions of Section 2.01 of this Agreement, and
except as the Recipient and the World Bank shall otherwise agree, the Recipient
shall ensure that the Project is carried out in accordance with the provisions of
Schedule 2 to this Agreement.
Article III
The Grant
3.01.
The World Bank agrees to extend to the Recipient, on the terms and conditions
set forth or referred to in this Agreement, a grant in an amount equal to one
million nine hundred ninety thousand United States Dollars ($1,990,000)
("Grant") to assist in financing the Project.
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3.02. The Recipient may withdraw the proceeds of the Grant in accordance with
Section IV of Schedule 2 to this Agreement.
Article IV
Additional Remedies
4.01. The Additional Events of Suspension referred to in Section 4.02 (i) of the
Standard Conditions consist of the following:
(a)
The Recipient has failed to perform any of its obligations under this
Agreement or the Bilateral Agreement.
(b)
As a result of events which have occurred after the date of this
Agreement, an extraordinary situation shall have arisen which shall make
it improbable that the Recipient shall be able to perform its obligations
under this Agreement or the Bilateral Agreement, or that the SLC shall be
able to perform its respective obligations under the Bilateral Agreement.
(c)
The World Bank has suspended in whole or in part the right of the
Montenegro to make withdrawals under the Montenegro GEF Agreement,
because of a failure by Montenegro to perform any of its obligations
under such Agreement.
(d)
The World Bank has determined after the Effective Date referred to in
Section 5.03 of this Agreement that prior to such date but after the date of
this Agreement, an event has occurred which would have entitled the
World Bank to suspend the Recipient's right to make withdrawals from
the Grant Account if this Agreement had been effective on the date such
event occurred.
Article V
Effectiveness; Termination
5.01. This Agreement shall not become effective until evidence satisfactory to the
World Bank has been furnished to the World Bank that the conditions specified
below have been satisfied:
(a)
The execution and delivery of this GEF Grant Agreement on behalf of the
Recipient has been duly authorized or ratified by all necessary
governmental action.
(b)
The Project Implementation Manual, satisfactory to the World Bank, has
been adopted by the Recipient.
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(c)
The Montenegro GEF Agreement has been executed and delivered and
all conditions precedent to its effectiveness, except only the effectiveness
of this GEF Agreement between Albania and the World Bank, have been
fulfilled.
5.02.
As part of the evidence to be furnished pursuant to Section 5.01 (a), there shall be
furnished to the World Bank an opinion or opinions satisfactory to the World
Bank of counsel acceptable to the World Bank or, if the World Bank so requests,
a certificate satisfactory to the World Bank of a competent official of the
Member Country, showing on behalf of the Recipient, that this Agreement has
been duly authorized or ratified by, and executed and delivered on its behalf and
is legally binding upon it in accordance with its terms
5.03. Except as the Recipient and the World Bank shall otherwise agree, this
Agreement shall enter into effect on the date upon which the World Bank
dispatches to the Recipient notice of its acceptance of the evidence required
pursuant to Section 5.01 ("Effective Date"). If, before the Effective Date, any
event has occurred which would have entitled the World Bank to suspend the
right of the Recipient to make withdrawals from the Grant Account if this
Agreement had been effective, the World Bank may postpone the dispatch of the
notice referred to in this Section until such event (or events) has (or have) ceased
to exist.
5.04.
This Agreement and all obligations of the parties under it shall terminate if it has
not entered into effect by the date ninety (90) days after the date of this
Agreement, unless the World Bank, after consideration of the reasons for the
delay, establishes a later date for the purpose of this Section. The World Bank
shall promptly notify the Recipient of such later date.
Article VI
Recipient's Representative; Addresses
6.01.
The Recipient's Representative referred to in Section 7.02 of the Standard
Conditions is the Minister of Finance.
6.02.
The Recipient's Address referred to in Section 7.01 of the Standard Conditions
is:
Ministry of Finance
Bulevardi "Deshmoret e Kombit"
Tirana, Albania
Facsimile:
355 42 28494
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6.03.
The World Bank's Address referred to in Section 7.01 of the Standard Conditions
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)
AGREED at Podgorica, Montenegro, as of the day and year first above written.
ALBANIA
By /s/ Sherefedin Shehu
Authorized Representative
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
acting as an Implementing Agency of the
Global Environment Facility
By /s/ Camille Nuamah
Authorized Representative
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SCHEDULE 1
Project Description
The objective of the Project is to help establish and strengthen institutional
mechanisms for transboundary cooperation through joint efforts to improve sustainable
management of Lake Skadar-Shkoder.
The Project consists of the following parts:
Part A: Capacity Building for Improved Understanding and Joint Management of Lake
Skadar-Shkoder
Establish and strengthen the institutional structures for cooperative management
of Lake Skadar-Shkoder, including operationalization of the SLC, the SLC Working
Groups, and the SLC Secretariat, and support the SLC Working Groups in the
implementation of their work programs.
Part B: Promoting Sustainable Use of Lake Skadar-Shkoder
Promote and support environmentally and socially sustainable approaches to
tourism and fisheries management, including the improvement of nature and culture
based facilities, and development of a lake-wide stock assessment and fishery
management plan.
Part C: Catalyzing Pollution Reduction Investments
1.
Develop a small-scale waste-water treatment system at Vranjina.
2.
Support in the preparation of an environmental remediation plan for the KAP
solid waste dump site.
3.
Restoration of the lakeshore ecosystem.
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SCHEDULE 2
Project Execution
Section I.
Institutional and Other Arrangements
A. Institutional
Arrangements
The Recipient shall carry out the Project in accordance with the following
institutional arrangements:
1.
The SLC, with the technical advice of the SLC Working Groups and the
assistance of the SLC Secretariat, shall be responsible for coordinating work
between the Recipient and Montenegro under the Project and for providing
technical advice in a manner consistent with the Bilateral Agreement.
2.
The MEFWA, through the MEFWA PMU, shall have responsibility for
implementation, project reporting, procurement, financial management and
environmental management activities of Parts A, B and C3 of the Project, with
the technical assistance of the MTCYS, the Municipality of Shkodra and the
SLMNR Management Unit for Part B of the Project.
B.
Implementation Covenants
1.
The Recipient shall maintain the SLC, the SLC Working Groups, the SLC
Secretariat, and the MEFWA PMU at all times during Project implementation,
with terms of reference and resources satisfactory to the World Bank, and with
competent staff in adequate numbers.
2.
The Recipient, through the SLC, the SLC Working Groups, the SLC Secretariat
and the MEFWA PMU shall:
(a)
duly perform all obligations under the Project Implementation Manual,
the Framework EIA, the EMPs and the Process Framework 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 Project
Implementation Manual, the Framework EIA, the EMPs or the Process
Framework or any provisions of any one thereof, except with the prior
written approval of the World Bank.
3.
Not later than January 1, 2009, the Recipient shall establish and staff the SLMNR
Management Unit in a manner and with a composition and terms of reference
satisfactory to the World Bank.
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4.
Prior to the commencement of any works under Parts B and C3 of the Project, the
Recipient shall prepare for each site a site-specific EMP in a manner satisfactory
to the World Bank.
Section II.
Project Monitoring, Reporting and Evaluation
A.
Project Reports; Completion Report
1.
The Recipient shall monitor and evaluate the progress of the Project and prepare
Project Reports in accordance with the provisions of 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 one (1) month after the end of the
period covered by such report.
2.
The Recipient 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; Audits
1.
The Recipient shall ensure that a financial management system is maintained in
accordance with the provisions of Section 2.07 of the Standard Conditions.
2.
The Recipient shall ensure that interim unaudited financial reports for the Project
are prepared and furnished to the World Bank not later than forty five (45) days
after the end of each calendar quarter, covering the quarter, in form and
substance satisfactory to the World Bank.
3.
The Recipient shall have its Financial Statements for the Project audited in
accordance with the provisions of Section 2.07(b) of the Standard Conditions.
Each such audit of the Financial Statements shall cover the period of one fiscal
year of the Recipient. 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 III.
Procurement
A. General
1.
Procurement and Consultant Guidelines. All goods, works and services
required for the Project and to be financed out of the proceeds of the Grant shall
be procured in accordance with the requirements set forth or referred to in:
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(a) Section I of the "Guidelines: Procurement under IBRD Loans and IDA
Credits" published by the World Bank in May 2004 ("Procurement
Guidelines") in the case of goods and works, and Sections I and IV of the
"Guidelines: Selection and Employment of Consultants by World Bank
Borrowers" published by the World Bank in May 2004 ("Consultant
Guidelines") in the case of consultants' services; and
(b)
the provisions of this Section III, as the same shall be elaborated in the
procurement plan prepared and updated from time to time by the
Recipient for the Project in accordance with paragraph 1.16 of the
Procurement Guidelines and paragraph 1.24 of the Consultant Guidelines
("Procurement Plan").
2. Definitions. The capitalized terms used below in this Section to describe
particular procurement methods or methods of review by the World Bank of
particular contracts, refer to the corresponding method described in the
Procurement Guidelines, or Consultant Guidelines, as the case may be.
B.
Particular Methods of Procurement of Goods and Works
1.
International Competitive Bidding. Except as otherwise provided in paragraph
2 below, goods and works shall be procured under contracts awarded on the basis
of International Competitive Bidding.
2.
Other Methods of Procurement of Goods and Works. The following
methods, other than International Competitive Bidding, may be used for
procurement of goods and works for those contracts specified in the Procurement
Plan:
Procurement Method
(a) National Competitive Bidding - with the modifications set forth in
paragraph 3 below
(b) Shopping
(c) Direct Contracting
3.
Modifications to the Recipient's National Competitive Bidding Procedures:
The National Competitive Bidding procedures shall be based on the Open
Tendering procedures as defined in the Public Procurement Law of Albania, and the
following additional provisions:
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(a)
"Open Tendering" procedures as defined in the Procurement
Law of Albania shall apply to all contracts;
(b)
foreign bidders shall not be precluded from bidding and no
preference of any kind shall be given to national bidders in the
bidding process. Government-owned enterprises in Albania
shall be permitted to bid only if they are legally and financially
autonomous and operate under commercial law of the Recipient;
(c)
procuring entities shall use sample bidding documents approved
by the World Bank;
(d)
in case of higher bid prices compared to the official estimate, all
bids shall not be rejected without the prior concurrence of the
World Bank;
(e)
a single-envelope procedure shall be used for the submission of
bids;
(f)
post-qualification shall be conducted only on the lowest
evaluated bidder; no bid shall be rejected at the time of bid
opening on qualification grounds;
(g)
bidders who contract as a joint venture shall be held jointly and
severally liable;
(h)
contracts shall be awarded to the lowest evaluated, substantially
responsive bidder who is determined to be qualified to perform
in accordance with pre-defined and pre-disclosed evaluation
criteria;
(i)
post-bidding negotiations shall not be allowed with the lowest
evaluated or any other bidders; and
(j)
contracts of long duration (more than 18 months) shall contain
appropriate price adjustment provisions.
C.
Particular Methods of Procurement of Consultants' Services
1.
Quality- and Cost-based Selection. Except as otherwise provided in paragraph
2 below, consultants' services shall be procured under contracts awarded on the
basis of Quality- and Cost-based Selection.
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2.
Other Methods of Procurement of Consultants' Services.
The following
methods, other than Quality- and Cost-based Selection, may be used for
procurement of consultants' services for those assignments which are specified in
the Procurement Plan: (a) Least Cost Selection; (b) Selection under a Fixed
Budget; (c) Selection based on Consultants' Qualifications; (d) Single-source
Selection; (e) Selection of Individual Consultants.
D.
Review by the World Bank of Procurement Decisions
1.
The Procurement Plan shall set forth those contracts which shall be subject to the
World Bank's Prior Review. All other contracts shall be subject to Post Review
by the World Bank.
Section IV.
Withdrawal of Grant Proceeds
A. General
1.
The Recipient may withdraw the proceeds of the Grant in accordance with the
provisions of (a) Article III of the Standard Conditions, (b) this Section, and (c)
such additional instructions as the World Bank may specify by notice to the
Recipient (including the "World Bank Disbursement Guidelines for Projects"
dated May 2006, as revised from time to time by the World Bank and as made
applicable to this Agreement pursuant to such instructions), to finance Eligible
Expenditures as set forth in the table in paragraph 2 below.
2.
The following table specifies the categories of Eligible Expenditures that may be
financed out of the proceeds of the Grant ("Category"), the allocations of the
amounts of the Grant to each Category, and the percentage of expenditures to be
financed for Eligible Expenditures in each Category:
Amount of the
Percentage of
Grant Allocated
Expenditures to be
Category
(expressed in USD)
Financed
(1) Goods, Consultants' Services,
1,560,000 100%
Operating Costs and Training for
Parts A, B and C3 of the Project, and
Works for Part A of the Project
(2) Works in Parts B and C3 of the
430,000 100%
Project
TOTAL AMOUNT
1,990,000
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B.
Withdrawal Conditions; Withdrawal Period
1.
Notwithstanding the provisions of Part A of this Section no withdrawal shall be
made:
(a)
for payments made prior to the date of this Agreement, except that
withdrawals up to an aggregate amount not to exceed $100,000
equivalent may be made for payments made prior to this date but on or
after November 1, 2007, for Eligible Expenditures under Category 1; or
(b)
under Category 2 unless the respective EMP has been prepared in
accordance with paragraph 4 of Section IB of Schedule 2 to this
Agreement; or
2.
The Closing Date referred to in Section 3.06(c) of the Standard Conditions is
September 30, 2012.
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APPENDIX
Definitions
1.
"Bilateral Agreement" means the "Agreement Between the Ministry of Tourism
and Environment of Montenegro and the Ministry of Environment, Forestry and
Water Administration of Albania for the Protection and Sustainable Development
of the Shkadar/Shkodra Lake", dated February 28, 2008.
2.
"Category" means a category set forth in the table in Section IV of Schedule 2 to
this Agreement.
3.
"Consultant Guidelines" means the "Guidelines: Selection and Employment of
Consultants by World Bank Borrowers" published by the Bank in May 2004.
4.
"EMPs" mean the environmental management plans to be prepared by the
Recipient pursuant to paragraph 4 of Section IB of Schedule 2 of this Agreement,
satisfactory to the World Bank, and consisting of the set of mitigation,
monitoring, and institutional measures to be taken to eliminate adverse
environmental and social impacts, offset them, or reduce them to acceptable
levels, as well as actions needed to implement these measures, for the Project;
and "EMP" refers to one such Environmental Management Plan.
5.
"Framework EIA" means the framework environmental impact assessment
prepared by the Recipient, and satisfactory to the World Bank, dated May 2007,
and included in the environment section of the Project Implementation Manual,
describing the rules, guidelines and procedures to assess environmental impacts
and defining measures to reduce, mitigate or offset adverse environmental
impacts of investments under the Project, including transboundary impacts and
international obligations, and to enhance the positive impacts of such
investments, as the same may be amended from time to time with the prior
written approval of the World Bank.
6.
"KAP" means the Kombinat Aluminjiuma Podgorica, a privately-owned joint
stock company of Montenegro engaged in aluminium production, and registered
by the Commercial Court of Montenegro on November 30, 2005, or any
successor or successors thereto.
7.
"MEFWA" means the Ministry of Environment, Forests and Water
Administration of the Recipient and includes any successor or successors thereto.
8.
"MEFWA PMU" means the project management unit within the MEFWA
responsible for Project implementation pursuant to Schedule 2 of this Agreement,
and which shall include the following staff, whose qualifications and terms of
reference shall be satisfactory to the World Bank (i) a project director; (ii) a
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project coordinator; (iii) a procurement specialist; and (iv) a financial
management specialist.
9.
"Montenegro GEF Agreement" means the GEF Trust Fund Grant Agreement
between Montenegro and the World Bank, and dated the same date as this
Agreement.
10.
"MTEP" means the Ministry of Tourism and Environmental Protection of
Montenegro and includes any successor or successors thereto.
11.
"MTYCS" means the Recipient's Ministry for Tourism, Culture, Youth and
Sport and includes any successor or successors thereto.
12.
"Municipality of Shkodra" means the Recipient's Municipality of Shkodra,
established pursuant to the Law On the Administrative and Territorial Divisions
of Local Governance Units in Albania, dated July 31, 2000, and published in
Official Gazette No. 26/2000.
13.
"Operating Costs" means the reasonable and necessary incremental expenditures
related to the operation of MEFWA PMU, the SLC, the SLC Working Groups,
and the SLC Secretariat respectively, including on account of Project
implementation, management, coordination, and monitoring and evaluation, as
approved by the World Bank on the basis of budgets acceptable to the World
Bank, which would not have been incurred absent the Project and include, inter
alia, the costs of: (i) maintenance and operation of equipment and vehicles
procured or used for the management of the Project; (ii) travel costs and per
diems; (iii) consumable office supplies; (iv) communication, printing and
publications; (v) costs of translation and interpretation; and (vi) bank charges;
and other miscellaneous costs as may be agreed with the World Bank from time
to time.
14.
"Process Framework" means the Resource Access Restriction Process
Framework for the Lake Shkoder Integrated Ecosystems Management Project,
adopted by the Recipient on March 15, 2007, and satisfactory to the World Bank,
to guide the mitigation of potential negative impacts on the livelihoods on
populations resident near Lake Skadar-Shkoder, as the same may be modified
from time to time by agreement between the Recipient and the World Bank.
15.
"Procurement Guidelines" means the "Guidelines: Procurement under IBRD
Loans and IDA Credits" published by the Bank in May 2004.
16.
"Procurement Plan" means the Recipient's procurement plan for the Project,
dated April 23, 2008, and referred to in paragraph 1.16 of the Procurement
Guidelines and paragraph 1.24 of the Consultant Guidelines, as the same shall be
updated from time to time in accordance with the provisions of said paragraphs.
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17.
"Project Implementation Manual" means the manual, to be prepared by the
Recipient and satisfactory to the World Bank, referred to in sub-paragraph (b) of
Section 5.01 of this Agreement, setting forth the operational and administrative
responsibilities, procedures and rules for the implementation of the Project, and
including the Framework EIA, and financial management arrangements for the
Project, as the same may be amended and supplemented from time to time with
the World Bank's prior written approval.
18.
"SLMNR Management Unit" means the management unit of the Shkoder Lake
Managed Nature Reserve to be established and convened pursuant to paragraph 3
of Section IB of Schedule 2 of this Agreement.
19.
"SLC" means the Skadar/Shokdra Lake Commission, a bilateral body to be
established and composed in accordance with Article 5 of the Bilateral
Agreement as a forum for coordination on issues of lake management, and
supported by the SLC Working Groups and the SLC Secretariat.
20.
"SLC Secretariat" means the Secretariat, based in Shkodra, in Albania, to be
established under the SLC to facilitate communications, outreach and
administrative reporting to the project director of the MTEP PMU and the project
director of the MEFWA PMU, and including the following staff, whose
qualifications and terms of reference shall be satisfactory to the World Bank: (i) a
Secretariat head; and (ii) an assistant.
21.
"SLC Working Groups" means the four working groups of technical specialists
and local stakeholders to be convened by the SLC for the purposes of the Project
to advise on issues related to lake as follows: (1) Planning and Legal; (2)
Monitoring and Research; (3) Communications/Outreach and Sustainable
Tourism; and (4) Water Management.
22.
"Training" means training activities (other than consultants' services) to be
carried out under the Project, as approved by the World Bank on the basis of
annual training and study tour plans acceptable to the World Bank, including the
reasonable and necessary local and international travel and visa expenses
incurred by participants in training workshops, as well as lodging, subsistence,
local and international per diem allowances according to the guidelines of the
Recipient, registration, tuition and facilitators' fees, minor organizational
expenses (including costs of stationery, handouts and training materials),
translation and interpretation costs, facility rental costs, and other expenditures
directly relating to the training workshop and study tour activity, as may be
agreed with the Recipient.