CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF056520-TH
Global Environment Facility
Trust Fund Grant Agreement
(Livestock Waste Management in East Asia Project)
between
THE KINGDOM OF THAILAND
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
Dated May 15, 2006
GEF TRUST FUND GRANT NUMBER TF056520-TH
GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT AGREEMENT
AGREEMENT, dated May 15, 2006, between THE KINGDOM OF THAILAND
(Thailand) 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 94-2);
(C)
Thailand, 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 its Respective Parts of 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;
(D)
Thailand will carry out its Respective Parts of the Project, in conjunction
with the carrying out by the People's Republic of China, the Socialist Republic of
Vietnam and the Food and Agriculture Organization of the United Nations, each of their
Respective Parts of the Project under a separate GEF grant agreement with the Bank (the
China GEF Grant Trust Fund Agreement, the Vietnam GEF Trust Fund Grant Agreement
and the Food and Agriculture Organization GEF Grant Letter Agreement, respectively),
of even date herewith;
(E)
by an agreement of even date herewith between the Recipient and the
Bank, as administrator of grant funds provided by Japan under the Japan Policy and
Human Resources Development Fund (PHRD), the Recipient will receive a grant in an
amount not exceeding two hundred fifty thousand United State dollars (US$250,000) (the
PHRD Grant) to assist in financing, under the Livestock Waste Management Initiative,
activities complementary to the Project; and
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WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to
extend the GEF Trust Fund Grant to Thailand upon the terms and conditions set forth in
this Agreement;
NOW THEREFORE, the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. (a) The following provisions of the "General Conditions Applicable
to Loan and Guarantee Agreements for Single Currency Loans" of the Bank, dated May
30, 1995 (as amended through May 1, 2004), 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 (2), (3), (4), (5), (6), (7), (8), (14), (15), (16), (18)
and (21), 2.02 and 2.03;
(iii) Section
3.01;
(iv)
Sections 4.01 and 4.06;
(v) Article
V;
(vi)
Sections 6.01, 6.02 (c), (e), (f), (i), (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;
(x)
Article XI; and
(xi)
Sections 12.01 (c), 12.03 and 12.04.
(b)
The General Conditions shall be modified as follows:
(i)
the term "Bank", wherever used in the General Conditions, other
than in Sections 2.01 (6), 6.02 (f) and 5.01 (a) thereof, means the
Bank acting as an implementing agency of the GEF, except that
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in Section 6.02, the term "Bank" shall also include the Bank
acting in its own capacity;
(ii)
the term "Borrower", wherever used in the General Conditions,
means Thailand;
(iii)
the term "Loan Agreement", wherever used in the General
Conditions, means this Agreement;
(iv)
the term "Loan" and "loan", wherever used in the General
Conditions, means the GEF Trust Fund Grant;
(v)
the term "Loan Account", wherever used in the General
Conditions, means the GEF Trust Fund Grant Account; and
(vi)
the words "corrupt or fraudulent" in paragraph (c) of
Section 6.03 are replaced with the words "corrupt, fraudulent,
collusive or coercive".
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 following additional
terms have the following meanings:
(a)
"Chulalongkorn University" means the Schools of Veterinary Sciences
of Chulalongkorn University, located in Bangkok, Thailand.
(b)
"Department of Livestock Development" means Thailand's Department
of Livestock Development within MOAC, and any successor thereto.
(c)
"Displaced Persons" means persons who, on account of the execution of
Thailand's Respective Parts of the Project, have experienced or would experience direct
economic and social impacts caused by: (i) the involuntary taking of land, resulting in:
(A) relocation or loss of shelter; (b) loss of assets or access to assets; or (C) loss of
income sources or means of livelihood, whether or not such persons must move to
another location; or (ii) the involuntary restriction of access to legally designated parks
and protected areas, resulting in adverse impacts on the livelihood of such persons; and
"Displaced Person" means any of such Displaced Persons.
(d)
"Environmental Impact Assessment" means the environmental impact
assessment to be prepared in respect of any Sub-project in accordance with the
Enhancement and Conservation of National Environmental Quality Act, dated March 29,
1992, and the provisions of paragraph 6(a) of Schedule 4 to this Agreement, for the
purposes of reviewing the Sub-project's likely positive and negative environmental
impact on the Selected Project Areas.
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(e)
"Environmental Management Plan" means the environmental
management plan to be prepared in respect of any selected Sub-project in accordance
with the respective Environmental Impact Assessment, as determined in paragraph 6(a)
of Schedule 4 to this Agreement, and providing for the monitoring and mitigation of the
environmental impact of such Sub-project, including, without limitation, impacts on
cultural heritage sites, as said plan may be amended from time to time with the prior
concurrence of the Bank.
(f)
"Ethnic Minorities Development Plan" means the plan to be adopted by
Thailand in respect of a selected Sub-project in accordance with the Strategy for Ethnic
Minority Development and the provisions of paragraph 6(c) of Schedule 4 to this
Agreement, providing for the special planning measures or actions to be undertaken by
Thailand, aimed at: (i) ensuring that the ethnic minorities residing in the Selected Project
Areas receive the benefits from the Project in a culturally compatible manner; and (ii)
reducing, mitigating and offsetting any adverse impacts due to the implementation of
such Sub-project, as said plan may be amended from time to time with the prior
concurrence of the Bank.
(g)
"Financial Monitoring Report" means each report prepared in accordance
with Section 4.02 of this Agreement.
(h)
"Food and Agriculture Organization" and the acronym "FAO" mean the
Food and Agriculture Organization of the United Nations and any successor thereto.
(i)
"Master Capacity-Building Development Plan" means Thailand's
capacity-building plan, included in the Project Implementation Plan in accordance with
paragraph 3(a)(iii) of Schedule 4 to this Agreement, as said plan may be amended from
time to time with the prior concurrence of the Bank.
(j)
"Ministry of Agriculture and Cooperatives" and the acronym "MOAC"
mean Thailand's Ministry of Agriculture and Cooperatives and any successor thereto.
(k)
"Ministry of Energy" and the acronym "MOE" mean Thailand's
Ministry of Energy and any successor thereto.
(l)
"Ministry of Natural Resources and Environment" and the acronym
"MONRE" mean Thailand's Ministry of Natural Resources and Environment and any
successor thereto.
(m)
"Ministry of Public Health" and the acronym "MOPH" mean Thailand's
Ministry of Public Health and any successor thereto.
(n)
"Monitoring and Evaluation Plan" means Thailand's monitoring and
evaluation plan included in the Project Implementation Plan in accordance with
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paragraph 3(a)(v) of Schedule 4 to this Agreement, as said plan may be amended from
time to time with the prior concurrence of the Bank.
(o)
"Participating Countries" means, collectively, Thailand, the People's
Republic of China, and the Socialist Republic of Vietnam; and a "Participating Country"
means any of the Participating Countries.
(p)
"Pig Development Committee" means Thailand's development
committee established within MOAC on June 4, 2003, pursuant to MOAC's Order
Number 259/2546, and any successor thereto.
(q)
"Procurement Plan" means Thailand's procurement plan, dated
August 2, 2005, covering the initial eighteen month period (or longer) of implementation
of Thailand's Respective Parts of the Project, as the same shall be updated from time to
time in accordance with the provisions of Section 3.02 to this Agreement, to cover
succeeding eighteen month periods (or longer) of Project implementation.
(r)
"Project Implementation Plan" means the plan dated September 2, 2005,
adopted by Thailand for the implementation of its Respective Parts of the Project
pursuant to paragraph 3 of Schedule 4 to this Agreement; as such plan may be amended
from time to time with the prior concurrence of the Bank.
(s)
"Project Management Office" and the acronym "PMO" mean the office
established within the Department of Livestock Development pursuant to the DLD
Decision 109/2004, and referred to in paragraph 1(b) of Schedule 4 to this Agreement,
responsible for coordinating the day-to-day implementation of Thailand's Respective
Parts of the Project.
(t)
"Provincial Livestock Office" means each of Thailand's livestock offices
in the Project Selected Areas, established within the DLD pursuant to Administrative
Decree, dated July 20, 1973, responsible for the procurement of livestock waste
management technologies for Sub-projects, pursuant to paragraph 1(c) of Schedule 4 to
this Agreement, and the acronym "PLOs" means collectively all such offices.
(u)
"Regional Coordination Group" means the group to be assisted and
coordinated by FAO pursuant to paragraph 2.2(a) of the Annex to the FAO GEF Grant
Letter Agreement, comprising representatives of the Participating Countries and FAO, for
the purposes of coordinating, integrating and implementing Project activities at a regional
level.
(v)
"Resettlement Plan" means the resettlement action plan to be prepared in
respect of a selected Sub-project in accordance with the Resettlement Policy Framework
and the provisions of paragraph 6(b) of Schedule 4 to this Agreement, which sets out the
principles and procedures governing land acquisition, resettlement and compensation, as
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well as reporting and monitoring arrangements to ensure compliance with said plan, as
the same may be amended from time to time with the prior concurrence of the Bank.
(w)
"Resettlement Policy Framework" means the resettlement policy
framework dated October 12, 2005, prepared and adopted by the DLD's Resolution
AC0616, dated August 27, 2005, in respect of Sub-projects, which sets forth the policies
and procedures for acquisition, compensation and rehabilitation of Displaced Persons,
and guidelines for the preparation of each Resettlement Plan, as said policy framework
may be amended from time to time with the prior concurrence of the Bank.
(x)
"Respective Parts of the Project" means, in respect of:
(i)
Thailand, Parts A.1(b) and B.1(b) of the Project and the
respective activities under Parts A.2, B.2, and C of the Project;
(ii)
the People's Republic of China, Parts A.1(a) and B.1(a) of the
Project, and the respective activities under Parts A.2, B.2, and C
of the Project;
(iii)
the Socialist Republic of Vietnam, Parts A.1(c) and B.1(c) of the
Project, and the respective activities under Parts A.2, B.2, and C
of the Project; and
(iv)
FAO, Part D of the Project.
(y)
"Selected Beneficiary" means any farmer, group of farmers or farm
producers that own or exploit a pig farm in Thailand's Selected Project Areas, selected
pursuant to the procedures and criteria set forth in the Project Implementation Plan, and
to whom a Sub-grant is made for the purposes of carrying out a Sub-project; and
"Selected Beneficiaries" means more than one Selected Beneficiary.
(z)
"Selected Project Areas" means in respect of:
(i)
Thailand, Ratchaburi and Chonburi Provinces and any other
provinces selected from time to time by Thailand with the prior
concurrence of the Bank;
(ii)
the People's Republic of China, Boluo County in Guangdong
Province, and any other counties in Guangdong Province
selected from time to time by Guangdong Province with the prior
concurrence of the Bank; and
(iii)
the Socialist Republic of Vietnam, Ha Tay and Dong Nai
Provinces, and any other provinces selected from time to time by
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the Socialist Republic of Vietnam with the prior concurrence of
the Bank.
(aa)
"Special Accounts" means the accounts referred to in Section 2.02(b) of
this Agreement.
(bb)
"Stakeholders Participation Plan" means the Thailand's consultation
arrangements included in the Project Implementation Plan in accordance with paragraph
3(a)(vi) of Schedule 4 to this Agreement, as said arrangements may be amended from
time to time with the prior concurrence of the Bank.
(cc)
"Standard Farm Regulations" means the farm standards approved by the
Department of Livestock Development of the MOAC, through MOAC's Resolution
P-PIG-INS-001, dated November 3, 1999, and effective since April 1, 2003, applicable to
pig, poultry and cattle farms.
(dd)
"Strategy for Ethnic Minority Development" means Thailand's strategy
dated October 12, 2004, adopted by Thailand through DLD's Resolution AC0616, dated
August 27, 2005, in respect of Sub-projects, which sets out the principles and procedures
for: (i) the informed involvement of the ethnic minorities, through a process of informed
consultation, in the design and implementation of Sub-projects in locations in which such
people reside or which they use for their livelihood; and (ii) the design, preparation and
implementation of the Ethnic Minorities Development Plans, as said strategy may be
amended from time to time with the prior concurrence of the Bank.
(ee)
"Sub-grant" means a grant made, or proposed to be made, by any
Participating Countries, out of the proceeds of its GEF Trust Fund Grant Agreement, to a
Selected Beneficiary, for the co-financing of a Sub-project under Parts A.1(a), A.1(b), or
A.1(c) of the Project, as the case may be, in accordance with its Respective Parts of the
Project; and "Sub-grants" means more than one Sub-grant.
(ff)
"Sub-project" means a specific investment project on livestock waste
management technology, selected by any Participating Country in accordance with its
respective Project Implementation Plan for financing through a Sub-grant under Parts.
A.1(a), A.1(b), or A.1(c) of the Projects, as the case may be, in accordance with its
Respective Parts of the Project; and "Sub-projects" means more than one Sub-project.
(gg)
"Thai National Steering Committee" and the acronym "TNSC" mean the
steering committee for the Livestock Waste Management Project in East Asia,
established by the DLD pursuant to Resolution 109/2004, and in accordance with
paragraph 1(a) of Schedule 4 to this Agreement, responsible for overseeing Thailand's
implementation of Thailand's Respective Parts of the Project, and any successor thereto.
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ARTICLE II
The GEF Trust Fund Grant
Section 2.01. The Bank agrees to make available to Thailand, on the terms and
conditions set forth or referred to in this Agreement, the GEF Trust Fund Grant in an
amount equal to two million Dollars (US$2,000,000).
Section 2.02. (a) 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) expenditures made (or, if the Bank shall so agree, to be made)
in respect of the reasonable cost of goods and services required for carrying out Part
B.1(b) and the respective activities under Parts A.2, B.2 and C of the Project and to be
financed out of the proceeds of the GEF Trust Fund Grant; and (ii) amounts paid (or, if
the Bank shall so agree, to be paid) on account of withdrawals made for Sub-grants under
Part A.1(b) of the Project to meet the reasonable cost of goods and services required for
the Sub-projects in respect of which withdrawals from the GEF Trust Fund Grant is
requested.
(b)
Thailand may, for the purposes of Parts A.1(b) and B.1(b) of the Project
and the respective activities under Parts A.2, B.2, and C of the Project, open and maintain
in United States Dollars a special deposit account in a commercial bank on terms and
conditions satisfactory to the Bank, including appropriate protection against set off,
seizure or attachment. Deposits into, and payments out of, the Special Account shall be
made in accordance with the provisions of Schedule 5 to this Agreement.
Section 2.03. The Closing Date shall be December 31, 2010, or such later date as
the Bank shall establish. The Bank shall promptly notify Thailand of such later date.
ARTICLE III
Execution of the Project
Section 3.01. (a) Thailand 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, and
cause the Provinces in the Project Selected Areas to carry out, its Respective Parts of the
Project with due diligence and efficiency and in conformity with appropriate
management, financial, engineering, and administrative practices, and sound social,
public health and environmental standards acceptable to the Bank, and shall provide,
promptly as needed, the funds, facilities, services, staff, and other resources required for
Thailand's Respective Parts of the Project.
(b)
Without limitation upon the provisions of paragraph (a) of this Section
and except as Thailand and the Bank shall otherwise agree, Thailand shall carry out its
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Respective Parts of the Project in accordance with the Implementation Program set forth
in Schedule 4 to this Agreement.
Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the
goods, works and services required for the Thailand's Respective Parts of 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, as said provisions may be further elaborated
in the Procurement Plan.
(b)
Thailand shall update the Procurement Plan in accordance with
guidelines acceptable to the Bank, and furnish such update to the Bank not later than
twelve (12) months after the date of the preceding Procurement Plan, for the Bank's
approval.
Section 3.03. For the purposes of Section 9.08 of the General Conditions and
without limitation thereto, Thailand 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 Thailand and the Bank, a plan to ensure the continued
achievement of the objectives of the Project; and
(b)
afford the Bank a reasonable opportunity to exchange views with
Thailand on said plan.
ARTICLE IV
Financial Covenants
Section 4.01. (a) Thailand shall maintain a financial management system,
including records and accounts, and prepare financial statements in accordance with
consistently applied accounting standards acceptable to the Bank, adequate to reflect the
operations, resources and expenditures related to its Respective Parts of the Project.
(b) Thailand
shall:
(i)
have the financial statements referred to in paragraph (a) of this
Section for each fiscal year (or other period agreed to by the
Bank), audited, in accordance with consistently applied auditing
standards acceptable to the Bank, 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 (or such other
period agreed to by the Bank): (A) certified copies of the
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financial statements referred to in paragraph (a) of this Section
for such year (or other period agreed to by the Bank), as so
audited; and (B) an opinion on such statements by said auditors,
in scope and detail satisfactory to the Bank; and
(iii)
furnish to the Bank such other information concerning such
records and accounts, and the audit of such financial statements,
and concerning said auditors, as the Bank may 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 statements of expenditure, Thailand
shall:
(i)
retain, until at least one year after the Bank has received the
audit report for, or covering, 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;
(ii)
enable the Bank's representatives to examine such records; and
(iii)
ensure that such statements of expenditure are included in the
audit for each fiscal year (or other period agreed to by the Bank),
referred to in paragraph (b) of this Section.
Section 4.02. (a) Without limitation upon the Thailand's progress reporting
obligations set out in paragraph 9 of Schedule 4 to this Agreement, Thailand shall prepare
and furnish to the Bank a Financial Monitoring Report, in form and substance satisfactory
to the Bank, which:
(i)
sets forth sources and uses of funds for the Project, both
cumulatively and for the period covered by said report, showing
separately funds provided under the GEF Trust Fund Grant, and
explains variances between the actual and planned uses of such
funds;
(ii)
describes physical progress in the implementation of the Project,
both cumulatively and for the period covered by said report, and
explains variances between the actual and planned Project
Implementation; and
(iii)
sets forth the status of procurement under the Project as at the
end of the period covered by said report.
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(b)
The first Financial Monitoring Report shall be furnished to the Bank not
later than forty-five days after the end of the first calendar semester after the Effective
Date, and shall cover the period from the incurrence of the first expenditure under the
Project through the end of such first calendar quarter; thereafter, each Financial
Monitoring Report shall be furnished to the Bank not later than forty-five days after each
subsequent calendar semester, and shall cover such calendar semester.
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 Thailand shall have taken any action
to impair or suspend the operations of the Regional Coordination Group, or otherwise
affect its ability to perform any of its obligations under the Project, or to achieve the
objectives of the Project.
ARTICLE VI
Effectiveness; Termination
Section 6.01. The following events are specified as additional conditions to the
effectiveness of the GEF Trust Fund Grant within the meaning of Section 12.01(c) of the
General Conditions:
(a)
the PMO has been staffed, pursuant to paragraph 1(b) of Schedule 4 to
this Agreement, and the PMO's Project Director and other key operational staff, all of
them with relevant experience and sufficient qualifications, have been appointed with
terms of reference satisfactory to the Bank;
(b)
the PMO's relevant staff have completed their financial and procurement
training, in a manner and substance satisfactory to the Bank; and
(c)
Thailand's nominees for the Regional Coordination Group have been
appointed pursuant to paragraph 1(d) of Schedule 4 to this Agreement.
Section 6.02. The date ninety 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.
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ARTICLE VII
Representative of Thailand; Addresses
Section 7.01. The Director-General of the Public Debt Management Office of the
Ministry of Finance of Thailand is designated as representative of Thailand 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 Thailand:
Director-General
Public Debt Management Office
Ministry of Finance
Rama VI Road
Bangkok 10400
The Kingdom of Thailand
Facsimile:
(662) 273-9144 / 9109
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:
Facsimile:
INTBAFRAD 248423
(MCI)
(1-202)
477-6391
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 Bangkok, Kingdom of Thailand, as of the day and year first above written.
KINGDOM OF THAILAND
By /s/ Pannee Sathavarodom
Authorized Representative
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
as an Implementing Agency of the Global Environment Facility
By /s/ Ian C. Porter
Authorized Representative
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SCHEDULE 1
Withdrawal of the Proceeds of the GEF Trust Fund Grant
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
% of
Allocated
Expenditures
Category
(in United States Dollars)
to be Financed
(1) Sub-grants under Part
1,103,400
100% of Sub-grant
A.1.(b) of the Project
amount disbursed
(2) Goods for Thailand's
33,800
100% of foreign
Respective Parts of the
expenditures and
Project (except Part
100% of local
A.1(b))
expenditures (ex-factory
cost) and 75% of local
expenditures for other
items procured locally
(3) Consultants' services for 531,500
92%
Thailand's Respective
Parts of the Project
(4) Training and Workshops
231,300
100% of foreign
for Thailand's
expenditures and
Respective Parts of the
80% of local
Project
expenditures
(5) Incremental Operating
Costs
100,000
100%
Total
2,000,000
========
2.
For the purposes of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of
any country other than that of Thailand for goods or services supplied from the territory
of any country other than that of Thailand;
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(b)
the term "local expenditures" means expenditures in the currency of
Thailand or for goods or services supplied from the territory of Thailand; and
(c)
the term "Incremental Operating Costs" means the reasonable costs of
incremental expenditures incurred by Thailand in the implementation of its Respective
Parts of the Project, which expenditures would not have been incurred absent the Project,
including per diem field allowances, travel expenses, costs for vehicle operation and
maintenance, office consumables (except office equipment), communication expenses,
printing expenses, and local contractual staff, but excluding salaries and salary
supplements of civil servants.
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,
except that withdrawals, in an aggregate amount not exceeding US$24,000, may be made
in respect of Categories (3) and (5) on account of payments made for expenditures before
that date but after August 1, 2005.
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 under contracts for:
(a) goods costing less than US$100,000 equivalent per contract; (b) services of individual
consultants costing less than US$50,000 equivalent per contract; (c) services of
consulting firms costing less than US$100,000 equivalent per contract; (d) goods and
works under Sub-grants and costing less than US$100,000 equivalent per contract; (e)
training and workshops; and (f) Incremental Operating Costs; all under such terms and
conditions as the Bank shall specify by notice to Thailand.
5.
If the Bank shall have determined at any time that any amount of the GEF Trust
Fund Grant was used in a manner inconsistent with the provisions of this Agreement,
Thailand shall, promptly upon notice from the Bank, refund to the Bank for deposit into
the GEF Trust Fund Grant Account, an amount equal to the amount so used.
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SCHEDULE 2
Description of the Project
The objectives of the Project are to assist the Participating Countries and the
Food and Agriculture Organization, in coordination with one another, to reduce: (i) the
negative environmental and health impacts of livestock-induced pollution on water
bodies; and (ii) the environmental degradation of the South China Sea.
The Project consists of the following parts, subject to such modifications thereof
as the Participating Countries, FAO and the Bank may agree upon from time to time to
achieve such objectives.
Part A. Livestock Waste Management Technology Demonstration
1.
Developing country-specific livestock waste management strategies in the
Selected Project Areas in each Participating Country, for the construction of cost-
effective and replicable manure management facilities and the implementation of manure
management systems, consisting of:
(a)
In the People's Republic of China
The provision of Sub-grants to Selected Beneficiaries for: (i) the construction or
rehabilitation of manure treatment systems (including lagoons, fish ponds, composting
facilities and biogas digesters); and (ii) the recycling of treated manure.
(b)
In the Kingdom of Thailand
The provision of Sub-grants to Selected Beneficiaries for: (i) the construction or
rehabilitation of manure treatment systems (including lagoons, sedimentation tanks,
composting facility and biogas digesters); and (ii) the recycling of treated manure.
(c)
In the Socialist Republic of Vietnam
The provision of Sub-grants to Selected Beneficiaries for: (i) the construction or
rehabilitation of household manure treatment systems (including lagoons, sedimentation
tanks, fish ponds, composting facilities and biogas digesters); and (ii) the recycling of
treated manure.
2.
Providing training, including study tours, and technical support to farmers,
farmers' associations, animal husbandry extension agents, and government officials, for
the improvement of on-farm manure management practices and the strengthening of their
capacities, in accordance with the respective Master Capacity-Building Development
Plan.
- 17 -
Part B. Policy and Replication Strategy Development
1.
Developing and implementing country-specific policies and regulatory
frameworks for livestock waste management practices in each Participating Country,
consisting of:
(a)
In the People's Republic of China
(i)
The development and implementation of a Project replication
strategy;
(ii)
The review and revision of existing livestock related
environmental regulations and the drafting and testing of a new
policy framework, farm licensing procedures and codes of
practices;
(iii)
The adoption of global information system techniques for data
collection, processing and analysis, and the preparation of zoning
maps for livestock production; and
(iv) The strengthening of policies promoting manure
commercialization.
(b)
In the Kingdom of Thailand
(i)
The development and implementation of a Project replication
strategy;
(ii)
The revision and implementation of the Standard-Farm
Regulations;
(iii)
The development and implementation of livestock waste
management and related environmental policy frameworks, farm
licensing procedures and codes of practices;
(iv)
The adoption of global information system techniques for data
collection, processing and analysis, and the preparation of zoning
maps for livestock production; and
(v) The strengthening of policies promoting manure
commercialization.
- 18 -
(c)
In the Socialist Republic of Vietnam
(i)
The development and implementation of a Project replication
strategy;
(ii)
The development and implementation of livestock waste
management and related environmental policy frameworks
(including livestock waste discharge and recycling standards)
and codes of practices;
(iii)
The adoption of global information system techniques for data
collection, processing and analysis, and the preparation of zoning
maps for livestock production; and
(iv)
The development of policies promoting the production of
organic fertilizers.
2.
(a)
Carrying out of a public awareness campaign on the environmental
impact of livestock waste management, including the development and publication of
environmental regulations and promotional materials, and the coordination of a network
of agricultural research and educational institutions; and
(b)
Providing training to government officials of each Participating Country
in spatial analysis, environmental impact assessment, monitoring techniques, manure and
nutrient management, and the use of decision making tools.
Part C. Project Management and Monitoring
1.
Strengthening the institutional capacity of the Participating Countries' PMOs and
implementing agencies at local levels, for the management and implementation of the
Respective Parts of the Project.
2.
Strengthening the monitoring and evaluation skills of the Participating Countries'
PMOs and implementing agencies at local levels, to enable them to carry out their
respective Monitoring and Evaluation Plan to, inter alia: (i) supervise and assess the
capacity of local laboratories to conduct, soil water and public health monitoring sample
analysis; (ii) carry out baseline surveys and inventories to determine the environmental
and social conditions in Selected Project Areas; (iii) develop timelines and site-specific
technical, environmental and social indicators for Project activities, and determine any
changes in their qualitative or quantitative values; (iv) carry out extensive water quality
testing; and (v) develop and organize training programs for Project related agencies.
- 19 -
Part D. Regional Support Services
1.
Providing regional support for: (i) the development and implementation of
decision-making tools in each Participating Country; (ii) the coordination of a regional
group of experts to carry out field-based monitoring activities in the Selected Project
Areas; and (iii) the development of regional training modules and packages for trainers,
farmers, government officials and Project implementing agencies in each Participating
Country.
2. Facilitating
cross-country dissemination and sharing of Project's outcomes,
through, inter alia: (i) the development and implementation of annual work programs;
(ii) the organization of the annual meetings of the Regional Coordination Group; (iii) the
coordination and cooperation with related projects and programs already existing or
under way in the East Asia region; (iv) the coordination of study tours and workshops for
government officials, experts, policy-makers and other key stakeholders of the South
China Sea riparian countries; and (v) the development of a Project-related Internet portal
and publications.
* * *
The Project is expected to be completed by June 30, 2010.
- 20 -
SCHEDULE 3
Procurement
Section I.
General
A.
All goods, works and services (other than consultants' services) shall be procured
in accordance with the provisions of Section I of the "Guidelines: Procurement under
IBRD Loans and IDA Credits" dated May 2004 (the Procurement Guidelines), and with
the provisions of this Schedule.
B.
All consultants' services shall be procured in accordance with Sections I and IV
of the "Guidelines: Selection and Employment of Consultants by World Bank
Borrowers" dated May 2004 (the Consultant Guidelines), and with the provisions of this
Schedule.
C.
The capitalized terms used below in this Schedule to describe particular
procurement methods or methods of review by the Bank of particular contracts, have the
meanings ascribed to them in the Procurement Guidelines, or Consultant Guidelines, as
the case may be.
Section II.
Particular Methods of Procurement of Goods, Works and Services (other
than Consultants' Services)
A. International
Competitive
Bidding. Except as otherwise provided in Part B of
this Section, contracts shall be awarded on the basis of International Competitive
Bidding. The provisions of paragraphs 2.55 and 2.56 of the Procurement Guidelines,
providing for domestic preference in the evaluation of bids, shall apply to goods
manufactured in the territory of Thailand.
B.
Other Procurement Procedures
1. National
Competitive
Bidding.
Goods estimated to cost less than
US$200,000 equivalent per contract, and works, may be procured under contracts
awarded on the basis of National Competitive Bidding, and the additional provisions set
forth in the Attachment to this Schedule.
2. Shopping. Goods and works estimated to cost less than US$100,000
equivalent per contract may be procured under contracts awarded on the basis of
Shopping.
- 21 -
Section III.
Particular Methods of Procurement of Consultants' Services
A.
Quality- and Cost-based Selection. Except as otherwise provided in Part B of
this Section, consultants' services shall be procured under contracts awarded on the basis
of Quality- and Cost-based Selection. For purposes of paragraph 2.7 of the Consultant
Guidelines, the short list of consultants for services estimated to cost less than
US$500,000 equivalent per contract may comprise entirely national consultants.
B. Other
Procedures
1. Quality-based
Selection.
Services for assignments which the Bank
agrees meet the requirements set forth in paragraph 3.2 of the Consultant Guidelines may
be procured under contracts awarded on the basis of Quality-based Selection in
accordance with the provisions of paragraphs 3.1 through 3.4 of the Consultant
Guidelines.
2.
Selection Based on Consultants' Qualifications. Services estimated to
cost less than US$100,000 equivalent per contract may be procured under contracts
awarded in accordance with the provisions of paragraphs 3.1, 3.7 and 3.8 of the
Consultant Guidelines.
3. Single
Source
Selection. Services for tasks in circumstances which meet
the requirements of paragraph 3.10 of the Consultant Guidelines for Single Source
Selection, may, with the Bank's prior agreement, be procured in accordance with the
provisions of paragraphs 3.9 through 3.13 of the Consultants' Guidelines.
4. Individual
Consultants.
Services for assignments that meet the
requirements set forth in the first sentence of paragraph 5.1 of the Consultant Guidelines
may be procured under contracts awarded to individual consultants in accordance with
the provisions of paragraphs 5.2 through 5.3 of the Consultant Guidelines. Under the
circumstances described in paragraph 5.4 of the Consultant Guidelines, such contracts
may be awarded to individual consultants on a sole-source basis subject to prior approval
of the Bank.
Section IV.
Review by the Bank of Procurement Decisions
Except as the Bank shall otherwise determine by notice to Thailand, the
following contracts shall be subject to Prior Review by the Bank: (a) all contract for
goods, services other than consultants' services and works awarded on the basis of
International Competitive Bidding and National Competitive Bidding; (b) the first
contract for goods, the first contract for services other than consultants' services, and the
first contract for works, procured under shopping procedures in each calendar year; (c)
the first contract for consultants' services to be provided by a firm and thereafter, all
contracts for the employment of consulting firms awarded on the basis of Single Source
Selection or estimated to cost the equivalent of US$100,000 or more. In addition, with
- 22 -
respect to: (d) the first contract for the employment of individual consultants and,
thereafter; (e) all contracts for individual consultants awarded on a sole-source basis, as
well as; (f) all contracts for the employment of individual consultants estimated to cost
the equivalent of US$50,000 or more, the report on the qualifications and experience of
all evaluated candidates, the terms of reference and the terms of employment of the
consultants shall be subject to prior approval by the Bank. All other contracts shall be
subject to Post Review by the Bank.
- 23 -
Attachment to Schedule 3
National Competitive Bidding
In addition and without limitation or restriction to any other provision set forth in
this Schedule or the Procurement Guidelines, Thailand represents that the procedures to
be followed for National Competitive Bidding shall be those set forth in the Regulation of
the Office of the Prime Minister on Procurement B.E. 2535; and, in order to ensure
economy, efficiency and transparency and broad consistency with the provisions of
Section I of the Procurement Guidelines (as required by paragraph 3.3 of the Procurement
Guidelines), goods and works for which this Schedule allows procurement shall be
procured in accordance with paragraphs 3.3 and 3.4 of the Procurement Guidelines and
the following paragraphs.
a)
All invitations to bid shall be advertised in at least one widely circulated
national newspaper, or posted on Thailand's free and open access websites. Such
advertisement shall be made in sufficient time for prospective bidders to obtain
prequalification or bidding documents and prepare and submit their responses. In any
event, a minimum of thirty (30) days shall be given to bidders for the preparation and
submission of bids. The advertisement and bidding documents shall specify the bids
submission deadline.
b)
Foreign bidders shall be eligible to participate in bidding under the same
conditions as local bidders, and they shall not be required, in order to participate in
bidding or as a condition of award of the contract or during execution of the contract, to
enter into a joint venture with a local bidder, or to subcontract part of their contract to a
local bidder.
c)
The evaluation criteria shall be clearly specified in the bidding
documents, and the evaluation criteria other than the price shall be quantified in monetary
terms. All evaluation criteria so specified, and only the evaluation criteria so specified,
shall be taken into account in bid evaluations.
d)
Price escalation factor shall not be applied for contacts with a duration of
less than eighteen months.
e)
Foreign bidders shall be allowed to participate in bidding without being
required to register, request a license and/or any other governmental approvals or
authorizations for the purpose of their participation.
f)
The bid security of all bidders shall be kept by the PMO and returned to
the bidders after awarding the contract to the successful bidder, or at the end of the bid
validity period specified in the tender document. The bid validity period shall in no case
exceed one hundred and eighty days.
- 24 -
g)
Transport of imports for the contracts awarded through National
Competitive Bidding shall not be restricted to Thai vessels only;
h)
A bidder shall not be required, as a condition for award, to undertake
obligations not specified in the bidding documents, or otherwise to modify the bid as
originally submitted.
- 25 -
SCHEDULE 4
Implementation Program
Project Management
1. Thailand
shall:
(a)
maintain, throughout the period of implementation of Thailand's
Respective Parts of the Project, the Thai National Steering Committee, chaired by the
Director-General of the DLD or his/her representative, including representation from,
inter alia, the MONRE, the Chulalongkorn University, the MOAC, the MOE and the
MOPH, and assigned with such functions and responsibilities, satisfactory to the Bank, as
shall be required for the overall coordination and oversight of the implementation of
Thailand's Respective Parts of the Project, including: (i) reviewing and approving of the
annual work programs proposed by the PMO; (ii) ensuring budget allocations for the
Project; (iii) providing guidance to the PMO on national policies and priorities related to
livestock waste management; and (iv) integrating efforts and activities among Project
related agencies;
(b)
maintain throughout the period of implementation of Thailand's
Respective Parts of the Project, a Project Management Office, headed by a qualified and
experienced Project Director, with experience in projects' management and expertise in
livestock waste management and related environmental issues, provided with sufficient
resources and competent staff in adequate numbers and under terms of reference
satisfactory to the Bank, and assigned with such functions and responsibilities,
satisfactory to the Bank, as shall be required for the day-to-day implementation of
Thailand's Respective Parts of the Project, including the carrying out of financial
management, procurement, training coordination, monitoring, evaluation and reporting
activities under Thailand's Respective Parts of the Project, and the liaison with the
TNSC, the PLOs and district level officials;
(c)
maintain throughout the period of implementation of Thailand's
Respective Parts of the Project, a Provincial Livestock Office in each of the Selected
Project Areas, to be provided with sufficient resources and competent staff in adequate
numbers and under terms of reference satisfactory to the Bank, and assigned with such
functions and responsibilities, satisfactory to the Bank, as shall be required to assist the
PMO with: (i) the implementation of Thailand's Respective Parts of the Project; and (ii)
the procurement of livestock waste management technologies for the Sub-projects; and
(d)
appoint delegates, to be selected by and from among the members of the
TNSC and the PMO, to participate and represent Thailand in the Regional Coordination
Group, for the purposes of: (i) ensuring the continuing exchange of information among
Participating Countries on livestock waste management; (ii) promoting regional synergies
- 26 -
by coordinating Project activities among Participating Countries; (iii) promoting the
inclusion of livestock waste management issues in policy and budget formulation in the
Participating Countries; (iv) promoting the adoption of common environmental policies
and practices; and (v) reviewing FAO's annual work program.
2.
For purposes of Section 4.01 of this Agreement, Thailand shall, no later than
six (6) months as of the Effective Date, select and retain an independent auditor
acceptable to the Bank, under terms of reference satisfactory to the Bank, to carry out
annual audits of all of Thailand's Project accounts, expenditures, Financial Monitoring
Reports and financial statements.
Project Implementation
A. General
3.
(a)
Thailand, through the PMO, shall adopt and implement a Project
Implementation Plan providing, inter alia:
(i)
the institutional arrangements for the implementation of
Thailand's Respective Parts of the Project, acceptable to the
Bank, including the procedures, conditions, and criteria for the
identification, preparation, appraisal, environmental screening
and selection of Sub-projects for the provision of Sub-grants
under Part A.1.(b) of the Project;
(ii)
the terms and conditions of Sub-grants, acceptable to the Bank,
including: (A) maximum and minimum amounts in accordance
with eligible technologies; (B) procurement arrangements; (C)
model sub-grant agreements to be entered in accordance with
Paragraph 5 of this Schedule 4; and (D) remedies for non-
compliance with any of the conditions thereof.
(iii)
a time-bound Master Capacity-Building Development Plan,
satisfactory to the Bank, specifying the program to be carried out
for implementing Thailand's respective activities under Parts A.2
and C of the Project;
(iv)
any arrangements, satisfactory to the Bank, for the flow of funds
of the GEF Trust Fund Grant;
(v)
a Monitoring and Evaluation Plan, satisfactory to the Bank,
including providing for semi-annual reports based on indicators
applicable to projects in international waters; and
- 27 -
(vi)
a Stakeholders Participation Plan, acceptable to the Bank,
providing for the participation and consultation mechanisms
tailored to facilitate the stakeholders' involvement in the
preparation, review and implementation of the new livestock
waste management policy frameworks, the codes of practices,
the master plan for livestock production and the livestock waste
management technology demonstrations.
(b)
Thailand shall not amend, waive or abrogate any provisions of the
Project Implementation Plan without the prior concurrence of the Bank.
4. Thailand
shall:
(a)
prepare, under guidelines acceptable to the Bank and in accordance with
procedures set forth in the Project Implementation Plan, and furnish to the Bank for its
review and comments: (i) by no later than one month after the Effective Date, a work
program, identifying the activities, by component and sub-component, carried out or to
be carried out starting from the Effective Date and through the end of the first calendar
year of implementation of Thailand's Respective Parts of the Project; and (ii) thereafter,
by no later than November 30 of each year, commencing in 2006, a work program for the
following calendar year; and
(b)
thereafter, carry out the Respective Parts of the Project during the
following calendar year in accordance with such annual work program as shall been
agreed with the Bank and approved by the TNSC.
B.
Livestock Waste Management Technology Demonstration
5.
Thailand, through the PMO, shall:
(a)
enter into sub-grant agreements with the Selected Beneficiaries, under
terms and conditions satisfactory to the Bank and in accordance with the guidelines of the
Attachment to this Schedule 4 and the Project Implementation Plan, for the purposes of
financing specific investment Sub-projects under Part A.1.(b) of the Project. In the event
of conflict between the provisions of this Agreement and the provision of the Project
Implementation Plan, the provisions of this Agreement shall prevail; and
(b)
prepare, or require the Selected Beneficiaries to prepare and adopt, a sub-
project implementation plan for each investment Sub-project to be financed through Sub-
grant; each said sub-project implementation plan to include: (i) a description of the
implemented manure management system or technology; (ii) a Sub-project-customized
monitoring and evaluation plan; and (iii) any necessary statistical information for
assessing the evolution and replicability of the Sub-project.
- 28 -
6.
In carrying out Part A.1.(b) of the Project, Thailand shall ensure that all selected
Sub-projects to be financed through Sub-grants are technically, commercially and
financially viable, and have been designed and appraised, with due regard for public
health, safety, resettlement and environmental standards acceptable to the Bank,
including ensuring that:
(a)
an environmental screening of each Sub-project has been done and, if
necessary on the basis of such screening, a full Environmental Impact Assessment has
been carried out, in terms satisfactory to the Bank, in order to determine any measures to
be taken to prevent, minimize, mitigate or compensate any environmentally adverse
effects. In the event that any Sub-projects would require any such mitigation measures,
prior to commencing such Sub-project, prepare an Environmental Management Plan,
satisfactory to the Bank, in accordance with sound environmental practices and standards
acceptable to the Bank and the 1992 Enhancement and Conservation of National
Environmental Quality Act, and thereafter, implement the Environmental Management
Plan as approved by the Bank. Any revisions or amendments to either the Environmental
Impact Assessment or the approved Environmental Management Plan shall be furnished
to the Bank for its prior concurrence;
(b)
all necessary actions have been taken in order to minimize to the extent
possible any involuntary loss by persons of shelter, productive assets or access to
productive assets, or income, or means of livelihood, temporarily or permanently. In the
event that the Sub-projects would give rise to Displaced Persons, prior to commencing
such Sub-projects, prepare a Resettlement Plan, satisfactory to the Bank, in accordance
with the policies and procedures in the Resettlement Policy Framework, and thereafter,
implement the Resettlement Action Plan as approved by the Bank. Any revisions or
amendments to either the Resettlement Policy Framework or the approved Resettlement
Plans shall be furnished to the Bank for its prior concurrence; and
(c)
all necessary actions have been taken in order to avoid to the extent
possible any socially and culturally incompatible effects on ethnic minorities'
communities within the Selected Project Areas. In the event that the Sub-projects would
inevitably affect ethnic minorities' communities within the Selected Project Areas, prior
to commencing such Sub-projects, prepare an Ethnic Minorities Development Plan,
satisfactory to the Bank, in accordance with the procedures of the Strategy for Ethnic
Minority Development and ensuring meaningful consultations with and informed
participation of the affected ethnic minorities' communities, and thereafter, implement
the Ethnic Minority Development Plan as approved by the Bank. Any revision or
amendment to either the Strategy for Ethnic Minority Development or the approved
Ethnic Minorities Development Plans shall be furnished to the Bank for its prior
concurrence.
- 29 -
C.
Policy and Replication Strategy Development
7.
In carrying out Part B.1.(b)(i) of the Project, Thailand shall:
(a)
by no later than December 31, 2007, develop a Project replication
strategy for the nation-wide scale-up of the Project;
(b)
provide said strategy to the Bank for its review and comments; and
(c)
thereafter, take all necessary actions to implement said strategy taking
into consideration the Bank's view thereon.
8.
In carrying out Parts B.1.(b)(ii), (iii) and (v) of the Project, Thailand shall apply
the principles and procedures set forth in the Stakeholders Participation Plan to ensure
consultations with and the participation of the representatives from the Pig Development
Committee, farmers, farm producers and the associations thereof, the private sector and
Thailand's Project-related agencies, in the formulation of: (a) the new environmental and
livestock management policy frameworks; (b) the farm licensing procedures; (c) the
revised Standard Farm Regulations; and (d) the policies favoring manure
commercialization.
D.
Monitoring and Evaluation
9.
(a)
Thailand shall maintain policies and procedures adequate to enable it to
monitor and evaluate on an ongoing basis, in accordance with the indicators satisfactory
to the Bank, the carrying out of Thailand's Respective Parts of the Project and the
achievement of the objectives thereof;
(b)
Thailand shall prepare, under the terms of reference satisfactory to the
Bank, and furnish to the Bank, on or about February 15 and August 15 of each year,
commencing on August 15, 2006, a semi-annual report integrating the results of the
monitoring and evaluation activities performed pursuant to sub-paragraph (a) above, on
the progress achieved in the carrying out of Thailand's Respective Parts of the Project
during the preceding calendar semester, each such semi-annual report to integrate the
Financial Monitoring Reports for the covered relevant period, in accordance with Article
IV, Section 4.02 of this Agreement, and set out the measures recommended to ensure the
efficient carrying out of Thailand's Respective Parts of the Project and the achievement
of their objectives during the period following the date of each such report; and
(c)
Promptly after their preparation, Thailand shall review with the Bank, the
reports referred to in paragraph (b) above, and, thereafter, shall take all measures required
to ensure the efficient completion of the Respective Parts of the Project and the
achievement of the objectives thereof, based on the conclusions and recommendations of
the said reports and the Bank's views on the matter.
- 30 -
Attachment to Schedule 4
Procedures for and Terms and Conditions
of Sub-grants
1.
Sub-grants shall: (i) be made solely for Sub-projects, (ii) be denominated in
Thailand Baht; and (iii) not exceed twenty five percent (25%) of the reasonably estimated
overall cost of each Sub-project, including any in kind contributions from the Selected
Beneficiary.
2.
No expenditures required for a Sub-project shall be eligible for financing out of
the proceeds of the GEF Trust Fund Grant unless:
(a)
the relevant application for approval of the Sub-project shall have been
processed in accordance with the provisions of the Project Implementation Plan and
approved by the PMO; and
(b)
Thailand, through the PMO and/or the respective PLO, has entered into
the written agreement referred to in paragraph 5 of Schedule 4 to this Agreement with the
Selected Beneficiary.
3.
The aforementioned Sub-grant written agreement shall grant Thailand, the
right to:
(a)
require the Selected Beneficiary to carry out and operate the Sub-project
with due diligence and efficiency and in accordance with sound technical, engineering,
financial, environmental, social, public health and managerial standards, and the
provisions of the Project Implementation Plan, and to maintain adequate records and
accounts;
(b)
require that: (i) the goods and works to be financed out of the proceeds of
the Sub-grants be procured in accordance with the provisions of Schedule 3 to this
Agreement with the assistance of the PMO or the PLOs, as the case may be; (ii) such
goods and works be used exclusively in furtherance of the objectives of the Project; and
(iii) such goods and works be neither sold nor transferred for use by any other party than
the Selected Beneficiary;
(c)
require that the Selected Beneficiary comply with all relevant
environmental laws and regulations of Thailand with respect to its activities, including
with respect to the Sub-project;
(d)
inspect, by itself or jointly with representatives of the Bank, if the Bank
shall so request, any such goods, technologies and production sites related to the Sub-
project and the operation thereof, as well as any relevant records and documents;
- 31 -
(e)
require that: (i) the Selected Beneficiary shall take out and maintain with
responsible insurers such insurance, against such risks and in such amounts, as shall be
consistent with sound business practice; and (ii) without any limitation upon the
foregoing, such insurance shall cover hazards incident to the acquisition, transportation
and delivery of goods financed out of the proceeds of the Sub-grant to the place of use or
installation, any indemnity thereunder to be made payable in a currency freely usable by
the Selected Beneficiary to replace or repair such goods;
(f)
obtain all such information as the Bank shall reasonably request relating
to the foregoing, and to the administration, operations and financial condition of the
Selected Beneficiary and to the benefits to be derived from the Sub-project (including
information required to exercise the prior review provided for in Section IV of Schedule
3 to this Agreement, and comply with Section 9.07(a)(iii) of the General Conditions);
(g)
require the Selected Beneficiary to operate and maintain at all times any
facilities relevant to the Sub-project, and, promptly as needed, to make or cause to be
made all necessary repairs and renewals thereof; and
(h)
suspend or terminate the right of the Selected Beneficiary to the use of
the proceeds of the Sub-grant upon failure by the Selected Beneficiary to perform its
obligations under its contract with Thailand.
- 32 -
SCHEDULE 5
Special Account
1.
For the purposes of this Schedule:
(a) the
term
"eligible Categories" means Categories (1), (2), (3), (4) and (5)
set forth in the table in paragraph 1 of Schedule 1 to this Agreement;
(b)
the term "eligible expenditures" means expenditures in respect of the
reasonable cost of goods and services required for Thailand's Respective Parts of the
Project and to be financed out of the proceeds of the GEF Trust Fund Grant allocated
from time to time to the eligible Categories in accordance with the provisions of Schedule
1 to this Agreement; and
(c)
the term "Authorized Allocation" means the amount of US$200,000 to
be withdrawn from the GEF Trust Fund Grant Account and deposited into the Special
Account pursuant to paragraph 3(a) of this Schedule.
2.
Payments out of the Special Account shall be made exclusively for eligible
expenditures in accordance with the provisions of this Schedule.
3.
After the Bank has received evidence satisfactory to it that the Special Account
has been duly opened, withdrawals of the Authorized Allocation and subsequent
withdrawals to replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, Thailand shall furnish to
the Bank a request or requests for deposit into the Special Account of an amount or
amounts which do not exceed the aggregate amount of the Authorized Allocation. On the
basis of such request or requests, the Bank shall, on behalf of Thailand, withdraw from
the GEF Trust Fund Grant Account and deposit into the Special Account such amount or
amounts as Thailand shall have requested.
(b)
(i)
For replenishment of the Special Account, Thailand shall furnish
to the Bank requests for deposits into the Special Account at
such intervals as the Bank shall specify.
(ii)
Prior to or at the time of each such request, Thailand shall
furnish to the Bank the documents and other evidence required
pursuant to paragraph 4 of this Schedule 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 Thailand,
withdraw from the GEF Trust Fund Grant Account and deposit
into the Special Account such amount as Thailand shall have
- 33 -
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. All such deposits shall be withdrawn by
the Bank from the GEF Trust Fund Grant Account under the
respective eligible Categories, and in the respective equivalent
amounts, as shall have been justified by said documents and
other evidence.
4.
For each payment made by Thailand out of the Special Account, Thailand 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.
5.
Notwithstanding the provisions of paragraph 3 of this Schedule, the Bank shall
not be required to make further deposits into the Special Account:
(a)
if, at any time, the Bank shall have determined that all further
withdrawals should be made by Thailand directly from the GEF Trust Fund Grant
Account in accordance with the provisions of Article V of the General Conditions and
paragraph (a) of Section 2.02 of this Agreement;
(b)
if Thailand 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 the records
and accounts for the Special Account;
(c)
if, at any time, the Bank shall have notified Thailand of its intention to
suspend in whole or in part the right of Thailand to make withdrawals from the GEF
Trust Fund Grant Account pursuant to the provisions of Section 6.02 of the General
Conditions; or
(d)
once the total unwithdrawn amount of the GEF Trust Fund Grant
allocated to the eligible Categories, 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 Grant Account of the remaining
unwithdrawn amount of the GEF Trust Fund Grant allocated to the eligible Categories
shall follow such procedures as the Bank shall specify by notice to Thailand. 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.
6.
(a)
If the Bank shall have determined at any time that any payment out of the
Special Account: (i) was made for an expenditure or in an amount not eligible pursuant to
paragraph 2 of this Schedule; or (ii) was not justified by the evidence furnished to the
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Bank, Thailand shall, promptly upon notice from the Bank: (A) provide such additional
evidence as the Bank may request; or (B) 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 or the portion thereof not so eligible or justified. Unless the Bank shall
otherwise agree, no further deposit by the Bank into the Special Account shall be made
until Thailand has provided such evidence or made such deposit or refund, as the case
may be.
(b)
If the Bank shall have determined at any time that any amount
outstanding in the Special Account will not be required to cover further payments for
eligible expenditures, Thailand shall, promptly upon notice from the Bank, refund to the
Bank such outstanding amount.
(c)
Thailand 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 paragraphs 6(a), (b) and (c) of this
Schedule shall be credited to the GEF Trust Fund Grant Account for subsequent
withdrawal or for cancellation in accordance with the relevant provisions of this
Agreement, including the General Conditions.