Uredba o ratifikaciji Sporazuma o dotaciji skrbniškega sklada Global Environment Facility Trust Fund med Republiko Slovenijo in Mednarodno banko za obnovo in razvoj

GEF TRUST FUND GRANT NUMBER 28305 SLO
    Global Environment Facility Trust Fund
    Grant Agreement
    (Technical Support and Investment Project for the
    Phaseout of Ozone Depleting Substances)
    between
    REPUBLIC OF SLOVENIA
    and
    INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
    acting as Implementing Agency of the Global Environment Facility
    Dated November 13, 1995

.                                                   GEF Trust Fund Grant No. 28305 SLO

GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT
    A G R E E M E N T

AGREEMENT, dated November 13, 1995, between REPUBLIC OF SLOVENIA (the Recipient) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as implementing agency (the Implementing Agency) of the Global Environment Facility in respect of grant funds provided by certain members of the Bank as participants (the Participants) of the Global Environment Facility into the Global Environment Facility Trust Fund (GEF Trust Fund).
    WHEREAS (A) the International Bank for Reconstruction and Development (the Bank) pursuant to Resolution No. 91-5 of March 14, 1991, of the Executive Directors of the Bank established the Global Environment Facility, to assist in the protection of the global environment and promote thereby environmentally sound and sustainable economic development, and, whereas following the restructuring of the Global Environment Facility, such arrangements are continued in place on the basis set forth in Resolution No. 94-2 of the Executive Directors dated May 24, 1994 establishing the GEF Trust Fund;
    (B) the Participants have provided resources by way of grant into the GEF Trust Fund and the Participants have requested and the Bank has agreed to administer such grant funds as Implementing Agency, for the purposes of, and in accordance with, the provisions of such Resolution Nos. 91-5 and 94-2;
    (C) the Recipient, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested assistance from the resources of the GEF Trust Fund in the financing of the Project, and the Implementing Agency has determined that such assistance would be in accordance with the provisions of such Resolution Nos. 91-5 and 94-2;
    (D) the Project will be carried out through the Recipient’s Ministry of Environment and Physical Planning (MEPP), the Slovene EcoFund (SEF) and the Chamber of Economy of Slovenia (COE), with the Recipient’s assistance and, as part of such assistance, the Recipient will provide to Participating Enterprises (as such term is hereinafter defined) through the SEF, acting as a financial agent of the Recipient, part of the proceeds of the GEF Trust Fund Grant as provided in this Agreement; and
    WHEREAS the Implementing Agency has agreed, on the basis, inter alia, of the foregoing, to extend the GEF Trust Fund Grant to the Recipient upon the terms and conditions set forth in this Agreement;
    NOW THEREFORE the parties hereto hereby agree as follows:

ARTICLE I

General Conditions; Definitions

Section 1.01.(a) The following provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated January 1, 1985, with the modifications set forth in paragraph (b) of this Section (the General Conditions) constitute an integral part of this Agreement:
    (i) Article I;
    (ii) Sections 2.01 (1), (2), (3), (4), (6), (8), (9), (10), (11), (15), (18) and (20), 2.02 and 2.03;
    (iii) Section 3.01;
    (iv) Section 4.01 and the first sentence of Section 4.09;
    (v) Article V;
    (vi) Sections 6.01, 6.02 (a), (c), (d), (e), (f), (i) and (k), 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 12.03 and 12.04.
    (b) The General Conditions shall be modified as follows:
    (i) a new paragraph shall be added to the end of Section 2.01 to read as follows: “the term “Special Drawing Rights” and the symbol “SDR” mean special drawing rights as valued by the International Monetary Fund in accordance with its Articles of Agreement”;
    (ii) the term “Bank”, wherever used in the General Conditions, other than in Sections 2.01 (8) and 6.02 (f) thereof and the last use of such term in Section 5.01 thereof, means the Implementing Agency except that in Section 6.02, the term “Bank” shall also include the International Bank for Reconstruction and Development acting in its own capacity;
    (iii) the term “Borrower”, wherever used in the General Conditions, means the Recipient;
    (iv) the term “Loan Agreement”, wherever used in the General Conditions, means this Agreement;
    (v) the term “Loan” and “loan” wherever used in the General Conditions, means the GEF Trust Fund Grant;
    (vi) the term “Loan Account” wherever used in the General Conditions, means the GEF Trust Fund Grant Account; and
    (vii) a new sub-paragraph shall be added after sub-paragraph (j) in Section 6.02 of the General Conditions, as follows: “An extraordinary situation shall have arisen in which further disbursement under the grant would exceed the resources available for disbursement from the GEF”.
    Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Recitals to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings:
    (a) “COE” means the Chamber of Economy of Slovenia;
    (b) “MEPP” means the Ministry of Environment and Physical Planning of the Recipient;
    (c) “SEF” means the Ecological Development Fund of the Recipient established and operating pursuant to the Environmental Protection Act of the Recipient in force from July 2, 1993;
    (d) “ODS” means ozone depleting substance;
    (e) “CFC” means chloroflurocarbons;
    (f) “HFC” means hydroflurocarbons;
    (g) “HCFC” means hydrochloroflurocarbons;
    (h) “Project Administration Agreement” means the agreement among the Recipient, the SEF and the COE, referred to in Section 3.01 (c) of this Agreement, as such agreement may be amended from time to time;
    (i) “Project Implementation Manual” means the procedures and guidelines agreed with the Implementing Agency to be followed by the PIU for carrying out the Project;
    (j) “PIU” means the ODS Phaseout Project Implementation Unit to be established and operated in accordance with the Project Administration Agreement;
    (k) “Participating Enterprise” means Loske tovarne hladilnikov, p.o. (LTH), Gorenje Servis, d.o.o., Krka Kozmetika, d.o.o., Lek Pharmaceutical and Chemical Company, d.d., Trimo, d.d. and Labod, Dry Cleaning and Laundry, d.o.o., and any such other organization or enterprise identified by the Recipient and approved by the Implementing Agency as a participant in the Project;
    (l) “Sub-grant Agreement” means an agreement between SEF, acting as financial agent of the Recipient, and a Participating Enterprise entered into pursuant to Section 3.01 (b) of this Agreement, as such agreement may be amended from time to time;
    (m) “Sub-grant” means a grant from the Recipient to a Participating Enterprise provided under a Sub-grant Agreement to finance a Sub-project;
    (n) “Sub-project” means any of Sub-projects No. (1) through (7) referred to in Schedule 2 to this Agreement and to be financed out of the proceeds of the GEF Trust Fund Grant; and
    (o) “Special Account” means the account referred to in Section 2.02 (b) of this Agreement.

ARTICLE II

The GEF Trust Fund Grant

Section 2.01. The Implementing Agency agrees to make available to the Recipient, on the terms and conditions set forth or referred to in this Agreement, the GEF Trust Fund Grant in an amount in various currencies equivalent to four million two hundred thousand Special Drawing Rights (SDR 4,200,000).
    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 expenditures made (or, if the Implementing Agency shall so agree, to be made) in respect of the reasonable cost of goods, works and services required for carrying out the Project and to be financed out of the proceeds of the GEF Trust Fund Grant.
    (b) The Recipient shall, for the purposes of the Project, open and maintain in a freely convertible currency a special deposit account in the Central Bank or in a commercial bank on terms and conditions satisfactory to the Implementing Agency, including the management of said special deposit account by the SEF and appropriate protection against set-off, seizure or attachments. 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, 1997 or such later date as the Implementing Agency shall establish. The Implementing Agency shall promptly notify the Recipient of such later date.
    Section 2.04. The Implementing Agency shall not be obligated to make any payment under this Agreement except to the extent it shall have received funds for the purpose of the Project.

ARTICLE III

Execution of the Project

Section 3.01. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project through the MEPP, the SEF and the COE with due diligence and efficiency and in conformity with appropriate administrative, engineering and financial practices and with due regard to ecological and environmental factors, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project.
    (b) For purposes of carrying out Part B of the Project, the Recipient shall, through SEF, provide to Participating Enterprises a part of the proceeds of the GEF Trust Fund Grant, under Sub-Grant Agreements, with terms and conditions satisfactory to the Implementing Agency, which shall include those set forth in Schedule 4 to this Agreement, and in accordance with the general procedures and guidelines set forth in the Project Implementation Manual agreed upon by the Recipient and the Implementing Agency.
    (c) For purposes of carrying out Part B of the Project, the Recipient shall enter into the Project Administration Agreement with SEF and COE, with terms and conditions satisfactory to the Implementing Agency, including a provision for the payment by the Recipient to SEF of an agency fee at the rate of 3% of the amount disbursed under Sub-grant Agreements.
    (d) The Recipient shall exercise its rights under the Project Administration Agreement and shall cause the SEF to exercise its rights under each Sub-grant Agreement in such manner as to protect the interests of the Recipient, the Implementing Agency and the SEF and to accomplish the purposes of the GEF Trust Fund Grant, and, except as the Implementing Agency shall otherwise agree, the Recipient shall not assign, amend, abrogate, or waive the Project Administration Agreement or any provision thereof and shall cause the SEF not to assign, amend, abrogate or waive any Sub-grant Agreement or any provision thereof.
    Section 3.02. Except as the Implementing Agency shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the GEF Trust Fund Grant shall be governed by the provisions of Schedule 3 to this Agreement.
    Section 3.03. (a) The Recipient shall, at the request of the Implementing Agency, exchange views with the Implementing Agency with regard to progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the GEF Trust Fund Grant.
    (b) The Recipient shall promptly inform the Implementing Agency of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the GEF Trust Fund Grant, or the performance by the Recipient of its obligations under this Agreement.
    Section 3.04. The Recipient shall take all measures necessary to ensure that each Participating Enterprise complies with all relevant environmental requirements of the Recipient for any ODS phaseout activity to be carried out under the Project.
    Section 3.05. For the purposes of Section 9.08 of the General Conditions, and without limitation thereto, the Recipient shall:
    (a) prepare, on the basis of guidelines acceptable to the Implementing Agency and furnish to the Implementing Agency not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Implementing Agency, a plan for the future operation of the Project; and
    (b) afford the Implementing Agency a reasonable opportunity to exchange views with the Recipient on said plan.

ARTICLE IV

Financial Covenants

Section 4.01. (a) The Recipient shall maintain or cause the SEF to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project.
    (b) The Recipient shall or shall cause the SEF to:
    (i) have the records and accounts referred to in paragraph (a) of this Section, including those for the Special Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Implementing Agency;
    (ii) furnish to the Implementing Agency as soon as available, but in any case not later than six months after the end of each such year the report of such audit by said auditors, of such scope and in such detail as the Implementing Agency shall have reasonably requested; and
    (iii) furnish to the Implementing Agency such other information concerning such records, accounts and financial statements and the audit thereof as the Implementing Agency shall from time to time reasonably request.
    (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall or shall cause the SEF to:
    (i) maintain, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures;
    (ii) retain, until at least one year after the Implementing Agency has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;
    (iii) enable the Implementing Agency’s representatives to examine such records; and
    (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

ARTICLE V

Remedies of the Implementing Agency

Section 5.01. Pursuant to Section 6.02 (k) of the General Conditions, the following additional events are specified:
    (a) The Statutes or any other regulations governing the establishment or the operations of the SEF shall have been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely the operations or the financial condition of the SEF or the ability of the SEF to perform any of its obligations under the Project Administration 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 will be able to perform its obligations under this Agreement.
    (c) The Recipient, or any other authority having jurisdiction, shall have taken: (i) any actions which shall adversely affect the carrying out of the Project or the performance by the SEF of any of its obligations under the Project Administration Agreement; or (ii) any action for the dissolution or disestablishment of the SEF or for the suspension of its operations.

ARTICLE VI

Effectiveness; Termination

Section 6.01. For purposes of Section 12.03 of the General Conditions, the following events are specified as conditions to the effectiveness of the GEF Trust Fund Grant Agreement:
    (a) the Project Administration Agreement shall have been executed with terms and conditions satisfactory to the Implementing Agency; and
    (b) the Recipient shall have appointed staff for the PIU whose qualifications, experience and terms and conditions of employment are satisfactory to the Implementing Agency.
    Section 6.02. The date sixty (60) 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 all their obligations hereunder.

ARTICLE VII

Representative of the Recipient; Addresses

Section 7.01. The Minister of Environment and Physical Planning of the Recipient is designated as representative of the Recipient for the purposes of Section 11.03 of the General Conditions.
    Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions:
    For the Recipient:
    Ministry of Environment and Physical Planning
    Zupanciceva
    61000 Ljubljana
    Republic of Slovenia
    For the Implementing Agency:
    International Bank for
    Reconstruction and Development
    1818 H Street, N. W.
    Washington, D. C. 20433
    United States of America

Cable address:                                            Telex:
INTBAFRAD                                          197688 (TRT),
Washington, D. C.                                  248423 (RCA),
                                                  64145 (WUI) or
                                                    82987 (FTCC)

IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in Washington, D. C., as of the day and year first above written.
    REPUBLIC OF SLOVENIA
    By
    Authorized Representative
    Dr. Ernest Petrič, (s)
    INTERNATIONAL BANK FOR
    RECONSTRUCTION AND DEVELOPMENT
    as Implementing Agency of the Global
    Environment Trust Fund
    By
    Authorized Representative
    Kamal Dervish, (s)

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 Allocated                                  % of
                            (Expressed in                          Expenditures
Category                  SDR Equivalent)                        to be Financed
-------------------------------------------------------------------------------
(1) Works                       1,070,000                                   85%
(2) Goods                       1,980,000                       100% of foreign
                                                                  expenditures,
                                                                  100% of local
                                                                   expenditures
                                                              (ex-factory cost)
                                                               and 85% of local
                                                               expenditures for
                                                           other items procured
                                                                        locally
(3) Consultants’
    services                      420,000                                  100%
(4) Operating costs
    of the PIU                    250,000                                  100%
(5) Unallocated                   480,000
-------------------------------------------------------------------------------
TOTAL                           4,200,000
-------------------------------------------------------------------------------

2. For the purposes of this Schedule:
    (a) the term “foreign expenditures” means expenditures in the currency of any country other than that of the Recipient for goods, works or services supplied from the territory of any country other than that of the Recipient;
    (b) the term “local expenditures” means expenditures in the currency of the Recipient or for goods, works or services supplied from the territory of the Recipient; and
    (c) the term “operating costs” means operating costs incurred on account of the Project for the operation of the PIU, including staff salaries (other than salaries of government officials); office rent and maintenance; office equipment and consumable supplies; communications and transportations and the provision for the payment by the Recipient to SEF of an agency fee at the rate of 3% of the amount disbursed under Sub-grant agreements.
    3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of:
    (a) payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equivalent of SDR 800,000, may be made on account of payments made for expenditures under the Project before that date but after August 1, 1993, and
    (b) expenditures in respect of Categories (1), (2) and (3) for Parts B (1) throught B (6) of the Project on account of Sub-projects, until the Implementing Agency has received: (i) satisfactory evidence of the execution of the Sub-grant Agreement for the Sub-project; and (ii) the certification by the Recipient that the Participating Enterprise has implemented appropriate environmental safeguards and adopted adequate safety measures, in a manner satisfactory to the Implementing Agency, for the Sub-project.
    4. The Implementing Agency may require withdrawals from the GEF Trust Fund Grant Account to be made on the basis of statements of expenditure for expenditures for (a) works under contracts not exceeding $500,000 equivalent, (b) goods under contracts not exceeding $400,000 equivalent; (c) consulting firms’ services under contracts not exceeding $100,000 equivalent; and (d) individual consultants’ services under contracts not to exceed $50,000 equivalent under such terms and conditions as the Implementing Agency shall specify by notice to the Recipient.
    5. If the Implementing Agency shall have determined at any time that any payment made from the GEF Trust Fund Grant Account was used for any expenditure not consistent with the provisions of this Agreement, the Recipient shall, promptly upon notice from the Implementing Agency, refund to the Implementing Agency for deposit into the GEF Trust Fund Grant Account, an amount equal to the amount so used or the portion thereof as specified by the Implementing Agency.

SCHEDULE 2

Description of the Project

The objective of the Project is to assist the Recipient in phasing out the production and consumption of ODS in a cost-effective manner.
    The Project consists of the Following parts, subject to such modifications thereof as the Recipient and the Implementing Agency may agree upon from time to time to achieve such objectives:

Part A: Institutional Strengthening

Sub-project No. 1 – Establishment of the PIU to coordinate the implementation of the Project and to provide institutional, organizational and technical support for the implementation of ODS phaseout activities.

Part B: Investment Sub-projects

(1) Sub-project No. 2 – Conversion and Phaseout of ODS at LTH:
    (a) Substitution of CFC refrigerant with HFC-134a and HFC blends; (b) substitution of CFC-11 blowing agent with cyclopentane.
    (2) Sub-project No. 3 – Servicing of Refrigerators and Freezers and Substitution of CFC-12 Refrigerant in Heat Pumps with HFC-134a at Gorenje Servis:
    (a) Servicing the refrigerating-freezing appliances and heat pumps which contain CFC-12 as refrigerant and its recovery; (b) servicing the refrigerating-freezing appliances which contain HFC-134a as refrigerant; and (c) substitution of CFC-12 with HFC-134a in the production of heat pumps.
    (3) Sub-project No. 4 – Conversion of Aerosol Production to CFC-Free Propellants at Krka Kozmetika:
    Phase-out of the use of about 79 tons (1993) of CFC aerosol propellants and the substitution of said propellants with Dimethyl Ether (DME) in perfumes and colognes, and hydrocarbon aerosol propellants in all other products.
    (4) Sub-project No. 5 – Substitution of CFC Propellants in the Production of Pharmaceuticals at LEK Pharmaceutical and Chemical Company:
    Phase-out of the annual use of about 157 tons of CFC aerosol propellants and substitution of said propellants with hydrocarbon aerosol propellants in the production of pharmaceuticals.
    (5) Sub-project No. 6 – Elimination of CFC-11 in the Production of Light Building Panels at Trimo:
    Elimination of about 27.7 tons of annual CFC-11 consumption in Trimo’s production process by replacing the CFC-11 with CO2-based foaming agent for its polyurethane adhesives.
    (6) Sub-project No. 7 – Substitution of CFC with Aliphatic Hydrocarbons in Dry Cleaning at Labod Dry Cleaning and Laundry Company:
    Phase-out of about 3.5 tons of CFC by replacing CFC procedures with aliphatic hydrocarbons.

* * *

The Project is expected to be completed on June 30, 1997.

SCHEDULE 3

Procurement and Consultants’ Services

Section I. Procurement of Goods and Works

Part A: General

Goods and works shall be procured in accordance with the provisions of Section I of the “Guidelines for Procurement under IBRD Loans and IDA Credits” published by the Bank in January 1995 (the Guidelines) and the following provisions of this Section, as applicable.

Part B: Other Procurement Procedures

1. Limited International Bidding

Goods estimated to cost $1,500,000 equivalent or less in the aggregate ($1,100,000 to be financed by the Grant), which the Implementing Agency agreed can only be purchased from a limited number of suppliers, may be procured under contracts awarded in accordance with the provisions of paragraph 3.2 of the Guidelines.

2. International Shopping

Goods estimated to cost $400,000 equivalent or less per contract and $2,000,000 equivalent or less in the aggregate ($1,600,000 to be financed by the Grant), may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines.

3. National Shopping

Goods estimated to cost $50,000 equivalent or less per contract and $250,000 equivalent or less in the aggregate, may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines.

4. Procurement of Small Works

Works estimated to cost $500,000 equivalent or less per contract, and not to exceed $1,700,000 in the aggregate ($1,600,000 to be financed by the Grant), shall be procured under lumpsum, fixed price contracts awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Implementing Agency, and relevant drawings, where apolicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complate the contract.

5. Direct Contracting

Goods which should be procured as an extension of an existing contract or must be purchased from the original supplier to be compatible with existing equipment, may, with the Implementing Agency’s prior agreement, be procured in accordance with the provisions of paragraph 3.7 of the Guidelines.

Part C: Review by the Bank of Procurement Decisions

1. Procurement Planning

Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.

2. Prior Review

With respect to: (a) each contract procured under the provisions Section I.B.1 of this Schedule, (b) the first two contracts procured under the provisions of Section I.B.2 and I.B.4 and (c) all contracts procured under the provisions of Section I.B.5 of this Schedule, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

3. Post Review

With respect to each contract not governed by the preceding paragraph 2 of the Part, the procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.

Section II. Employment of Consultants

1. Consultants’ services shall be procured under contracts awarded in accordance with the provisions of the “Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency” published by the Bank in August 1981 (the Consultant Guidelines). For complex, time-based assignments, such contracts shall be on the standard form of contract for consultants’ services issued by the Bank, with such modifications thereto as shall have been agreed by the Implementing Agency. Where no relevant standard contract documents have been issued by the Bank, other standard forms acceptable to the Implementing Agency shall be used.
    2. Notwithstanding the provisions of paragraph 1 of this Section, the provisions of the Consultants’ Guidelines requiring prior Implementing Agency review or approval of budgets, short lists, selection procedures, letters of invitation, proposals, evaluation reports and contracts, shall not apply to (a) contracts for the employment of consulting firms estimated to cost less than $100,000 equivalent each or (b) contracts for the employment of individuals estimated to cost less than $50,000 equivalent each. However, said exceptions to prior Implementing Agency review shall not apply to (a) the terms of reference for such contracts, (b) single-source selection of consulting firms, (c) assignments of a critical nature, as reasonably determined by the Implementing Agency, (d) amendments to contracts for the employment of consulting firms raising the contract value to $100,000 equivalent or above, or (e) amendments to contracts for the employment of individual consultants raising the contract value to $50,000 equivalent or above.

SCHEDULE 4

Terms and Conditions of Sub-grants

Sub-grants shall be provided on terms whereby the Recipient shall obtain, through the Sub-grant Agreements, rights adequate to protect the interests of the Implementing Agency and the Recipient, including the right to:
    (a) require the Participating Enterprise to carry out and operate the Sub-project with due diligence and efficiency and in accordance with sound technical, financial, managerial, environmental and ecological standards;
    (b) require that:
    (i) the goods, works and consultants’ services to be financed out of the proceeds of the GEF Trust Fund Grant shall be procured in accordance with the provisions of Schedule 3 to this Agreement; and
    (ii) such goods, works and consultants’ services shall be used exclusively for the Sub-project;
    (c) inspect, by itself or jointly with representatives of the Implementing Agency if the Implementing Agency shall so request, the goods and plants included in the Sub-project, the operation thereof and any relevant records and documents;
    (d) require that:
    (i) the Participating Enterprise shall take out and maintain with responsible insurers such insurance against such risks and in such amounts, as shall be consistent with sound business practices; and
    (ii) without any limitation upon the foregoing, such insurance shall cover the hazards incident to the acquisition, transportation and delivery of goods financed out of the proceeds of the GEF Trust Fund Grant to the place of use or installation, any indemnity thereunder to be made payable in a currency freely usable by the Participating Enterprise to replace or repair such goods;
    (e) obtain all such information as the Implementing Agency shall reasonably request relating to the foregoing and to the administration, operations and financial condition of the Participating Enterprise and to the benefits derived from the Sub-project; and
    (f) suspend or terminate the right of the Participating Enterprise to the use of the proceeds of the GEF Trust Fund Grant upon failure by the Participating Enterprise to perform its obligations under the Sub-grant Agreement.

SCHEDULE 5

Special Account

1. For the purposes of this Schedule:
    (a) the term “eligible Categories” means the Categories 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, works and services required for 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 an amount equivalent to $800,000 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 Implementing Agency 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, the Recipient shall furnish to the Implementing Agency a request or requests for a deposit or deposits which do not exceed the aggregate amount of the Authorized Allocation. On the basis of such request or requests, the Implementing Agency shall, on behalf ot the Recipient, withdraw from the GEF Trust Fund Grant Account and deposit in the Special Account such amount or amounts as the Recipient shall have requested.
    (b) (i) For replenishment of the Special Account, the Recipient shall furnish to the Implementing Agency requests for deposits into the Special Account at such intervals as the Implementing Agency shall specify.
    (ii) Prior to or at the time of each such request, the Recipient shall furnish to the Implementing Agency 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 Implementing Agency shall, on behalf of the Recipient, withdraw from the GEF Trust Fund Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for eligible expenditures. All such deposits shall be withdrawn by the Implementing Agency 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 the Recipient out of the Special Account, the Recipient shall, at such time as the Implementing Agency shall reasonably request, furnish to the Implementing Agency such documents and other evidence showing that such payment was made exlusively for eligible expenditures.
    5. Notwithstanding the provisions of paragraph 3 of this Schedule, the Implementing Agency shall not be required to make further deposits into the Special Account:
    (a) if, at any time, the Implementing Agency shall have determined that all further withdrawals should be made by the Recipient 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; or
    (b) if the Recipient shall have failed to furnish to the Implementing Agency, 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 Implementing Agency pursuant to said Section in respect of the audit of the records and accounts for the Special Account;
    (c) if, at any time, the Implementing Agency shall have notified the Recipient of its intention to suspend in whole or in part the right of the Recipient to make withdrawals from the GEF Trust Fund 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, less the amount of any outstanding special commitment entered into by the Implementing Agency pursuant to Section 5.02 of the General Conditions with respect to the Project, 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 Implementing Agency shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Implementing Agency 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 Implementing Agency 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 Implementing Agency, the Recipient shall, promptly upon notice from the Implementing Agency: (A) provide such additional evidence as the Implementing Agency may request; or (B) deposit into the Special Account (or, if the Implementing Agency shall so request, refund to the Implementing Agency) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. Unless the Implementing Agency shall otherwise agree, no further deposit by the Implementing Agency into the Special Account shall be made until the Recipient has provided such evidence or made such deposit or refund, as the case may be.
    (b) If the Implementing Agency 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, the Recipient shall, promptly upon notice from the Implementing Agency, refund to the Implementing Agency such outstanding amount.
    (c) The Recipient may, upon notice to the Implementing Agency, refund to the Implementing Agency all or any portion of the funds on deposit in the Special Account.
    (d) Refunds to the Implementing Agency 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.