GEF TRUST FUND NUMBER TF028314
GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT AGREEMENT
(Washington, 29.IX.1996)
Agreement, dated September 29, 1996, between Russian
Federation (the Recipient) 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 Global Environment Facility
Trust Fund (GET 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
are continued in place on the basis set forth in Resolution
No. 94-2 (Resolution No. 94-2) of the Executive Directors of the
Bank, dated May 24, 1995, establishing the GEF Trust Fund;
(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
GET Trust Fund in the financing of the Project, and the Bank has
determined that such assistance would be in accordance with
Resolution No. 94-2;
Whereas the Bank has agreed, on the basis, inter alia, of the
foregoing, to extend the GEF Trust Fund Grant (the 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 12.01, 12.02, 12.03 and 12.04.
(b) The General Conditions shall be modified as follows:
(i) a new paragraph is added at the end of Section 2.01 to
read as follows: "21. 'Special Drawing Rights' and '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 use of such term in the second sentence of
Section 5.01 thereof (as herein modified), means the Bank,
acting as an implementing agency of the GEF, 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 Grant;
(vi) the term "Loan Account" wherever used in the General
Conditions, means the Grant Account;
(vii) The second sentence of Section 5.01 is modified to
read: "Except as the Bank and the Recipient shall otherwise
agree, no withdrawals shall be made: (a) on account of
expenditures in the territories of any country which is not a
member of the Bank or for goods produced in, or services
supplied from, such territories; or (b) for the purpose of any
payment to persons or entities, or for any import of goods, if
such payment or import, to the knowledge of the Bank is
prohibited by a decision of the United Nations Security
Council taken under Chapter VII of the Charter of the United
Nations."; and
(viii) a new sub-paragraph is added after
sub-paragraph (k) in Section 6.02 of the General Conditions,
as follows: "(1) An extraordinary situation shall have arisen
in which any 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) "Country Program" means the program for the phase-out of
ODS, adopted by the Recipient on May 24, 1995, through Government
of Russia Resolution No. 526, and submitted to the Parties to the
Vienna Convention on Ozone Layer Protection and Montreal Protocol
on ODS under a letter dated May 26, 1995;
(b) "CPPI" means the Recipient's Center for Project
Preparation and Implementation, a non-commercial organization
founded by the Ministry of Environmental Protection and Natural
Resources pursuant to Order No. 247, dated December 2, 1993, and
duly registered on December 30, 1993, by the Division of
Registration on Noncommercial Organizations, Department of Social
and Political Relations, Municipal Government of Moscow, or any
successor thereto;
(c) "GEF Council" means the Council of the Global
Environmental Facility referred to in Article 11 of the 1994
Instrument for the Establishment of the Restructured Global
Environmental Facility, or any successor thereto
(d) "Inter-Agency Commission" means the commission referred to
in paragraph 2 of Schedule 5 to this Agreement;
(e) "JSC Arnest" means Arnest, a Russian private joint stock
company, located and registered in the city of Nevinnomyssk,
Stavropol Krai, pursuant to Decision No. 897 of the Head of the
City Administration, dated November 11, 1992, as evidenced by
Certification of Registration No. 000590, or any successor
thereto;
(f) "JSC Krasnoyarsk" means Krasnoyarsk Refrigerator Plant
"Biryusa," a Russian private joint stock company located and
registered in the city of Krasnoyarsk, Krasnoyarsk Krai, pursuant
to Decision No. 304 of the Head of the City Administration, dated
December 8, 1993, or any successor thereto;
(g) "MOE" means the Ministry of Economy of the Russian
Federation, or any successor thereto;
(h) "MOF" means the Ministry of Finance of the Russian
Federation, or any successor thereto;
(i) "NPAF Supervisory Board" means the supervisory board of
the National Pollution Abatement Facility, to be established by
the SCEP, MOF, and MOE pursuant to Government of Russia Resolution
No. 808, dated August 11, 1995, or any successor thereto;
(j) "ODS" means ozone depleting substance or substances;
(k) "ODS PIUs" means the project implementation units referred
to in paragraph 3 (e) of Schedule 5 to this Agreement;
(l) "Participating Enterprises" means JSC Arnest, JSC
Krasnoyarsk, and other enterprises selected by the Recipient in
accordance with this Agreement;
(m) "Project Implementation Agreement" means the agreement
referred to in paragraph 3 (a) of Schedule 5 to this Agreement, as
such agreement may be amended from time to time;
(n) "SCEP" means the Recipient's State Committee for
Environmental Protection, or any successor thereto;
(o) "Special Account" means the account referred to in Section
2.02 (b) of this Agreement.
(p) "Sub-grant" means a grant from the Recipient to a
Participating Enterprise made or proposed to be made pursuant to a
Sub-grant Agreement;
(q) "Sub-grant Agreement" means an agreement between the
Recipient and a Participating Enterprise, entered into pursuant to
paragraph 3 (c) of Schedule 5 to this Agreement, as such agreement
may be amended from time to time; and
(r) "Sub-project" means an ODS phase-out project referred to
in Parts A and B of Schedule 2 to this Agreement, and selected and
approved for financing pursuant to paragraph 3 (b) of Schedule 5
to this Agreement.
Article II
The Grant
Section 2.01. The Bank agrees to make available to the
Recipient, on the terms and conditions set forth or referred to in
this Agreement, the Grant in an amount in various currencies
equivalent to forty one million two hundred thousand Special
Drawing Rights (SDR 41,200,000).
Section 2.02. (a) The amount of the Grant may be withdrawn
from the Grant Account in accordance with the provisions of
Schedule 1 to this Agreement for expenditures made (or, if the
Bank 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 Grant.
(b) The Recipient shall, for the purposes of the Project, open
and maintain in 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 attachments.
Deposits into, and payments out of, the Special Account shall be
made in accordance with the provisions of Schedule 4 to this
Agreement.
Section 2.03. The Closing Date shall be December 31, 2001,
or such later date as the Bank shall establish. The Bank shall
promptly notify the Recipient of such later date.
Section 2.04. The Bank shall not be obligated to make any
payment under this Agreement except to the extent it shall have
received funds from the GET Trust Fund for the purpose of the
Project.
Section 2.05. The CPPI is designated as representative of the
Recipient for the purposes of taking any action required or
permitted to be taken under the provisions of Section 2.02 of this
Agreement and Article V of the General Conditions.
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 SCEP, Inter-Agency Commission and the CPPI, 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) Without limitation upon the provision of paragraph (a) of
this Section and except as the Recipient and the Bank shall
otherwise agree, the Recipient shall carry out the Project in
accordance with the Implementation Program set forth in Schedule 5
to this Agreement;
Section 3.02. Except as the Bank 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
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
Bank, exchange views with the Bank with regard to the progress of
the Project, the performance of its obligations under this
Agreement and other matters relating to the purposes of the Grant.
(b) The Recipient shall promptly inform the Bank of any
condition which interferes or threatens to interfere with the
progress of the Project, the accomplishment of the purposes of the
Grant, or the performance by the Recipient of its obligations
under this Agreement.
Section 3.04. Without limitation upon the applicable
provisions of Section 9.07 of the General Conditions, the
Recipient shall:
(a) prepare, on the basis of guidelines acceptable to the
Bank, and furnish to the Bank 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 Bank, a plan for the future
operation of the Project; and
(b) afford the Bank a reasonable opportunity to exchange views
with the Recipient on said plan.
Section 3.05. 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
phase-out activity to be carried out under the Project, including
approval of environmental impact assessments of each Sub-project
by the SCEP prior to the implementation of each such Sub-project.
Article IV
Financial Covenants
Section 4.01. (a) The Recipient shall maintain and cause the
CPPI to maintain records and accounts adequate to reflect in
accordance with sound accounting practices the operations,
resources and expenditures in respect of the Project of the
departments and agencies of the Recipient and the CPPI responsible
for carrying out the Project or any part thereof.
(b) The Recipient shall and shall cause the CPPI 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 Bank;
(ii) furnish to the Bank as soon as available, but in any
case not later than six (6) 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 Bank shall have reasonably
requested; and
(iii) furnish to the Bank such other information
concerning said records, accounts and financial statements and
the audit thereof as the Bank shall from time to time
reasonably request.
(c) For all expenditures with respect to which withdrawals
from the Grant Account were made on the basis of statements of
expenditure, the Recipient shall or shall cause the CPPI to:
(i) maintain in accordance with paragraph (a) of this
Section, records and accounts reflecting such expenditures;
(ii) retain, until at least one (1) year after the Bank
has received the audit report for the fiscal year in which the
last withdrawal from the Grant Account was made, all records
(contracts, orders, invoices, bills, receipts and other
documents) evidencing such expenditures;
(iii) enable the Bank'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
Effectiveness; Termination
Section 5.01. This Agreement shall become effective upon its
execution by the parties.
Section 5.02. This Agreement shall continue in effect until
the Grant has been fully disbursed and the parties to this
Agreement have fulfilled all their obligations hereunder.
Article VI
Representative of the Recipient; Addresses
Section 6.01. Except as provided in Section 2.05 of this
Agreement, the Chairman of the State Committee for Environmental
Protection is designated as representative of the Recipient for
the purposes of Section 11.03 of the General Conditions.
Section 6.02. The following addresses are specified for the
purposes of Section 11.01 of the General Conditions:
For the Recipient:
State Committee for Environmental Protection
B. Gruzinskaya Street, 4/6
Moscow, 123812
Russian Federation
Telex:
411 692 BOREI
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:
INTBAFRAD 248423 (MCI)
Washington, D.C. 64145 (MCI)
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.
Russian Federation
By Authorized Representative
International Bank for
Reconstruction and Development
as Implementing Agency of the Global
Environment Facility
By Authorized Representative
SCHEDULE 1
WITHDRAWAL OF THE PROCEEDS OF THE GRANT
1. The table below sets forth the Categories of items to be
financed out of the proceeds of the Grant, the allocation of the
amounts of the Grant to each Category and the percentage of
expenditures for items so to be financed in each Category:
----------------------------T------------------T-----------------¬
¦ Category ¦ Amount of the ¦ % of ¦
¦ ¦ Grant Allocated ¦ Expenditures ¦
¦ ¦ (Expressed in ¦ to be Financed ¦
¦ ¦ SDR Equivalent) ¦ ¦
+---------------------------+------------------+-----------------+
¦(1) Goods: ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (a) for Parts A.1, B.1 ¦ 4,870,000 ¦100% of foreign ¦
¦ and C.1 of ¦ ¦expenditures, ¦
¦ the Project ¦ ¦100% of local ¦
¦ (b) for Parts A.2, B.2 ¦ 33,420,000 ¦expenditures ¦
¦ and C.2 of ¦ ¦(ex-factory cost)¦
¦ the Project ¦ ¦and 80% of local ¦
¦ ¦ ¦expenditures for ¦
¦ ¦ ¦other items ¦
¦ ¦ ¦procured locally ¦
¦ ¦ ¦ ¦
¦(2) Works: ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (a) for Parts A.1 ¦ 350,000 ¦80% of local ¦
¦ and B.1 ¦ ¦expenditures ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (b) for Parts A.2 ¦ 490,000 ¦80% of local ¦
¦ and B.2 ¦ ¦expenditures ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(3) Consultants' Services: ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (a) for Parts A.1, B.1 ¦ 550,000 ¦100% ¦
¦ and C.1 ¦ ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (b) for Parts A.2, B.2 ¦ 350,000 ¦100% ¦
¦ and C.2 ¦ ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(4) CPPI Agency Fee: ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (a) under Part C.1 ¦ 130,000 ¦100% ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ (b) under Part C.2 ¦ 1,040,000 ¦100% ¦
¦ of the Project ¦ ¦ ¦
+---------------------------+------------------+-----------------+
¦ TOTAL ¦ 41,200,000 ¦
L---------------------------+-------------------------------------
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 "CPPI Agency Fee" means an agency fee referred to
in paragraph 3 (a) of Schedule 5 to this Agreement, due and
payable by the Recipient to the CPPI.
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 4,100,000 may be made in respect
of Categories (1), (2), (3) and (4) on account of payments made
for expenditures before that date but after July 31, 1995;
(b) payments made for expenditures in respect of Categories
(1) and (2) of this Schedule, until: (i) the Sub-project in
respect of which disbursement is sought has been approved by the
Bank and the GEF Council; and (ii) the Sub-grant Agreement for
such a Sub-project has been entered into by the CPPI, on behalf of
the Recipient, and the concerned Participating Enterprise in
accordance with the provisions of paragraph 3 (c) of Schedule 5 of
this Agreement.
4. If the Bank shall have determined at any time that any
payment made from the Grant Account was used for any expenditure
not consistent with the provisions of this Agreement, the
Recipient shall, promptly upon notice from the Bank, refund to the
Bank for deposit into the Grant Account, an amount equal to the
amount so used or the portion thereof as specified by the Bank.
5. The Bank may permit withdrawals from the Grant Account to
be made on the basis of statements of expenditure for: (i)
expenditures for goods and works under contracts not exceeding
300,000 usd equivalent; and (ii) expenditures for consultants'
services under contracts not exceeding 50,000 usd equivalent,
under such terms and conditions as the Bank shall specify by
notice to the Recipient.
SCHEDULE 2
DESCRIPTION OF THE PROJECT
The objective of the Project is to assist the Recipient in a
phase-out of ODS consumption, in a manner that is consistent with
international efforts and standards and that results in minimum of
economic dislocation.
The Project consists of the following parts, subject to such
modifications thereof as the Recipient and the Bank may agree upon
from time to time to achieve such objectives:
Part A. ODS Consumption Phase-Out Activities in the
Aerosol Sector
1. Conversion of JSC Arnest's aerosol technology to permit the
usage of hydrocarbon aerosol propellant instead of
chlorofluorocarbon, through the provision of goods, works and
services.
2. Undertaking of other Sub-projects regarding the conversion
of aerosol technology to permit the usage of hydrocarbon or other
acceptable ODS substitute materials in place of
chlorofluorocarbon, or to convert to other spray on non-spray
technologies which do not rely on ODS, through the provision of
goods, works and services.
Part B. ODS Consumption Phase-Out Activities
in the Refrigeration Sector
1. Conversion of JSC Krasnoyarsk's technology to permit the
usage of propane / butane refrigerant mixture in place of
chlorofluorocarbon-12 in domestic refrigerators and freezers
produced by JSC Krasnoyarsk, through the provision of goods, works
and services.
2. Undertaking of other Sub-projects regarding the conversion
of technology to permit the usage of ODS substitute materials in
place of chlorofluorocarbons as refrigerants and foam blowing
agents in the manufacture of domestic commercial and industrial
refrigerators and freezers, and development of facilities for
recovery and recycling of ODS from refrigerator and freezer
servicing, through the provision of goods, works and services.
Part C. Institutional Strengthening,
Project Management and Implementation
1. Provision of technical assistance for project preparation
and implementation, and institutional strengthening, and of
financial compensation to the CPPI for implementation and
monitoring of Parts A.1 and B.1 of the Project.
2. Provision of technical assistance for project preparation
and implementation, and institutional strengthening, and of
financial compensation to the CPPI for implementing and monitoring
Parts A.2 and B.2 of the Project.
* * *
The Project is expected to be completed by December 31, 2000.
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
and revised in January 1996 (the Guidelines), and the following
provisions of this Section, as applicable.
Part B
INTERNATIONAL COMPETITIVE BIDDING
1. Except as otherwise provided in Part C of this Section,
goods and works shall be procured under contracts awarded in
accordance with the provisions of Section II of the Guidelines and
paragraph 5 of Appendix 1 thereto.
2. The following provisions shall apply to goods and works to
be procured under contracts awarded in accordance with the
provisions of paragraph 1 of this Part B.
(a) Grouping of contracts
To the extent practicable, contracts for goods shall be
grouped in bid packages estimated to cost 2,000,000 usd equivalent
or more each.
(b) Preference for domestically manufactured goods
The provisions of paragraphs 2.54 and 2.55 of the Guidelines
and Appendix 2 thereto shall apply to goods manufactured in the
territory of the Borrower.
Part C
OTHER PROCUREMENT PROCEDURES
1. National Competitive Bidding
Works estimated to cost less than 250,000 usd equivalent per
contract, up to an aggregate amount not to exceed 1,000,000 usd
equivalent, may be procured under contracts awarded in accordance
with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.
2. International Shopping
Goods estimated to cost less than 2,000,000 usd equivalent per
contract, up to an aggregate amount not to exceed 32,300,000 usd
equivalent, 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 less than 50,000 usd equivalent per
contract, up to an aggregate amount not to exceed 1,400,000 usd
equivalent, 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.
Part D
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 sub-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 each contract for goods estimated to cost the
equivalent of S2,000,000 or more, the first contract for works
procured by each Participating Enterprise under national
competitive bidding procedures, and the first two contracts for
goods procured under international shopping and national shopping
procedures, 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 paragraph 2 of
this 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 based on the standard form of contract for
consultants' services issued by the Bank, with such modifications
thereto as shall have been agreed by the Bank. Where no relevant
standard contract documents have been issued by the Bank, other
standard forms acceptable to the Bank shall be used.
2. Notwithstanding the provisions of paragraph 1 of this
Section, the provisions of the Consultant Guidelines requiring
prior Bank 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
usd equivalent each; or (b) contracts for the employment of
individual consultants estimated to cost less than 50,000 usd
equivalent each. However, said exceptions to prior Bank 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 Bank; (d)
amendments to contracts for the employment of consulting firms
raising the contract value to 100,000 usd equivalent or above; or
(e) amendments to contracts for the employment of individual
consultants raising the contract value to 50,000 usd equivalent or
above.
SCHEDULE 4
SPECIAL ACCOUNT
1. For the purposes of this Schedule:
(a) the term "eligible Categories" means Categories (1), (2),
(3) and (4) 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 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 1,000,000 usd to be withdrawn from the Grant Account
and deposited into the Special Account pursuant to paragraph 3 (a)
of this Schedule, provided, however, that unless the Bank shall
otherwise agree, the Authorized Allocation shall be limited to an
amount equivalent to 500,000 usd until the aggregate amount of
withdrawals from the Grant Account plus the total amount of all
outstanding special commitments entered into by the Bank pursuant
to Section 5.02 of the General Conditions shall be equal to or
exceed the equivalent of SDR 6,860,000.
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, the
Recipient 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 the Recipient, withdraw from the Grant Account and deposit into
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 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, the
Recipient 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 the Recipient, withdraw from the Grant Account
and de posit 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 Bank from the 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 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 the Recipient directly from
the Grain 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 the Recipient 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 the
Recipient of its intention to suspend in whole or in part the
right of the Recipient to make withdrawals from the Grant Account
pursuant to the provisions of Section 6.02 of the General
Conditions; or
(d) once the total unwithdrawn amount of the Grant allocated
to the eligible Categories for the Project, minus the total amount
of all outstanding special commitments entered into by the Bank
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 Grant
Account of the remaining unwithdrawn amount of the Grant allocated
to the eligible Categories for the Project shall follow such
procedures as the Bank shall specify by notice to the Recipient.
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 Bank, the Recipient 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
the Recipient 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, the Recipient
shall, promptly upon notice from the Bank, refund to the Bank such
outstanding amount.
(c) The Recipient 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 Grant Account
for subsequent withdrawal or for cancellation in accordance with
the relevant provisions of this Agreement including the General
Conditions.
SCHEDULE 5
IMPLEMENTATION PROGRAM
1. The SCEP shall be responsible for overall Project
coordination and supervision.
2. An interagency commission (Inter-Agency Commission),
established pursuant to Government of Russia Resolution No. 875
"On Approval of Resolution on Inter-Agency Commission Within the
MEPNR for Protection of the Ozone Layer, and Staffing of Such
Commission" (dated August 30, 1993), shall be responsible for
coordinating the implementation of the Project with the
Recipient's agencies within the framework of the Country Program.
3. The SCEP shall:
(a) enter into a project implementation agreement (Project
Implementation Agreement) with the CPPI, under terms and
conditions satisfactory to the Bank, including a provision
regarding an agency fee (CPPI Agency Fee) of up to three percent
(3%) of the amount disbursed under Sub-grant Agreements;
(b) cause the CPPI to appraise and select Sub-projects and
ensure that Sub-projects are approved in accordance with the
procedures and eligibility criteria satisfactory to the Bank,
which shall include the procedures and eligibility criteria set
forth in Parts A and B, respectively, of Schedule 6 to this
Agreement;
(c) make available, through the CPPI, a part of the proceeds
of the Grant as sub-grants (Sub-Grants) to Participating
Enterprises to finance Sub-projects, under sub-grant agreements
(Sub-grant Agreements) to be entered into between the CPPI and
each Participating Enterprise, under terms and conditions
satisfactory to the Bank, which shall include the terms and
conditions set forth in Part C of Schedule 6 to this Agreement;
(d) exercise its rights and cause the CPPI to exercise its
rights under the Project Implementation Agreement and each
Sub-grant Agreement in such manner as to protect the interests of
the Recipient, the Bank and the CPPI and to accomplish the
purposes of the Grant, and, except as the Bank shall otherwise
agree, the Recipient shall not, and shall not allow the CPPI to,
assign, amend, abrogate or waive the Project Implementation
Agreement or any Sub-grant Agreement, or any provision thereof;
(e) pursuant to the Project Implementation Agreement, delegate
the day-today technical and administrative responsibility for
Project implementation to the CPPI. The CPPI, through ODS project
implementation units (ODS PIUs) established within the CPPI, and
other departments within the CPPI, shall be responsible for:
(i) procurement; (ii) accounting; (iii) disbursement; (iv)
auditing; (v) reporting and monitoring; (vi) evaluation of
activities under the Project; (vii) appraisal and supervision of
Sub-projects on behalf of the SCEP; (viii) entering into
Sub-agreements on behalf of the Recipient; (ix) implementation of
activities related to the strengthening of the regulatory capacity
and ODS phase-out monitoring capacity of the Recipient;
(x) supplementary project preparation activities for ODS
production and consumption phase-out; and (xi) development of
public awareness initiatives, all under Part C of the Project; and
(f) cause the CPPI to engage consultants who shall assist it
in the area of procurement, financial management and information
systems, and Project performance and progress evaluation. The CPPI
shall report to the SCEP and liaise with the Inter-Agency
Commission, and Recipient's ministries and agencies, and other
parties regarding Project activities.
SCHEDULE 6
SUB-GRANT PROCEDURES, ELIGIBILITY CRITERIA AND TERMS
AND CONDITIONS OF SUB-GRANT AGREEMENTS
Part A. Procedures
1. No expenditures for goods, works and services required for
a Sub-project shall be eligible for financing out of the proceeds
of the Grant unless: (i) the Bank has received and issued a no
objection with respect to the Sub-project; and (ii) expenditures
under the Sub-grant for such a Sub-project shall have been made
not earlier than ninety (90) days prior to the date on which the
Bank shall have received the application and information required
under paragraph 2 of Part A of this Schedule in respect of such a
Sub-grant.
2. In addition to the general procedures described in
paragraph 1 of Part A of this Schedule, the following procedures
shall be followed in connection with any proposed Sub-project:
(a) a proposed Participating Enterprise seeking a Sub-grant
shall prepare and submit to the CPPI an application and summary of
the proposed Sub-project; such an application shall include: (i) a
description of the Participating Enterprise; and (ii) a detailed
description of the proposed Sub-project, including technical plan,
financial plan, cost and benefit analysis, environmental impact
assessment and other pertinent environmental information,
financial projections, proposed procurement arrangements, and
status of authorizations and licenses;
(b) the CPPI shall appraise the proposed Sub-project;
(c) after the proposed Sup-project has been appraised and
pre-approved by the CPPI, it shall be submitted to the NPAF
Supervisory Board for approval;
(d) after the proposed Sub-project is approved by the NPAF
Supervisory Board, the CPPI shall submit to the Bank, for the
Bank's review and no-objection, the application, in form and
substance satisfactory to the Bank, together with any other
relevant materials requested by the Bank, related to the proposed
Sub-project, including a draft Sub-grant Agreement with the
proposed Participating Enterprise, and a description of how the
proposed Sub-project meets the eligibility criteria set forth in
Part B of this Schedule; and
(e) upon the Bank's no objection, the CPPI shall, on behalf of
the Recipient, enter into a Sub-grant Agreement with the
Participating Enterprise.
Part B. Eligibility Criteria
1. All Sub-projects shall be selected in accordance with
eligibility criteria satisfactory to the Bank, and consistent with
the following primary and secondary eligibility criteria.
2. Primary eligibility criteria are: (i) consistency with the
Country Program priorities and objectives; (ii) strategic
implications of the proposed Sub-project to overall national ODS
phase-out objectives (related to phase-out of ODS consumption and
production); (iii) absolute reduction of ODS consumption to be
achieved by the proposed Sub-project; and (iv) cost-effectiveness
of the proposed Sub-project.
3. Secondary eligibility criteria are: (i) availability of
grant funding; (ii) proposed Participating Enterprise viability
and long-term business prospects; (iii) relationship between the
proposed Sub-project and other related ODS phase-out activities
within the proposed Participating Enterprise and / or the sector
in which it operates; (iv) importance of the Sub-grant to
permitting the proposed Participating Enterprise to undertake ODS
phase-out activities; (v) likelihood that the proposed Sub-project
will be replicable by other parties; (vi) sustainability and
innovation in technology selection; and (vii) local social
implications and benefits associated with the proposed
Sub-project.
Part C. Terms and Conditions of Sub-grant Agreements
1. Each Sub-grant Agreement shall require the Participating
Enterprise to, inter alia:
(a) carry out and operate the Sub-project with due diligence
and efficiency under the supervision of qualified and experienced
management assisted by competent staff in adequate numbers, and in
accordance with sound technical, financial, environmental,
commercial and managerial standards;
(b) maintain records and accounts adequate to reflect in
accordance with sound accounting practices its operations and
financial conditions, including separate records and accounts
adequate to reflect all resources and expenditures related to the
Sub-project;
(c) have its records, accounts and financial statements for
each fiscal year audited, in accordance with appropriate auditing
principles consistently applied, by independent auditors
satisfactory to the Recipient, and furnish to the Recipient not
later than six (6) months after the end of each such year
certified copies of its financial statements for such year so
audited and the report of such audit by the auditors of such scope
and such detail as the CPPI shall have reasonably requested (which
report shall include an analysis of the Participating Enterprise's
performance, as measured by the performance indicators
satisfactory to the CPPI and the Bank, which shall include, inter
alia, commercial, technical, operational, environmental,
administrative and financial indicators);
(d) procure the goods, works and services to be financed by
the Sub-grants in accordance with the provisions of Schedule 3 to
this Agreement and to use such goods, works and services
exclusively in the carrying out of the Sub-project;
(e) contribute counterpart funds necessary to finance the
Sub-project;
(f) allow the Recipient, by itself or jointly with
representatives of the Bank, if the Bank shall so request, to
inspect such goods and the sites, works, plants and construction
included in the Sub-project, the operation thereof, and any
relevant records and documents;
(g) take out and maintain with responsible insurers such
insurance, against such risks and in such amounts, as shall be
consistent with sound business practice, including insurance
covering 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 Participating
Enterprise to replace or repair such goods;
(h) prepare and promptly furnish to the Recipient, for
forwarding to the Bank, if so requested by the Bank, all such
information as the Recipient or the Bank shall reasonably request
relating to the administration, operations and financial condition
of the Participating Enterprise and to the benefits to be derived
from the Sub-project;
(i) give the Recipient the right to suspend or terminate the
right of the Participating Enterprise to the use of the proceeds
of the Sub-grant upon failure by such Participating Enterprise to
perform its obligations under the Sub-grant Agreement;
(j) refund, upon demand of the Recipient, any part of the
proceeds of the Subgrant as well as interest thereon calculated at
the commercial rate from the date of payment of the Sub-grant by
the Recipient (until repayment thereof by the Participating
Enterprise), which, in the opinion of the Recipient or the Bank,
has been misused by the Participating Enterprise; and
(k) at the conclusion of the Sub-project, submit to the
Recipient, in a form and manner, and by date satisfactory to the
Recipient and the Bank, a Sub-project completion report.
2. Each Sub-grant shall be: (i) denominated in Dollars; and
(ii) equal to no less than 150,000 usd and no more than 9,000,000
usd.
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