IOPI AL V1&ib D)ocumans European Commission DG 1Environment Adminlistration Agreement r European Union Contributions, as repr nted by the Commission, to trust funds. N° 21.0401/201,2/2012/639339/SUB/ENV.B2 ADMINISTRATION AGREEME NT FOR EUROPEAN UNION CONTRIBUTIONS, AS REPRESENTED BY THE COMMISSION, TO TRUST FUNDS Wealth Accou7ting and Valuation of Ecosystem Services (TF071860) Earopean Commission Trust Fvnd Number: 21.0401/2012/639339/SUB/ENV. B2 Article 1 Subject Section 1.01. In pursuance of the frus: Funds and Cofinancing Framework Agreement between the European Union, represeated by the European Commission (the "Commission"), and the International Bank for Reconstruction and Development ("IBRD"), the International Development Association ("IDA"), and the International Finance Corporation ("IFC") (collectively, the "World Bank Group') dated March 20, 2009 (the "Framework Agreement"), the Commission hereby agrees to make available a Contribution for an amount referred to in Section 3.02, and to be administered by the IBRD for the Wealth Accounting and Valuation of Ecosystem Services (TF)71860) (the "Froject"). Section 1.02. The Contribution shall be used exclusively for the purposes set out in Annex I which includes a Descriplion of the Project as well as, where required, the expenditures eligible for financing from the Commission, and the relevant indicators. Section 1.03. The IBRD shall admin[ster the Contribution in accordance with the provisions of: - te Framework Agreement; - tHis Administration Agreemer.; - the attached General Conditions applicable to European Union Contributions to Trust Funds (the "General Conditions"); and - the standard provisions agrecd between the IBRD and the donors (the "Standard Provisions"). Section 1.04. The Contribution is provided under Joint Management for all purposes of this Administration Agreement. Section 1.05. The Project is a Nulti--Donor Trust Fund for all purposes of this Administration Agreement. Section 1.06. The trust fund is not an Exceptionally large trust fund for the purposes of Section 16.03 of the General Conditio is. Article 2 Entry into foi ce a rid Implementation Period Section 2.01. This Admini[stration A.reenent shall enter into force when the last of the two Parties signs and will remain in force until the End Date. Section 2.02. Expenses fi-ianced under 1he Contribution must be incurred after the date following that on which the last of the two parties signs. Section 2.03. It is expected that an amount of the trust fund equal to the Contribution will be fully utilized in accordance with the provisions of this Administration Agreement by June 30, 2016 ("End Disbursement Date"). Th- End Disbursement Date can only be modified with the agreement of both Parties pursuant to Article 9 of the General Conditions. Section 2.04. The EBRD sha.ll only disburse the European Union's pro rata share of the funds remaining in the 1rust fund, ncluding any investment income added thereto for the purposes of this Administration Agre,-ment after the End Disbursement Date with the prior written agreement of the Commissio i. - Article 3 Amount of the Contribution Section 3.01 The budget o' the trust fund is estimated to be USD 15,000,000 as set out in Annex IV. Section 3.02 TI e Commission andertakes to finance EUR2,500,000 for the trust fund. Section 3.03 Inc irect Costs unde-r this Administration Agreement shall not exceed 7% of the final amount of eligible Direct Costs of the Contribution. The IBRD may, f allowing d -posit of the Contribution by the Commission, deduct from each Contribution of the Commis, ion and retain for the IBRD own account an amount equal to 2% of the Contribution. In addition, staff costs for program management, preparation and Supervision up to a maximum of 10.7% of the holding currency of the trust fund will be charged to the trust fund on an actual basis and as e Direct Cost provided they comply with Section 14.01 of the General Conditions. The final amount that the IBRD is entitled for Indirect Costs shall be adjusted to the actual disbursed amounts of the Ccntribution in accordance with Articles 14 and 17 of the General Conditions. Section 3.04 Th. following categories of costs shall be considered eligible under this Administration Agreement provided they comply with Section 14.01 of the General Conditions: - For Bank- Executed a:tivities the Contributions may be used to finance: (a), Associated overheads; (b) Consultant fees individuals and firms; (c) Extended tern consultants; (d) Media, works -op, conference and meeting; (e) Staff Costs with in directs; (f) Te-nporary support staff costs; (g) Travel expenses; (h) Contractual servics; and (i) Equipment and office premises lease cost. - For Recipient-Executed activities, the Contributions may be used to finance: (a) goods; (b) services; and (c) operating cosis and any other allowable expenditures. The foregoing categories of expenditures may include the financing of taxes. Article 4 2 Paymen schedule and Reporting Section 4.01. Payments will be mtde in accordance with Article 15 of the General Conditions, and in accordance with the following payment schedule: Advance payment EUR 1.250.000 (subje-ct to the provisions of the Genera. Conditions) Intermediate payment EUR 750.000 (subj.,ct to the provisions of the Genera. Conditions) Final payment EUR 500.000 (subject to the provisions of the Genera. Conditions) The World Bank Group shall conNert such funds into United States Dollars promptly following, receipt of the funds, and re.eipt of all the appropriate legal documentation and the payment details information. Section 4.02. Narrative progress re,)ort(3) and financial information shall be provided consistent with Article 2 of the Gen,ral Conditions, and in accordance with the following schedule: - a narrative progress report sh .11 accompany every request for a further instalment of f;. iancing. A final narrative r:port shall be forwarded to the Commission within six (:) months after the End Disburserrent Date; and - the progress financial informa: ion shall be made available via the Bank's Trust Funds Donor Center secure website following the signature of this Administration Agreement. The final financ'al irformation shall be made available via the Bank's T-ust Funds Donor Center ,ecure website within six (6) months after the End Disbursement Date. Section 4.03. For the purooses of Secticn 2.03 of the General Conditions, a schedule of anticipated activities shall be provided with each report. Article 5 Communicittions and addresses Any communication relating to this A dministration Agreement shall be in writing, shall state the number and title of the :rust fund, md shall use the following addresses. Payment requests and attached repcorts, including requests for changes to bank account arranger-ents pursuant to Section 9.02 of the General Conditions, shall be sent to: For the European Commission Europeain Commission DG Env ironment/Climate Action Att: Mr Francois Casana. Head of Unit SRD.2 RU-9; 01/185 B-1049 Brussels E-mail: francois.casana(i ec.eurova.eu Copies of the documents referred to tbove, and correspondence of any other nature, shall be sent to: European Commission DG Environment Att: Mr Franqois Wakenl ut, Head of Unit ENV.B2 BU-5; 05/137 B-1049 Brussels E-mail: francois.wakenhut e.europa.eu For the International Bank for Reconstruction and Development: Pawan G. Patil Senior Economist Environment Department The World Bank 1818 H Street, NW Washington, DC 20433 U.S.A. Tel: (202) 473-2276 Fax: (202) 477-0565 E-mail: ati )worldbank.org Article 6 Annexes Section 6.01. The following documents are annexed to this Administration Agreement and form an integral part thereof: Annex I: Description of the Project. Annex II: General Coiditions applicable to European Union Contributions to Trust Funds. Annex III: The standa-d provisions agreed between the International Bank for Reconstructi Dn and Development and the donors. Annex IV: Indicative B adget for the Project. Section 6.02 In the event of a conflict between the provisions of the Annexes and those of this Administration Agreement, the provisions of this Administration Agreement shall take precedence. In the event of a conflict between the provisions of Annex II and those of the other Annexes, the provisic ns of Annex II shall take precedence. 4 This agreement is drawn up in three oi iginals, two for the Commission and one for the World Bank Group entity. For the European Union, representud For the International Bank for by the Commission of the EuropeE n Reconstruction and Development Communities Name: Pia Bucella Name: Juergen Voegele Position. Director of Directorate B of Position: Director, Agriculture and Directorate General for Environment Environmental Services Signature: Signature: Date: .Date: ANNEX I DESCRIPTION OF THE PROJECT This Annex will be app] icab- e to and form an integral part of all arrangements entered into between the Bank and t.ntities (collectively, the "Donors") that provide contributions (the aggregate of all contribut ions from the Donors, the "Contributions") to be administered by the Bank for the Trust Fund. A. DESCRIPTION OF THE PROJECT The activities to be finan.ed by the Trust Fund are: Component 1. ImplemenMin ecosystem accounting at national or sub-national level in several developin );and developed countries 1.1. Establishing an institutional structure to guide ecosystem accounting. 1.2. Coordinating in-country implementers. 1.3. Building capacity for ec:system and comprehensive wealth accounts. 1.4. Constructing ecosy:;tem and comprehensive wealth accounts Component 2. Incorporatlingatural capital accounting in policy analysis and development planning 2.1. Building support ard local capacity for analysis in partner countries. 2.2. Implementing policy analysis. 2.3. Providing policy in-)uts; develop outreach materials. 2.4. Holding annual woikshops with broad-based participation. Component 3. Developing standardized guidelines for ecosystem accounting for global implemen :ation 3.1. Establishing and coord;nating a Technical Experts Group to guide development and implementation of methodologies for ecosystem accounting to ensure cohesion, consistency and scalability of country studies. 3.2. Contributing guidelines for ecosystem accounting to the revised Handbook of the System of Environnental and Economic Accounting. Component 4. Promoting the adoption of ecosystem and natural capital accounting beyond the WAVES partner countries 4.1. Establishing a broad pla:form for knowledge sharing and capacity building. 4.2. Conducting a review of country experiences with environmental accounts. 4.3. Participating in international forums that promote natural capital accounting. B. CATEGORIES OF EXPENDITURE For Bank-Executed activ ties he Contributions may be used to finance: (a) Associated jverheads; (b) Consultant fees individuals and firms; (c) Extended term consult ints; (d) Media, workshop, con erence and meeting; (e) Staff Costs with indirets; (f) Temporary support staff costs; (g) Travel expenses; (h) Contractual services; and (i) Equipment and office premises lease cost. For Recipient-Executed activities, the Cortributions may be used to finance: (a) goods; (b) services; and (c) operating costs and an>' other allowable expenditures. The foregoing categories of expenditures may include the financing of taxes. ANNEX II GENERAL CONDITIONS APPLICABLE TO EUROPEAN UNION CONTRIBUTIONS TO TRUST FUNDS GENERAL PRO VISIONS TO THE ADMINISTRATION AGREEMENT ARTICLE 1 General obligations of the World Bank Group entity Section 1.01. The World Bank Group entity may, according to the Description of the Project in Annex I, execute the finds directly or may provide them to a Recipient for execution in accordance with the World Bank Group entity's policies and procedures. Section 1.02. '-n case of,. BETF, the World Bank Group entity shall carry out the Project in accordance wiih the Adrinistration Agreement, including the Description of the Project contained in Annex I, an I in accordance with the World Bank Group entity's policies and procedures. The World Bank Group entity shall report on the indicators specified in the Description of Ihe Project. Section 1.03. In case of a RETF, the World Bank Group entity shall be responsible, as administrator on behalf of the Commission, for making arrangements to ensure that the Contribution is used only for the purposes for which it was granted, with due attention to considerations of economy and efficiency. For this purpose, the World Bank Group entity shall monitor, evaluate, repcrt and, where applicable, provide technical assistance, in accordance with the Adrinistration Agreement, including the Description of the Project contained in Anex I, he Grant Agreement and the World Bank Group entity's policies and procedures. T-e World 3ank Group entity shall report on the Indicators specified in the Description of the Project. The World Bank Group e atity shall enter into a Grant Agreement with the Recipient for the provision of such funds :o the Recipient for the purposes set forth in the Administration Agreement. Grant Agreomer.ts may be entered into up to the maximum amount of the contributions that all donors including the European Union intend to make available in the Administration Agreement(s). The World Bank Group entity shall provide a copy of the Grant Agreement to the Commission. The World Bank Group entity shall be solely responsible for the adm nistration of such Grant Agreement and shall carry out such administration n accordance with its applicable policies and procedures without prejudice to Section 1.06. Section 1.04. The World Bank Group entity will be responsible only for performing those functions speciically set forth in the Administration Agreement, in these General Conditions, unless agreed otherwise with the Commission, and in case of a Multi-Donor Trust Fund, of the relevant Resolution or the Standard Provisions or the Terms and Conditions, and will not be subject to any other duties or responsibilities to the Commission, including, without limitation, any duties or obligations that might otherwise apply to a fiduciary or trustee under general principles of trus. or fiduciary law. Nothing in the Administration Agreement, in these General Conditions, and n case of a Multi-Donor Trust Fund, in the relevant Resolution or the Standard Provision:; or the Terms and Conditions, will be considered a waiver of any privileges or immunities of tie relevant World Bank Group entity under its Articles of Agreement or any applicable law, all of which are expressly reserved. 8 Section 1.05. The World Bank Grou? entity shall take measures to prevent irregularities, fraud, corruption or any other illegal activity in the management of the Project in accordance with its policies and procedures. In accordance with applicable World Bank Group policies and procedures, including those pertaining to protection of confidential information and the integrity of the investigative process, the World Bank Group entity :;hall keep the Commission informed of the progress of any formal World Bank Group entity investigation concerning the misuse of funds provided under this Administration Agreement and will report to the Commission without delay the conclusions of such findings as well Es measures taken to address the fraud and corruption consistent with its policies and procedures on anti-corruption. In accordance with the World Bank Group's policies and procedures, the World Bank Group entity shall, for BETFs, terminate contracts with Beneficiaries and, for RETFs, terminate the Grant Agreement or the financing to the Recipient for contracts with Beneficiaries, when either the Beneficiaries and/or the Reci :ieni have been found by the World Bank Group entity to have been involved in fraud or corruption in connection with this trust fund financed by the Commission. In such cases, the World Bank Group entity shall apply its applicable policies and procedures in consultation with the donDr(s) to recover the ineligible expenditures. Section 1.06. The World Bank Group entity undertakes to ensure that the principles set forth under Section 1.05, and Articles 4, 5, C, 10. 14 and 16 of these General Conditions also apply to the Recipient and, where applicable, to Beneficiaries involved. The World Bank Group entity shall indicate to th. Recipiert in the Grant Agreement the possibility that the Commission may adopt measures vis-a -vis the Recipient, should the latter not reimburse the World Bank Group entity under Section 1.05. ARTICLE 2 Obligations regarding financial information and narrative reports Section 2.01. The World Bank Group entity shall provide the Commission with information on the progress and results of the Projects financed under the Contribution. To that end the World Bank Group entity shall pre :are narrative progress report(s) and a final report containing information set forth in Section 2.03 and 2.04. The World Bank Group will also provide the Commission with progress anc final financial information regarding the Project. The narrative report(s) as well as the financial information shall cover the entire Project describec in the Administra:ion Agreement regardless of whether or not the Project is entirely financed by the Commission. Section 2.02. The World Bank Group entity shall send to the Commission narrative progress report(s) and make available progress inancial information in accordance with the provisions below. Every report and information saall 'nclude all Project activities for the period covered. The financial information vill be made available via the Bank's Trust Funds Donor Center secure website. Section 2.03. The narrative progress report(s) shall provide for comparison of the objective(s) of the trust fund, the results expected and obtained and the budget details for the Project. The level of detail in the nar-ative report(s) should match that of the Description of the Project and of the indicative budge: of the Project. The narrative reports should include: - Sunmary and context of the Pro' ect; - Activities carried )ut curing the reporting period (i.e. directly related to the description of the Project ard activities foreseen in this Administration Agreement, including information on the measures taken to identify the European Union as source of financinig); - Difficulties encounterel and measures taken to overcome challenges; - Changes introduc ,d in implementation, including changes in the procurement plan pursuant to Section 10.D1; - Achiev-ments/resilts by using indicators specified in the Description of the Project contained in Anne ( I; - Work 3lan or schedL le of Project activities (as described in the Administration Agreement) for th- following period. If the report is sent after the end of the period coverec- by the preceding work plan or schedule, a provisional work plan or schedule shall be submitted before the end of the period covered by the preceding work plan or schedule. The progress financial i-iformation shall provide for a history of contributions received and the expenditures. It sha 1 all:)w the Commission to assess whether the incurred expenditures generally comply with tl e Administration Agreement. Section 2.04. The final narrative report shall contain the above information (excluding the future workplan or schedule :f Project activities) covering the entire Project implementation, information on the visibility measures taken to identify the European Union as a/the source of financing, details on tte transfers of assets mentioned in Section 7.02 if relevant, and information cn the final procurement plan mentioned in Section 10.01. The final financial information shall provid - for a history of the contributions received and the expenditures. It shall allow the Commission to assess whether the incurred expenditures generally comply with the Administration kgreement. Section 2.05. The repc rts s'iall be presented in English. Section 2.06. The narra ive progress report(s) shall be submitted at the following intervals: if payments follow optio iI of Section 15.01 of these General Conditions: - a narrative progre, s report shall be forwarded to the Commission on an annual basis following the signature of the Administration Agreement. - a final report shall be forwarded to the Commission within six (6) months after the End Disburs.ment Date specified in Section 2.03 of the Administration Agreement. if payments follow optioli 2 of Section 15.01 of these General Conditions: - a narra-:ive progr ss report shall accompany each payment request for a further instalment of finan, ing ; - a final report shall be forwarded to the Commission within six (6) months after the End Disbursement Date specified in Section 2.03 of the Administration Agreement. Section 2.07. The progress financial information shall be made available pursuant to Section 2.02 following the signatu:e of the Administration Agreement. The final financial information shall be mac e available pursuant to Section 2.02 within six (6) months after the End Disburse-nent Date specified in Section 2.03 of the Administration Agreement without prejudice to the obligatio is set out in Section 16.06 of these General Conditions. 10 Section 2,)8. The Comm ssion ma) recuest clarification on the narrative or financial information providing the reasons for tf,e request. Such information shall be provided as soon as available but no later than forty-five lays (45) days of the request. Section 2.09. In addition to the above mentioned reports, the World Bank Group entity will ensure that other reports, publications, press releases and updates, relevant to the Administration Agreement are commtnica;ed to the Commission promptly following their issuance. Other reports may be made a-iailable on the Donor Centre secure website. - The Commission may request reasonable additional information on a case by case basis, providing the reasons for the request. Such information shall be supplied within forty-five days (45) days of the request and wh -re applicable, the Commission will be provided the website address for the trust fund. The World Bank Group entity and the Commission will endeavour to promote close collaboration and exchange of informat on on the Project. Section 2.10. The World Bank Group entity shall promptly inform the Commission of any event which, in its opinion, interferes or threatens materially to delay or interfere with the successfu implementation of any Proje,t firanced by the Contribution. ARTICLE 3 Liability Other than for failure to perform its otligalions set forth in these General Conditions, in the Administration Agreement, and in the case of a Multi-Donor Trust Fund, in the relevant Resolution or the Standard Provisions cr the Terms and Conditions, the Commission shall not under any circumstances whatever be liable for damages caused either to or by the World Bank Group entity or third parties, during the performance of the Administration Agreement. No claim can be submitted to the Commission for compensation or for restoration of any such damage or loss. The Commission will not be responsible for the activities of any person or third party engaged by the World Bank Group and/or the Recipient as a result of the Administration Agreement, nor will th. Commission be liable for any costs incurred by the World Bank Group and/or the Recipien: in t-rminating the engagement of any such person. ARTICLE 4 Conflict of interest The World Bank Group entity undertakes to take necessary precautions to avoid conflicts of interest in accordance with the applicable pclicies and procedures of the World Bank Group. ARTICLE 5 Disclosure The obligations on confiden:iality and disclosure of information are included in Article 10 of the Framework Agreement. ARTICLE 6 Visibility aad Transparency Section 6.01. The measures taken tc identify the European Union as a/the source of financing are subject to Article 8 and A ttacliment 4 of the Framework Agreement and will be pecified .1 the Administration Agreem ent. Section 6.02. With due rigard to the World Bank Group entity's applicable rules on confidentiality, security an I protection of personal data, the obligations on publication of Beneficiaries shall be goveried by Article 9 of the Framework Agreement. ARTICLE 7 Ownership/use of results and equipment Section 7.01. The relevani World Bank Group entity shall own all rights, title and interest to all industrial and intellectual property rights and materials used for and produced by a Project in relation to this Administration Agreement. However the World Bank Group hereby grants the Commission a non-exc usive right to use free of charge and as it sees fit any of these materials produc-d by a Pr(ject provided said use does not thereby breach existing industrial and intellectual property rights and the World Bank Group entity's policies and Article 5 of these General Conditions. Section 7.02. Unless otheiwise agreed in the Administration Agreement the equipment, vehicles and supplies paid for by the Contribution shall be transferred to Recipients, local authorities or to the final recipients (excluding commercial contractors) of the activities financed by the :rust fund by tke end of the Project in accordance with World Bank Group policies on asset managernint. The documentary proof of those transfers shall be kept for verification along with the documents mentioned in Section 16.06. ARTICLE 8 Participation in Supervision of the Project Section 8.01. Representatives of the Commission shall be invited to participate in Supervision missions, wher applicable, led by the World Bank Group entity relating to the Project financed under the Coitribution. The World Bank Group entity shall keep the Commission infcrmed of th, findings of such missions and regularly provide the Commission with summaries of any repo -ts resulting from such missions. Section 8.02. Notwithstanc ing the Commission's participation in a World Bank Group entity's Supervision missior, the Commission as a donor may wish to carry out Supervision missions independently at its own cost. Supervision missions by representatives of the Commission shoald be planned and carried out in a collaborative manner between the World Bank Group entity's staff and the Commission's representatives, keeping in mind the commitment of both to c oorclination and collaboration for the effective and efficient implementation of the Project included in the Administration Agreement. These missions are to be planned ah.-ad with reasorable notice and procedural matters are to be agreed upon by the Commission and by the World Bank Group entity in advance. The mission will make a draft of its report available to the World Bank Group entity for comments prior to final issuance. ARTICLE 9 Amendment of the Administration Agreement Section 9.01. Any modification of the Administration Agreement, including the Annexes thereto, shall be in writing in an amendment. The request for Emendment shall be submitted by either the World Bank Group entity or the Commission one (1) month be:fore the amendment is intended to enter into force, unless otherwise agreed by the Wo -ld Eank Group entity and by the Commission. 12 Section 9.02. Notwithstanding Section 9.01, changes of address and changes of bank account may simply be notified in writing to the Commission. Changes of bank account must be specified in the request for payment using a inancial identification form. ARTICLE 10 Procurement and Grants Section 10.01. If parts of th- Project are contracted by the World Bank Group, the relevant procurement plan will be specified in the Description of the Project. If it is not specified therein, the World Bank Group entity will present it to the Commission as soon as it is available. Section 10.02. Unless otherwise agree I by the Parties in writing, the procurement of any goods, works or services and the awarc of Grants to Beneficiaries by the World Bank Group entity or the Recipient in the context of the 2roject shall be carried out in accordance with the applicable policies and procedures adcpted by the World Bank Group entity, as previously assessed by the Commission. The administration and enforcement o:' all provisions entered into between the World Bank Group entity and a third party that is financed by the trust fund shall be the responsibility solely of the World Bank Group entity and shall be carried out in accordance with its applicable procedures, except as otherw ise specified in this Article 10 and Section 1.06. Without prejudice to the specific procedures and exceptions applied by the World Bank Group entity, the award of Crants to Beneficiaries shall apply the following principles: - No single Beneficiary may receive 'more than one Grant financed by the European Union for the same activity. For additional activities, a Beneficiary may receive supplemental Grants; - Grants may only cover costs incurred after the date on which the Grant contract with the Beneficiary enters into force; - No portion of any Grant shall be used to provide a direct profit out of the proceeds of the Grant to the Gran: Beneficia-y unless the objective of the Grant is to reinforce the financial capacity of the Beneficiary; and - Granits may not as a rule finan ,e tfe entire cost of the activities carried out by the Beneficiary. Section 10.03. The origir of the goods and the nationality of the organisations, companies and experts selected for 3arrying out activities in the Project shall be determined in accordance with the World Bank Gr:)up entity's relevant rules. The World Bank Group entity's policies and procedures on procurement and Grants to Beneficiaries are untied. Section 10.04. The World Bank Group entity shall take into consideration as provided for under the World Bank Group's policies and procedures the following or similar situations as factors for determining qualification or eligibility of: - Beneficiaries that are bankrupt or being wound up, are having their affairs administered by the courts, have entered intc arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations; Beneficiaries that have been cnvi ted of an offence concerning their professional con duct by a judgment which ha s the force of res judicata; Beneficiaries that have been the subject of a judgment which has the force of res judicati for fraud, conuption involvement in a criminal organisation or any other illegal activity; - Beneficiaries that are guilty of misrepresentation in supplying the information required as a condition of participation in the procedure or fail to supply this information; - Beneficiaries that are subject to a conflict of interest. Section 10.05. The World Bank Group entity may be given access whatever its medium (written on paper or stored in electronic form) to the central exclusion database set up and operated by the Comrr issicn (the "Central Exclusion Database"). The foregoing shall be applied in accordance with the provisions that may be provided for in Attachment 5 of the Framework Agreement including any condition under which the World Bank Group would communicate to the Commission any judgment rendered after 1 January 2009 which has the force of resjudicata for fraud, corruption, involvement in a criminal organization or any other illegal activ ty against a Feneficiary receiving funds from a trust fund financed by the European Union. ARTICLE 11 Suspension of the Administration Agreement Section 11.01. The World Bank Group entity may suspend implementation of all or part of the Project in accordance with its policies and procedures including when circumstances make it too difficult or dangcrous to continue. It shall inform the Commission without delay and provide all the neces:;ary details should a project be suspended. The Administration Agreement may be te -minated in accordance with Section 12.01. If the Administration Agreement is not terminateJ, the World Bank Group entity shall endeavour to minimise the duration of the suspens on and may resume implementation of the Project once the conditions allow, and shall inform the Commission accordingly. Section 11.(2. Upon removal of the suspension, the implementation period of the Administration Agreement shall be automatically extended by an amount of time equivalent to the duration of the sus !ension. This is without prejudice to any amendments to the Administrat on Agreement which may be necessary to adapt the Project to the new implementir,g conditioi is. ARTICLE 12 'ermination of the Administration Agreement Section 12.01. If, at any time, either party believes that the purposes of the Administration Agreement can no longer be effectively or appropriately carried out, it shall consult the other party. The Administr-tion Agreement may be terminated at the initiative of either party by giving the Aher party three (3) months' prior written notice to cancel all or part of the Commission's pro rate sha-e of any remaining balance of the Contribution funds that is not committed pursuant to any agreements entered into between the World Bank Group entity and any consultints and/or other third parties for the purposes of the Administration Agreement prior to the receipt of sach notice, including the Grant Agreement[s]. The World Bank Group entity shall return such cancelled balance to the Commission including any investnct irLcome in accordance with Article 18. Section 12.12.Where Vie World Bank Group entity: 14 fails, without justification, to fulfil any of the obligations set out in Sections 1.02 and 1.03 incumbent on t, includirg the presentation of a final narrative report and/or making available final financial info,-mation within the deadlines laid down in Sections 2.05 and 2.07, after being giver not.ce by letter to comply with those obligations, still fails to do so or to furnish a sat sfactory explanation within thirty (30) days of sending of the letter; and, in case of nanative progress reports, after failing to provide, together with a satisfactory ex:lanation., a summary of the state of the progress of the Project; - fails to comply with Section 1.01i or Article 4; - provides false reports or makes false or incomplete statements to obtain the Contribution provided for in the Administration Agreement; co mits financial irregularities or is guilty of grave professional misconduct; undergoes legal, financial, te-,hnical or organisational change that is likely to substantially affect negatively tl e Administration Agreement or to call into question the decision by which a direct financial contribution is awarded to the World Bank Group by :he Commission following a Call for proposals; After prior consultation with the World Bank Group entity the Commission may terminate the Administration Agreement:. In that event the Commission may request full or partial repayment of any amounts that should have not been considered eligible, after allowing the World Bank Group entity to submit it obs-rvations. Section 12.03. Prior to or instead of tert inating the Administration Agreement as provided for in Section 12.02, the Commission may suspend payments or (exceptionally) the eligibility of experses as a precautionary measure, informing the World Bank Group entity immediately. Section 12.04 This Administration Agreement shall be automatically terminated if no payment has been made by the Commission within three (3) years of its signature. ARTICLE 13 Dispute resolution Section 13.01. The Parties shall en leavour to settle amicably any dispute or complaint relating to the interpretation, applic ition or fulfilment of the Administration Agreement, including its existence, validity or teimination. In default of amicable settlement, any party may refer the matter to arbitration in accordance with the Permanent Court of Arbitration Optional Rules for Arbitralion Involv:ng International Organisations and States in force at the date of the Administration Agreement. Section 13.02. The language to be used in the arbitral proceedings shall be English. The appointing authority shall be the Secretary General of the Permanent Court of Arbitration following a written request submitted by any party. The Arbitrator's decision shall be binding on all parties to the arbitral proceedings and there shall be no appeal. Section 13.03. Nothing in the Administration Agreement shall be interpreted as a waiver of any privileges or immunities accorded tc any party hereto by its constituent documents or international law. FINANCIAL PROVISIONS ro THE ADMINISTRATION AGREEMENT ARTICLE 14 Eligible costs Section 14.0 1. To be cc nsidered eligible as Direct Costs under the Administration Agreement costs must: - be necessary for carrying out the activities financed by the trust fund, fall within the scope of the Administration Agreement, and comply with the principles of sound financial managen ent, in particular value for money and cost effectiveness; - have actually be en incurred after the date specified in Section 2.02 of the Admin: stration Agreement and before the End Disbursement Date specified in Section 2.03 of the Admin strat ion Agreement; - be recorded in the World Bank Group or Recipient's accounts, be identifiable, backed by originals of stpporting evidence and verifiable pursuant to the provisions on the verification provision set out in Section 16.07. Section 14.02. Subject to the above and without prejudice to Section 14.04, the following Direct Costs related to the activities of the trust fund of the World Bank Group entity, or its Recipient may be eligitle provided they are consistent with the World Bank Group entity's policies: - the cos: of staff, ir cluding those at headquarters, assigned to the activities funded by the trust fund, corresponding to salaries and other benefits costs; - travel and subsistence costs for staff and consultants; - cost of purchase or lease for goods and services (including consultant services, transport, storage and cistributing, lease of equipment, etc.); - costs c irectly ari.ing out of, or related to, distributing consumables, supplies and communications: - expenditure on contrac:ing (including works); - the proportion of field office costs that corresponds to the amount of activity directly attributable to the ictivities financed by the trust fund or to the proportion of the amount deposited by the European Union; - media workshops. corferences, meetings and other costs including dissemination of information, translation, reproduction, publication; - training; - Supervision/project management activities, project preparation activities, and specific reporting for the n,-eds of the Commission; - financial service costs (in particular bank fees for transfers) and insurance; - costs rc lated to cairying out visibility activities. Section 14.03.The following costs of the World Bank Group entity or its Recipient shall not be considered eligible: - expenditures and provisions for possible future losses or debts; - interest owed to at iy th rd party; - items already financed from other sources; - purchases of land or buildings; - currency exchangc losses; 16 - taxes, duties and charges (unless the World Bank Group entity or the Recipient is not able to reclaim them and if allowed by the applicable regulatory provisions of the European Union). Section 14.04.In order to assist in the defrayment of the costs of administration and other expenses i-curred by the World Bank Group entity in administering the trust funds provided to it hereunder, a fixed percentage of E irect Costs, not exceeding 7%, may be deducted from each Coniribution and retained as Indi -ect Costs by the World Bank Group entity. The 7% includes any set up fee that the World Bank governing bodies' decision may establish. Indirect Costs are eligible provided tha. they do not include Direct Costs specifically charged including preparation and su-ervision c:sts. Where the administrative costs charged by the World Bank Group exceed 7%, the World Bank Group entity may r-cover the balance as Direct Costs, subject to meeting the requirements governing direct eligible c.osts referred to in Section 14.01. Indirect Costs shall not be eligible where the Administration Agreement concerns the financing of a Project where the World Bank Group entity is already receiving funding for its functioning from the European Union during the same perioc in question. ARTICLE 15 Payments Section 15.01. Payment schedule is et oit in Article 4 of the Administration Agreement and follow one of the options below. - Option 1 will be applizable in case of Single Donor Trust Funds or Multi-Donor Trust Funds where the trust fund has an anticipated duration of one year or less: An advance payment, -epresenting 100% of the total Contribution referred to in Section 3.02 of the Administration Agreement shall be payable by the Commission within forty- five (45) days followir g receipt of the Administration Agreement signed by both Parties and receipt by the Commission (f a payment request conforming to the model agreed betw een the Parties. - Option 2 will be applicable in case of Single Donor Trust Funds or Multi-Donor Trust Funds where the trust fund has an anti 3ipated duration of more than one year: An advance payment representino, 50Yo of the total Contribution referred to in Section 3.02 of the Administ-ation Agr-ement shall be payable within forty-five (45) days following receipt of the Administ ration Agreement signed by both Parties and receipt by the Commission of a payment request conforming to the model agreed between the Parties. One or several intermediate payments representing 30% of the total Contribution referred to in Section 3.02 of th- Acministration Agreement and specified in Section 4.01 of the Administration Agreement, shall be payable within forty-five (45) days of approving the narrative progress report and the financial information provided the payrient request is accompanied by written confirmation that 50% of the total funds recc ved to-date by the trust fund have been subject to a Commitment. A f ial payment representing 20% of the total Contribution referred to in Section 3.02 of the Administration Agreement and specified in Section 4.01 of the Administration Agi cement, shall be payable within forty-five (45) days following receipt by the Coirunission of a payment requeEt accompanied by written confirmation that30% of the total funds received to-date by thi trust fund have been subject to a Commitment. Section 15.02. Narrative progress reports and the up to date financial information shall be deemed approved if the Crmmission has not reacted within forty-five (45) days of receiving the narrative przgress repc rt. If the Commission does not intend to approve a narrative report and/or financial information, as submitted or made available, it shall revert to the World Bank Group entity specifying th- additional information it requires in accordance with Section 2.08. The deadline for approving the narrative report and financial information shall be suspended pending the receipt of the -equested information. If the Commission deems that a payment request cannot be met, it shall revert to the World Bank Group entity with a request specifying the additional information it requires within the forty-five (45)-day payment period. The payment period shall be suspended pending the payment request being made available in accordance with Section 15.01. Approval of a report does not imply recognition of the regularity, authenticity, completeness and correctness of the dec arations and information contained therein. Section 15.03.All paymerts shall be made in Euro, into such bank account designated by the World Bank G.oup entity in its request for payment pursuant to Section 9.02. When making deposits pursuant to this Section 15.03, the Commission will instruct the bank with which the deposit is made to include in its payment details information (remittance advice) field of its SWIFT payment message info,-mation indicating the amount and date of the deposit, the name and World Bank reference number of the trust fund for which the deposit is made (as set forth in the Administration Agreement), the Commission internal reference number (as set forth in the Adninistratio i Agreement), name of the project for which the funds are intended, name of the Commission's department responsible for the trust fund, date of the Administration Agreement or amendment. The Commission will also send a copy of its instruction to the [IBRD s Trust Funds Division via e-mail using address "TFremitadvice@worldbnk.org or via fax utilizing fax number 1-202-614-1315. Section 15.04. In case of Single Donor Trust Funds except as the Commission and the World Bank Group entity may othenvise agree and subject to Section 15.06, any funds so deposited by the Commi:ssion shall be maintained in Euro. In case of Multi-Donor Trust Funds, in the event that holding currency of the Multi-Donor Trust Fund is not Euro, the World Bank Group entity, shall convert the funds into the holding currency of the trust fund promptly following receipt of the funds, provided that all the necessary documentation has been received, at the exchanEe rate applicable to the World Bank Group on the date of the conversion unless the parties agree otherwise in Section 7.02 of the Administration Agreement. Li all cases where the Contribution proves to be insufficient to complete the Project as a result of an exchange rate fluctuation, the Commission will not bear any responsibility for additioral financing. Section 15.05. The funds deposited pursuant to Section 15.04 above may be commingled with other trust fund asse.s administered by any World Bank Group entity, provided they may still be identified as such in the records of the World Bank Group entity but shall be kept separate and apart from the fu-ds of each of the World Bank Group entities. Section 15.06. The World Bank Group entity may exchange any funds held hereunder for other currencies in order to facilitate their administration and disbursement at the exchange rate applicable to the Wo -ld Bank Group on the date of the conversion unless the parties agree otherwise in Section 7.02 of the Administration Agreement. Section 15.07.IBRD shall, on behalf of the World Bank Group entity, invest and reinvest the funds provided by the European Union hereunder pending their disbursement, in accordance with EBRD's policies and procedures for the investment of trust funds. For Multi Donor Trust 18 Funds and/or Joint Management, IBRI) shal. credit all income earned on funds received from the Commission from such investment lo the trust fund established under this Administration Agreement to be used for tlEe same purposes as the Contribution funds. For Contributions which are not Multi-Donor Trust Funds and'or Joint Management, investment income earned on funds -ceived from the Commission shall be identified as such, and IBRD shall credit such income to the Commission's Doncr Balance Account to be reimbursed to the Commission annually upon receipt by IBRD of banking details and authorized instructions from the Commission. Such refund r-quest shall be sent to the attention of the-Division Manager, Trust Fund Division, Accounting Department of the World Bank ARTICLE 16 Financial audits and checks Section 16.01. The World Bank Grou) shall maintain separate records and ledger accounts in respect of the Contributions deposited by the Commission in the trust fund account and disbursernents made therefrom. Separate records and ledger accounts shall be kept for each trust fund. Section 16.02.The World Bank Group :hall provide to the Commission, within six (6) months following the end of each World Bank Group fiscal year, the annual single audit, comprising (1) a management assertion together with an attestation from the World Bank Group's external auditors concerning the adequacy of internal control over cash-based financial reporting for trust funds as a whole; and (2) a combined financial statement for all cash-based trust funds together with the external ,.uditor's opinion thereon. The cost of the single audit shall be borne by the World Bank Group. Section 16.03. For Exceptionally large trust funds where a financial statement audit is deemed appropriate and necessary, the World Bank will include provisions in the Administration Agreemenit for the financial statements of the trust fund to be audited (either annually, periodically, or at the comp.etion of th- trust fund as agreed with the donor(s)), by the World Bank's external auditors in addition to :he Single Audit Report. The costs with respect to Such audits will be paid by the trust fund. These audited financial statements will be submitted to the Commission. Section 16.04. If the Commission wishes to request, on an exceptional basis, a financial statemem audit by the Bank's exte-nal auditors of a trust fund established under an Adminisiration Agreement, the Commission and the Bank will first consult one another as to whether such an external audit is n cessary. Following consultation, if the Commission wishes to proceed with the external audit, the Bank will arrange for such an audit. The cost of any such audit, including the Bank's irternal costs related to such an audit, will be paid by the Commission. Section 16.05.The Bank w1l provide the Commission with copies of all financial statements and auditors' reports received by the Bank from the Recipients pursuant to the Grant Agreements. Section 16.06. The World Bank Groap entity shall, until at least seven years after the End Disbursement Date of the Administrat 'on Agreement: (i) keep financial and accountinE documents concerning the activities financed by the European Union hereunder; an I (ii) make available to the competent bodies of the European Union upon request, all r-levant financial information, including statements of accounts concerning the project or activity finan .ed by the European Union hereunder (whether executed by such World Bank Group entity or by its subcontractor). Section 16.07. In confo-mity with the European Union financial regulations, the European Union may undertake, including on-the-spot, checks related to the Projects and activities financed by the trust fun d. Section 16.08. The fore going shall be applied in accordance with the verification provisions provided for in Attachm,nt 3 of the Framework Agreement. ARTICLE 17 Final amount of the Contribution by the Commission Section 17.01. The totz.l amount to be paid by the Commission to the World Bank Group entity may not exceed the maximum Contribution established by Section 3.02 of the Administration Agreement, even if the overall actual expenditure exceeds the estimated total budget set out in Section 3.01 of the Administration Agreement unless amended in accordance with Section 9.01. Section 17.02 The World Bank Group entity accepts that the Contribution amount shall be limited to the amount required to balance income and expenditure for the Project and that it may not in any circumstnces result in a surplus for the World Bank Group entity. Section 17.03. In cases where the Project is not completed by the End Disbursement Date specified in Section 2.0; of the Administration Agreement, the funds that remain unexpended after all Conmitments incurred have been satisfied, including investment income will be reimbursed to the relevant Balance Account. Section 17.04. Where the Project is not carried out according to the Administration Agreement End without prejudice to its right to terminate the Administration Agreement pursuant to Section 12.02, the Commission may, after allowing the World Bank Group entity to submit its observations ar d without prejudice to Article 13, adjust its Contribution pro rata to the actual implementation of the Project on the terms laid down in the Administration Agreement giving three (3) months' prior written notice. ARTICLE 18 Recovery Section 18.01. Upon the completion or termination of the Project for which the European Union has Frovided funding hereunder, the World Bank Group entity, will refund to the Commission within foity-five (45) days of receiving a written request from the latter any amounts paid in excess of 1he final amount due for such project (including any investment income not previously r-imbursed to the Commission or to the Balance Account). Such refund request with banking details and authorized instruction from the Commission shall be sent to the atention of the Division Manager, Trust Fund Division, Accounting Department f the World Bank. Any refund to the Commission will be done in Euro, unless the Parties agree otheniise, at the exchange rate applicable to the World Bank Group on the date of the conversion unless the Parties agree to another exchange rate in Section 7.02 of the Administration Agreerent. In the event the funds are received by the Commission before such refund request is sent, the Commission will issue a refund request acknowledging their receipt. Section 18.02. If the World Bank Group entity fails to repay by the due date, the sum due shall bear interest in accordance with the rules of the Commission. In case of Contributions 2C which are Multi-Donor Trust Funds andtor Joint Management the accrued investment income may be taken into account. Section 18.03. Amounts to be repaid to the Commission may be offset against amounts of any kind due to the World Bank Group entity or the Recipient, after consulting it accordingly. This shall not affect the Parties' optin to agree on payment in instalments. Section 18.04.Bank charges incurr,d by the repayment of amounts due to the Commission shall be borne entirely by the World Bank Group entity. ANNEX III STANDARD PRONISIONS AGREED BETWEEN THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE DONORS Standard Provision Applicable to the WA VES - Wealth Accounting and Valuation of Ecosystem Services Multi-Donor Trust Fund This Annex will be applic.ble to and form an integral part of all arrangements entered into between the Bank and the Donors that provide Contributions to be administered by the Bank for the Trusi Fund. 1. Administration of the Contributions 1.1. The Bank will be res;ponsible only for performing those functions specifically set forth in this Arrangement arid will not be subject to any other duties or responsibilities to the Donors, including, without limitation, any duties or commitments that might otherwise apply to a fiduciary or trustee urder general principles of trust or fiduciary law. Nothing in this Arrangement will be considered a waiver of any privileges or immunities of the IBRD under its Articles of Agreement or any applicable law, all of which are expressly reserved. 1.2. The Contributin will be administered in accordance with the Bank's applicable policies anc procedurcs, as the same may be amended from time to time, including its framework to prevent and combat fraud and corruption and its screening procedures to prevent the use of Bank resources to finance terrorist activity, in line with the Bank's commitmens to give -ffect to the relevant decisions of the Security Council, taken under Chapter VII of the of Ch2rter of the United Nations. The Donor acknowledges that this provision does not create any commitments of the Bank under the anti-terrorist financing and asset control laws, reg ilations, rules and executive orders of an individual member country that may apply to the Donor, nor will it be deemed a waiver, express or implied, of any of the privileges and immunities of the Bank. 2. Commingling, Exchange and Investment of the Contributions 2.1. The Contributicns will be accounted for as a single trust fund and will be kept separate and apart from the funcs of the Bank. The Contributions may be commingled with other trust fund assets maintained by the Bank. 2.2. The Contributi ns may be freely exchanged by the Bank into other currencies as may facilitate their disburseneni. 2.3. The Bank will invest and reinvest the Contributions pending their disbursement in accordance with the 3ank's policies and procedures for the investment of trust funds administered by the Bank. The Bank will credit all income from such investment to the Trust Fund to be used for the same purposes as the Contributions. 3. Administrative Cost Recovery 22 3.1 .n order to assist in the defryment of the costs of administration and other expenses incurred by the Bank under this Ar-angement, the Bank may deduct and retain for its own account an amount equal to two p(rcent (2%) of each Contribution. In addition, costs for program management and administiation as defined in Annex 1 up to a maximum of 10.7 perceni (10.7%) of the cc ntribution will be charged to the Trust Fund on an actual basis. If the contributions increase beyond whai. was originally expected at the time of counter- signature of the first administration arrangement, and the.administrative costs increase as a result, the Donors acknowledge that an .dditional administrative fee may be applied to such new contributions. 4. Procurement 4.1. The employment and supervision of any consultants and the procurement of any goods financed by the Contributions will b, the responsibility of the Bank and will be carried out in accordance with its applicable policies and procedures. 5. Accounting and Financial Re:)orting 5.1. The Bank will maintain separate records and ledger accounts in respect of the Contributions deposited in the Trust Fund account and disbursements made therefrom. 5.2. The Bank will furaish to the Donors current financial information relating to receipts, disbursements and fund balance in tne holding currency of the Trust Fund with respect to the Contributions via the World Bank's Frust Funds Donor Center secure website. Within six (6) months after all commitrrents and li ibilities under the Trust Fund have been satisfied and the Trust Fund has been closed, the final financial information relating to receipts, disbursements and fund balance in the holding currency of the Trust Fund with respect to the Contributions will be made available to the Donor; via the World Bank's Trust Funds Donor Center secure websitc. 5.3. The Bank will prcvide to the Donors, within six (6) months following the end of each Bank Fiscal year, an annual single audit report, comprising (1) a management assertion togethe with an attestation from the B ank's external auditors concerning the adequacy of internal control over cash-based firuncial reporting for all cash-based trust funds as a whole; and (2) a combined financial statement for all cash-based trust funds together with the Bank's external auditor's opinion thereon. The cost of the single audit will be borne by the Bank. 5.4. If a Donor wishes to reques., on an exceptional basis, a financial statement audit by the Ba:ik's external auditors of the Trust Fund, the Donor and the Bank will first consult as to whethe- such an externa[ audit is necessary. The Bank and the Donor will decide on the approrriate scope and terms of reference of such audit. Following a decision on the scope and terms of reference, the Bank will arrange for such external audit. The costs of any such audit, including the internal costs of the Bark with respect to such audit, will be paid by the requesting Donor. 6. Progress Reporting 6.1. The Bank will provide the lono:-s with an annual report on the progress of activities financed by the Contributions. Witin six (6) months of the final disbursement date specified in paragraph 7.1, the Bank w 11 furnish to the Donors a final report on the activities financed by the Trust F and. 6.2 Any Donor may review or evaluate activities financed by the Trust Fund. The Donor and the Bank will decide on the scope and conduct of such review or evaluation, and the Bank will provide ll relevant infcrmation within the limits of its policies and procedures. All associated costs will be borne by the Donor. It is. understood that any such review or evaluation will not consti:ute a financial, compliance or other audit of the Trust Fund. 7. Disbursement, Cancellation; Refund 7.1. It is expected thai the Contributions will be fully disbursed by the Bank by June 30, 2016. The Bank will onli disburse Contributions for the purposes of this Arrangement after such date with the written approval of the Donors. 7.2. Any Donor or the Ban- may, upon three (3) months' prior written notice, cancel all or part of the Donor's pro rita share, of any remaining balance of the Contributions that is not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third participants for the purposes of this Arrangement prior to the receipt of such notice, including the Grar t Agreement[s]. 7.3. Following the fin, I disbursement date specified in paragraph 7.1, the Bank will return any remaining balance o:' the Contributions to the Donors on a pro rata basis based on the Donors' paid Contributio.is. In the event of a cancellation the Bank will promptly return to the relevant Donor or Donors the Donor's pro rata share of uncommitted Contributions in accordance with paragrap i 7.2. 8. Disclosure The Bank will disclose this Arrangement and related information on this Trust Fund in accordance with the World Bank Policy on Access to Information. By entering into this Arrangement, Donors consent to disclosure of this Arrangement and related information on this Trust Fund. 24 ANNEX IV INDICATIVE I:UDGET FOR THE PROJECT Indicative Amount Budget category Description (expressed in million ____ _________USD) Indirect costs Indirect cost, 2 % of contribution 0.3 Program Actuals up to 10.7% of the contribution management 1.6 Componenits Comporents 1 - 4 Annex I, excluding program management 13.1 15