A - C FFIClAL DOCUMENTS Dated: February 6, 2013 Mr. Jeroen Verheul Ambassador Embassy of the Kingdom of he Netherlands P.O. Box 463 Sana'a Yemen Trust Fund A.dminij tration Arrangement between the Government of the Netherlavds actimg thrt Pugh the Ministry for Foreign Trade and Development Cooperction and the International Bank for Reconstruction and De oelopment and the International Development Association concern,ng the Household Budget Survey (HBS) 2013-14 Multi-Donor Trust Fun1fo,, Yemen (YHBSTF) (TFNo.TFO72001) Dear Mr. Verheul: 1. We are pleased to ac kno xledge on behalf of the International Bank for Reconstruction and Devel opmeni ("IBRD") and the International Development Association ("IDA") (collec,ively, Ihe "Bank") that the Government of the Netherlands acting through the \4inistry for 'oreign Trade and Development Cooperation (the "Donor") will make availab.e z s a grant the sum of five hundred thirty seven thousand one hundred and thirty three United States Dollars (US$ 537,133.00) (the "Contribution") for the Household Budget Survey 2013-14 Multi-Donor Trust Fund for Yemen (the "Trust Fund") in accordance wJth tie provisions of this Arrangement. Other donors are also expected to contribute to the T -ust Fund in accordance with the provisions specified in the Annexes to this Arrangerent. 2. The Contribution w 11 )e i sed to finance the activities and the categories of expenditure set forth in tP e "Description of Activities and Expenditures under the Household Budget Survey 2:) 13-14 Multi-Donor Trust Fund for Yemen" attached hereto as Annex 1, and shall be ad:nir.iste -ed by the Bank on behalf of the Donor in accordance with the terms of this Arran,'emient including the "Standard Provisions Applicable to the Household Budget Survey 201:-14 Multi-Donor Trust Fund for Yemen" (the "Standard Provisions") attached hereto as Ann -x 2. 3. Following countersignat -re of this Arrangement, the Donor authorizes the Bank to transfer a sum of five hundr-.d 1hirt,, seven thousand one hundred and thirty three United States Dollars (US$ 537,133.00) frcm the Donor's Balance Account at the Bank, into the Trust Fund established for the Hoasehold Budget Survey 2013-14 Multi-Donor Trust Fund for Yemen (TF072001). -2- 4. For future payments to )e n ade by the Donor to this Trust Fund, when making each such deposit, the Donor will instruct its bank to include in its payment details information (remittance advicc) field of its SWIFT payment message, information indicating: the amount paic, tiat :he payment is made by the Donor for TF072001 (Household Budget S urvey 2013-14 Multi-Donor Trust Fund for Yemen), and the date of the deposit (the "Depsit InsiTructior "). In addition, the Donor will provide a copy of the Donor's Deposit Instruction to the Bank's Accounting Trust Funds Division by e-mail sent to tfremitadvice(@bworld',ank.or) or by fax sent to (202) 614-1315. 5. Except as provided for in paragraph 4 above, any notice, request or other communication to be given oi me de under this Arrangement will be in writing and delivered by mail, facsimile or c-mail to the respective party's address specified below or at such other address as such party n )tifies in writing to the other party from time to time: For the Bank: Name: Umar Serijud lin Title: Econor ist Unit/Departm,nt Ec :nomics Policy, Poverty & Gender (MNSED) The World Be nk 1818 H Street, N X Washington, DC 20z 33 U.S.A. Tel: (202) 456 0528 Fax: (202) 477 0432 E-mail: userajuddin@a!worldbank.org For the Donor: Name: Bouwc -Jan Sr ieding Title: First Se,relary Office: Embassy of tI e Kingdom of the Netherlands Address: P.O. Bcx 4(3 Sana'a Yem en Tel: 967-1-42 18(0 Fax:967-1-417280 E-mail:bouwe -j an.sm eding@minbuza.nl 6. All annexes hereto cc nsti .ute an integral part of this Arrangement. This Arrangement may be amended oiLly in writing between the Bank and the Donor; provided, however, that suc' a ine> es may be amended only with the agreement of all donors contributing to the Trust Fun 1. -3- 7. Please confirm your accept nce with the foregoing, on behalf of the Donor, by sigrLng and dating the two originals, retaining one original for your record and returning the other original to i-he Bank. Up n receipt by the Bank of the original Arrangement, countersigned by you, this Anang:-ment will become effective as of the date of the countersignature. It is under itood tI at this Arrangement is not an international Treaty. It is an administrative Arrangermer t be ween Netherlands and the Bank. Sincerely, INTERNATIONAL BANIK FOIR RECONSTRUCTION AND DEVELOPMENT/ INTERNATIONAL DEVELOPMENT ASSOCIATION Hartwig S afer Director Y emen, rgy pt a -d Dj ibouti, Country Department AGREED: GOVERNMENT OF THE NETHERLANDS ACTING THROUGH THE MINIS Y R FOREIGN TRA DE AND DEVELOPMENT COOPERATION By: Nanie: C Datc: L o - -4- ANNEX 1 Description of Act vities and Expenditures under the Household Budget Survey (HBS) 2013-14 MulIti-Doi tor Trust Fund for Yemen This Annex will be applicz ble to and form an integral part of all agreements entered into between the Bank an i entities (collectively, the "Donors") that provide contributions (the aggregate :f all contributions from the Donors, the "Contributions") to be administered by the Bank for the rrust Fund. A. DESCRIPTION OF A(CTI VITIES The objective of the YHBSI F is to assist Yemen in filling the knowledge gap on social and economic indicators anc poverty by developing and implementing the next round of the Househc ld Budaet Sur iey (HBS), through supporting the Central Statistical Organization (CSO) of Yernen in s irvey design, sampling, enumeration, and data entry and processing. Surney-gen.raled lata will be used to support the poverty-reduction efforts of the Government of Yemen and of international donors by meeting their data and analytical needs for planning, decision-making and monitoring purposes. (i) Bank-Executed Trust Fund Activities: (a) Supervision cf su vey and quality control. (b) Trust fund adenin: stration and management. (ii) Recipient-Exc cuted I rust Fund Activities: (a) Pre-survey p-epa-ations including supplies and goods, training and tec inical wor[ksh( ps. (b) Conducting a yeai -long fieldwork for the survey. (c) Data entry and dis semination. B. CATEGORIES OF EXPENDITURE For Bank-Executed activities, the Contributions may be used to finance: (a) associated overheads; (b) -onultant fees individuals and firms; (c) contractual services; (d) extended terri c nsultants; (e) media, workshops, conferences and meetings; (g) staff costs - with indirect costs; (h) temporary support staff costs; (i) temporary staff costs - no inJirei;ts; and (j) travel expenses. For Recipient-Executed activiti es, the Contributions may be used to finance: (a) consultant services; (b) goods; (c) operating costs; and (d) training. The foregoing catego:-ies of c xpenditures may include the financing of taxes. /o2 -5- ANNEX 2 Staii.dard I rovisions Applicable to the Housihold Budget Survey (HBS) 2013-14 Mvilti-Dol or Trust Fund for Yemen This Annex vill be applicz ble to and form an integral part of all agreements entered into between the Bank , nd the Donors that provide Contributions to be administered by the Bank for the Tnt st Fund. 1. Administration of the Cc ntri'utions 1.1. The Bank will be respor-sibl, only for performing those functions specifically set forth in this Arrangement an1 w ill not be subject to any other duties or responsibilities to the Donors, including, withc ut imi ation, any duties or obligations that might otherwise apply to a fiduciary or truste:, u:ider general principles of trust or fiduciary law. Nothing in this Arrangement will be considi!red a waiver of any privileges or immunities of the IBRD) and IDA under their Articles of Agreement or any applicable law, all of which are expressly reserved. 1.2. The Contribution wil I be ad ninistered in accordance with the Bank's applicable policies and procedures, as he sarr e may be amended from time to time, including its framework to prevent and com)at I raud and corruption and its screening procedures to prevent the use of Bank resouices to finance terrorist activity, in line with the Bank's obligations to give effect to the relcvant decisions of the Security Council, taken under Chapter VII of the of Charter o the United Nations. The Donor acknowledges that this provision does not create an y c blig ations of the Bank under the anti-terrorist financing and asset control laws, regu ations, rules and executive orders of an individual member courtry that may apply to the Donoi, nor will it be deemed a waiver, express or implied, of any of the privileges and irnmunit es of the Bank. 2. Comminaling. Excha!g and Investment of the Contributions 2.1. The Contributions will be a:counted for as a single trust fund and will be kept separate and apart from the funds cf the Bank. The Contributions may be commingled with other trust fund assets mairtain ed by the Bank. 2.2. The Contributions may be fieely exchanged by the Bank into other currencies as may facilitate their disbursenen . 2.3. The Bank will invest and rei: ivest the Contributions pending their disbursement in accordance with the Bank's pc lici s and procedures for the investment of trust funds administered by the Bank. The Bar k will credit all income from such investment to the Trust Fund to be used for the same p urposes as the Contributions. -6- 3. Administrative Cost Rtecovei y 3.1. In order to assist in the dfrayment of the costs of administration and other expenses incurred by the Baik andcr this Arrangement, the Bank may deduct and retain for its own account an amount ecual to two percent (2%) of each Contribution. In addition, costs for program mnaE ement and trust fund administration as defined in Annex 1 up to a maximum of 1.1(% of the Contribution will be charged to the Trust Fund on an actual basis. If the contributions increase beyond what was originally expected at the time of counier-signature of the first administration arrangement, and the administrative costs increas: as a result, the Donors acknowledge that an additional administrative fee may be ap:1)icd to such new contributions. 4. Grants to Recipient 4.1. The Bank will, as adnir.istr,tor of the Trust Fund on behalf of the Donors, enter into a grant agreement (tl e "Gr nt Agreement") with the "Recipient" selected in accordance with the governance ten ns of Annex 1 (the "Recipients") consistent with the purposes of this Arrangement md on the terms and conditions set forth in the Grant Agreement. The Grant Agre.mcnt r iay be entered into up to the maximum amount of the Contributions that all Donors fave agreed to make available under the Administration Arrangement between the Bank and the Donors. Upon request by a Donor, the Bank will furnish a copy of the Grant A greeme nt to the Donors. 4.2. The Bank will be respoisibl,- for the supervision of the activities financed under the Grant Agreement. Subject to :he consent of the Recipient, representatives of the Donors may be invited by the B mnk :o participate in Bank supervision missions related to the Frust Fund. 4.3. The Bank will promr tly infc rm the Donors of any significant modification to the terms of any Grant Agreement and )f any contractual remedies that are exercised by the Bank under any Grant Agre:emint. To the extent practicable, the Bank will afford the Donors the opportunity to exc iany e views before effecting any such modification or exercising any such remedy. 5. Procurement 5.1. For Recipient-execuled activities, the Grant Agreement will provide that the Contributions will be used by the Recipient to finance expenditures for goods and services, as the case may be, in accordance with the Bank's Guidelines on "Procurement under IBRD Loans and IDA Credit 3" and the Bank's Guidelines on the "Selection and Employment of Consiltants by Woi ld Bank Borrowers," as in effect at the date of entry into the respective Grant Agreement -7- 5.2. For Bank-executed a,:tiN itieE, the employment and supervision of any consultants and the procurement of any goo Is fi -lanced by the Contributions will be the responsibility of fhe Bank and will be c arr ed )ut in accordance with its applicable policies and procedures. 6. Accounting ar d Financiz.l Rc porting 6.1. The Bank will mainair sel arate records and ledger accounts in respect of the Con-ributions deposited in the Trust Fund account and disbursements made therefrom. 6.2. The Bank wi.l furnish to t ie Donors current financial information relating to receipts, disbursements and idn ba ance in the holding currency of the Trust Fund with respect to the Contributions via tle World Bank's Trust Funds Donor Center secure website. Within six (5) mon.hs aftei all commitments and liabilities under the Trust Fund have been satisfied and the Tn.st Fund has been closed, the final financial information relating to receipts, d Isbursemnents a rd fund balance in the holding currency of the Trust Fund with respect to the Contribu ions will be made available to the Donors via the World Bank's Trust Funds Donor C-nter secure website. 6.3. The Bank will provice to th! Donors, within six (6) months following the end of each Bank fiscal year, an inrual single audit report, comprising (1) a management assertion together wil-h an altestatic n from the Bank's external auditors concerning the adequacy of internal control over c ish-based financial reporting for all cash-based trust funds as a whole; and (2) a coinbit ed financial statement for all cash-based trust funds together with the Bank's extern il au ditor's opinion thereon. The cost of the single audit will be borne by the Eank. 6.4. If a Donor wishes to rec uesl, on an exceptional basis, a financial statement audit by the Bank's external auditor; of the Trust Fund, the Donor and the Bank will first consult as to whether such ari edernal audit is necessary. The Bank and the Donor will agree on the appropriate score aid tirms of reference of such audit. Following agreement on the scope and terms of rc fer ence, the Bank will arrange for such external audit. The costs of any such audit, including thi internal costs of the Bank with respect to such audit, will be paid by the requesting Donoi. 6.5. The Bank will provide the Donors with copies of all financial statements and auditors' reports received :y the Bank from the Recipient pursuant to the Grant Agrcement. 7. Progress Reporting 7.1. The Bank will provide the Donors with an annual report on the progress of activities financed by the Coitributi ns. Within six (6) months of the final disbursement date specified in paragraph F. 1, the Bank will furnish to the Donors a final report on the activities financed by the Tru st Fund. -8- 7.2 Any Donor may revi ew or .valuate activities financed by the Trust Fund. The Donor and the Bank will agree on :he scope and conduct of such review or evaluation, and the Bank will provide all ieleNant information within the limits of its policies and procedures. All associated cos-.s w 11 be borne by the Donor. It is understood that any such review or evaluation will r ot c )nstitute a financial, compliance or other audit of the Trust Fund. 8. Disbursement: Cancellation Refund 8.1. It is expected that the Co itributions will be fully disbursed by the Bank by December 31, 2015. The Bank wil only disburse Contributions for the purposes of this Arrangement after such date wit - thc written approval of the Donors. 8.2 Any Donor or the Bank ma), upon three (3) months' prior written notice, cancel all or part of the Donor's pro rita hare, of any remaining balance of the Contributions that is not committed pursualt to ar y agreements entered into between the Bank and any consultants and/or other third r artics for the purposes of this Arrangement prior to the recelpt of such notice. including the 3rant Agreement. 8.3. Following the final disbursement date specified in paragraph 8.1, the Bank will return any remaining balancc of the Contributions to the Donors or to the relevant Donor Balance Account on a pro 1ata bas.s based on the Donors' paid Contributions. In the event of a cancellatioa the Bank will promptly return to the relevant Donor or Donors or to 1he relevant Donor Balancc Ac count the Donor's pro rata share of uncommitted Contributions in accordance witli pa -agraph 8.2. 9. Disclosure The Bank will discloE e this /.rrangement and related information on this Trust Fund in accordance with the Wcrld I Hank Policy on Access to Information. By entering into this Arrangement, Donors consc nt to disclosure of this Arrangement and related information on this Trust Fund.