OFFICIAL 7Fo?ZS-31 DOCUMENTS Administration Agreement between the European Commission and the International Bankfor Reconstruction and Development and the International Development Association concerning the Serbia Rightsizing and Restructuring Project Single-Donor Trust Fund (TF No. 072531) Donor ref no. CRIS 2015/371-218 This Administration Agreement is concluded under Indirect Management in the context of the Framework Agreement between the World Bank Group and the European Commission, co-signed on July 30, 2014 and August 15, 2014 (the "Framework Agreement" or "Framework Agreement"), which sets the general conditions for this Administration Agreement. The Framework Agreement shall be applicable and form an integral part of this Administration Agreement for the Trust Fund. 1. The International Bank for Reconstruction and Development and the International Development Association (collectively, the "Bank") acknowledge that the European Commission (the "Donor", and together with the Bank, the "Parties" and each a "Party") agrees to provide the sum of EUR two million five hundred thousand (EUR 2,500,000) (the "Contribution") for the Serbia Rightsizing and Restructuring Project Single Donor Trust Fund, No. TF072531 (the "Trust Fund") in accordance with the terms of this Administration Agreement. The estimated total budget of the Trust Fund is EUR two million five hundred thousand (EUR 2,500,000). The indicative budget set out in Annex 5 shall be used for monitoring purpose only and shall not be binding. 2. The Contribution shall be used to finance the activities set forth in the "Serbia Rightsizing and Restructuring Project Trust Fund Description" attached hereto as Annex 1, and shall be administered by the Bank on behalf of the Donor in accordance with the terms of this Administration Agreement, including the "Standard Provisions" attached hereto as Annex 2 and "Governance" attached hereto as Annex 3. Expected results of the Trust Fund and corresponding indicators (including baselines, result goals and sources of data) are set out in Annex 4. The Implementation period shall start on July 13, 2015. 3. The Donor shall deposit the Contribution in accordance with the following schedule and in the currency specified in Section I above ("Contribution Currency") into such bank account designated by the Bank (each amount deposited hereinafter referred to as an "Instalment") upon submission of a payment request by the Bank: (A) Promptly following countersignature: EUR 1,750,000.00; (B) EUR 625,000.00 subject to the disbursement of 70% of the preceding Instalment; and (C) EUR 125,000.00 subject to the disbursement of 70% of the preceding Instalment. The period for payment of further Instalments shall be 60 days. The period for payment of the balance shall be 60 days. 4. When making any deposit, the Donor shall instruct its bank to include in its deposit details information (remittance advice) field of its SWIFT deposit message, information indicating: the amount deposited, that the deposit is made by the Donor for TF072531 (the Serbia Rightsizing and Restructuring Project Single-Donor Trust Fund), the Commission internal reference number and the date of the Administration Agreement, the name of the project for which the funds are intended, the name of the Commission department responsible for the Trust Fund and the date of the deposit (the "Deposit Page 1 of 19 Instructions"). In addition, the Donor shall provide a copy of the Deposit Instructions to the Bank's Accounting Trust Funds Division by e-mail sent to tfremitadvice@worldbank.org or by fax sent to +1 (202) 614-1315. 5. Except with respect to the Deposit Instructions, any notice, request or other communication to be given or made under this Administration Agreement shall be in writing and delivered by mail, fax or e- mail to the respective Party's address specified below or at such other address as such Party notifies in writing to the other Party from time to time: For the Bank (the "Bank Contact"): Mr. Raymond Muhula Senior Public Sector Specialist Governance Global Practice The World Bank 31 Praterstrasse Vienna 1020 Tel: +431-217-70787 E-mail: rmuhula@worldbank.org For the Donor (the "Donor Contact"): Ms. Danka Bogetic Task Manager EU Delegation to the Republic of Serbia Vladimira Popovica 40, GTC Avenue block 19a, 11070 New Belgrade Tel: +381 113083-200 Fax: +381 11 3083-201 E-mail: Danka.Bogetic@eeas.europa.eu 6. In the event any amounts are to be returned to the Donor under this Administration Agreement, the Bank shall transfer such amounts to the Donor unless otherwise agreed with the Bank. 7. All annexes hereto and the Framework Agreement between the World Bank Group and the European Commission constitute an integral part of this Administration Agreement, whose terms taken together shall constitute the entire agreement and understanding between the Donor and the Bank. In the event of any inconsistency, the Framework Agreement prevails over the Administration Agreement and the Administration Agreement prevails over its Annexes. Unless otherwise specified in an annex hereto, this Administration Agreement may be amended only by written amendment between the Bank and the Donor. 8. Individual procurement and grant contracts under this Administration Agreement shall be signed by the World Bank Group entity no later than thirty six (36) months from the date of this Administration Agreement. 9. The measures taken to identify the EU as a source of financing shall be in accordance with Attachment 4 of the Framework Agreement. Page 2 of 19 10. Each of the Parties represents, by confirming its agreement below, that it is authorized to enter into this Administration Agreement and act in accordance with these terms and conditions. The Parties are requested to sign and date this Administration Agreement, and upon possession by the Bank of this fully signed Administration Agreement, this Administration Agreement shall become effective as of the date of the last signature. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INT NATIONAL D VELOPMENT ASSOCIATION Name.: _______ Date: 3 . 1 1 ( EUROPEA COMM ION On behalf f heU EAN UNION By: - Name: Michael Davenport Title. Head of Delegation Date: 29.12.2015 The Visibility Note and the Work Plan do not form part of the Administration Agreement, but will be exchanged on the date of signature of the Administration Agreement. Page 3 of 19 ANNEX 1 Serbia Rightsizing and Restructuring Project Sin2le-Donor Trust Fund Description This Annex shall be applicable to and form an integral part of the Administration Agreement for the Trust Fund between the Bank and the Donor. 1. Objectives The objective of the Trust Fund is to assist the Republic of Serbia in improving the organizational and functional structures of its public administration system in accordance with the Strategy for Public Administration Reform through: (a) implemented rightsizing exercise in selected public administration sub systems; and (b) implemented change management and communication strategy. The Action will focus on restructuring and right-sizing of the public sector. The Action is divided into two overlapping interlinked activities: (a) functional reviews (Bank Executed); and (b) support to implementation, accompanied with change management and communication (Recipient Executed). The project strategy is based on the concept that the reform measures should be implemented iteratively. This implies that the phases (analysis, recommendations, design, and implementation) should not be strictly divided and that the Government is expecting both short-term options (that can be implemented immediately) and medium-term options (that can only be implemented in the future). The whole process will be highly participatory as constant interaction is expected between the Bank team and representatives of the Government to ensure genuine ownership. 2. Activities The activities (which may be described as "sets" of activities) to be financed by the Trust Fund are: 2.1 Bank-executed activities, for which the Bank has implementation responsibility: In addition to achieving additional staff reductions where possible, focus in the methodology will be placed on increasing efficiency and performance in all targeted sub-systems. The methodology will contain measures related to improvement of organizational framework and distribution of tasks and responsibilities in the sub-systems, organization of working processes among and within Public Administration (PA) bodies which comprise the sub-systems and improvement of their organizational performance, reduction of costs through, inter alia, identification of possibilities for savings, optimization of workforce, human resource management and human resource development aspects. All recommendations related to performance management within the sectors will be linked to the programme budget methodology with an aim to support the Republic of Serbia to improve the quality of its implementation. The core focus of the reviews will be the following key issues: (a) Institutional arrangements: examine the legal framework of governing the operations of the ministries under review to determine relevance and "fit for purpose". (b) Organizational/Structural design: examine the structure, internal systems and processes, including resource allocation, of the ministries under review to determine whether their structure adequately supports their functions. Page 4 of 19 (c) Functional responsibilities: examine the various functions in respective ministries to determine appropriateness and relevance. Important issues here would include a determination of the specific tasks (the what) each ministry undertakes and their alignment with the mandate of the organization, as a basis for determining the quality standards (the how). (d) The functional reviews will pay special attention to the requirements of the EU accession process, in order to ensure that as a result of the reviews these parts of the PA are better equipped to respond to the challenges of transposition of EU legislation, implementation of specifically demanding aspects of the acquis, programme and implement the European Union Instrument for Pre-Accession Assistance (IPA II) 2014-2020: Support to Public Administration. The Bank-executed activities are structured in four Components aligned with the institutions responsible for the design, implementation and monitoring of the Government's rightsizing/optimization strategy. These Components are: Component 1: Functional Audit (Comprehensive horizontal functional review of the State Administration): (a) This review will cover about fourteen (14) ministries and 80 sub-ministerial entities across the Republic of Serbia's central government (State Administration Plus). (b) Phase 1, expected to be completed 170 days from the date of this Administration Agreement, will review the allocation of functions to, and between, ministries and their dependent agencies and institutions, in order to identify room for optimization and propose any other changes that would create a more logical allocation of functions. It will also serve to provide the new functional framework for reorganization of the state administration, including consolidation of agencies, improvement of accountability, and introduction of modem organizational and management systems. Findings will be provided to the Republic of Serbia in connection with its preparation of the 2016 Republican budget. (c) Phase 2 will review the efficiency and effectiveness of selected cross-cutting functions that operate across all Government portfolios. It is expected that potential areas for analysis in phase 2 will emerge from the mapping of functions during phase 1. Further methodological elaboration of this phase will be agreed between the World Bank and the Ministry of Public Administration and Local Self-Government ("MPALSG") by January 31, 2016. The overall phase 2 is expected to be implemented by December 31, 2016. (d) Activities under this Component I include, inter alia: (i) Developing a methodology for conducting functional reviews across various entities of the Republic of Serbia's public administration system as determined by the MPALSG. (ii) Providing methodological training on functional review to task teams drawn from various ministries to enable them to support ongoing functional review and to undertake similar reviews in the future. (iii) In consultation with the MPALSG and participating ministries, prepare final reports on conducted functional reviews with recommendations. Page 5 of 19 (iv) Preparing proposals for implementation plans of recommendations deriving from final reports on functional reviews in selected ministries. (v) Recommending options for using the developed methodology for application in other entities not covered under this Action. (vi) Visibility activities. Component 2: Vertical Functional Review of the Ministry of Finance ("MoF") and its Portfolio: (a) This will cover an in-depth review of the structure, functions, and operations of the MoF. (b) The review will take a holistic view on the MoF's organization and conduct an assessment of how functions are performed and how they could be strengthened. The following functions will be assessed: (i) budget planning and preparation, including macro-fiscal planning and medium term expenditure planning; (ii) budget execution, including cash and treasury management; and (iii) accounting and reporting. The following cross cutting support functions are included because of their significant role in enabling a high performance public finance function: human resource management and information technology. The overall Component 2, including preparatory activities, is expected to be implemented between July 2015 and December 31, 2016. (c) Activities under this Component 2 include, inter alia: (i) In consultation with the MPALSG, developing a methodology for conducting a functional review of the MoF. (ii) Providing methodological training on functional review to MoF task teams drawn from MoF and institutions within the MoF portfolio, to enable them to support ongoing functional review and to undertake similar reviews in the future. (iii) In consultation with the MPALSG and the MoF, preparing final reports on conducted functional reviews, with recommendations. (iv) Preparing proposals for implementation plans of recommendations deriving from final reports on functional reviews in the MoF. (v) Visibility activities. Component 3: Functional Review of Service Delivery in Selected Sectors (Education, Health, Social Services): (a) This review will cover the review of service delivery issues in the three sectors. (b) Phase 1, expected to be completed by 170 days from the date of this Administration Agreement, will analyze distribution of staffing, resources, and service organization and delivery networks in education and health sector. The analysis will serve to inform budget preparation process for 2016 and will focus on optimization of financing, human resource management and service networks. Page 6 of 19 (c) Phase 2 will focus on statistical analysis on efficiency of service provision in education, health and social protection sectors. The analysis will provide recommendations for improved human resource planning and better budget planning and utilization of resources, with an aim to support improved quality of service delivery. The overall phase 2, including preparatory activities, is expected to be implemented between July 2015 and December 31, 2016. (d) Functional Review of service delivery in the three sectors will include several common elements, including, inter alia, collection and analysis of detailed data on sector staffing, financing, and performance, with efficiency analysis undertaken where possible to identify variations in efficiency among institutions (for example, health centres, schools, etc.); field visits to at least three regions of the Recipient (south, central, Belgrade) to interview staff, managers, local government and stakeholders to better understand the situation and explore a few key cross sectoral issues (e.g. elderly care, social benefits management; child care and early education). Output of this sub-task will provide for one set of integrated analysis with general recommendations for changes in the overall system for provision of services, including recommendations for improving quality of services. (e) Activities under this Component 3 include, inter alia: (i) In consultation with the Ministry of Health (MoH), Ministry of Education, Science and Technological Development (MoESTD), Ministry of Labor, Employment, Veteran and Social Policy (MoLEVSP), and MPALSG, developing a methodology for conducting functional reviews across the education, health and social protection sectors of the Republic of Serbia's public administration system. (ii) Providing methodological training on functional review to task teams drawn from various ministries to enable them to support ongoing functional reviews and to undertake similar reviews in the future. (iii) In consultation with the MPALSG and participating ministries, prepare final reports on conducted functional reviews with recommendations. (iv) Preparing proposals for implementation plans of recommendations deriving from final reports on functional reviews in selected ministries. (v) Visibility activities. Component 4: Vertical Functional Review of the Ministry of Agriculture and Environmental Protection (MAEP): (a) In-depth functional review of the MAEP to focus on efficiency of public service delivery by the MAEP's key departments. The functional review methodology will include a proposed gradual implementation plan of the recommendations. The functional review will also focus on elements related to the MAEP's preparation for EU accession negotiations. The overall Component 4, including preparatory activities, is expected to be implemented between July 2015 and December 31, 2016. (b) Activities under this Component 4 include, inter alia: Page 7 of 19 (i) In consultation with the MPALSG, developing a methodology for conducting a functional review of the MAEP. (ii) Providing methodological training on functional review to MAEP task teams drawn from MAEP and institutions within the MAEP portfolio, to enable them to support ongoing functional review and to undertake similar reviews in the future. (iii) In consultation with the MPALSG and the MAEP, prepare final reports on conducted functional reviews, with recommendations. (iv) Preparing proposals for implementation plans of recommendations deriving from final reports on functional reviews in the MAEP. (v) Visibility activities. 2.2 Recipient-executed activities, for which one or more Recipients (as defined in Annex 2) have implementation responsibility: The Recipient-executed activities, for which the MPALSG will be responsible, will support the Recipient's reforms and will also oversee EU visibility activities during the life of the project. This part of the Trust Fund will support the project throughout its duration by developing a comprehensive change management and communications strategy, a communication campaign for internal and external audiences, and organizing workshops and seminars with senior managers of the Recipient's public administration, and public employees. This component will support, inter alia: establishing a Change Management Support (CMS) team for the overall project, and task force teams of Government representatives for each. Activities under the Recipient-executed activities are expected to commence 45 days from the date of the Grant Agreement and expected to last about 24 months. The CMS team will be responsible for promoting a participatory and collaborative process, as well as genuine ownership of project outputs by the Recipient's authorities. Moreover, the CMS team will facilitate the alignment of the project with the Public Administration Reform Strategy (PAR Strategy) and Action plan, as well as with the Government Program for Optimization (rightsizing). The CMS team will carry out, on behalf of the Recipient, the following activities: (i) Review of international best practices on communication and change management in public sector reform and rightsizing/downsizing. (ii) Development of a comprehensive change management and communications strategy in line with best practice. (iii) Implementing communication campaign in line with the strategy. (iv) Conducting workshops and seminars with senior management of the Recipient's public administration. (v) Conducting awareness raising workshops and other events to communicate planned support mechanisms for staff affected by right-sizing exercise. (vi) Provide technical support to public administration bodies in the implementation of the roadmaps (technical support in preparation/revision of relevant legislative pieces, preparation of additional analytical materials necessary for implementation of particular recommendations/measures, Page 8 of 19 provision of support for implementation of recommendations related to Human Resource Management (HRM) and Human Resource Development (HRD) aspects in particular PA subsystems, assessment of the success of targeted subsystems of the PA system in implementing the recommendations, etc.). (vii) Undertaking EU Visibility actions as needed, in collaboration with government counterparts. 3. Eligible Expenditures 3.1 For Bank-executed activities, the Trust Fund funds may be used to finance: (a) Staff Costs (b) Temporary Support Staff Costs (c) Consultant fees (d) Media, workshop, conference and meeting expenses (e) Contractual services (including translation) (f) Travel Expenses 3.2 For Recipient-executed activities, the Trust Fund funds may be used to finance: (a) Consulting (b) Training (c) Workshops and Communication 4. Taxes 4.1 The foregoing activities and categories of expenditures may include the financing of taxes in accordance with the Bank's applicable policies and procedures. 5. Retroactive Financing 5.1 The Trust Fund funds may be used to retroactively finance payments for eligible expenditures made as of July 13, 2015, in accordance with the Bank's applicable policies and procedures. Page 9 of 19 ANNEX 2 Standard Provisions This Annex shall be applicable to and form an integral part of the Administration Agreement for the Trust Fund between the Bank and the Donor, it being understood that any plural references in the annexes to Donors, Administration Agreements, Contributions and pro rata shares shall be read as singular references to the Donor, its Administration Agreement, its Contributions thereunder and the remaining uncommitted balance of the Trust Fund, respectively. 1. Administration of the Contributions 1.1 The Bank shall be responsible only for performing those functions specifically set forth in this Administration Agreement and shall not be subject to any other duties or responsibilities to the Donors, including, without limitation, any duties or obligations that might otherwise apply to a fiduciary or trustee under general principles of trust or fiduciary law. Nothing in this Administration Agreement shall be considered a waiver of any privileges or immunities of the Bank under its Articles of Agreement or any applicable law, all of which are expressly reserved. 1.2 Each Donor's Contribution (collectively, the "Contributions") shall be administered in accordance with the Bank's applicable policies and procedures, as the same may be amended from time to time, including its procurement, financial management, disbursement and safeguard policies, 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 obligations to give effect to the relevant decisions of the Security Council taken under Chapter VII of the of Charter of the United Nations. The Donors acknowledge that this provision does not create any obligations of the Bank under the anti-terrorist financing and asset control laws, regulations, rules and executive orders of an individual member country that may apply to a Donor. 2. Management of the Contributions 2.1 The funds deposited in the Trust Fund shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The funds deposited in the Trust Fund may be commingled with other trust fund assets maintained by the Bank. The Bank, in its capacity as trustee, has legal title to the funds deposited in the Trust Fund. 2.2 The currency in which the funds in the Trust Fund shall be held is Euro (the "Holding Currency"). 2.3 Donors agree to deposit their Contributions in the Contribution Currency stated in their respective Administration Agreements. In the case of deposits received in a Contribution Currency other than the Holding Currency, promptly upon the receipt of such amounts and the accompanying Deposit Instructions, the Bank shall convert such amounts into the Holding Currency at the exchange rate obtained by the Bank on the date of the conversion. Where deposits prove to be insufficient to complete activities as a result of exchange rate fluctuations, neither the Bank nor the Donor shall bear any responsibility for providing any additional financing. 2.4 The funds deposited in the Trust Fund may be freely exchanged by the Bank into other currencies as may facilitate their disbursement at the exchange rate obtained by the Bank on the date of the conversion. Page 10 of 19 2.5 The Bank shall invest and reinvest the funds deposited in the Trust Fund pending their disbursement in accordance with the Bank's applicable policies and procedures for the investment of trust funds administered by the Bank. The Bank shall transfer all income from such investment to the Donor's applicable donor balance account with the Bank. 3. Trust Fund Fees and Costs 3.1 The Bank shall deduct and retain for its own account, as a deduction from each Installment, an amount equal to five and half percent (5.5%) per Installment as an administrative fee for the Trust Fund. 3.2 Each Donor acknowledges and agrees that the percentage deductions for fees in this Trust Fund Fees and Costs section are estimated on the basis of anticipated Contributions. If actual Contributions significantly differ from what was originally anticipated at the time of signature of the first Administration Agreement, or if other circumstances affecting Trust Fund fees or costs change, the Bank reserves the right to request a change to the terms of this Trust Fund Fees and Costs section, which would be effectuated by amendments made to the Administration Agreements of all Donors and which would thereafter be applicable to all new Contributions that are provided either as amendments to supplement existing Administration Agreements or from new Donors under new Administration Agreements. 4. Accounting and Financial Reporting 4.1 The Bank shall maintain separate records and ledger accounts in respect of the funds deposited in the Trust Fund and disbursements made therefrom. 4.2 The Bank shall furnish to the Donors current financial information relating to receipts, disbursements and fund balance in the Holding Currency with respect to the Contributions via the World Bank's Trust Funds Donor Center secure website. Within six (6) months after all commitments and liabilities 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 with respect to the Contributions shall be made available to the Donors via the World Bank's Trust Funds Donor Center secure website. 4.3 The Bank shall provide to the Donors via the World Bank's Trust Fund Donor Center secure website, within six (6) months following the end of each Bank fiscal year, an annual single audit report, comprising (i) a management assertion together with an attestation from the Bank's external auditors concerning the adequacy of internal control over cash-based financial reporting for all cash-based trust funds as a whole; and (ii) 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 shall be borne by the Bank. 4.4 If a Donor wishes to request, on an exceptional basis, a financial statement audit by the Bank's external auditors of the Trust Fund, the Donor and the Bank shall first consult as to whether such an external audit is necessary. The Bank and the Donor shall agree on the appropriate scope and terms of reference of such audit. Following agreement on the scope and terms of reference, the Bank shall arrange for such external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be borne by the requesting Donor. 4.5 The Bank shall make available to the Donors copies of all financial statements and auditors' reports received by the Bank from Recipients pursuant to any Grant Agreements (as defined below) in accordance with the Bank's Access to Information Policy. Page 11 of 19 5. Progress Reporting 5.1 The Bank shall provide the Donors with semi-annual reports on the progress of activities financed by the Contributions. Within six (6) months of the End Disbursement Date (as defined below), the Bank shall furnish to the Donors a final report on the activities financed by the Trust Fund. 5.2 Any Donor may review or evaluate activities financed by the Trust Fund at any time up to six (6) months following the End Disbursement Date. The Donor and the Bank shall agree on the scope and conduct of such review or evaluation, and the Bank shall provide all relevant information within the limits of the Bank's applicable policies and procedures. All associated costs, including any costs incurred by the Bank, shall be borne by the Donor. It is understood that any such review or evaluation will not constitute a financial, compliance or other audit of the Trust Fund. 6. Disbursement; Cancellation; Refund 6.1 It is expected that the funds deposited in the Trust Fund will be fully disbursed by the Bank by December 31, 2018 (the "End Disbursement Date"). The Bank shall only disburse funds deposited in the Trust Fund for the purposes of this Administration Agreement (other than returns to Donors) after such date to the extent such date is changed in accordance with amendments made to the Administration Agreements of all the Donors. Following the End Disbursement Date, the Bank shall return any remaining balance of the Trust Fund to each Donor in the Holding Currency in the manner specified in its respective Administration Agreement on a pro rata basis with regard to the total funds deposited in the Trust Fund by such Donor relative to the total funds deposited in the Trust Fund by all Donors, all calculated as Holding Currency amounts. 6.2 Any Donor may cancel all or part of such Donor's pro rata share, and the Bank may cancel all or any Donors' pro rata shares, upon three (3) months' prior written notice, of any Contributions (paid and not yet paid) that are not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third parties for the purposes of this Administration Agreement, including any Grant Agreements, prior to the receipt of such notice. In the event of a cancellation, the Bank shall return to the Donor its pro rata share in the Holding Currency specified in the Administration Agreement; unless otherwise agreed between the Bank and each such Donor. 7. Disclosure; Dispute Resolution 7.1 The Bank shall disclose the Administration Agreements and related information on this Trust Fund in accordance with the Bank's Policy on Access to Information. By entering into Administration Agreements, the Donors consent to such disclosure of their respective Administration Agreements and such related information. 7.2 The Donors and the Bank shall use their best efforts to amicably settle any dispute, controversy, or claim arising out of or relating to the Administration Agreements. 8. Grants to Recipients 8.1 The Bank shall, as administrator of the Trust Fund on behalf of the Donors, enter into one or more grant agreements (the "Grant Agreements") with recipients (the "Recipients") consistent with the purposes of this Administration Agreement and on the terms and conditions set forth in the Grant Agreements. Grant Agreements may be entered into up to the maximum amount of the Contributions that all Donors have agreed to make available under the Administration Agreements between the Bank and the Donors. Page 12 of 19 8.2 The Bank shall be responsible for the supervision of the activities financed under any Grant Agreements. Subject to the consent of any relevant Recipients, representatives of the Donors may be invited by the Bank to participate in Bank supervision missions related to the Trust Fund. 8.3 The Bank shall promptly inform the Donors of any significant modification to the terms of any Grant Agreements and of any contractual remedies that are exercised by the Bank under any Grant Agreements. To the extent practicable, the Bank shall afford the Donors the opportunity to exchange views before effecting any such modification or exercising any such remedy. Page 13 of 19 ANNEX 3 Governance This Annex shall be applicable to and form an integral part of the Administration Agreement for the Trust Fund between the Bank and the respective Donors. A. Project Steering Committee 1. A Project Steering Committee, chaired by the Minister of Public Administration and Local Self Government, will be established to oversee project implementation. The Committee will report to the Public Administration Reform Council. The Committee will meet monthly to review project progress and report on any outstanding issues that require resolution. The Committee will include representatives of the Ministries of Finance; Education; Health; Agriculture and Environment; and Labor, Employment, Veteran and Social Affairs and Agriculture. The Project Steering Committee will: (a) Provide the strategic guidance for project implementation. (b) Coordinate and facilitate the overall linkages with the broader public sector reform program. (c) Review and endorse quarterly reports on the implementation of project activities. (d) Address implementation challenges B. Change Management Team A Change Management Team will be established by the government to coordinate communication and policy briefings on the projects. The team will also be responsible for coordinating project visibility activities in collaboration with the Project Coordination and the Joint Working Group (JWG), and in line with EU requirements. Such visibility activities will include project launch events; media briefings; and inclusion of EU logo on all presentations. Additionally, the Change Management Team will be expected to incrementally channel the findings of the Functional Review at every stage into actionable policy recommendations for senior management action. The team will be staffed by a mixture of existing civil servants and professional consultants with expertise in various disciplines. The team will be based in the Ministry of Public Administration and Local Self-Government. It will report to the State Secretary in the MPALSG. C. Joint Working Group A JWG comprising representatives of the Government (MPALSG), World Bank and the European Union will be established. The JWG will meet monthly to review the progress of implementation of the project, in general. Core reform activities financed under the project shall be reviewed during these meetings and proposals for other reform areas in line with the Public Administration Reform Strategy (PAR Strategy) discussed. There will be joint implementation support missions to review implementation progress against key milestones and to provide technical support to implementing partners. In addition to this direct participation, the World Bank team will share copies of Aide Memoires with the European Union Delegation (EUD), and convene briefing meetings at the end of every mission, or at the request of the EUD. Page 14 of 19 D. Supervision and Monitoring The project will be managed under the leadership of World Bank Task Team Leader, reporting to the Practice Manager. All World Bank procurement and Financial Management guidelines will apply. Implementation Status Reports will be prepared and disclosed per World Bank's Access to Information requirements. E. Project Reporting and Indicators 6.1. The Bank will monitor the progress of the Project and prepare Project Reports in accordance with the provisions of General Conditions, Annex 4 to this Agreement and on the basis of an indicative work plan of even date herewith, agreed upon between the Bank and the Donor setting forth deliverables and milestones under the Trust Fund (the "Work Plan"). Notwithstanding the foregoing, the Parties acknowledge the Work Plan is for information purposes only, and although it is intended as reference for the carrying out of the activities under the Trust Fund, the Work Plan does not create or constitute additional obligations for the Parties or the Recipient, other than those set forth under this Administration Agreement and in the Grant Agreement. The Parties agree that the Work Plan may be modified from time to time by notice of the Bank to the Donor reasonably justifying the reasons for the modifications. F. Visibility The visibility activities aimed at improving public understanding of the role of the Parties in respect of this trust fund are set out in a Visibility Note, of even date herewith which details the communication activities aimed at demonstrating the role of the Donor in supporting the activities under the Trust Fund. The Parties acknowledge that efforts will be made to ensure sufficient recognition of the Donor's financial support for the activities covered by the Trust Fund (i.e. both the Bank and Recipient Executed activities), and pursuant to the context of Attachment 4 of the Framework Agreement. Notwithstanding the foregoing, the Parties acknowledge the Visibility Note is for information purposes only, and although it is intended as reference for the carrying out of the activities under the Trust Fund, the Visibility Note does not create or constitute additional obligations for the Parties or the Recipient, other than those set forth under this Administration Agreement and in the Grant Agreement. The Parties agree that the Visibility Note may be modified from time to time by notice of the Bank to the Donor reasonably justifying the reasons for the modifications. Page 15 of 19 ANNEX 4 Indicative Result Indicators Framework Expected Results Indicators Baselines Result goals Sources of data Assumptions (logic of intervention) Result Implemented rightsizing exercise in selected sub systems of the Public Administration Impact Gradual restructuring and optimization of the Public Administration system in place Outcome(s) Functional 0 4 Functional Funding available review reviews'reports to mobilize teams methodologies Agreement for 4 functional reached with the reviews in Ministry of Public selected PA Administration bodies adopted and Local Self and Government on implemented methodology for functional review Recommendatio No Yes Implementation Systematization ns derived from plan for Acts available conducted FRs recommendations Ministerial teams translated into available to review concrete findings implementation roadmaps, endorsed by the PAR Council Additional PA No Yes Final report Respective sub-systems Ministers and their identified for officers cooperate further FRs with the review outside of scope teams for this project Output(s) i. Methodology notes for functional review ii. Functional review reports iii. Working sessions for ministerial task teams iv. At least 3 Working Sessions conducted with ministerial teams to introduce methodology v. Workshops for State Secretaries Page 16 of 19 Result Change management and communication strategy implemented Impact Built capacities within the Government to improve organization and functions of the Public Administration system. Outcome(s) Change No Yes Strategy Change Management Management Team and set up Communication Strategy developed and implemented Key national No Yes Training records Stakeholders are stakeholders and training willing and able to trained for evaluation survey participate participation in Functional Reviews Roadmaps No Yes Roadmap implemented in implementation selected sub- report systems in accordance with the schedule Output i. Change Management and Communication Strategy ii. Methodological Trainings i. At least 3 engagement workshops held with Key stakeholders involved in dialogue on rightsizing and optimization iv. Roadmaps Page 17 of 19 ANNEX 5 INDICATIVE BUDGET FOR THE ACTIVITIES SET FORTH IN SECTION 2.1 OF ANNEX 1 TO THIS ADMINISTRATION AGREEMENT Expenditure Category Amount in Euro PART 1: Bank Executed Component 1: Functional Audit Staff and Individual Consultant Services 215,000 Cost of Travel 85,000 Cost of Training and Workshops 45,000 Translation 15,000 EU Visibility 15,000 Sub-total Component 1 375,000 Component 2: Vertical Functional Review of the Ministry of Finance Staff and Individual Consultant Services 220,000 Cost of Travel 85,000 Cost of Training and Workshops 40,000 Translation 15,000 EU Visibility 15,000 Sub-total Component 1 375,000 Component 3: Functional Review of Service Delivery in Selected Sectors (Education, Health, Social Services) Staff and Individual Consultant Services 385,000 Cost of Travel 147,500 Cost of Training and Workshops 85,000 Translation 45,000 Page 18 of 19 EU Visibility 30,000 Sub-total Component 3 692,500 Component 4: Vertical Functional Review of the Ministry of Agriculture and Environmental Protection Staff and Individual Consultant Services 220,000 Cost of Travel 85,000 Cost of Training and Workshops 45,000 Translation 15,000 EU Visibility 15,000 Sub-total Component 4 380,000 Sub-total 1,822,500 PART 2: Recipient Executed Consultants 441,000 Workshops and Training 45,000 EU Visibility 54,000 Sub-total 540,000 Administration fee (5.5 % of each installment) 137,500 Total 2,500,000 The amount estimated for personnel is calculated taking into account different levels of expertise estimated to be required for carrying out the activities described in Annex 1. The World Bank Group entity may transfer amounts between categories of the indicative budget. This does not require a formal amendment of the Administration Agreement if the Action is carried out as described in Annex 1, provided that the Donor is informed beforehand. Page 19 of 19 EU VISIBILITY NOTE [Serbia Rightsizing and Restructuring Project Single-Donor Trust Fund] (TFNo. 072531) Donor ref. no. CRIS 2015/371-218 The purpose of this note is to describe the visibility activities aimed at improving public understanding of the role of the Parties in respect of the [Serbia Rightsizing and Restructuring Project Single-Donor Trust Fund] (the "Trust Fund") provided for under the Administration Agreement between the International Bank for Reconstruction and Development and the International Development Association (collectively, the "Bank") and the European Commission (the "Donor"), of even date herewith (the "Administration Agreement"). Capitalized terms not otherwise defined in this note shall have the meaning ascribed to them in the Administration Agreement. Specifically, this note sets out the details of communication activities aimed at demonstrating the role of the Donor in supporting the activities under the Trust Fund. Efforts will be made to ensure sufficient acknowledgement of the EU financial support for the activities covered by this trust fund (i.e. both the Bank and Recipient Executed activities) as described below, and pursuant to the context of Attachment 4 of the Framework Agreement. a. Visual Identity: In all the common actions related to this activity, the EU and the Bank will use a common visual identity to put emphasis on their partnership. b. Communication: The Parties will collaborate with each other to ensure that all press releases, publications, training programs, seminars or symposia or other public information materials issued clearly indicate that the activities have received funding from the European Union. c. Reporting: Periodic and final reporting as per Article 5 of the Administration Agreement for the Trust Fund will include information on any measure taken to identify the EU as the source of financing, d. Media and Press Conferences: Whenever possible and as appropriate, joint press releases and joint media activities will be undertaken to promote the partnership and to highlight common achievements. The Bank and the EU may, and, if appropriate, are expected to, invite each other to participate at press conferences, donor conferences and public debates related to activities financed by this Trust Fund. e. Movable Property: The Bank will seek appropriate acknowledgment on any vehicles, and as appropriate, any equipment and other supplies (including display of the EU logo/flag) funded by the Donor. f. High Level Visits: Where high level visits are planned concerning joint funded activities, the Parties will inform each other and consider co-ordinating these visits and agreeing on joint messages for all missions related to or involving visits to the EU funded project implemented under this contract. TF No. 072531) Donor ref. no. CRIS 2015/371-218 Right-Sizing and Restructuring Project: Indicative Work Plan 2015 2016 2017 to 13th July 2018 ivity 1 Bank - Executed Activities Jul Sep Oct Nov Dec Jan Feb Mar Apri May Junc July Aug Sep Oct Nov Dec Jan Feb Mr___ Ar 1: Functional Audit of State Administration (Plus) se 1 Mapping of Horizontal Functions in State Administration Develop Methodology and Terms of Reference Workshops and Training for Task Forces Conduct Horizontal Functional Audit of State Administration Presentation of Preliminary Findings of Phase 1 Drafting of Final Report of the Phase 1 Presentation of the Final Report of the Phase 1 se 2 Review of Selected Functions in State Administration MPALSG Identify Core Functions for Review Design Implementation Plan for Phase 2 Conduct review of selected Horizontal Functions in State Administration Draft Report: Preliminary Findings of Phase 2 (Workshop) Recommendations for_revie_w_o7 entities not covered under the projec-t Final Report: Selected Functions of State Administration 2: Functional Review of Ministry of Finance Develop Methodology and Terms of Reference Workshops and Training for Ministry Task Force Conduct Functional Review of Ministry of Finance Draft Report: Presentation of Preliminary Findings ( Workshop) Final Report: Functional Review of Ministry of Finance 3: Functional Review of Service Delivery (Education, Health, Social) Develop Methodology and Terms of Reference Conduct Functional Review of Service Delivery in Education/Draft Report Conduct Functional Review of Service Delivery in Health/ Draft Report Conduct Functional Review of Service Delivery in Social Service Draft Report of Consolidated Review of Social Services/Workshop Final Report of Consolidated Review of Social Services 4: Functional Review of Ministry of Agriculture Develop Methodology and Terms of Reference Conduct Functional Review of Ministry of Agriculture Draft Report of Functional Review of Ministry of Agriculture (Workshop) Final Report: Functional Review of Ministry of Agriculture Supervision of project activities and provision of in-time advisory services to the government of Serbia tivity 2 Recipient Executed Activities Preparation of Terms of Reference Recruitment of Staff Establishment of Change Management Unit Commencent of Change Management Activities