The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND 1)EVEL DPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS !r .cU , 2013 Hripsime Kirakosyan President Mission Armenia 42, Garegin Nzhdeh St. Yerevan 0026, Republic of Armenia Re: Repu Alic of Armenia: JSDF Grant for Strengthening the Livelihoods a rd Voice of the Poor and Vulnerable Persons in Armenia Project Grani No. TF013894 Dear Sir: In response tc the request for f nancial assistance made on behalf of Mission Armenia (the Recipient), I am pleased to infcrm ,ou that the International Bank for Reconstruction and Development/Internal ional Dwel opm -nt Association ("World Bank"), as administrator of grant finds provided by Japn ("Donor') under the Japan Social Development Fund, proposes to extend to the Recipient, for the bene fit of th. Republic of Armenia ("Member Country"), a grant in an amount not to exceec two m Ilion si) hundred sixty nine thousand four hundred United States Dollars (U.S.$ 2,669,400) ("Giant') on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), wl ich incl,des the attached Annex, to assist in the financing of the p:-oject described in the Annex ("Projec:"). This Grant is funded out of t -e abovementioned trust fund for which the World Bank receives periodic contributions from t e Donor. In accordance with Section 3.02 of the Standard Conditions (as definec in the Annex to this Agreement), the World Bank's payment obligations in connection with this Agreement are li nited to the amount of funds made available to it by the Donor under the abovementioned tru;t fund, and the Recipient's right to withdraw the Grant proceeds is subject to the avaiLbility of such funds. The Recipient represe its, by confirming its agreement below, that it is authorized to enter into this Agreement ard to cary )ut t ie Project in accordance with the terms and conditions set forth or referred to in t[is Agreiemtnt. Please confirm the R:cipient s agreement with the foregoing by having an authorized oicial of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upcn receipt b,1 the World Bank of this countersigned copy, this Agreement shill become effective as of the date )f the countersignature; provided, however, that the offer oi- this Agreement shall be deemet withdrawn if the World Bank has not received the countersigned copy of this Agreemenl within ninety (90) days after the date of signature of this Agreement by the W:rld Bark, inle, s the World Bank shall have established a later date for suh purpose. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOP T/INTERNATIONAL DEVELOPMENT AC TION ByJean-Mch' plQ Country Manager Republic of Armenia AGREED: Mission A nia By Authori resenta ve Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012 (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2 JSDF Grant No. TF013894 ANNEX Article I Si and ird Conditions; Definitions 1.01. Standard Conditions TILe St ndard Conditions for Grants Made by the World Bank Out of Various Funds dated Febriar) 15, 2012 ("Standard Conditions") constitute an integral part of this Agreement. 1.02. Definitions. Unless he cont oxt requires otherwise, the capitalized terms used in this Agreement have the Meanings a, cribi d to them in the Standard Conditions or in this Agreement and the following tenns shall have the following meanings: (a) "Operational Maniial" me tns the manual for the operation of the Project referred to in Section 2.02 (d) of th,s Agreenent. Article II Project Execution 2.01. Project Objectives aad 9esc -iption. The objective of the Project is to pilot self-reliant livelihood and generation of euiplo) ment opportunities combined with the provision of vital services for the extremely poor and vulnerable groups including persons with disabilities. The Project consists of the followin g pa rts: Part 1: provision of vocationvil trainim and boostin! self-employment. (a) Selection of people w: th di sabilities and people from other vulnerable groups as Project b.neficiaries. (b)Providing vocation, il elucat ion and training including, inter alia: (i) the dissemination of information about the above men ione I training; and (ii) the provision of necessary equipment for the mentioned training. (c) Conducting on-the job traii ing based on contractual partnerships with public and private sector institutions. (d) Facilitating the cr.ation ol micro-businesses by people with disabilities through, inter aha micro-business grnt awards t) sel(cted people with disabilities. Part 2: provision of vital soci cire a nd services. (a) Providing ,echnica, as, istar ce to manage the Recipient's Multifunctional Service Centers (MSCs) including int?r alia: (i) the lissemination of information about the MSCs; and (ii) the selection of people with disabil itie:; and people from other vulnerable groups as Project beneficiaries. (b) Supporting the ISCs , ervices through the provision of kitchen utilities and supplies. 3 (c) Providing vital services to people with disabilities through the MSCs on selected locations of the Member Country including, inter alia, in-home care (d) Providing nutritionally balanced meals for people with disabilities through, inter alia: (i) the Recipient's MSCs on selected locations of the Member Country; and (iii) home delivery for bedridden patients. (e) Providing personal care services for people with disabilities including, inter alia: (i) assistance with personal hygiene; and (ii) assistance with residential cleaning. (f) Providing health services for selected people with disabilities including, inter alia: (i) diagnosis; (ii) medical procedures; (iii) preventive services; and (iv) services to bed-ridden beneficiaries. (g) Providing social and psychological services for selected people with disabilities including, inter alia: (i) social and psychological counseling; (ii) assistance for personal development; (iii) referrals to specialized organizations; and (iv) mediation and advocacy efforts. (h) Providing technical assistance to, inter alia: (i) recruit and manage volunteers, (ii) collect donations; and (iii) increase financing sustainability by raising contributions from donors. (i) Raising funds from local government, business, and private donors to sustain these activities following the Closing Date of this agreement. Part 3: creation of an inclusive environment for people with disabilities and enhancement of their self-advocacy. (a) Establishing accessible disability resource centers in selected MSCs through, inter alia, (a) improvements of physical conditions of the buildings; and (b) installation of computers and internet connection. (b) Improving accessibility of public sites frequently used by people with disabilities. (c) Developing self-advocacy groups for people with disabilities through, inter alia:(i) training; (ii) train-the-trainers workshops, (iii) developing training materials. Part 4: monitoring, evaluation and project management. (a) Providing technical assistance to the management of the Project, including, inter alia: (i) organization; coordination and implementation of Project activities, (ii) monitoring and evaluation of project activities; and (iii) procurement and financial management; (b) Conducting an independent audit of the Project. (c) Organizing workshops to disseminate information on the Project and facilitate the exchange of experiences. 2.02. Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project in accordance with: (a) the provisions of Article II of the Standard Conditions; (b) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 ("Anti-Corruption Guidelines"); (c) this Article II; and (d) the Operational Manual, satisfactory to the Bank, which shall include the rules, methods, guidelines, standard documents and procedures for the carrying out of the relevant parts of the Project, including the following: (i) the detailed description of Project implementation activities and the detailed institutional arrangements of the Project; (ii) the Project administrative, accounting, auditing, reporting, financial, procurement and disbursement procedures; and (iii) the monitoring indicators for the Project. 4 2.03. Donor Visibilig. The Recipier t shall take or cause to be taken all such measures as the World Bank may reasonably !equest to identify publicly the Donor's support for the Project. 2.04. Financial M7nagem nt. (a) The Recipient shall ensure that a financial management system is maintained in accordanc- with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipier t stall e isure that interim unaudited financial reports for the Project are prepared and furnished tc the Wc rid Bank not later than forty five days after the end of each calendar semester, covering t] ie s-me, ter, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements for the Project audited in accordance with the provisions of Sec :ion 2.07 (b) of the Standard Conditions. Such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each suc [ pe iod shall be: (i) furnished to the World Bank not later than six months after the end of such p-rioc; and (ii) made publicly available in a timely fashion and in a manner acceptable to the Wc rid Ban]. 2.05. Procuremeng (a) General. All go)ds, works, non-consulting services and consultants' services required for the Project and to bo fin; nced out of the proceeds of the Grant shall be procured in accordance with the r-quirem;nt, set orth or referred to in: (i) Secti)n of he "Guidelines: Procurement of Goods, Works and Non- consulting Services under IBD Loai ns and IDA Credits and Grants by World Bank Borrowers" dated January 2011 ("Procureme it G tidelines"), in the case of goods, works and non-consulting services; and (ii) Sectins I ai d IV of the "Guidelines: Selection and Employment of Consultants under IBRD Loans md DA Credits and Grants by World Bank Borrowers" dated January 2011 ("Consultant Guidelines "), in the case of consultants' services; and (iii) the p rov ision; of this Section, as the same shall be elaborated in the procurement plan prepared and ipda:ed from time to time by the Recipient for the Project in accordance with paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines ("Proci irement Plan"). (b) Defiritions. Th.- ca )italized terms used in the following paragraphs of this Section to describe particular prccurenent methods or methods of review by the World Bank of particular contracts, refer to the corr sponding method described in Sections II and III of the Procurement Guidelines, or Sect,ons II, III, IV and V of the Consultant Guidelines as the case may be. (c) Particular Methods f Procurement of Goods, Works and Non-consulting Services 5 (i) Except as otherwise provided in sub-paragraph (ii) below, goods, works and non-consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. (ii) The following method, other than International Competitive Bidding, may be used for procurement of goods, works and non-consulting services for those contracts specified in the Procurement Plan: Shopping. (d) Particular Methods of Procurement of Consultants' Services (i) Except as otherwise provided in sub-paragraph (ii) below, consultants' services shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. (ii) The following methods may be used for the procurement of consultants' services for those assignments which are specified in the Procurement Plan: (A) Quality-based Selection; (B) Selection under a Fixed Budget; (C) Least Cost Selection; (D) Selection based on Consultants' Qualifications; (E) Single-source Selection of consulting firms; (F) Selection of Individual Consultants; and (G) Single-source procedures for the Selection of Individual Consultants. (e) Review by the World Bank of Procurement Decisions. The Procurement Plan shall set forth those contracts which shall be subject to the World Bank's Prior Review. All other contracts shall be subject to Post Review by the World Bank. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the following table. The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: 6 An ount of the Grant Percentage of Expenditures Allocated to be Financed Category (ex pressed in U.S. $) (inclusive of Taxes) 1. Consultants' Services, Training, Goods, Small 2,269,400 ' . .2,26,400100% Civil Works, and Operating Costs 2. Sub-Grants 400,000 100% TOTAL AMOUNT 2,669,400 For the purposes of this SectlDn: (i) the term "Training" means training conducted in the territory of the Recipient, includir g pu -chase and publication of materials, rental of facilities, course fees, and travel and subsisten.e of tra nees; (ii) the term "Operating Costs" means operating costs required for the Project incluc ing con,umable materials and supplies, communications, mass media and printing services, vehicl: r ntal, operation and maintenance, charges for the opening and operation of bank accounts required fo - the Project, and travel, lodging and per diems, but excluding salaries of officials of the go,errimen:'s civil service, (iii) the term "Small Civil Works" means vorks such as construction of ramps ; nd remodeling of doors with the purpose to make buildings accessible for people with disabilities and (iv) the term "Sub-Grants" means micro-business grant awards that will be provided to selectedI people with disabilities pursuant to Part 1 d of article 2.01 of this Agreement. 3.32. Withdrawal Conditioins Notwithstanding the provisions of Section 3.01 of this Agreement no withdrawal shll be ma de: (a) for payments made prior t ) th2 dat of countersignature of this Agreement by the Recipient; (b) for payments from CateE ory 2 p ior to the date of approval of the Sub-Grants Operational Manual by the World Bank 3.03. Withdrawal Period. The Cl )sing Date referred to in Section 3.06 (c) of the Standard Conditions is three yc ars after tht dat( of countersignature. Article IV IR1eci pien t's Representative; Addresses 5.01. Recipient's Represei tative. T he Recipient's Representative referred to in Section 7.02 of thz! Standard Conditions is M ssion Ai menia. 7 5.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Mission Armenia 42, Garegin Nzhdeh St. Yerevan 0026, Republic of Armenia Telex: Facsimile: (+374 1) 444792, (+374 1) 444792 444793, 444761 or 444732 5.03. World Bank's Address. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development/International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INTBAFRAD 248423 (MCI) or INDEVAS 64145 (MCI) 1-202-477-6391 Washington, D.C. 8