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CONFORMED COPY
TF 029714
Japanese Grant Agreement
(Pilot Poverty Alleviation Project)
between
REPUBLIC OF TAJIKISTAN
and 
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
as Administrator of Grant Funds
provided by JAPAN
Dated October 1, 1996
TF 029714
JAPANESE GRANT AGREEMENT
AGREEMENT, dated October 1, 1996, between REPUBLIC OF TAJIKISTAN (the Recipient) 
and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) acting as 
Administrator (the Administrator) of grant funds provided by JAPAN (Japan).
WHEREAS (A) pursuant to a letter agreement dated July 30, 1990 between Japan and 
the Bank and International Development Association (the Association), Japan has 
requested the Bank and the Association, and the Bank and the Association have agreed, 
to administer grant funds to be made available by Japan for the financing of certain 
programs and projects supported by the Bank and the Association, as the case may be, 
in accordance with the provisions of such letter agreement; and
WHEREAS (B) Japan has agreed to make available to the Recipient a grant out of 
said grant funds (the Grant) to finance the cost of carrying out the technical 
assistance described in Schedule 2 to this Agreement (the Technical Assistance) on the 
terms and conditions hereinafter set forth;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. (a) The following provisions of the General Conditions Applicable 
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to Loan and Guarantee Agreements of the Bank, dated January 1, 1985, with the 
modifications set forth in paragraph (b) of this Section (the General Conditions) 
constitute an integral part of this Agreement:
(i)
Article I;
(ii)
Sections 2.01 (1), (2), (3), (4), (6), (8), (9), (10), (11), (18) 
and (20), 2.02 and 2.03;
(iii)
Section 3.01;
(iv)
Section 4.01 and the first sentence of Section 4.09;
(v)
Article V;
(vi)
Sections 6.01, 6.02 (a), (c), (d), (e), (f), (i) and (k), 6.03, 
6.04 and 6.06;
(vii)
Section 9.01 (a), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09;
(viii)Sections 10.01, 10.03 and 10.04; and
(ix)
Article XI.
(b)
The General Conditions shall be modified as follows:
(i)
the term "Bank," wherever used in the General Conditions, other 
than in Sections 2.01 (8) and 6.02 (f) thereof and the last use of 
such term in Section 5.01 thereof, means the International Bank 
for Reconstruction and Development acting as Administrator of the 
Grant pursuant to the letter agreement between Japan and the Bank 
and the Association referred to in Recital (A) of this Agreement, 
except that in Section 6.02, the term "Bank" shall also include 
the International Bank for Reconstruction and Development acting 
in its own capacity;
(ii)
the term "Borrower," wherever used in the General Conditions, 
means the Recipient;
(iii)
the term "Loan Agreement," wherever used in the General 
Conditions, means this Agreement;
(iv)
the term "Loan," wherever used in the General Conditions, means 
the Grant;
(v)
the term "Loan Account," wherever used in the General Conditions, 
means the Grant Account, an account opened by the Administrator on 
its books in the name of the Recipient to which the amount of the 
Grant is credited;
(vi)
the term "Project," wherever used in the General Conditions, means 
the technical assistance described in Schedule 1 to this 
Agreement;
(vii)
Section 4.01 shall be modified to read:
"Withdrawals from the Grant Account shall be made in dollars; provided, 
however, that if the expenditures to be financed out of the Grant have been 
paid or are payable in another currency, the Administrator shall, at the 
request of the Recipient, purchase such currency with the proceeds of such 
withdrawal."
(viii)The second sentence of Section 5.01 is modified to read:
"Except as the Bank and the Recipient shall otherwise agree, no 
withdrawals shall be made: (a) on account of expenditures in the territories 
of any country which is not a member of the Bank or for goods produced in, or 
services supplied from, such territories; or (b) for the purpose of any 
payment to persons or entities, or for any import of goods, if such payment or 
import, to the knowledge of the Bank, is prohibited by a decision of the 
United 
Nations Security Council taken under Chapter VII of the Charter of the 
United 
Nations."
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Section 1.02. Wherever used in this Agreement, unless the context otherwise 
requires, the several terms defined in the General Conditions and in the Recitals to 
this Agreement have the respective meanings therein set forth and the following 
additional terms have the following meanings:
(a)
the term "Guidelines" means the "Guidelines for Procurement under IBRD 
Loans and IDA Credits" published by the Bank in January 1995 and revised in January 
and August 1996; and
(b)
the term "Special Account" means the account referred to in Section 2.02 
(b) of this Agreement.
ARTICLE II
The Grant
Section 2.01. The Administrator agrees to make available to the Recipient, on 
the terms and conditions set forth or referred to in this Agreement, the Grant in an 
amount of two hundred fifty one thousand Dollars ($251,000).
Section 2.02.  (a) The amount of the Grant may be withdrawn from the Grant 
Account in accordance with the provisions of Schedule 1 to this Agreement, as such 
Schedule may be amended from time to time by agreement between the Recipient and the 
Administrator, for expenditures made (or, if the Administrator shall so agree, to be 
made) in respect of the reasonable cost of carrying out the Project and to be financed 
out of the Grant.
(b)
The Recipient may, for the purposes of the Technical Assistance, open and 
maintain in Dollars a special deposit account in a commercial bank acceptable to the 
Administrator on terms and conditions satisfactory to the Administrator, including 
appropriate protection against set-off, seizure or attachment.  Deposits into, and 
payments out of, the Special Account shall  be made in accordance with the provisions 
of Schedule 4 to this Agreement.
Section 2.03. The Closing Date shall be May 31, 1997, or such later date as the 
Administrator shall establish.  The Administrator shall promptly notify the Recipient 
of such later date.
ARTICLE III
Execution of the Technical Assistance
Section 3.01. The Recipient shall carry out the Technical Assistance with due 
diligence and efficiency and in conformity with appropriate administrative, financial 
and engineering practices, and shall provide, promptly as needed, the funds, 
facilities, services and other resources required for the Technical Assistance. 
Section 3.02. Except as the Administrator shall otherwise agree, procurement of 
the goods and consultants' services required for the Technical Assistance and to be 
financed out of the Grant shall be governed by the provisions of Schedule 3 to this 
Agreement.
Section 3.03. (a) The Recipient shall maintain or cause to be maintained records 
and accounts adequate to reflect in accordance with sound accounting practices the 
operations, resources and expenditures in respect of the Technical Assistance of the 
departments or agencies of the Recipient responsible for carrying out the Technical 
Assistance or any part thereof.
(b)
The Recipient shall:
(i)
have the records and accounts referred to in paragraph (a) of this 
Section and those for the Special Account for each fiscal year 
audited, in accordance with appropriate auditing principles 
consistently applied, by independent auditors acceptable to the 
Administrator;
(ii)
furnish to the Administrator as soon as available, but in any case 
not later than four (4) months after the end of each such year, 
the report of such audit by said auditors, of such scope and in 
such detail as the Administrator shall have reasonably requested; 
and
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(iii)
furnish to the Administrator such other information concerning 
said records and accounts and the audit thereof as the 
Administrator shall from time to time reasonably request.
(c)
For all expenditures with respect to which withdrawals from the Grant 
Account were made on the basis of statements of expenditure, the Recipient shall:
(i)
maintain or cause to be maintained, in accordance with paragraph 
(a) of this Section, records and accounts reflecting such 
expenditures;
(ii)
retain, until at least one year after the Administrator has 
received the audit report for the fiscal year in which the last 
withdrawal from the Grant Account was made, all records 
(contracts, orders, invoices, bills, receipts and other documents) 
evidencing such expenditures;
(iii)
enable the Administrator's representatives to examine such 
records; and
(iv)
ensure that such records and accounts are included in the annual 
audit referred to in paragraph (b) of this Section and that the 
report of such audit contains a separate opinion by said auditors 
as to whether the statements of expenditure submitted during such 
fiscal year, together with the procedures and internal controls 
involved in their preparation, can be relied upon to support the 
related withdrawals.
Section 3.04. Without limitation upon the applicable provisions of Article IX of 
the General Conditions, the Recipient shall:
(a)
prepare, on the basis of guidelines acceptable to the Administrator, and 
furnish to the Administrator not later than six (6) months after the Closing Date or 
such later date as may be agreed for this purpose between the Recipient and the 
Administrator, a plan designed to ensure the continued achievement of the objectives 
of the Technical Assistance; and
(b)
afford the Administrator a reasonable opportunity to exchange views with 
the Recipient on said plan.
ARTICLE IV
Effectiveness; Termination
Section 4.01. This Agreement shall become effective upon its execution by the 
parties hereto.
Section 4.02.  This Agreement shall continue in effect until the Grant has been 
fully disbursed and the parties to this Agreement have fulfilled all their obligations 
hereunder.
ARTICLE V
Representation
Section 5.01. The Deputy Chairman, Council of Ministers of the Recipient is 
designated as representative of the Recipient for the purposes of Section 11.03 of the 
General Conditions.
Section 5.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Recipient:
Deputy Chairman
Council of Ministers
Republic of Tajikistan
Dushanbe
Tajikistan
For the Administrator:
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International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INTBAFRAD
248423 (MCI)
Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names as 
of the day and year first above written.
REPUBLIC OF TAJIKISTAN
By /s/ Anvarsho Muzafarov
Authorized Representative
INTERNATIONAL BANK FOR RECONSTRUCTION
  AND DEVELOPMENT
as Administrator of the Grant
By /s/ Yukon Huang
Acting Authorized Representative
SCHEDULE 1
Withdrawal of the Grant
1.
The table below sets forth the Categories of items to be financed out of the 
Grant, the allocation of the amount of the Grant to each Category and the percentage 
of expenditures for items so to be financed in each Category:
Amount of the
Grant Allocated
       % of
(Expressed in
 Expenditures
Category
Dollar Equivalent)
to be Financed
(1)
Consultants’
202,000
100%
Services
(2)
Study Tours 
28,000
100%
and Training
(3)
Goods
21,000
100% of foreign expenditures,
100% of local expenditures
(ex-factory cost) and
85% of local expenditures
from other items procured
locally
TOTAL
251,000
2.
For the purpose of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Recipient for goods or services supplied from the 
territory of any country other than that of the Recipient; and
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(b)
the term "local expenditures" means expenditures in the currency of the 
Recipient or for goods or services supplied from the territory of the Recipient. 
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement.
4.
The administrator may require withdrawals from the Grant Account to be made on 
the basis of statements of expenditure for expenditures for goods under such terms and 
conditions as the Administrator shall specify by notice to the Recipient.
SCHEDULE 2
Description of Technical Assistance
The objective of the Technical Assistance is to assist the Recipient in 
preparation of the proposed Pilot Poverty Alleviation Project.
The Technical Assistance consists of the following activities, subject to such 
modifications thereof as the Recipient and the Administrator may agree upon from time 
to time.
1.
The identification of small-scale infrastructure sub-projects and the 
development of selection criteria for carrying out economic analysis of sub-projects; 
and provision of assistance with design, procurement and implementation arrangements.
2.
The evaluation of service delivery approaches and the design of a 
capacity-building program to assist the Recipient and potential support organizations 
in implementation and monitoring of poverty alleviation projects.
3.
The carrying out of assessment of options for implementing employment generation 
schemes and the establishment of a small credit system.
4.
Provision of assistance in the establishment of a Project Implementation Unit.
SCHEDULE 3
Procurement and Consultants' Services
Section I.
Procurement of Goods
Goods shall be procured under contracts awarded on the basis of comparison of 
price quotations solicited from a list of at least three suppliers eligible under the 
"Guidelines", in accordance with procedures acceptable to the Administrator.
Section II.
Employment of Consultants
1.
In order to assist the Recipient in carrying out the Technical Assistance, the 
Recipient shall employ consultants whose qualifications, experience and terms and 
conditions of employment shall be satisfactory to the Administrator. Such consultants 
shall be selected in accordance with principles and procedures satisfactory to the 
Administrator on the basis of the "Guidelines for the Use of Consultants by World Bank 
Borrowers and by The World Bank as Executing Agency" published by the Bank in August 
1981 (the Consultant Guidelines). For complex time-based assignments, the Recipient 
shall employ such consultants under contracts using the standard form of contract for 
consultants' services issued by the Bank, with such modifications as shall have been 
agreed by the Administrator. Where no relevant standard contract documents have been 
issued by the Bank, the Recipient shall use other standard forms agreed with the 
Administrator.
2.
Notwithstanding the provisions of paragraph 1 of this Section, the provisions of 
the Consultant Guidelines requiring prior Administrator review or approval of budgets, 
short lists, selection procedures, letters of invitation, proposals, evaluation 
reports and contracts, shall not apply to: (a) contracts for the employment of 
consulting firms estimated to cost less than $100,000 equivalent each; or (b) 
contracts for the employment of individuals estimated to cost less than $50,000 
equivalent each. However, said exceptions to prior Administrator review shall not 
apply to: (a) the terms of reference for such contracts; (b) single-source selection 
of consulting firms; (c) assignments of a critical nature, as reasonably determined by 
the Administrator; (d) amendments to contracts for the employment of consulting firms 
raising the contract value to $100,000 equivalent or above; or (e) amendments to 
contracts for the employment of individual consultants raising the contract value to 
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$50,000 equivalent or above.
SCHEDULE 4
Special Account
1.
For the purposes of this Schedule:
(a)
the term "eligible Categories" means the Categories set forth in the 
table in paragraph 1 of Schedule 1 to this Agreement;
(b)
the term "eligible expenditures" means expenditures in respect of the 
reasonable cost of consultant services and training required for  the Technical 
Assistance and to be financed out of the amount of the Grant; and
(c)
the term "Authorized Allocation" means an amount equivalent to $50,000 to 
be withdrawn from the Grant Account and deposited into the Special Account pursuant to 
paragraph 3 (a) of this Schedule.
2.
Payments out of the Special Account shall be made exclusively for eligible 
expenditures in accordance with the provisions of this Schedule.
3.
After the Administrator has received evidence satisfactory to it that the 
Special Account has been duly opened, withdrawals of the Authorized Allocation and 
subsequent withdrawals to replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, the Recipient shall furnish 
to the Administrator a request or requests for deposit into the Special Account of an 
amount or amounts which do not exceed the aggregate amount of the Authorized 
Allocation. On the basis of such request or requests, the Administrator shall, on 
behalf of the Recipient, withdraw from the Grant Account and deposit into the Special 
Account such amount or amounts as the Recipient shall have requested.
(b)
(i)
For replenishment of the Special Account, the Recipient shall 
furnish to the Administrator requests for deposits into the 
Special Account at such intervals as the Administrator shall 
specify.
(ii)
Prior to or at the time of each such request, the Recipient shall 
furnish to the Administrator the documents and other evidence 
required pursuant to paragraph 4 of this Schedule for the payment 
or payments in respect of which replenishment is requested. On the 
basis of each such request, the Administrator shall, on behalf of 
the Recipient, withdraw from the Grant Account and deposit into 
the Special Account such amount as the Recipient shall have 
requested and as shall have been shown by said documents and other 
evidence to have been paid out of the Special Account for eligible 
expenditures. All such deposits shall be withdrawn by the 
Administrator from the Grant Account, in the respective equivalent 
amounts, as shall have been justified by said documents and other 
evidence.
4.
For each payment made by the Recipient out of the Special Account, the Recipient 
shall, at such time as the Administrator shall reasonably request, furnish to the 
Administrator such documents and other evidence showing that such payment was made 
exclusively for eligible expenditures.
5.
Notwithstanding the provisions of paragraph 3 of this Schedule, the 
Administrator shall not be required to make further deposits into the Special Account:
(a)
if, at any time, the Administrator shall have determined that all further 
withdrawals should be made by the Recipient directly from the Grant Account in 
accordance with the provisions of Article V of the General Conditions and paragraph 
(a) of Section 2.02 of this Agreement;
(b)
if the Recipient shall have failed to furnish to the Administrator within 
the period of time specified in Section 3.03 (b) (ii) of this Agreement, any of the 
audit reports required to be furnished to the Administrator pursuant to said Section 
in respect of the audit of the records and accounts for the Special Account;
(c)
if, at any time, the Administrator shall have notified the Recipient of 
its intention to suspend in whole or in part the right of the Recipient to make 
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withdrawals from the Grant Account pursuant to the provisions of Section 6.02 of the 
General Conditions; or
(d)
once the total unwithdrawn amount of the Grant, minus the total amount of 
all outstanding special commitments entered into by the Administrator pursuant to 
Section 5.02 of the General Conditions with respect to the Technical Assistance, shall 
equal the equivalent of twice the amount of the Authorized Allocation.
Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of 
the Grant shall follow such procedures as the Administrator shall specify by notice to 
the Recipient. Such further withdrawals shall be made only after and to the extent 
that the Administrator shall have been satisfied that all such amounts remaining on 
deposit in the Special Account as of the date of such notice will be utilized in 
making payments for eligible expenditures.
6.
(a)
If the Administrator shall have determined at any time that any payment 
out of the Special Account: (i) was made for an expenditure or in an amount not 
eligible pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the 
evidence furnished to the Administrator, the Recipient shall, promptly upon notice 
from the Administrator: (A) provide such additional evidence as the Administrator may 
request; or (B) deposit into the Special Account (or, if the Administrator shall so 
request, refund to the Administrator) an amount equal to the amount of such payment or 
the portion thereof not so eligible or justified.  Unless the Administrator shall 
otherwise agree, no further deposit by the Administrator into the Special Account 
shall be made until the Recipient has provided such evidence or made such deposit or 
refund, as the case may be.
(b)
If the Administrator shall have determined at any time that any amount 
outstanding in the Special Account will not be required to cover further payments for 
eligible expenditures, the Recipient shall, promptly upon notice from the 
Administrator, refund to the Administrator such outstanding amount.
(c)
The Recipient may, upon notice to the Administrator, refund to the 
Administrator all or any portion of the funds on deposit in the Special Account.
(d)
Refunds to the Administrator made pursuant to paragraphs 6 (a), (b) and 
(c) of this Schedule shall be credited to the Grant Account for subsequent withdrawal 
or for cancellation in accordance with the relevant  provisions of this Agreement, 
including the General Conditions.