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CONFORMED COPY
GEF TRUST FUND GRANT NUMBER 021424
Global Environment Facility
Trust Fund Grant Agreement
(Western Indian Ocean Islands Oil Spill Contingency Planning Project)
between
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
and
INDIAN OCEAN COMMISSION
Dated February 22, 1999
GEF TRUST FUND GRANT NUMBER 021424
GLOBAL ENVIRONMENT FACILITY
TRUST FUND GRANT AGREEMENT
AGREEMENT, dated February 22, 1999, between INTERNATIONAL BANK FOR 
RECONSTRUCTION AND DEVELOPMENT (the Bank), acting as an implementing agency of the 
Global Environment Facility (GEF) in respect of grant funds provided to the GEF Trust 
Fund by certain members of the Bank as participants of the GEF, and INDIAN OCEAN 
COMMISSION (the Recipient) a commission established pursuant to Accord Général de 
Coopération Entre les Etats Membres de la Commission  de l’Océan Indien (dit Accord de 
Victoria), dated January 10, 1984, and acting on behalf of the Federal Islamic 
Republic of Comoros, the Republic of Madagascar, Republic of Mauritius and Republic of 
Seychelles (the Western Indian Ocean Island Countries);
WHEREAS (A) the Bank, pursuant to Resolution No. 91-5 of March 14, 1991 of the 
Executive Directors of the Bank, established the GEF to assist in the protection of 
the global environment and to promote thereby environmentally sound and sustainable 
economic development;
(B)
following the restructuring of the GEF, such arrangements continued in 
place on the basis set forth in Resolution No. 94-2 of May 24, 1994, of the Executive 
Directors of the Bank which, inter alia, established the GEF Trust Fund, authorized 
the first replenishment of the GEF Trust Fund and appointed the Bank as Trustee of the 
GEF Trust Fund (Resolution No. 94-2);
(C)
the second replenishment of the GEF Trust Fund was approved on the basis 
set forth in Resolution No. 98-2 of July 14, 1998, of the Executive Directors of the 
Bank (Resolution No. 98-2);
(D)
the Western Indian Ocean Island Countries having satisfied themselves as 
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to the feasibility and priority of the Project described in Schedule 2 to this 
Agreement, have requested assistance from the GEF Trust Fund for funding the Project 
and said request having been approved in accordance with the provisions of the 
Instrument for the Establishment of the Restructured Global Environment Facility 
approved under Resolution No. 94-2, and to be funded from contributions to the GEF 
Trust Fund under Resolution No. 98-2, which may include funds carried over from the 
first replenishment of the GEF Trust Fund under Resolution No. 94-2;
(E)
Each of the Western Indian Ocean Island Countries has addressed a letter 
to the Bank (Letter of Commitment) requesting the Bank, that the resources of the GEF 
Trust Fund approved for the financing of the Project be provided directly to the 
Recipient under the terms and conditions set forth in this Agreement and declaring, 
inter alia, that such Western Indian Ocean Island Countries shall take all action 
necessary for the Recipient to carry out its obligations under this Agreement and 
undertaking certain other commitments on their part in this regard; and
WHEREAS the Bank has agreed on the basis, inter alia, of the foregoing to extend 
the GEF Trust Fund Grant to the Recipient upon the terms and conditions set forth in 
this Agreement;
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 
to Loan and Guarantee Agreements for Currency Pool Loans of the Bank, dated January 1, 
1985 (as amended through December 2, 1997), 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), (15), 
(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 (c), (e), (i) and (k), 6.03, 6.04 and 6.06;
(vii)
Section 8.01 (b);
(viii)Sections 9.01 (a) and (c), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09;
(ix)
Sections 10.01, 10.03 and 10.04;
(x)
Article XI; and
(xi)
Sections 12.01 (c), 12.03 and 12.04.
(b)
The General Conditions shall be modified as follows:
(i)
a new paragraph shall be added to the end of Section 2.01 to read 
as follows: "the term "Special Drawing Rights" and the symbol 
"SDR" mean special drawing rights as valued by the International 
Monetary Fund in accordance with its Articles of Agreement";
(ii)
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 Bank acting as an 
implementing agency of the GEF, except that in Section 6.02, the 
term "Bank" shall also include the Bank acting in its own 
capacity;
(iii)
the term "Borrower", wherever used in the General Conditions, 
means the Recipient;
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(iv)
the term "Loan Agreement", wherever used in the General 
Conditions, means this Agreement;
(v)
the term "Loan" and "loan", wherever used in the General 
Conditions, means the GEF Trust Fund Grant;
(vi)
the term "Loan Account", wherever used in the General Conditions, 
means the GEF Trust Fund Grant Account;
(vii)
the second sentence of Section 5.01 is modified to read: "Except 
as the Bank and the Borrower 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.";
(viii)a new subparagraph is added after subparagraph (j) in Section 6.02 
of the General Conditions, as follows: "an extraordinary situation 
shall have arisen in which any further disbursement under the GEF 
Trust Fund Grant would exceed the resources available for 
disbursement from the GEF.";
(ix)
the first sentence of Section 10.01 is deleted; and
(x)
Section 10.04 is amended to read: "Any dispute arising out of or 
relating to this Agreement which is not settled by agreement of 
the parties shall be finally settled by arbitration in accordance 
with the UNCITRAL Arbitration Rules in force on the date of this 
Agreement. The place of Arbitration shall be Washington D.C. In 
the event of a conflict between the UNCITRAL arbitration rules and 
the terms of this Agreement, the terms of this Agreement shall 
govern.".
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)
"IMO" means the International Maritime Organization, a United Nations 
Specialized Agency;
(b)
"CLC92" means the International Convention on Civil Liability for Oil 
Pollution Damage, 1992, and its subsequent Protocols which came into force and effect 
on May 30, 1996;
(c)
"FUND92" means the International Convention on the establishment of an 
International Fund for Oil Pollution Damage, 1992, and its subsequent Protocols which 
came into force and effect on May 30, 1996;
(d)
"OPRC90" means the International Convention on Oil Pollution Preparedness 
and Response and Cooperation, 1990, and its subsequent Protocols which came into force 
and effect on May 13, 1995;
(e)
"PIC" means the Project Implementation Coordinator appointed by each of 
the Western Indian Ocean Island Countries in their respective ministries responsible 
for environment to coordinate the national components of the Project to be carried out 
in the respective territories;
(f)
"PIP" means the Project Implementation Plan, satisfactory to the Bank, to 
be adopted by the Recipient, pursuant to Section 7.01 of this Agreement, which 
contains, inter alia, the operating procedures for the carrying out of the Project, as 
the same may be amended from time to time, and such term includes any schedules to the 
PIP;
(g)
"PMU" means the Project Management Unit referred to in paragraph 1 of 
Schedule 4 to this Agreement and established by the Recipient on March 10, 1998;
(h)
"Special Account" means the account referred to in Section 2.02 (b) of 
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this Agreement; and
(i)
"Steering Committee" means the Committee referred to in paragraph 2 of 
Schedule 4 to this Agreement, established by the Western Indian Ocean Island Countries 
and comprised of the senior officials in each country responsible for the Environment 
and chaired by the Secretary General of IOC or a representative designated by him.
ARTICLE II
The GEF Trust Fund Grant
Section 2.01. The Bank agrees to make available to the Recipient, on the terms 
and conditions set forth or referred to in this Agreement, the GEF Trust Fund Grant in 
an amount in various currencies equivalent to two million three hundred and 
seventy-six thousand and one hundred Special Drawing Rights (SDR 2,376,100).
Section 2.02. (a) The amount of the GEF Trust Fund Grant may be withdrawn from 
the GEF Trust Fund Grant Account in accordance with the provisions of Schedule 1 to 
this Agreement for expenditures made (or, if the Bank shall so agree, to be made) in 
respect of the reasonable cost of goods and services required for carrying out of the 
Project and to be financed out of the proceeds of the GEF Trust Fund Grant.
(b)
The Recipient may, for the purposes of the Project, open and maintain in 
dollars a special deposit account in a commercial bank on terms and conditions 
satisfactory to the Bank, 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 5 to this Agreement.
Section 2.03. The Closing Date shall be June 30, 2003, or such later date as the 
Bank shall establish.  The Bank shall promptly notify the Recipient of such later 
date.
ARTICLE III
Execution of the Project
Section 3.01. (a) The Recipient declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out 
the Project with due diligence and efficiency, in conformity with appropriate 
international waters conservation practices and with due regard to ecological and 
environmental factors, and shall provide, promptly as needed, the funds, facilities, 
services and other resources required for the Project.
(b)
Without limitation upon the provisions of paragraph (a) of this Section 
and, except as the Recipient and the Bank shall otherwise agree, the Recipient shall 
carry out the Project in accordance with the Implementation Program set forth in 
Schedule 4 to this Agreement.
Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods 
and consultants’ services required for the Project and to be financed out of the 
proceeds of the GEF Trust Fund Grant shall be governed by the provisions of Schedule 3 
to this Agreement.
Section 3.03. For the purposes of Section 9.08 of the General Conditions and 
without limitation thereto, the Recipient shall:
(a)
prepare, on the basis of guidelines acceptable to the Bank, and furnish 
to the Bank not later than six months after the Closing Date or such later date as may 
be agreed for this purpose between the Recipient and the Bank, a plan designed to 
ensure the sustainability of the Project; and
(b)
afford the Bank a reasonable opportunity to exchange views with the 
Recipient on said plan.
ARTICLE IV
Financial Conditions
Section 4.01. (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 Project and to register 
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separately the operations, resources and expenditures related to the Project.
(b)
The Recipient shall:
(i)
have the records and accounts referred to in paragraph (a) of this 
Section, including those for the Special Account, for each fiscal 
year audited, in accordance with appropriate auditing principles 
consistently applied, by independent auditors acceptable to the 
Bank;
(ii)
furnish to the Bank as soon as available, but in any case not 
later than six 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 Bank shall have reasonably requested;
(iii)
furnish to the Bank as soon as available but in any case not later 
than three months after the end of each semester, a report by said 
auditors on the statements of expenditures referred to in 
paragraph (c) of this Section; and 
(iv)
furnish to the Bank such other information concerning said records 
and accounts and the audit thereof as the Bank shall from time to 
time reasonably request.
(c)
For all expenditures with respect to which withdrawals from the GEF Trust 
Fund 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 Bank has received the 
audit report for the fiscal year in which the last withdrawal from 
the GEF Trust Fund Grant Account was made, all records (contracts, 
orders, invoices, bills, receipts and other documents) evidencing 
such expenditures;
(iii)
enable the Bank’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.
ARTICLE V
Other Covenants
Section 5.01. The Recipient shall carry on its business and operations, and 
otherwise conduct all its affairs, in accordance with sound professional, 
administrative, international waters and biodiversity protection, ecological, economic 
and financial practices, and in accordance with appropriate environmental standards, 
acceptable to the Bank, and at all times under the supervision of qualified and 
experienced management assisted by competent staff.
Section 5.02. The Recipient shall, at all times, operate and maintain its 
business, equipment and other property, and from time to time, promptly as needed, 
take all necessary remedial measures and make all necessary repairs thereof.
Section 5.03. The Recipient shall take out and maintain with responsible 
insurers, or make other provisions acceptable to the Bank, for insurance against such 
risks and in such amounts as shall be consistent with reasonable practice to carry out 
its obligations under this Agreement.
Section 5.04. The Recipient shall promptly take all measures necessary to 
acquire, maintain, renew and otherwise exercise all rights, powers, privileges, 
registrations and franchises required for the proper conduct of its business and 
operations, and otherwise for its proper carrying out of all its obligations under 
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this Agreement.
Section 5.05. The Bank is not an agent of or trustee for the Recipient and shall 
not have any fiduciary duty toward, or relationship with, the Recipient.
ARTICLE VI
Remedies of the Bank
Section 6.01. Pursuant to Section 6.02 (k) of the General Conditions, the 
following additional events are specified:
(a)
any of the Western Indian Ocean Island Countries having jurisdiction over 
the Recipient shall have taken any action for the dissolution or disestablishment of 
the Recipient, or for the suspension of any of its operations so as to affect 
materially and adversely its ability to perform any of its obligations under this 
Agreement or otherwise carry out its respective parts of the Project, or any part 
thereof;
(b)
any of the Western Indian Ocean Island Countries shall have taken any 
action, including the enactment or issuance of laws or regulations, which, in the 
opinion of the Bank, may adversely affect, prevent, or interfere with, the carrying 
out of the Project or the performance by the Recipient of any of its obligations under 
this Agreement;
(c)
any of the Western Indian Ocean Island Countries shall have failed to 
afford reasonable opportunities for representatives of the Bank to visit any part of 
its territory for purposes related to the Project in accordance with the terms and 
conditions of the relevant Letter of Commitment; 
(d)
the Recipient shall have become unable to pay its debts as they mature or 
any action or proceeding shall have been taken by the Recipient or by others whereby 
any of the assets of the Recipient shall or may be distributed among its creditors; or
(e)
any of the Western Indian Ocean Island Countries: (i) shall have been 
suspended from membership in or ceased to be a member of the Bank; or (ii) shall have 
ceased to be a member of the International Monetary Fund.
ARTICLE VII
Effectiveness; Termination
Section 7.01. The following event is specified as a condition to the 
effectiveness of the GEF Trust Fund Grant within the meaning of Section 12.01(c) of 
the General Conditions, namely that the PIP, in form and substance acceptable to the 
Bank, has been adopted by the Recipient.
Section 7.02. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions.
Section 7.03. This Agreement shall continue in effect until the GEF Trust Fund 
Grant has been fully disbursed and the parties to this Agreement have fulfilled all 
their obligations hereunder.
ARTICLE VIII
Representatives of the Recipient; Addresses
Section 8.01. The Secretary General of the Recipient is designated as 
representative of the Recipient for the purposes of Section 11.03 of the General 
Conditions.
Section 8.02 The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Recipient:
Indian Ocean Commission
Q4, Avenue Sir Guy Forget
P.O. Box 7
Quatre Bornes
Mauritius
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For the Bank:
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 in 
the District of Columbia as of the day and year first above written.
INTERNATIONAL BANK FOR 
   RECONSTRUCTION AND DEVELOPMENT
as an implementing agency of the Global Environment Facility
By /s/ Callisto Madavo
Regional Vice President
Africa
INDIAN OCEAN COMMISSION 
By /s/ Mohamed E. Caabi
Authorized Representative
SCHEDULE 1
Withdrawal of the Proceeds of the GEF Trust Fund Grant
1.
The table below sets forth the Categories of items to be financed out of the 
proceeds of the GEF Trust Fund Grant, the allocation of the amounts of the GEF Trust 
Fund Grant to each Category and the percentage of expenditures for items so to be 
financed in each Category:
Amount of the
GEF Trust Fund
Grant Allocated
   % of
(Expressed in Expenditures
Category
SDR Equivalent)
to be Financed
(1)
Equipment, goods 
533,700
100% 
and materials 
(2)
Consultants’ 
    1,104,000 100% 
services 
(3)
Training
550,600
100%
(4)
Unallocated
187,800
TOTAL
    2,376,100
2.
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. 
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3.
The Bank may require withdrawals from the GEF Trust Fund Grant Account to be 
made on the basis of statements of expenditure for expenditures for: (a) goods under 
contracts costing less than $100,000 equivalent; (b) services for consulting firms 
costing less than $100,000 equivalent; (c) services for individual consultants costing 
less than $50,000 equivalent; and (d) travel and subsistence expenditures with respect 
to Consultants’ services and training activities under the Project costing less than 
$10,000 equivalent, per person.
4.
If the Bank shall have determined at any time that any payment made from the GEF 
Trust Fund Grant Account was used for any expenditure not consistent with the 
provisions of this Agreement, the Recipient shall, promptly upon notice from the Bank, 
refund to the Bank for deposit into the GEF Trust Fund Grant Account, an amount equal 
to the amount so used or the portion thereof as specified by the Bank.
SCHEDULE 2
Description of the Project
The objective of the Project is to protect the environmental integrity of the 
coastal and marine ecosystems of a large, biologically rich and relatively pristine 
part of the Western Indian Ocean.
The Project consists of the following parts, subject to such modifications 
thereof as the Recipient and the Bank may agree upon from time to time to achieve such 
objectives.
Part A:
Legislation and Regulations for International Conventions 
1.
Carrying out a training program for legal officers from the Western Indian Ocean 
Island Countries at the IMO International Maritime Law Institute.
2.
Carrying out a regional workshop on the procedures and other requirements for 
ratification and implementation of CLC92, FUND92, and OPRC90.
3.
(a)
Provision of technical advisory services to the Federal Islamic Republic 
of Comoros and the Republic of Madagascar to assist in the preparation for the 
ratification of CLC92, FUND92, and OPRC90, and to develop or upgrade the national 
legal framework to take account of relevant provisions.
(b)
Provision of technical advisory services to assist Western Indian Ocean 
Countries in drafting the legislation required for the implementation of the 
provisions of CLC92, FUND92, and OPRC90.
4.
Upgrading the national legislative framework in the Western Indian Ocean Island 
Countries to take account of the provisions of CLC92, FUND92, and OPRC90.
Part B:
 National Oil Spill Contingency Plans 
1.
Provision of oil spill response training up to IMO Level 3 standard for 
nationals of the Western Indian Ocean Island Countries.
2.
Establishment of national contingency planning processes in the Western Indian 
Ocean Island Countries through the provision of technical advisory services and 
training.
3.
Carrying out of environmental sensitivity mapping and related workshops. 
4.
Testing and refining of national contingency plans in the Western Indian Ocean 
Island Countries. 
Part C:
Oil Spill Response Equipment 
1.
Preparation of specifications for equipment needs for Tier 1 oil spill response 
for each of the countries.
2.
Acquisition of equipment to provide each country with a basic set of Tier 1 
equipment, and storage facilities.
3.
Carrying out training of basic operators and on-site maintenance training for 
such equipment.
4.
Carrying out national exercises under the national contingency plans referred to 
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in Part B above.
Part D:
National Capacity Building 
1.
Designing and carrying out workshops, to identify and resolve issues raised 
during Project implementation.
2.
Training of trainers to provide additional levels of skills to personnel from 
the Western Indian Ocean Island Countries to enable them to deliver courses on oil 
spill management.
3.
Provision of technical advisory services and guidance in specific matters 
relating to national contingency plans, oil spill equipment, effects of oil in the 
marine environment, risk-assessment and development of appropriate response 
strategies.
4.
Attendance by selected candidates at selected international seminars on oil 
pollution, technology and other related matters.
5.
Provision of technical advisory services on developing, reviewing, and testing 
an oil spill response manual. 
Part E: 
Regional Institutional Strengthening 
1.
Carrying out a workshop on the CLC92, FUND92, and OPRC90 to explore appropriate 
avenues for regional cooperation and support. 
2.
Carrying out of training programs and seminars to address regional oil-spill 
related issues. 
3.
Development of regional contingency plans to create a sustainable agreement 
among the Western Indian Ocean Island Countries on how to respond to major oil spills 
in the region.
*  *  *
The Project is expected to be completed by December 31, 2002.
SCHEDULE 3
Procurement and Consultants’ Services
Section I.
Procurement of Goods 
Part A:
General
Goods shall be procured in accordance with the provisions of Section I of 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 September 1997 (the 
Guidelines) and the following provisions of Section I of this Schedule.
Part B:
International Competitive Bidding
Except as otherwise provided in Part C of this Section, goods shall be procured 
under contracts awarded in accordance with the provisions of Section II of the 
Guidelines and paragraph 5 of Appendix 1 thereto.
Part C:
Other Procurement Procedures 
1.
International Shopping
Goods estimated to cost less than $30,000 equivalent per contract, up to an 
aggregate amount not to exceed $70,000 equivalent, may be procured under contracts, 
awarded on the basis of international shopping procedures in accordance with the 
provisions of paragraphs 3.5 and 3.6  of the Guidelines.
Part D:
Review by the Bank of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to bid for contracts, the proposed 
procurement plan for the Project shall be furnished to the Bank for its review and 
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approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the 
Guidelines. Procurement of all goods shall be undertaken in accordance with such 
procurement plan as shall have been approved by the Bank, and with the provisions of 
said paragraph 1.
2.
Prior Review
With respect to each contract estimated to cost the equivalent of $100,000 or 
more, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines 
shall apply.
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.
Section II.
Employment of Consultants
Part A:
General
Consultants’ services shall be procured in accordance with the provisions of the 
Introduction and Section IV of the "Guidelines: Selection and Employment of 
Consultants by World Bank Borrowers" published by the Bank in January 1997 and revised 
in September 1997 (the Consultant Guidelines) and the following provisions of Section 
II of this Schedule.
Part B:
Quality- and Cost-based Selection
1.
Except as otherwise provided in Part C of this Section, consultants’ services 
shall be procured under contracts awarded in accordance with the provisions of Section 
II of the Consultant Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 
thereto, and the provisions of paragraphs 3.13 through 3.18 thereof applicable to 
quality- and cost-based selection of consultants.
2.
The following provisions shall apply to consultants’ services to be procured 
under contracts awarded in accordance with the provisions of the preceding paragraph. 
The short-list of consultants for services estimated to cost less than $100,000 
equivalent per contract, may comprise entirely regional or national consultants in 
accordance with the provisions of paragraphs 2.7 of the Consultant Guidelines.
Part C:
Other Procedures for the Selection of Consultants 
1.
Least-cost Selection
Services for financial audits may be procured under contracts, awarded in 
accordance with the provisions of paragraphs 3.1 and 3.6 of the Consultants 
Guidelines.
2.
Individual Consultants
Services under Part A of the Project shall be procured under contracts awarded 
to individual consultants in accordance with the provisions of paragraphs 5.1 through 
5.3 of the Consultant Guidelines.
Part D:
Review by the Bank of the Selection of Consultants
1.
Selection Planning
Prior to the issuance to consultants of any requests for proposals, the proposed 
plan for the selection of consultants under the Project shall be furnished to the Bank 
for its review and approval, in accordance with the provisions of paragraph 1 of 
Appendix 1 to the Consultant Guidelines.  Selection of all consultants’ services shall 
be undertaken in accordance with such selection plan as shall have been approved by 
the Bank, and with the provisions of said paragraph 1.
2.
Prior Review
(a)
With respect to each contract for the employment of consulting firms 
estimated to cost the equivalent of $200,000 or more, the procedures set forth in 
paragraphs 1, 2 (other than the third subparagraph of paragraph 2 (a)) and 5 of 
Appendix 1 to the Consultant Guidelines shall apply.
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(b)
With respect to each contract for the employment of consulting firms 
estimated to cost the equivalent of less than $200,000 but more than $100,000, and all 
financial management assistance and audit contracts, the procedures set forth in 
paragraph 1, 2 (other than the second subparagraph of paragraph 2 (a)) and 5 of 
Appendix 1 to the Consultant Guidelines shall apply.
(c)
With respect to each contract for the employment of individual 
consultants estimated to cost the equivalent of $50,000 or more, the qualifications, 
experience, terms of reference and terms of employment of the consultants shall be 
furnished to the Bank for its prior review and approval.  The contract shall be 
awarded only after said approval shall have been given.
3.
Post Review
With respect to each contract not governed by paragraph 1 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall 
apply.
SCHEDULE 4
Implementation Program
1.
The Recipient shall maintain until completion of the Project a PMU, headed by a 
Regional Coordinator, with terms of reference, qualifications and experience 
satisfactory to the Bank. The PMU shall be guided by the Steering Committee.
2.
PMU shall be responsible for overall Project coordination and implementation and 
shall work closely with the PIC in the ministry responsible for the environment in 
each Western Indian Ocean Island Country.
3.
(a)
Except as the Bank shall otherwise agree, the Recipient shall, in 
carrying out the Project, apply the guidelines and procedures specified in the PIP and 
shall not amend the PIP or waive any provision thereof, which, in the opinion of the 
Bank, will materially or adversely affect the implementation of the Project.
(b)
The Recipient shall: (i) not later than January 31, of each year, furnish 
to the Bank for approval the annual work plan for the Project; and (ii) carry out the 
activities for the year in question on the basis of such annual work plan.
4.
The Recipient shall, commencing January 31, 1999, furnish to the Bank every six 
months progress reports on implementation of the Project.
5.
The Recipient shall: (a) prepare and furnish to the Bank, for its approval, 
semiannual programs and budgets, commencing January 31, 1999, for all training 
activities, seminars and workshops for the following six month period; and 
(b)
carry out only such activities as shall have been approved by the Bank.
6.
The Recipient shall: (a) maintain policies and procedures adequate to enable it 
to monitor and evaluate on an ongoing basis, in accordance with indicators referred to 
in the Annex to this Schedule, satisfactory to the Bank, the carrying out of the 
Project and the achievement of the objectives thereof;
(b)
prepare, under the terms of reference satisfactory to the Bank, and 
furnish to the Bank, on or about September 30, 2000, a report integrating inter alia: 
(i) the results of the monitoring and evaluation activities performed pursuant to 
paragraph (a) of this Section, on the progress achieved in the carrying out of the 
Project during the period preceding the date of said report and the status of 
implementation of the institutional and financial sustainability action plans adopted 
by each of the Western Indian Ocean Island  Countries and setting out the measures 
recommended to ensure the efficient carrying out of the Project and the achievement of 
the objectives thereof during the period following such date; and
(c)
review with the Bank, by December 31, 2000, or such later date as the 
Bank shall request, the report referred to in paragraph (b) of this Section, and, 
thereafter, take all measures required to ensure the efficient completion of the 
Project and the achievement of the objectives thereof, based on the conclusions and 
recommendations of the said report and the Bank’s views on the matter.
SCHEDULE 5
Page  12
Special Account
1.
For the purposes of this Schedule:
(a)
the term "eligible Categories means Categories (1) through (3) set forth 
in the table in paragraph 1 of Schedule 1 to this Agreement in respect of the Project;
(b)
the term "eligible expenditures" means expenditures in respect of the 
reasonable cost of goods and services required for the Project and to be financed out 
of the proceeds of the GEF Trust Fund Grant allocated from time to time to the 
eligible Categories in accordance with the provisions of Schedule 1 to this Agreement; 
and
(c)
the term "Authorized Allocation" means an amount equivalent to $200,000 
to be withdrawn from the GEF Trust Fund 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 Bank 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 Bank 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 Bank shall, on behalf of the Recipient, 
withdraw from the GEF Trust Fund 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 Bank requests for deposits into the Special Account 
at such intervals as the Bank shall specify.
(ii)
Prior to or at the time of each such request, the Recipient shall 
furnish to the Bank 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 Bank shall, on behalf of the 
Recipient, withdraw from the GEF Trust Fund 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 Bank from the GEF Trust Fund Grant Account under 
the respective eligible Categories, and 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 Bank shall reasonably request, furnish to the Bank 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 Bank shall 
not be required to make further deposits into the  Special Account:
(a)
if, at any time, the Bank shall have determined that all further 
withdrawals should be made by the Recipient directly from the GEF Trust Fund 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 Bank, within the 
period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit 
reports required to be furnished to the Bank pursuant to said Section in respect of 
the audit of the records and accounts for the Special Account;
(c)
if, at any time, the Bank shall have notified the Recipient of its 
intention to suspend in whole or in part the right of the Recipient to make 
withdrawals from the GEF Trust Fund Grant Account pursuant to the provisions of 
Page  13
Section 6.02 of the General Conditions; or
(d)
once the total unwithdrawn amount of the GEF Trust Fund Grant allocated 
to the eligible, minus the total amount of all outstanding special commitments entered 
into by the Bank pursuant to Section 5.02 of the General Conditions with respect to 
the Project, shall equal the equivalent of twice the amount of the Authorized 
Allocation.
Thereafter, withdrawal from the GEF Trust Fund Grant Account of the remaining 
unwithdrawn amount of the GEF Trust Fund Grant allocated to the eligible Categories 
shall follow such procedures as the Bank shall specify by notice to the Recipient. 
Such further withdrawals shall be made only after and to the extent that the Bank 
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 Bank 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 Bank, the Recipient shall, promptly upon notice from the Bank: (A) provide such 
additional evidence as the Bank may request; or (B) deposit into the Special Account 
(or, if the Bank shall so request, refund to the Bank) an amount equal to the amount 
of such payment or the portion thereof not so eligible or justified. Unless the Bank 
shall otherwise agree, no further deposit by the Bank 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 Bank 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 Bank, refund to the 
Bank such outstanding amount.
(c)
The Recipient may, upon notice to the Bank, refund to the Bank all or any 
portion of the funds on deposit in the Special Account.
(d)
Refunds to the Bank made pursuant to paragraph  6 (a), (b) and (c) of 
this Schedule shall be credited to the GEF Trust Fund Grant Account for subsequent 
withdrawal or for cancellation in accordance with the relevant provisions of this 
Agreement, including the General Conditions.