Page 1 CONFORMED COPY GRANT NUMBER H042 - DJI Development Grant Agreement (HIV/AIDS, Malaria and Tuberculosis Control Project) between REPUBLIC OF DJIBOUTI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 25, 2003 Page 2 GRANT NUMBER H042 - DJI DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated June 25, 2003, between REPUBLIC OF DJIBOUTI (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Recipient, having satisfied itself as to the feasibility and priority of the project described in Schedule 2 to this Agreement (the Project), has requested the Association to assist in the financing of the Project; (B) the Association was authorized under Resolution No. 549, adopted on September 29, 2002, by the Board of Governors of the International Bank for Reconstruction and Development (the “Bank”) to use the funds transferred to the Association out of the Bank’s fiscal year 2002 net income to provide financing in the form of grants as well as loans; and (C) the Executive Directors of the Association have determined that the development grant set out in Section 2.01 of this Agreement (the Grant) is consistent with such policies; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the 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. The following provisions of the “General Conditions Applicable to Development Credit Agreements” of the Association, dated January 1, 1985 (as amended through October 6, 1999), with the modifications set forth in paragraph (b) below (the General Conditions), constitute an integral part of this Agreement: (a) (i) Article I; (ii) Sections 2.01 (1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (12), (13) and (14), 2.02 and 2.03; (iii) Section 3.01; (iv) Sections 4.01 and 4.05; Page 3 - 2 - 2 (v) Article V; (vi) Sections 6.01, 6.02, 6.03, 6.04 and 6.06; (vii) Section 8.01 (b); (viii) Article IX; (ix) Article X; (x) Article XI; and (xi) Article XII. (b) The General Conditions shall be modified as follows: The terms “Borrower”, “Credit”, “Credit Account”, “Development Credit” and “Development Credit Agreement”, wherever they appear in the General Conditions, are replaced by “the Recipient”, “the Grant”, “the Grant Account”, “the Development Grant” and “the Development Grant Agreement”, respectively. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) “Advance Account” means a sub-account of the Special Account (as hereinafter defined) referred to in Section 2.02(c) of this Agreement; (b) “CAU” means Credit Administration Unit established by the Recipient to carry out the implementation of Projects financed by donor agencies, and which shall be responsible for the day-to-day implementation of this Project, until the Executive Secretariat (as hereinafter defined) becomes functional; (c) “Community-Based Organization” or “CBO” means a community-based organization, including, inter alia, local community groups, youth clubs, women organizations, associations of people living with HIV/AIDS, non-governmental organizations (NGOs), or religious groups, which has met the eligibility criteria set forth in the Community Intervention Procedures Manual (as hereinafter defined) and, as a result, has received or is entitled to receive a Community Sub-Grant (as hereinafter defined) for the carrying out of a Community Sub-Project (as hereinafter defined); Page 4 - 3 - 3 (d) “Community Intervention Procedures Manual” means the manual to be adopted by the Recipient pursuant to Section 5.01(b) of this Agreement, containing, inter alia, details regarding the categories of Community Sub-Projects (as hereinafter defined), the Community Sub-Project cycle, criteria for selecting Community-Based Organizations for Project activities, model agreement, terms and conditions for Community Sub-Grants (as hereinafter defined), and criteria for monitoring and evaluation activities; (e) “Community Sub-Grant” means a sub-grant made, or proposed to be made, by the Recipient to a Community-Based Organization to finance a Community Sub-Project; (f) “Community Sub-Grant Agreement” means an agreement to be entered into between the Executive Secretariat and a Community-Based Organization with terms and conditions satisfactory to the Association, including those set forth in paragraphs 1, 2 and 3 of Part C of Schedule 4 to this Agreement; (g) “Community Sub-Project” means a specific activity or set of activities financed, or proposed to be financed, through a Community Sub-Grant made under Part D.2 of the Project; (h) “CISU” means the Community Intervention Support Unit referred to in Part C.2 of Schedule 4 to this Agreement; (i) “Executive Secretariat” means the secretariat, referred to in Part A.2 of Schedule 4 to this Agreement, which shall take over, from CAU, the responsibility for the day-to-day implementation of this Project; (j) “Financial Monitoring Report” or “FMR” means each report prepared in accordance with Section 4.02 of this Agreement; (k) “Fiscal Year” or “FY” means the fiscal year of the Recipient commencing on January 1 and ending on December 31 of each year; (l) “Health Sector Development Project” means the Recipients’ Project financed through the Association’s Credit No. 3650-DJ dated August 12, 2002; (m) “Health Care Waste Management Plan” means the Recipient’s plan for Health Care Waste Management, satisfactory to the Association, dated February 28, 2003, which, inter alia: (i) enables the Recipient to assess the Project’s environmental and social impacts; and (ii) where applicable, governs the preparation of environmental management plans and other appropriate mechanisms, satisfactory to the Association, required to prevent, mitigate and monitor any adverse impacts from carrying out the Project. Page 5 - 4 - 4 (n) “HIV/AIDS” means Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome; (o) “Interministerial Committee” means the Interministerial Committee to combat HIV/AIDS, malaria and tuberculosis, established by the Recipient on March 22, 2003, pursuant to its Decree No. 2003-0049/PR/MEF/MS, for the purpose of providing coordination and oversight to the implementation of the National Strategic Plans (as hereinafter defined); (p) “Inter-sectoral Technical Committee” means the technical level inter- sectoral coordination group, including technical representatives from the Recipient’s sectoral ministries, civil society and the private sector, established by the Recipient on March 22, 2003, pursuant to its Decree No. 2003-0049/PR/MEF/MS to assist the Recipient in the carrying out of the Project; (q) “MOH” means the Recipient’s Ministry of Health; (r) “Multi-sectoral Sub-Project” means a specific activity or set of activities financed, or proposed to be financed, through a Multi-sectoral Sub-Grant made under Part C.1 of the Project; (s) “Multi-sectoral Sub-Project Grant” means a sub-grant made, or proposed to be made, by the Recipient through the Executive Secretariat, for the purpose of carrying out a Multi-sectoral Sub-Project; (t) “Multi-sectoral Sub-Project Grant Agreement” means an agreement to be entered into between the Executive Secretariat and a Sectoral Ministry carrying out a Multi-sectoral Sub-Project (the Sectoral Ministry) with terms and conditions satisfactory to the Association, including those set forth in B.1 of Schedule 4 to this Agreement; (u) “National Strategic Plans” means the Recipient’s three different plans including the National Strategic Plan to combat HIV/AIDS/STI, the National Strategic Plan to combat malaria and the National Strategic Plan to combat tuberculosis; (v) “OPS” means Organisme de la protection sociale , a parastatal institution providing basic health services to private sector employees and the public sector contractual employees in the territory of the Recipient; (w) “Performance Indicators” means the indicators described in Schedule 6 to this Agreement; (x) “Project Operations Manual” means the Recipient’s Project Operations Manual to be adopted pursuant to Section 3.04(b) of this Agreement, as amended from time to time with the Association’s agreement, containing, inter alia, details regarding the processes and responsibilities for general management, procurement activities, and Page 6 - 5 - 5 financial management and control, including the terms of reference for internal and external audits and the terms of reference of key personnel; (y) “Project Preparation Advance” means the project preparation advances granted by the Association to the Recipient pursuant to the letter of agreement signed on behalf of the Association on March 14, 2002, and on behalf of the Recipient on March 26, 2002; and the letter of agreement signed on behalf of the Association on December 24, 2002, and on behalf of the Recipient on January 3, 2003; (z) “Special Accounts” means the accounts referred to in Section 2.02(b) of this Agreement; (aa) “STI” means sexually transmitted infections; and (bb) “Supporting Organizations” means the organizations selected in accordance with the Community Intervention Procedures Manual, to assist, train and supervise community interventions under Part D of the Project. ARTICLE II The Grant Section 2.01. The Association agrees to make available to the Recipient, on the terms and conditions set forth or referred to in this Development Grant Agreement, an amount in various currencies equivalent to eight million eight hundred thousand Special Drawing Rights (SDR 8,800,000). 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 for: (i) amounts paid (or if the Association shall so agree, amounts to be paid) on account of withdrawals made under a Community Sub-Project or Multi-sectoral Sub-Project to meet the reasonable cost of goods and services required for such sub-Project in respect of which the withdrawal for the Grant Account is requested; and (ii) expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for carrying out the Project and to be financed out of the proceeds of the Grant. (b) The Recipient may, for the purposes of the Project, open and maintain in dollars two separate special deposit accounts (Special Account A and Special Account B) in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment. Deposits into, and payments out of, the Special Accounts shall be made in accordance with the provisions of Schedule 5 to this Agreement. Page 7 - 6 - 6 (c) The Recipient shall: (i) open and maintain in dollars, in the order of each Sectoral Ministry, an Advance Account out of the Special Account A, in one or more commercial banks acceptable to the Association, on terms and conditions satisfactory to the Association, (including appropriate protection against set-off, seizure or attachment), to be used exclusively for the purposes of financing goods and services under Parts A, B and C of the Project; and (ii) withdraw from the Special Account A and deposit into each Advance Account an amount not exceeding US$50,000 for each of the Sectoral Ministries, with the exception of the Advance Account opened by MOH, wherein the deposit may amount to US$150,000, and thereafter replenish said Advance Accounts in accordance with paragraph 7 of Schedule 5 to this Agreement. (d) Promptly after the Effective Date, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and pay to itself the amount required to repay the principal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the Project Preparation Advance shall thereupon be canceled. Section 2.03. The Closing Date shall be September 30, 2008, or such later date as the Association shall establish. The Association shall promptly notify the Recipient of such later date. Section 2.04. (a) The Recipient shall pay to the Association a commitment charge on the principal amount of the Grant not withdrawn from time to time at a rate to be set by the Association as of June 30 of each year, but not to exceed the rate of one-half of one percent (1/2 of 1%) per annum. (b) The commitment charge shall accrue: (i) from the date sixty days after the date of this Agreement (the accrual date) to the respective dates on which amounts shall be withdrawn by the Recipient from the Grant Account or canceled; and (ii) at the rate set as of the June 30 immediately preceding the accrual date and at such other rates as may be set from time to time thereafter pursuant to paragraph (a) above. The rate set as of June 30 in each year shall be applied from the next date in that year specified in Section 2.05 of this Agreement. (c) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Recipient; and (iii) in the currency specified in this Agreement for Page 8 - 7 - 7 the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.05. (a) Commitment charges shall be payable semiannually on March 15 and September 15 in each year. (b) The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. 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 and in conformity with appropriate health practices, 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 Association 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 Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Association 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 Association, a plan for the future operation of the Project; and (b) afford the Association a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.04. The Recipient shall, no later than December 31, 2003: (a) establish a financial management system for the Project, acceptable to the Association; and (b) adopt the Project Operations Manual, in form and substance satisfactory to the Association. Page 9 - 8 - 8 ARTICLE IV Financial Covenants 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 of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) of this Section including those for the Special Accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning said records and accounts and the audit thereof as the Association 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 expenditures, 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 Association 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 Association’s representatives to examine such records; and Page 10 - 9 - 9 (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 4.02. (a) The Recipient shall prepare and furnish to the Association a financial monitoring report (FMR), in form and substance satisfactory to the Association, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned use of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to the Association not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as additional conditions to the effectiveness of this Development Grant Agreement within the meaning of Section 12.01(b) of the General Conditions: (a) the Recipient has adopted the Community Intervention Procedures Manual, in form and substance satisfactory to the Association; (b) the Recipient has appointed an accountant for CISU, with terms of reference acceptable to the Association; and Page 11 - 10 - 10 (c) the Recipient has finalized the format and the content of the FMR. Section 5.02. 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. ARTICLE VI Representative of the Recipient; Addresses Section 6.01. The Recipient ’s Minister of Economy, Finance and Planning in charge of Privatization is designated as representative of the Recipient for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Recipient: Ministry of Economy, Finance and Planning in charge of Privatization BP 13 Djibouti Facsimile: 253 35 65 01 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: Facsimile: INDEVAS 248423 (MCI) or (202) 477-6391 Washington, D.C. 64145 (MCI) Page 12 - 11 - 11 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, United States of America, as of the day and year first above written. REPUBLIC OF DJIBOUTI By /s/ Robleh Olhaye Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Jean-Louis Sarbib Regional Vice President Middle East and North Africa Page 13 - 12 - 12 SCHEDULE 1 Withdrawal of the Proceeds of the Grant 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Grant, the allocation of the amounts 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 SDR Equivalent ) to be Financed (1) Works 600,000 100% (2) Goods 100% (a) Goods, other than 1,050,000 those in (b), including vehicles (b) Pharmaceuticals 200,000 (3) Consultants’ services 2,950,000 100% including training and audit (4) Multi-sectoral Sub-grants 1,100,000 100% (5) Incremental Operating Costs 1,300,000 100% (6) Community Sub-grants 750,000 100% (7) Refunding of Amount due pursuant Project Preparation 550,000 to Section 2.02(d) of Advance this Agreement (8) Unallocated 300,000 ___________ TOTAL 8,800,000 Page 14 - 13 - 13 2. For the purposes of this Schedule, “Incremental Operating Costs” means the costs incurred by the Executive Secretariat, including incremental staff salaries, office supplies, office rental, printing, and utilities for rented offices, and communications costs, costs for the maintenance of vehicles and equipment, and costs incurred on account of the supervision of the Project, including fuel for supervision and per diem while away on mission. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) payments made for expenditures prior to the date of this Agreement; (b) Community Sub-grants, unless the Community Sub-grant has been made in accordance with the terms and conditions and eligibility criteria set forth in the Community Intervention Procedures Manual, and in Part C.1 and C.2 of Schedule 4 to this Agreement; and (c) Multi-sectoral Sub-grants, unless the Multi-sectoral Sub-grant has been made in accordance with the terms and conditions and eligibility criteria set forth in Part B.1 of Schedule 4 to this Agreement. 4. The Association may require withdrawals from the Grant Account to be made on the basis of statements of expenditure for expenditures for: (i) goods, under contracts costing less than US$100,000 equivalent each; (ii) works, under contracts costing less than US$100,000 equivalent each; (iii) services of consulting firms, under contracts costing less than US$100,000 equivalent each; (iv) services of individual consultants, under contracts costing less than US$50,000 equivalent each; (v) training, under contracts costing less than US$50,000 equivalent each; and (vi) Multi-sectoral Sub-Grants, Community Sub-grants and Incremental Operating Costs; all under such terms and conditions as the Association shall specify by notice to the Recipient. Page 15 - 14 - 14 SCHEDULE 2 Description of the Project The objectives of the Project are: (i) to contribute to bring change in behavior of the population in the Recipient’s territory to contain and reduce the spread of the HIV/AIDS epidemic, and to mitigate the impact of the epidemic on infected and affected persons; and (ii) to assist the Recipient to strengthen its programs for the control of malaria and tuberculosis. The Project consists of the following parts, subject to such modifications thereof as the Recipient and the Association may agree upon from time to time to achieve such objectives: Part A : Capacity Building and Policy Development 1. Strengthening the Recipient’s capacity to cope with the spread of HIV/AIDS, malaria and tuberculosis through the provision of technical advisory services and equipment, and carrying out of works: (a) for the finalization, updating and implementation of the National Strategic Plans; (b) for the preparation and implementation, by public, private and non-governmental institutions, of HIV/AIDS/STI, malaria and tuberculosis prevention and care interventions; (c) for capacity building and training, including on-the-job training for health personnel, advocacy and communication training; (d) for the development and implementation of a national social communication strategy; and (e) for monitoring and evaluation, including behavioral and epidemiological surveillance, operational research, and other monitoring and evaluation activities. 2. Enhancing counseling, voluntary testing, and care and treatment of sero-positive persons, through the rehabilitation and extension of the “Centre Yonis Toussaint ”, and construction of a reference laboratory at the “Hôpital General Peltier ”. Part B : Health Sector Responses to HIV/AIDS/STI, Malaria and Tuberculosis 1. Provision of technical advisory services, equipment and drugs to build on and complement the work to be carried out by MOH under the Health Sector Development Project, and activities related to other reproductive health and communicable diseases currently performed or to be financed by MOH and its sector partners. 2. Provision of technical advisory services, training, drugs, medical consumables and equipment including: (a) the strengthening of the national sentinel epidemiological surveillance system and sero-prevalence surveys; (b) the development of Voluntary Counseling and Testing (VCT) protocols and implementation and monitoring thereof; (c) the implementation of syndromic algorithms for diagnosis and case management of sexually transmitted infections (STI); (d) development and adoption of a protocol for Page 16 - 15 - 15 anti-retro-viral therapy and care; (e) the strengthening of the health system for the diagnostic and treatment of HIV/AIDS/STIs (including opportunistic infections) and, in particular, malaria and tuberculosis; (f) the procurement and distribution of condoms; (g) the strengthening of social communication activities for vulnerable groups in collaboration with other sector partners in the context of the national communication strategy; and (h) acquisition of drugs, test kits, medical consumables, medical equipment and other supplies utilized in the control of malaria and tuberculosis. Part C : Multi-sector Response for HIV/AIDS/STI Prevention and Care 1. Provision of technical advisory services and equipment to facilitate the implementation of the annual action plans and Multi-sectoral Sub-projects deriving therefrom, prepared by the Recipient’s ministries and public agencies (Sectoral Ministries) for, inter alia, the training of peer educators on issues of HIV/AIDS/STIs, promoting the importance of condoms in the fight against HIV/AIDS/STI and their distribution, promotion of counseling and voluntary testing, and different support mechanisms to encourage change in behavior practices, including provision of grants for such Multi-sectoral Sub-projects. 2. Provision of training to staff of the Sectoral Ministries to transfer knowledge to their partners and audiences, including, inter alia, parents-students associations, dockers’ associations, truckers, women’s groups, youth groups, persons in uniform, health committees, commercial sex workers, so as to promote effective HIV/AIDS/STIs prevention, and ensure access to health care facilities, treatment and care. Part D : Support to Community-based Interventions 1. Provision of technical advisory services and equipment for: (a) the promotion and the distribution of condoms; (b) targeted Information, Education and Communication/Communication for Behavior Change campaigns aiming at changing behaviors related to HIV transmission; (c) interventions aiming at improving the status and autonomy of women; (d) psycho-medico-social and economic support and care to people infected and affected with HIV/AIDS; (e) promotion of voluntary counseling and testing (VCT); (f) promotion of prevention of mother-to-child transmission; (g) prevention of malaria; and (h) continued support to tuberculosis patients. 2. Carrying out of Community Sub-projects prepared by CBOs, including provision of grants for the financing of such Community Sub-projects. * * * The Project is expected to be completed by March 31, 2008. Page 17 - 16 - 16 SCHEDULE 3 Procurement Section I . Procurement of Good and Works Part A : General Goods and works 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, September 1997 and January 1999 (the Guidelines) and the following provisions of Section I of this Schedule. Part B : International Competitive Bidding 1. 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. 2. The following provisions shall apply to goods to be procured under contracts awarded in accordance with the provisions of paragraph 1 of this Part B. (a) Grouping of contracts To the extent practicable, contracts for goods and pharmaceuticals, shall be grouped in bid packages estimated to cost $55,000 equivalent or more each. (b) Preference for domestically manufactured goods The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 thereto shall apply to goods manufactured in the territory of the Recipient. Part C : Other Procurement Procedures 1. National Competitive Bidding (a) Goods estimated to cost less than $100,000 equivalent per contract, up to an aggregate amount not to exceed $800,000 equivalent, and all works, may be procured under contracts awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines. Page 18 - 17 - 17 (b) In the carrying out of procurement under the National Competitive Bidding method referred to in (a) above, the Recipient shall ensure that: (i) all bidders are given sufficient time to submit bids (four weeks); (ii) bid evaluation and bidder qualification are clearly specified in bidding documents; (iii) no margin of preference is granted to domestic contractors and manufacturers; (iv) no bid is rejected during bid opening; (v) eligible firms are not precluded from participation; (vi) award is made to the lowest evaluated bidder that meets the appropriate standards of capability and resources in accordance with predetermined criteria specified in the bidding documents; (vii) enterprises owned by the Recipient shall be allowed to participate only if they can establish that they: (A) are legally and financially autonomous; and (B) operate under commercial law; provided that no dependent agency of the Recipient or Sub-Recipient of the Project or their employees shall be permitted to submit or participate in a proposal for the provision of consulting services under the Project; (viii) bids are allowed to be submitted by mail or directly to the Client before bid submission deadline; (ix) bid envelopes are opened in public, opening time being the same as the bid submission deadline, or immediately thereafter, and time and place of bid opening being clearly announced in the bidding documents; and (x) in the case that a two-envelop system is applied, the two envelopes shall be opened simultaneously. 2. International or National Shopping Goods estimated to cost less than US$40,000 equivalent per contract, up to an aggregate amount not to exceed US$400,000 equivalent, may be procured under contracts awarded on the basis of international or national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement from United Nations’ Agencies Pharmaceutical products, condoms, medical equipment, impregnated bednets, World Health Organization (WHO) approved insecticides and sprayers, vehicles and food supplies, up to an aggregate amount not to exceed US$500,000, may be procured from the Inter-Agency Procurement Services Office (IAPSO), the United Nations International Children’s Emergency Fund (UNICEF), the United Nations World Food Program (WFP), and the WHO in accordance with the provisions of paragraph 3.9 of the Guidelines. 4. Community Participation Goods required for Parts D.2 of the Project shall be procured in accordance with procedures acceptable to the Association, in accordance with the Community Intervention Procedures Manual. Page 19 - 18 - 18 Part D : Review by the Association of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Association for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Association, and with the provisions of said paragraph 1. 2. Prior Review (a) With respect to each contract for goods estimated to cost the equivalent of US$80,000 or more, all contracts for works, the first three contracts for the first year of the Project and all subsequent contracts awarded on the basis of international competitive bidding method, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply. (b) With respect to each contract for goods estimated to cost the equivalent of US$40,000 or more, the following procedures shall apply: (i) prior to the selection of any supplier under shopping procedures, the Recipient shall provide to the Association a report on the comparison and evaluation of quotations received; (ii) prior to the execution of any contract procured under shopping procedures, the Recipient shall provide to the Association a copy of the specifications and the draft contract; and (iii) the procedures set forth in paragraphs 2(f), 2(g) 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 Sections I and IV of the “Guidelines: Selection and Employment of Consultants by World Bank Borrowers”, published by the Bank in January 1997 and revised in Page 20 - 19 - 19 September 1997, January 1999 and May 2002 (the Consultant Guidelines), paragraph 1 of Appendix 1 thereto, Appendix 2 thereto and the following provisions of Section II of this Section. 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, and the provisions of paragraphs 2.13 through 2.18 thereof applicable to quality- and cost-based selection of consultants. 2. The following provision 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 for training and specialized tasks including monitoring and evaluation, social communication, design of condom distribution strategy, estimated to cost less than US$25,000 equivalent per contract, may comprise entirely national consultants in accordance with the provisions of paragraph 2.7 and footnote 8 of the Consultant Guidelines. Part C : Other Procedures for the Selection of Consultants 1. Selection Based on Consultants’ Qualifications Services estimated to cost less than US$50,000 equivalent per contract, up to an aggregate amount not to exceed US$500,000, may be procured under contracts awarded in accordance with the provisions of paragraphs 3.1 and 3.7 of the Consultant Guidelines. 2. Single Source Selection (a) Services for small assignments, which are estimated to cost less than $5,000 equivalent per contract, may, with the Association’s prior agreement, be procured in accordance with the provisions of paragraphs 3.8 through 3.11 of the Consultant Guidelines. (b) Services for the production and diffusion of educational material, certain specialized training and the delegated contract for the management and supervision of civil works, which are estimated to cost less than US$150,000 equivalent per contract, may, with the Association’s prior agreement, be procured in accordance with the provisions of paragraphs 3.8 through 3.11 of the Consultant Guidelines. Page 21 - 20 - 20 3. Agreement between the Recipient and WHO The Agreement between the Recipient and WHO (the Protocole d’Accord) for the provision of certain services relating to Parts A and B of the Project, estimated to cost less than US$400,000 may be procured in accordance with the provision of paragraph 3.13 of the Consultant Guidelines. 4. Individual Consultants Services of individual consultants for tasks that meet the requirements set forth in paragraph 5.1 of the Consultant Guidelines shall be procured under contracts awarded in accordance with the provisions of paragraphs 5.1 through 5.4 of the Consultant Guidelines. Part D : Review by the Association of the Selection of Consultants 1. Selection Planning A plan for the selection of consultants, which shall include contract cost estimates, contract packaging, and applicable selection criteria and procedures, shall be furnished to the Association for its review and approval prior to the issuance to consultants of any requests for proposals. Such plan shall be updated every six months during the execution of the Project, and each such updating shall be furnished to the Association for its review and approval. Selection of all consultants’ services shall be undertaken in accordance with such selection plan (as updated from time to time) as shall have been approved by the Association. 2. Prior Review (a) With respect to each contract for the employment of consulting firms estimated to cost the equivalent of US$100,000 or more, the first three contracts for the employment of consulting firms regardless of size, and all contracts awarded on the basis of single source selection method, the procedures set forth in paragraphs 2, 3 and 5 of Appendix 1 to the Consultant Guidelines shall apply. (b) With respect to each contract for the employment of consulting firms estimated to cost the equivalent of US$50,000 or more, but less than the equivalent of US$100,000, the procedures set forth in paragraphs 1, 2 (other than the second sub- paragraph 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 to be selected on a sole source basis, or estimated to cost the equivalent of US$50,000 or more, the report on the comparison of the qualifications and experience of candidates, the qualifications, experience, terms of reference and terms of employment of Page 22 - 21 - 21 the consultants shall be furnished to the Association for its prior review and approval. The contract shall be awarded only after the said approval shall have been given. The provisions of paragraph 3 of Appendix 1 to the Consultant Guidelines shall also apply to such contracts. 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 Consultant Guidelines shall apply. Page 23 - 22 - 22 SCHEDULE 4 Implementation Program A. General 1. Without limitation upon the specific provisions of this Agreement, the Recipient shall carry out the Project in accordance with the Project Operations Manual and the Health Care Waste Management Plan, and except as the Association shall otherwise agree, the Recipient shall not amend or waive any provision thereof if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the implementation of the Project. 2. The Recipient shall cause an Executive Secretariat, as set forth by the Decree 2003-0049/PR/MEF/MS, dated March 22, 2003, providing for an institutional framework to combat AIDS, Malaria and Tuberculosis (the Executive Secretariat), to be responsible: (i) for overall management, implementation, and coordination activities, and to support the ministries, public agencies and civil society organizations to implement the different Project activities on a daily basis; (ii) for ensuring that the action plans prepared by the sectoral ministries involved in the Project are in line with the HIV/AIDS/STI National Strategic Plan and are carried out within the allocated budget; and (iii) for appointing and supervising the community interventions and the supporting organizations. 3. The Recipient shall cause the Executive Secretariat to carry out Part D.2 of the Project with assistance from the supporting organizations selected in accordance with the provision of the Community Intervention Procedures Manual. 4. The Recipient shall: (i) maintain, until the completion of the Project, all key-staff of the Executive Secretariat, including, inter alia, its Executive Secretary, the Chief of the Financial and Administrative Unit and its Accountant, the Procurement Specialist, the Communications Specialist, and the Chief of the CISU and its Accountant; and (ii) ensure that all other staff in charge directly or indirectly of the implementation of any parts of the Project, shall be, at all times, satisfactory to the Association. 5. The Recipient shall cause the Executive Secretariat to: (i) establish, in collaboration with the Sectoral Ministries an annual work program and budget, in conformity with the provisions of the Project Operations Manual, organize annual regional workshops to establish priorities and develop an annual work plan for communities in conformity with the provisions of the Community Intervention Procedures Manual; (ii) no later than November 30 of each year, furnish to the Association, such annual work program and budget including details on the activities and the funds required for the following year; and (iii) prepare and furnish to the Association, a semiannual progress report, by no later than March 31, for the period covering the second semester of the preceding year, and, by no later than September 30, for the period covering the first semester of the current calendar year. Page 24 - 23 - 23 6. The Recipient shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with Performance Indicators set forth in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Association, and furnish to the Association, on or about September 30, 2006, a mid-term report integrating 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 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 Association, by November 30, 2006, or such later date as the Association 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 Association’s views on the matter. B. Procedures, Terms and Conditions for Multi-sectoral Sub-Projects 1. A Multi-sectoral Sub-Grant for each Multi-sectoral Sub-Project to be made under Part C.2 of the Project shall be made by the Recipient, only: (a) for a Sectoral Ministry of the Recipient if such Sectoral Ministry has established, to the satisfaction of the Executive Secretariat, and on the basis of guidelines acceptable to the Association, that it has prepared an acceptable annual plan and budget for the carrying out of said Multi-sectoral Sub-Project; (b) if such Multi-sectoral Sub-Projects: (i) are technically feasible and cost effective, and designed in accordance with appropriate environmental and health standards; and (ii) have been reviewed and approved by the Association; and (iii) are consistent with the Recipient’s HIV/AIDS/STI National Strategic Plan; and (c) if a Multi-sectoral Sub-Project Grant Agreement between the Executive Secretariat and the Sectoral Ministry carrying out a Multi-sectoral Sub-Project has been entered into, in form and substance acceptable to the Association, and is consistent with the Project Operations Manual. Page 25 - 24 - 24 C. Procedures, Terms and Conditions for Community Sub-Projects 1. Without limitation upon the specific provisions of this Agreement, the Recipient shall carry out Part D.2 of the Project in accordance with the Community Intervention Procedures Manual, and except as the Association shall otherwise agree, the Recipient shall not amend or waive any provision thereof if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the implementation of Part D.2 of the Project. 2. The Recipient shall establish and maintain, until the completion of the Project, a CISU to be responsible for channeling Community Sub-grant funds for the purpose of carrying out Community Sub-projects. 3. A Community Sub-Grant for each Community Sub-Project to be made under Part D.2 of the Project shall be made by the Recipient, through CISU, only: (a) to a CBO if that entity has established, to the satisfaction of the Executive Secretariat, and in accordance with the Community Intervention Procedures Manual, that it has the organization, management, staffing and other resources required for the efficient carrying out of the Community Sub-Project, and has prepared an acceptable plan for the carrying out of said Community Sub-Project; and (b) for Community Sub-Projects that are: (i) technically feasible and cost effective, and designed in accordance with appropriate environmental and health standards; and (ii) consistent with the Recipient’s annual work program and budget. 4. All Community Sub-Grants shall be made only upon such terms and conditions under which the Recipient, shall obtain, through a Community Sub-Grant Agreement, rights adequate and appropriate to protect the interests of the Association and the Recipient. These rights shall, among other things: (a) require the CBO, which receives a Community Sub-Grant, to carry out and operate the Community Sub-project with due diligence and efficiency, in accordance with sound educational, technical, financial and managerial standards, and pursuant to the environmental, social and other principles, measures, procedures and guidelines set out in the Community Intervention Procedures Manual; (b) require the CBO to maintain policies, procedures and records adequate for: (i) the carrying out of the Community Sub-Project and the achievement of the objectives thereof; and (ii) the monitoring and evaluation on an ongoing basis, in accordance with indicators set forth in the Community Sub-Grant Agreement, of the carrying out of the Community Sub-Project; (c) require that: (i) the goods and services to be financed out of the proceeds of the Community Sub-Grant shall be procured in accordance with the provisions of Page 26 - 25 - 25 Schedule 3 to this Agreement; and (ii) such goods and services shall be used exclusively in the carrying out of the Community Sub-Project; (d) obtain all such information, as the Association and/or the Recipient shall reasonably request relating to the foregoing and to the benefits to be derived from the Community Sub-Project; (e) inspect, by itself or jointly with representatives of the Association, if the Association shall so request, the goods financed under the Community Sub-Project, the operation thereof, and any relevant records and documents related thereto; and (f) suspend or terminate the right of the CBO to the use of the proceeds of the Community Sub-Grant upon failure by the CBO to perform its obligations under its agreement related to the Community Sub-Grant. 5. The Recipient shall employ, in accordance with the provisions of the Community Intervention Procedures Manual, an adequate number of support organizations for assisting, training and supervising CBOs, under a lump-sum agreement between the Executive Secretariat and the Supporting Organization. Page 27 - 26 - 26 SCHEDULE 5 Special Accounts 1. For the purposes of this Schedule: (a) the term “eligible Categories” means Categories (1) through (5) set forth in the table in paragraph 1 of Schedule 1 to this Agreement in respect of Special Account A; and Category (6) set forth in said table in respect of Special Account B; (b) the term “eligible expenditures” means expenditures in respect of the reasonable cost of goods, works and services required for the Project and to be financed out of the proceeds of the Financing 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 US$1,000,000 in respect of the Special Account A and an amount equivalent to $250,000 in respect of the Special Account B, to be withdrawn from the Grant Account and deposited into the Special Accounts pursuant to paragraph 3(a) of this Schedule, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to US$700,000 in respect of the Special Account A and an amount equivalent to US$150,000 in respect of the Special Account B, until: (i) in respect of the Special Account A, the aggregate amount of withdrawals from the Grant Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 2,200,000; and (ii) in respect of the Special Account B, the aggregate amount of withdrawals from the Grant Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 450,000. 2. Payments out of the respective Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Association has received evidence satisfactory to it that the respective Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the respective Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Association a request or requests for deposit into the respective 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 Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the respective Special Account such amount or amounts as the Recipient shall have requested. Page 28 - 27 - 27 (b) (i) For replenishment of the respective Special Account, the Recipient shall furnish to the Association requests for deposits into the respective Special Account at such intervals as the Association shall specify. (ii) Prior to or at the time of each such request, the Recipient shall furnish to the Association 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 Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the respective 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 respective Special Account for eligible expenditures. All such deposits shall be withdrawn by the Association from the 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 respective Special Account, the Recipient shall, at such time as the Association shall reasonably request, furnish to the Association 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 Association shall not be required to make further deposits into any Special Account: (a) if, at any time, the Association 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 Association, 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 Association pursuant to said Section in respect of the audit of the records and accounts for the Special Accounts; (c) if, at any time, the Association 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 Grant Account pursuant to the provisions of Section 6.02 of the General Conditions; or Page 29 - 28 - 28 (d) once the total unwithdrawn amount of the Grant allocated to the eligible Categories, minus the total amount of all outstanding special commitments entered into by the Association 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 Grant Account of the remaining unwithdrawn amount of the Grant allocated to the eligible Categories shall follow such procedures as the Association shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the respective Special Account as of the date of such notice will be utilized in making payments for eligible expenditures. 6. (a) If the Association shall have determined at any time that any payment out of any 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 Association, the Recipient shall, promptly upon notice from the Association: (A) provide such additional evidence as the Association may request; or (B) deposit into the respective Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment or the portion thereof not eligible or justified. Unless the Association shall otherwise agree, no further deposit by the Association into any 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 Association shall have determined at any time that any amount outstanding in any Special Account will not be required to cover further payments for eligible expenditures, the Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Accounts. (d) Refunds to the Association made pursuant to paragraphs 6(a), (b) and (c) of this Schedule shall be credited to the Grant Account, as the case may be, for subsequent withdrawal or for cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions. 7. (a) The Recipient shall withdraw from the Special Account A and deposit into each Advance Account funds to assist the beneficiary of such account to pay for goods and services under the Project. Such withdrawals and deposits shall be in amounts sufficient to assist each beneficiary, to pay for such goods and services in due course, provided that at no time shall the Recipient cause the amount held in any Advance Account to exceed the equivalent of U$50,000 each, with the exception of the Advance Account opened by MOH, wherein the deposit may amount to U$150,000. Page 30 - 29 - 29 (b) Payments out of Advance Accounts shall only be made for eligible expenditures in respect of Categories (2) to (5) set forth in the table in paragraph 1 of Schedule 1 to this Agreement. (c) Any withdrawal from any Advance Account must be justified to the Recipient by the same documentation and other evidence regarding eligible expenditures provided for under paragraph 3 of this Schedule. (d) If the Association or the Recipient shall have determined at any time that any amount outstanding in any Advance Accounts will not be required to cover further payments for eligible expenditures, the beneficiary of such Advance Account shall, promptly upon notice from the Association or the Recipient, refund to the Special Account such outstanding amount. Page 31 - 30 - 30 SCHEDULE 6 Performance Indicators Unless otherwise agreed between the Recipient and the Association, the following performance indicators shall be used to measure the achievement of the Project: Outcome Indicators 1. By the completion of the Project, 50% of persons in high-risk groups (persons in uniform, commercial sex workers (CSW) and dockers) will have used a condom during their last non-union sexual encounter (present rate of use is 20%); 2. By the completion of the Project, 90% of the population of Djibouti aged 15 to 49 will be able to identify at least three methods of protection against HIV/AIDS (present percentage is 53%); 3. By the completion of the Project, 50% of women attending prenatal consultations in centers offering VCT will accept voluntary testing for HIV (at present voluntary testing is not offered to pregnant women, it will start to be offered in mid- 2003); 4. By the completion of the Project, HIV prevalence rate among 15-24 year-old pregnant women will be decreased from 2.7% to 2.0%. 5. By the completion of the Project, STI prevalence rate among pregnant women decreased by 25%. (The baseline survey will be carried out in September 2003, in the sentinel sites). 6. By the completion of the Project, the rate of “lost cases” of TB will be reduced from 24% to 15% nationally. 7. By the completion of the Project, hospital mortality due to malaria will be reduced by 50%. (Baseline data will be based on the National Malaria Program Report for 2002). 8. By the completion of the Project, at least 15,000 households will be using impregnated bednets. Page 32 - 31 - 31 Process Indicators 1. By December 31, 2004, five of the eleven ministries represented in the Interministerial Committee, by December 31, 2006, eight of the ministries, and by the completion of the Project, all 11 ministries, will be implementing the agreed HIV/AIDS action plans. 2. By the completion of the Project, 12 of the 14 centers which currently provide prenatal consultations will be providing VCT services for HIV. 3. By the completion of the Project, at least 2000 persons living with HIV/AIDS (PLWHAs) will be using counseling, testing care and treatment services (in hospital and/or on ambulatory basis,) delivered in accordance with established national protocols. 4. By December 31, 2005, and by December 31, 2007, disbursement for community interventions will reach at least 50% and 85% of budgeted levels for these interventions respectively. 5. By the completion of the Project, 85% of the population of the vulnerable groups (commercial sex workers, dockers, youth, persons in uniform) will have been reached through Information, Education and Communication (IEC)/Communication for Behavior Change (CBC) programs on HIV/AIDS. 6. By the completion of the Project, 60% of the households including declared infected persons who are under treatment, will be receiving socio-economic aid (social package). 7. By December 31, 2004, at least five sentinel sites for the epidemiological surveillance of HIV/AIDS will be functional, and will remain so until the completion of the Project. 8. By December 31, 2005, the services of TB screening treatment and follow-up of cases will be established in five centers at the periphery and these services will remain functional until the completion of the Project. 9. By the completion of the Project, at least 20 community sub-projects will include malaria control aspects (i.e., biological larva control and promotion and use of impregnated bednets, etc).