Page  1
CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF027833
Global Environment Facility
Trust Fund Grant Agreement
(Conservation and Sustainable Use of Medicinal Plants Project)
between
FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
Dated  April 16, 2001
GEF TRUST FUND GRANT NUMBER TF027833
GLOBAL ENVIRONMENT FACILITY
TRUST FUND GRANT AGREEMENT
AGREEMENT, dated April 16, 2001, between FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 
(the Recipient) and 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.
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 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 establishing the GEF Trust Fund which, inter alia, established 
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 Recipient, having satisfied itself as the feasibility and priority of 
the Project described in Schedule 2 to this Agreement, has requested assistance from 
the resources of the GEF Trust Fund in the financing of the Project, and the said 
Page  2
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 the contributions to the GEF Trust Fund 
under Resolution No. 98-2, which may include fund carried over from the first 
replenishment of the GEF Trust Fund under Resolution No. 94-2; 
(E)
the Recipient has also requested the International Development 
Association (the Association) to provide additional financing towards the financing of 
the Project by an agreement of even date herewith between the Recipient and the 
Association, the Association is agreeing to provide such assistance in an aggregate 
principal amount equivalent to two million Special Drawing Rights (SDR 2,000,000) (the 
Credit); 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 October 6, 1999), 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 (2), (3), (6), (8), (9), (10), (15), (16), (17), 
(19) 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), (f), (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;
Page  3
(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; and
(vii)
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."
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)
"BIRR" means the currency of the Borrower;
(b)
"Collaborating Institution" means, in addition to IBCR (as hereinafter 
defined), any of the following: the Department of Drug Research within the Ethiopian 
Health and Nutrition Institute, School of Pharmacy, Faculty of Veterinary Medicine, 
National Herbarium and Department of Biology, Natural Products Chemistry and Faculty 
of Medicine of the Addis Ababa University, Institute of Development Research, Natural 
Products Chemistry, Oromiya Agriculture Bureau, Ethiopian Wildlife Conservation 
Organization, Essential Oils Research Center ESTC and THA;
(c)
"Development Credit Agreement" means the agreement of even date herewith 
between the Recipient and the Association for the Project, as such agreement may be 
amended from time to time; and such term includes the "General Conditions Applicable 
to Development Credit Agreements" of the Association, dated January 1, 1985, (as 
amended through October 6, 1999), as applied to such agreement, and all schedules and 
agreements supplemental to the Development Credit Agreement;
(d)
"EPA" means the Borrower’s Environmental Protection Authority, 
established and operating pursuant to Proclamation No. 9/1995;
(e)
"ESTC" means the Ethiopian Science and Technology Commission, established 
and operating pursuant to Proclamation No. 91/1994;
(f)
"IBCR" means the Borrower’sInstitute of Biodiversity Conservation and 
Research established and operating pursuant to Proclamation No. 120/1998;
(g)
"PCMU" means the Project Coordinating and Monitoring Unit within IBCR 
referred to in paragraph 2 of Schedule 4 to this Agreement;
(h)
"PIC" means the Project Implementation Committee referred to in paragraph 
3 of Schedule 4 to this Agreement;
(i)
"PIM" means the Project Implementation Manual adopted by the Borrower and 
containing, inter alia, guidelines and procedures to be used for the purpose of 
implementation of the Project, including financial, accounting, procurement and 
disbursement procedures, as may be amended from time to time in consultation with the 
Association, and such term includes any schedules to the PIM;
(j)
"PIP" means the Project Implementation Plan referred to in Paragraph 1 of 
Schedule 4 to this Agreement;
(k)
"Project Management Report"” means each report prepared in accordance 
with Section 4.02 (a) of this Agreement;
(l)
"Special Account" means the account referred to in Section 2.02 (b) of 
this Agreement; and
(m)
"THA" means the Traditional Healers Association within the Borrower’s 
territory.
Page  4
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 one million four hundred thousand 
Special Drawing Rights (SDR 1,400,000).
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 the 
Project and to be financed out of the proceeds of the GEF Trust Fund Grant.
(b)
The Recipient may, for the purposes of Part C of the Project, open and 
maintain in Dollars a special deposit account in the National Bank of Ethiopia 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 December 31, 2006 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 
Part C of the Project with due diligence and efficiency and in conformity with 
appropriate administrative, financial, conservation and biodiversity 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. Without limitation upon the provisions of Section 3.01 of this 
Agreement, the Borrower shall:
(a)
open and thereafter maintain, until completion of the Project, an account 
(the Project Account) in the National Bank of Ethiopia and on terms and conditions 
acceptable to the Association;
(b)
deposit into the Project Account an initial amount of $30,000 equivalent, 
the Borrower’s estimated share of counterpart funds for the implementation of Part C 
for the first quarter of Project implementation, as shall be agreed upon by the 
Borrower and the Association and thereafter, at quarterly intervals, deposit into the 
Project Account such amounts as estimated to be required for the ensuing quarter as 
shall be agreed upon between the Borrower and the Association; and
(c)
ensure that the amounts deposited into the Project Account, in accordance 
with paragraphs (a) and (b) of this Section, shall be used exclusively for 
expenditures under the Project and not otherwise financed out of the proceeds of the 
Credit.
Section 3.04. For the purposes of Section 9.08 of the General Conditions and 
without limitation thereto, the Recipient shall:
Page  5
(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 and replicability 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 a financial management system, 
including records and accounts, and prepare financial statements in a format 
acceptable to the Bank, adequate to reflect the operations, resources and expenditures 
related to the Project.
(b)
The Recipient shall:
(i)
have the records, accounts and financial statements referred to in 
paragraph (a) of this Section and the records and accounts for the 
Special Account for each fiscal year audited, in accordance with 
auditing standards acceptable to the Bank, 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, (A) 
certified copies of the financial statements referred to in 
paragraph (a) of this Section for such year as so audited, and (B) 
an opinion on such statements, records and accounts and report of 
such audit, by said auditors, of such scope and in such detail as 
the Bank shall have reasonably requested; and
(iii)
furnish to the Bank such other information concerning such records 
and accounts, and the audit thereof, and concerning said auditors, 
as the Bank may 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 separate 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.
Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this 
Agreement, the Recipient shall carry out a time-bound action plan acceptable to the 
Bank for the strengthening of its financial management system for the Project in order 
to enable the Recipient, not later than 18 months after the Effective Date, or such 
later date as the Bank shall agree, to prepare quarterly Project Management Reports, 
acceptable to the Bank, each of which:
(i)
(A) sets forth actual sources and applications of funds for the 
Project, both cumulatively and for the period covered by said 
Page  6
report, and projected sources and applications of funds for the 
Project for the six-month period following the period covered by 
said report, and (B) shows separately expenditures financed out of 
the proceeds of the GEF Trust Fund Grant during the period covered 
by said report and expenditures proposed to be financed out of the 
proceeds of the GEF Trust Fund Grant during the six-month period 
following the period covered by said report;
(ii)
(A) describes physical progress in Project implementation, both 
cumulatively and for the period covered by said report, and (B) 
explains variances between the actual and previously forecast 
implementation targets; and
(iii)
sets forth the status of procurement under the Project and 
expenditures under contracts financed out of the proceeds of the 
GEF Trust Fund Grant, as at the end of the period covered by said 
report.
(b)
Upon the completion of the action plan referred to in paragraph (a) of 
this Section, the Recipient shall prepare, in accordance with guidelines acceptable to 
the Bank, and furnish to the Bank not later than 45 days after the end of each 
calendar quarter a Project Management Report for such period.
ARTICLE V
Effectiveness; Termination
Section 5.01. The following events are specified as conditions to the 
effectiveness of the GEF Trust Fund Grant within the meaning of Section 12.01 (c) of 
the General Conditions, namely that all conditions precedent to the effectiveness of 
the Development Credit Agreement of even date herewith between the Recipient and the 
Association shall have been fulfilled, except the effectiveness of this Agreement.
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.
Section 5.03. This Agreement shall continue in effect until the GEF Trust Fund 
Grant has been fully disbursed and the parties to this Agreement have fulfilled their 
obligations hereunder.
ARTICLE VI
Representatives of the Recipient; Addresses
Section 6.01. The Minister at the time responsible for finance of the Recipient 
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:
Minister of Finance
Ministry of Finance
P.O. Box 1905
Addis Ababa, Ethiopia
Cable address:
Telex:
Facsimile:
MINFIN
21147
(251-1) 551355
For the Bank:
International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
Page  7
United States of America
Cable address:
Telex:
Facsimile:
INTBAFRAD
248423 (MCI)
(202) 477 6391
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, United States of America, as of the day and year first above 
written.
FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
By /s/ Tadelle Teferra
Authorized Representative
INTERNATIONAL BANK FOR
  RECONSTRUCTION AND DEVELOPMENT
  as an implementing agency of the Global Environment Facility
By /s/ Pamela Cox
Acting Regional Vice President
Africa
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)
Vehicles and
150,000
100% of foreign
equipment
expenditures
85% of local
expenditures
(2)
Consultants’
    1,030,000
100%
services, training
and studies
(3)
Operating costs
 80,000
80%
(4)
Unallocated
      140,000
TOTAL
    1,400,000
2.
For the purposes of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Recipient for goods or services supplied from the 
territory of any country other than that of the Recipient; 
(b)
the term "local expenditures" means expenditures in the currency of the 
Recipient or for goods or services supplied from the territory of the Recipient; and
(c)
"Operating costs" means the expenses incurred on account of Project 
Page  8
implementation, management, monitoring and auditing, including office supplies, 
vehicle and equipment operation, transportation, travel, per diem and supervision 
costs, but excluding salaries of officials of the Recipient’s civil service.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement.
4.
The Bank may require withdrawals from the GEF Trust Fund Grant Account to be 
made on the basis of statements of expenditure for expenditures for goods, operating 
costs, training and consulting firms’ services under contracts costing less than 
$100,00 equivalent, or for individual consultants’ contracts costing less than $50,000 
equivalent, under such terms and conditions as the Bank shall specify by notice to the 
Recipient.
5.
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 objectives of the Project are to initiate support for the conservation, 
management and sustainable utilization of medicinal plants for human and livestock 
healthcare through: (i) strengthening of institutional capacity for the conservation, 
management and sustainable utilization of medicinal plants in the Borrower’s 
territory; (ii) identification and documentation of selected commonly used/indigenous 
medicinal plants used for the treatment of major human diseases with emphasis on the 
following three: tapeworm infections, bronchopneumonia and hypertension, and livestock 
diseases with emphasis on the following three: tapeworm infections, mastitis and 
dermatophilosis; (iii) initiation of studies for the safe utilization of effective 
medicinal plant remedies and the compilation of a medicinal plant database; and (iv) 
promotion of in-situ management and sustainable utilization of medicinal plants in and 
around a site of global significance, the Bale Mountains National Park.
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:
Institutional Strengthening, Human Resource Development and 
Project Monitoring and Evaluation
1.
Strengthening the institutional capacity of IBCR through the provision of 
technical advisory services and training of staff.
2.
Development of the human resource capacity of the Collaborating Institutions for 
implementing activities under the Project.
3.
Establishment of a medicinal plant field gene bank with THA, development of an 
intellectual property rights policy and guidelines for sharing traditional knowledge 
of medicinal plants.
4.
Establishment and operation of PCMU
Part B:
Studies, Research and Database Development
1.
Carrying out studies on methods to collect, analyze and interpret quantitative 
data on the socioeconomic benefits derived from medicinal plants used in human and 
livestock healthcare on a national level.
2.
Carrying out ethnomedical surveys to explore utilization of medicinal plants and 
traditional healthcare practices for the prevention of HIV and mitigation of the 
adverse impact of AIDS.
3.
Carrying out research on propagation and cultivation methods of selected 
indigenous medicinal plants for human and livestock diseases.
4.
Carrying out formulation studies on extraction, standardization, safety and 
efficacy, and dosage testing and formulation of phytomedicines for three human and 
Page  9
three livestock diseases.
5.
Identification, documentation and development of a national database of 
indigenous medicinal plants.
Part C:
In-situ Conservation and Sustainable Use in Bale Mountains 
National Park
1.
Carrying out: (a) a detailed socioeconomic survey to: (i) identify 
villages/users having the greatest impact on wild populations of medicinal plants 
through harvesting and other activities, and (ii) identify villages/farmers for 
on-farm pilot propagation and cultivation trials of medicinal plants to remove 
pressure on wild populations; (b) an in-depth biological survey and assessment of 
in-situ and ex-situ conservation; and (c) zoning of key areas within the Bale Mountain 
National Park and strengthening of its management.
2.
Development and implementation of appropriate management options and guidelines 
for sustainable levels of harvesting of medicinal plants and/or their products, 
including the development of a comprehensive biodiversity monitoring and evaluation 
system through the provision of technical advisory services and training.
3.
Carrying out a monitoring exercise to assess: (a) the impact of harvesting of 
medicinal plants in permit areas; (b) the impact of harvesting guidelines and 
management interventions in the Park; (c) Project interventions in protecting 
threatened/rare medicinal plant species; and (d) market and traditional health 
practitioner surveys to determine levels of use, locally and nationally, of plants 
harvested from the Bale Mountains National Park.
4.
Carrying out pilot farmer-based cultivation trials for a selected number of 
threatened and indigenous species in home gardens and boundary and buffer zones of the 
Bale Mountains National Park to supply local needs and to provide alternative income 
generation.
5.
Provision of training for: (a) park administrative and technical staff in the 
conservation, management and monitoring of medicinal plants within the park and 
adjacent forests; and (b) farmers for pilot propagation and cultivation trials.
6.
Carrying out education and mass awareness campaigns on the relevance of 
conservation and management programs of medicinal plants and their importance to the 
Recipient’s bio-diversity and long-term healthcare needs.
*  *  * 
The Project is expected to be completed by June 30, 2006.
SCHEDULE 3
Procurement and Consultants’ Services
Section I:  Procurement of Good and Works
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, 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 estimated to cost 
equal or more than $100,000 equivalent per contract 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.
National Competitive Bidding
Page  10
Goods or equipment estimated to cost less than $50,000 equivalent per contract, 
up to an aggregate amount not to exceed $600,000 equivalent, may be procured under 
contracts acceptable to the Association and awarded in accordance with the provisions 
of paragraphs 3.3 and 3.4 of the Guidelines
2.
National Shopping
Goods estimated to cost less than $50,000 equivalent per contract, up to an 
aggregate amount not to exceed $300,000 equivalent, over the life of the Project may 
be procured under contracts awarded on the basis of national 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 
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
(a)
With respect to each contract for goods estimated to cost the equivalent 
of $50,000
or more, 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 and equipment estimated to cost 
the equivalent of $50,000 or less, the following procedures shall apply:
(i)
prior to the execution of any contract under National Shopping 
procedures, the Recipient shall provide to the Bank a report on 
the comparison and evaluation of quotations received from at least 
three local suppliers;
(ii)
prior to the execution of any contract procured under National 
Shopping procedures, the Recipient shall provide to the Bank 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 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 and January 1999 (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 shortlist of consultants for services such as technical assistance, studies, 
support for local communities to promote biodiversity conservation, training of 
beneficiaries, public education and awareness activities and the preparation of 
Page  11
technical documents estimated to cost less than $50,000 equivalent per contract, may 
comprise entirely national consultants in accordance with the provisions of paragraph 
2.7 of the Consultant Guidelines.
Part C:
Other Procedures for the Selection of Consultants
1.
Least-Cost Selection
Services for audit and advisory services estimated to cost less than $50,000 
equivalent per contract may be procured under contracts awarded in accordance with the 
provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.
2.
Selection Based on Consultants’ Qualifications
Services for technical and logistical support to producers’ groups for 
propagation and multiplication of cultivation trials of medicinal plants, 
bio-diversity conservation, feasibility studies, and extension, estimated to cost less 
than $50,000 equivalent per contract, may be procured under contracts awarded in 
accordance with the provisions of paragraph 5.1 through 5.3 of the Consultants 
Guidelines. 
3.
Individual Consultants
Services for tasks that meet the requirements set forth in paragraph 5.01 of the 
Consultant Guidelines 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 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 $100,000 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.
(b)
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 the said approval 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.
Except as the Bank shall otherwise agree, the Recipient shall carry out the 
Project in accordance with the provisions of the PIM and PIP. Such PIM and PIP shall 
not be amended or waived, in whole or in part, in a manner which in the opinion of the 
Bank, would materially and adversely affect the execution of the Project or the 
achievement of its objectives.
2.
The Recipient shall establish and maintain, until completion of the Project, a 
PCMU, which will be staffed with a full time Project Coordinator (PC) to coordinate 
Page  12
Project activities. The PC will be assisted by (i) an accounting and disbursement 
specialist, (ii) a monitoring and evaluation specialist, (iii) a procurement 
specialist, and (iv) adequate administrative staff, all with terms of reference and 
qualifications satisfactory to the Bank.
3.
The Recipient shall maintain, until completion of the Project, the PIC to guide 
the PCMU in Project implementation. The PIC shall be chaired by the General Manager of 
IBCR, with the Heads of Departments of Collaborating Institutions and a representative 
from EPA as members.
4.
The Recipient shall :
(a)
maintain policies and procedures adequate to enable it to monitor and 
evaluate on an ongoing basis, in accordance with the 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 Bank, and furnish 
to the Bank, on or about September 30 and March 31, a 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 Bank, by October 31 and April 30, 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.
5.
The Recipient shall: 
(a)
not later than December 31, 2002, carry out jointly with the Bank a 
mid-term review. Such review shall assess the following: (i) the overall progress in 
the implementation of the Project; (ii) the results of the monitoring and evaluation 
activities; and (iii) the replicability of Project activities to other areas of the 
Recipient’s territory;
(b)
three months before such review, prepare and furnish to the Bank, in 
scope and detail satisfactory to the Bank, reports needed to undertake the review, 
including the preparation of a program of action to deal with potential deficiencies 
in the Project implementation identified prior to such review; and
(c)
based on such review, promptly prepare an action plan, satisfactory to 
the Bank, for the further implementation of the Project, and shall thereafter 
implement such action plan.
6.
The Borrower shall appoint and maintain at all times during Project 
implementation a committee of experts with qualifications and experience satisfactory 
to the Association to review the implementation and management of Part C of the 
Project.
SCHEDULE 5
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;
(b)
the term "eligible expenditures" means expenditures in respect of the 
reasonable cost of goods and services required for Part C of 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, provided, however, that unless 
Page  13
the Bank shall otherwise agree, the Authorized Allocation shall be limited to an 
amount equivalent to $100,000 until the aggregate amount of withdrawals from the GEF 
Trust Fund Grant Account plus the total amount of all outstanding special commitments 
entered into by the Bank pursuant to Section 5.02 of the General Conditions shall be 
equal to or exceed the equivalent of SDR 300,000.
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 
Section 6.02 of the General Conditions; or
(d)
once the total unwithdrawn amount of the GEF Trust Fund Grant allocated 
to the eligible Categories, 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 
Page  14
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.