Page  1
CONFORMED COPY
TRUST FUND GRANT NUMBER 028322-SA
Global Environment Facility
Trust Fund Grant Agreement
(Cape Peninsula Biodiversity Conservation Project)
between
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
and
WORLD WIDE FUND FOR NATURE - SOUTH AFRICA
Dated  March 2, 1998
GEF TRUST FUND GRANT NUMBER 028322- SA
GLOBAL ENVIRONMENT FACILITY 
TRUST FUND GRANT AGREEMENT
AGREEMENT, dated March 2, 1998, between INTERNATIONAL BANK FOR 
Page  2
RECONSTRUCTION AND DEVELOPMENT (the Bank), acting as an implementing agency of 
the Global Environment Facility (GEF) in respect of grant funds provided to the GEF Trust Fund 
by certain members of the Bank as participants of the GEF, and WORLD WIDE FUND FOR 
NATURE - SOUTH AFRICA (the Recipient) a corporate body established and operating under 
the laws of the Republic of South Africa (South Africa);
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 are 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;
(C)
the Recipient and South Africa having satisfied themselves as to the feasibility 
and priority of the Project described in Schedule 2 to this Agreement, have requested assistance 
from the resources of the GEF Trust Fund in the financing of Parts B and C of the Project, and 
the Bank has determined that such assistance would be in accordance with the provisions of 
Resolution No. 94-2 referred to above;
(D)
South Africa, through its letter of even date herewith, has agreed that the 
resources of the GEF Trust Fund approved for the financing of Parts B and C of the Project be 
provided directly to the Recipient under the terms and conditions set forth in this Agreement and 
declaring, inter alia, that South Africa shall take all action necessary for the Recipient to carry 
out its obligations under this Agreement;
(E)
South Africa has also requested additional assistance from the resources of the 
GEF Trust Fund and by a GEF Trust Fund Grant Agreement of even date herewith, between the 
Bank and the South African National Parks (SANP) (the SANP GEF Trust Fund Grant 
Agreement), the Bank has agreed to make available to SANP, a GEF Trust Fund Grant in an 
amount equivalent to four million seven hundred thousand Special Drawing Rights (SDR 
4,700,000) to assist in financing Part A of the Project on the terms and conditions set forth in 
such agreement; 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 
and the SANP GEF Trust Fund Grant 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 of the Bank, dated January 1, 1985, with the modifications set forth 
in paragraph (b) of this Section (the General Conditions) constitute an integral part of this 
Page  3
Agreement:
(i)
Article I;
(ii)
Sections 2.01 (1), (2), (3), (4), (6), (8), (9), (10), (11), (15), (18) and 
(20), 2.02 and 2.03;
(iii)
Section 3.01;
(iv)
Section 4.01 and the first sentence of Section 4.09;
(v)
Article V;
(vi)
Sections 6.01, 6.02, (c), (e), (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; and
(x)
Article XI; and 
(xi)
Section 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;
(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;
Page  4
(vii)
The second sentence of Section 5.01 is modified to read: “Except as the 
Bank and the Borrower shall otherwise agree, no withdrawals shall be 
made: (a) on account of expenditures in the territories of any country 
which is not a member of the Bank or for goods produced in, or services 
supplied from, such territories; or (b) for the purpose of any payment to 
persons or entities, or for any import of goods, if such payment or 
import, to the knowledge of the Bank, is prohibited by a decision of the 
United Nations Security Council taken under Chapter VII of the Charter 
of the United Nations.”;
(viii)
a new subparagraph is added after subparagraph (j) in Section 6.02 of 
the General Conditions, as follows: “an extraordinary situation shall 
have arisen in which any further disbursement under the GEF Trust Fund 
Grant would exceed the resources available for disbursement from the 
GEF.”;
(ix)
the first sentence of Section 10.01 is deleted; and
(x)
Section 10.04 is amended to read: “Any dispute arising out of or relating 
to this Agreement which is not settled by agreement of the parties shall 
be finally settled by arbitration in accordance with the UNCITRAL 
Arbitration Rules in force on the  date of this Agreement. the place of 
Arbitration shall be Washington D.C. In the event of a conflict between 
the UNCITRAL arbitration rules and the terms of this Agreement, the 
terms of this Agreement shall govern.”
Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, 
the several terms defined in the General Conditions and in the Recitals to this Agreement have 
the respective meanings therein set forth and the following additional terms have the following 
meanings:
(a)
“Beneficiary” means any entity which proposes to carry out a Subproject and 
shall have entered into a Subproject Agreement with TMF (as hereinafter defined);
(b)
“Board of Trustees” means the Trustees for the TMF (as hereinafter defined) 
appointed pursuant to the Trust Deed;
(c)
“Cape Floral Kingdom” means the bio-geographical region, mainly located 
within the boundaries of the Western Cape Province of South Africa, which includes “fynbos” 
and allied ecosystems;
(d)
“CPNP” means the Cape Peninsula National Park, to be established by South 
Africa, pursuant to the National Parks Act, No. 57 of 1976 of South Africa, as provided for in 
Section 7.01 (a) of the SANP GEF Trust Fund Grant Agreement;
(e)
“Operational Manual” means the Operational Manual for the TMF (as 
hereinafter defined), to be adopted by the Board of Trustees for preparing, appraising, 
processing, approving, financing, implementing and monitoring Subprojects, and including, inter 
alia, the eligibility criteria for financing Subprojects using the proceeds of the GEF Trust Fund 
Page  5
Grant;
(f)
“PAG” means the Recipient’s Project Approval Group, comprised of staff, 
outside specialists and community representatives.
(g)
“Subproject” means a project, prepared and selected in accordance with the 
Operational Manual, and approved by PAG in accordance with the policies of the Board of 
Trustees, consisting of conservation activities in the Cape Peninsula and the Cape Floral 
Kingdom;
(h)
“Subproject Agreement” means the contractual agreement between the Recipient 
and the Beneficiaries;
(i)
“TMF” means the Table Mountain Fund established by the Recipient, pursuant 
to the Trust Deed (as hereinafter defined) referred to in Section 7.01 (b) of this Agreement, for 
conservation activities in the Cape Peninsula and the Cape Floral Kingdom; 
(j)
“TMFCC” means the TMF Conservation Coordinator appointed by the 
Recipient, pursuant to paragraph 5 (a) of Schedule 4 to this Agreement to assist the Trustees of 
the TMF; and 
(k)
“Trust Deed” means the deed referred to in Section 7.01 (b) of this Agreement 
establishing TMF executed in Cape Town, South Africa, pursuant to the Trust Property Control 
Act, No. 57 of 1988, of the laws of South Africa.
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 four million four hundred thousand Special Drawing Rights 
(SDR 4,400,000).
Section 2.02. 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: (a) expenditures in respect of the contributions to be made to TMF’s capital fund, the 
investment income of which shall be used for the execution of Part C of the Project; and (b) 
expenditures made (or if the Bank shall so agree, to be made) in respect of the reasonable cost of 
services required for Part B of the Project and to be financed out the proceeds of the Grant.
Section 2.03. The Closing Date shall be June 30, 2004, 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 
Page  6
as set forth in Schedule 2 to this Agreement and, to this end, shall carry out Parts B and C of the 
Project with due diligence and efficiency, in conformity with appropriate financial and 
administrative practices, with due regard to ecological and environmental factors and consistent 
with the provisions of the Trust Deed, 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 Parts B 
and C of 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 consultants’ 
services required for Parts B and C of the Project and to be financed out of the proceeds of the 
GEF Trust Fund Grant shall be governed by the provisions of Schedule 3 to this Agreement.
Section 3.03. For the purposes of Section 9.08 of the General Conditions and without 
limitation thereto, the Recipient shall:
(a)
prepare, on the basis of guidelines acceptable to the Bank, and furnish to the 
Bank not later than six months after the Closing Date or such later date as may be agreed for this 
purpose between the Recipient and the Bank, a plan to ensure the sustainability of the Project; 
and
(b)
afford the Bank a reasonable opportunity to exchange views with the Recipient 
on said plan.
ARTICLE IV
Financial Conditions
Section 4.01. (a) The Recipient shall maintain or cause to be maintained records and 
accounts adequate to reflect in accordance with sound accounting practices the operations, 
resources and expenditures in respect of Parts B and C of the Project and to register separately 
the operations, resources and expenditures related to the Project.
(b)
The Recipient shall:
(i)
have the records and accounts referred to in paragraph (a) of this Section 
for each fiscal year audited, in accordance with appropriate auditing 
principles consistently applied, by independent auditors acceptable to the 
Bank;
(ii)
furnish to the Bank as soon as available, but in any case not later than six 
months after the end of each such year, the report of such audit by said 
auditors, of such scope and in such detail as the Bank shall have 
reasonably requested; and
(iii)
furnish to the Bank such other information concerning said records and 
accounts and the audit thereof as the Bank shall from time to time 
Page  7
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, in accordance with paragraph (a) of this Section, records and 
accounts reflecting such expenditures;
(ii)
retain, until at least one year after the Bank has received the audit report 
for the fiscal year in which the last withdrawal from the GEF Trust Fund 
Grant Account was made, all records (contracts, orders, invoices, bills, 
receipts and other documents) evidencing such expenditures;
(iii)
enable the Bank’s representatives to examine such records; and
(iv)
ensure that such records and accounts are included in the annual audit 
referred to in paragraph (b) of this Section and that the report of such 
audit contains a separate opinion by said auditors as to whether the 
statements of expenditure submitted during such fiscal year, together 
with the procedures and internal controls involved in their preparation, 
can be relied upon to support the related withdrawals.
ARTICLE V
Other Covenants
Section 5.01. The Recipient shall carry on its business and operations, and otherwise 
conduct all its affairs, in accordance with sound professional, administrative, biodiversity 
protection, cultural, ecological, and financial principles and in accordance with appropriate 
safety, health and environmental standards, acceptable to the Bank, and at all times under the 
supervision of qualified and experienced management assisted by competent staff.
Section 5.02. The Recipient shall take out and maintain with responsible insurers, or 
make other provisions acceptable to the Bank, for insurance against such risks and in such 
amounts as shall be consistent with reasonable practice to carry out its obligations under this 
Agreement.
Section 5.03. The Recipient shall promptly take all measures necessary to acquire, 
maintain, renew and otherwise exercise all rights, powers, privileges, registrations and franchises 
required for the proper conduct of its business and operations, and otherwise for its proper 
carrying out of all its obligations under this Agreement.
Section 5.04. The Bank is not an agent of or trustee for the Recipient and shall not have 
any fiduciary duty toward, or relationship with, the Recipient.
ARTICLE VI
Remedies of the Bank
Page  8
Section 6.01. Pursuant to Section 6.02 (k) of the General Conditions, the following 
additional events are specified.
(a)
South Africa or any other authority having jurisdiction over the Recipient shall 
have taken any action for the dissolution or disestablishment of the Recipient, or for the 
suspension of any of its operations so as to affect materially and adversely its ability to perform 
any of its obligations under this Agreement or otherwise carry out its respective parts of the 
Project, or any part thereof;
(b)
South Africa or any other authority shall have taken any action, including the 
enactment or issuance of legislation or regulations, which, in the opinion of the Bank, may 
adversely affect, prevent, or interfere with, the carrying out of Parts B and C of the Project or the 
performance by the Recipient of any of its obligations under this Agreement;
(c)
the Trust Property Control Act, No. 57 of 1988, shall have been amended, 
suspended, abrogated, repealed, or waived so as to affect materially and adversely the carrying 
out of Parts B and C of the Project, or any part thereof;
(d)
the Recipient shall have become unable to pay its debts as they mature or any 
action or proceeding shall have been taken by the Recipient or by others whereby any of the 
assets of the Recipient shall or may be distributed among its creditors;
(e)
South Africa: (i) shall have been suspended from membership in or ceased to be 
a
member of the Bank; or (ii) shall have ceased to be a member of the International Monetary 
Fund; or
(f)
the Trust Deed shall have been amended, suspended, abrogated, repealed, or 
waived so as to affect materially and adversely the ability of the Recipient to perform any of its 
obligations under this Agreement.
ARTICLE VII
Effectiveness, Termination
Section 7.01. The following events are specified as additional conditions to the 
effectiveness of the GEF Trust Fund Grant within the meaning of Section 12.01 (c) of the 
General Conditions:
(a)
that all conditions precedent to the effectiveness of the SANP GEF Trust Fund 
Grant Agreement have been fulfilled, other than those related to the effectiveness of this 
Agreement; and
(b)
the Recipient has executed the Trust Deed.
Section 7.02. The date ninety (90) days after the date of this Agreement is hereby 
specified for the purposes of Section 12.04 of the General Conditions.
Section 7.03. This Agreement shall continue in effect until the GEF Trust Fund Grant 
has been fully disbursed and the parties to this Agreement have fulfilled all their obligations 
Page  9
hereunder.
ARTICLE VIII
Representatives of the Recipient; Addresses
Section 8.01. The Chief Executive Officer of the Recipient is designated as 
representative of the Recipient for the purposes of Section 11.03 of the General Conditions.
Section 8.02 The following addresses are specified for the purposes of Section 11.01 of 
the General Conditions:
For the Recipient:
World Wide Fund For Nature - South Africa
P.O. Box 456
116 Dorp Street
Stellenbosch 7599
South Africa
For the Bank:
International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INTBAFRAD
248423 (MCI)
Washington, D.C.
64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in the District 
of Columbia, as of the day and year first above written.
INTERNATIONAL BANK FOR
  RECONSTRUCTION AND DEVELOPMENT
  as an implementing agency of the Global Environment Facility
By /s/ Callisto Madavo
Page  10
Regional Vice President
Africa
WORLD WIDE FUND FOR NATURE - SOUTH AFRICA
By /s/ Rodney Wagner
Authorized Representative
SCHEDULE 1
Withdrawal of the Proceeds of the GEF Trust Fund Grant
1.
The table below sets forth the Categories of items to be financed out of the proceeds of 
the GEF Trust Fund Grant, the allocation of the amounts of the GEF Trust Fund Grant to each 
Category and the percentage of expenditures for items so to be financed in each Category:
Amount of the
GEF Trust Fund Grant Allocated
% of
(Expressed in
Expenditures
Category
SDR Equivalent
)
to be Financed
(1) TMF
3,670,000
100%
(2)
Consultants’
690,000
100%
services
(3) Incremental
40,000
100%
operating costs
            TOTAL
4,400,000
2.
For the purposes of this Schedule, the term “Incremental operating costs” means the 
incremental expenses incurred by the Recipient on account of the implementation of Part B of 
the Project, including management, monitoring and supervision costs, but excluding salaries of 
officials of the Recipient.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in 
respect of payments made for expenditures prior to the date of this Agreement.
4.
The Bank may require withdrawals from the GEF Trust Fund Grant Account to be made 
on the basis of statements of expenditure: (a) for consulting firms under contracts costing less 
than $100,000 equivalent; (b) for individual consultants costing less than $50,000 equivalent; 
and (c) for Incremental operating costs, all 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 
Page  11
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: (i) ensure the rehabilitation and sustainable 
conservation of the globally significant flora and related fauna of the Cape Peninsula, including 
surrounding marine ecosystems; and (ii) initiate strategic conservation planning and conservation 
activities for the entire Cape Floral Kingdom.
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
:
Cape Peninsula National Park
1.
Invasive Alien Plant Control Program
Carrying out an integrated program to reduce the threat to indigenous biodiversity from 
invasive alien plants on the Cape Peninsula.
2.
Environmental Education and Public Information
(a)
Upgrading of special education centers within the Cape Peninsula National Park 
to cater for visitors and members of neighboring communities, and initiating an outreach program 
to communities in the Cape Town Metropolitan area.
(b)
Carrying out a public information and communication campaign targeting 
primarily the population in the Cape Town Metropolitan area.
3.
Fire Control and Management
Strengthening the fire protection and fire management capacity of the Recipient in the 
Cape Peninsula National Park and adjacent areas.
4.
Improved Tourist Infrastructure
Maintenance of footpaths and roads and construction of minor gateways into the Cape 
Peninsula National Park.
5.
Capacity Building
(a)
Training of laborers in entrepreneurial skills in order to promote independent 
small scale enterprises undertaking the clearing of alien species, footpath maintenance and other 
park-related tasks.
(b)
Provision of training for the Recipient’s staff to enable them to implement the 
Page  12
(b)
Provision of training for the Recipient’s staff to enable them to implement the 
Project more efficiently.
6.
Marine Protection Program
Carrying out a study of the feasibility, with the related public consultation process, for 
incorporating the marine environment of the Cape Peninsula into the Cape Peninsula National 
Park, with the objective of maintaining marine biodiversity through reversing the over 
exploitation of certain species and combating general pollution threats.
7.
Knowledge Management
Upgrading and consolidation of the existing Environmental Information Systems of Cape 
Peninsula, implementing a system for Monitoring and Evaluation and carrying out applied 
studies aimed at strengthening Park management and operations.
Part B
:
Strategic Planning for the Cape Floral Kingdom (CFK)
Preparation of a strategic action plan and investment program for CFK.
Part C:
Table Mountain Fund
Support for the sustainable management on the Cape Peninsula through financing, 
Subprojects designed to assist in the conservation of the biological diversity of the Cape 
Peninsula, adjacent areas and the Cape Floral Kingdom.
*  *  *
The Project is expected to be completed by December 31, 2003.
SCHEDULE 3
Consultants’ Services
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 (the Consultant Guidelines) and 
the following provisions of Section II of this Schedule.
Part B
:
Quality- and Cost-based Selection
Except as otherwise provided in Part C of this Section, consultants’ services shall be 
Page  13
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.
Part C
:
Other Procedures for the Selection of Consultants
1.
Single Source Selection
Services for the marine and terrestrial biodiversity studies under Part B of the Project 
may, with the Bank’s prior agreement, be procured in accordance with the provisions of 
paragraphs 3.8 through 3.11 of the Consultant Guidelines.
2.
Commercial Practices
Services to assist Beneficiaries in carrying out Subprojects under Part C of the Project 
and estimated to cost less than $200,000 equivalent may be procured in accordance with 
commercial practices acceptable to the Bank.
Part D
:
Review by the Bank of the Selection of Consultants
1.
Selection Planning
Prior to the issuance to consultants of any requests for proposals, the proposed plan for 
the selection of consultants under the Project shall be furnished to the Bank for its review and 
approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Consultant 
Guidelines.  Selection of all consultants’ services shall be undertaken in accordance with such 
selection plan as shall have been approved by the Bank, and with the provisions of said 
paragraph 1.
2.
Prior Review
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.
3.
Post Review
With respect to each contract not governed by paragraph 1 of this Part, the procedures set 
forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply.
SCHEDULE 4
Implementation Program
1.
The Recipient shall:
(a)
maintain policies and procedures adequate to enable it to monitor and evaluate 
Page  14
(a)
maintain policies and procedures adequate to enable it to monitor and evaluate 
on an ongoing basis, in accordance with indicators satisfactory to the Bank, the carrying out of 
the Project and the achievement of the objectives thereof;
(b)
prepare, under the terms of reference satisfactory to the Bank, and furnish to the 
Bank, on or about June 30, 2000, 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 September 30, 2000, or such later date as the Bank 
shall request, the report referred to in paragraph (b) of this Section and, thereafter, take all 
measures required to ensure the efficient completion of the Project and the achievement of the 
objectives thereof, based on the conclusions and recommendations of the said report and the 
Bank’s views on the matter.
Part B of the Project:
Strategic Planning for the Cape Floral Kingdom
2.
(a)
With respect to Part B of the Project, the Recipient shall work under the 
direction of the Cape Floral Kingdom Steering Committee, chaired by the Provincial Minister for 
Environment of the Western Cape Province, with representation from local authorities, academic 
institutions, including the University of Cape Town, non-governmental organizations and other 
institutions in the Western Cape Province.
(b)
The Steering Committee shall: (i) supervise the strategic planning process and 
ensure that it is carried out in accordance with the Schedule and within the agreed budget; (ii) 
periodically issue media statements on progress achieved; (iii) formulate policy as the need arises 
and make recommendations to the relevant authorities; and (iv) issue progress reports to the 
Bank.
Part C of the Project
:
Table Mountain Fund
3.
(a)
The Board of Trustees shall be responsible for the operations and management 
of TMF.
(b)
Without limitation upon the generality of the foregoing, the Board of Trustees 
shall: (i) arrange for and oversee the investment of TMF’s capital; (ii) allocate the annual income 
based on proposals from appropriate Beneficiaries; (iii) monitor and periodically furnish to the 
Recipient and the Bank reports on the implementation of Part C of the Project and the 
accomplishment of its objectives; and (iv) meet at least once a year.
4.
The Board of Trustees shall adopt a financial management strategy for the TMF and 
appoint an assets manager, all satisfactory to the Bank.
5.
(a)
The Recipient shall, by July 1, 1998, appoint the TMFCC, with qualifications 
and experience satisfactory to the Bank, to assist the Board of Trustees.
(b)
The TMFCC shall administratively handle all project proposals, which he will 
refer to PAG for approval.
Page  15
6.
Eligibility criteria for Subprojects
No Subproject shall be eligible for financing out of the proceeds of the GEF Trust Fund 
Grant contributed to the TMF, unless the PAG has determined, in accordance with procedures 
and guidelines set forth in the Operational Manual, that the Subproject satisfies the eligibility 
criteria specified in detail in the Operational Manual, which shall include one of the following. 
The Subproject contributes to:
(a)
increased benefits to the global community arising from improved understanding 
of the area’s biodiversity assets;
(b)
the existence and/or enhancement of an integrated and fully implemented 
management system for the Cape Peninsula’s protected natural areas;
(c)
the increased availability and utilization of information systems useful to the 
conservation of the Cape Peninsula and all of its biological data;
(d)
increased awareness of an appreciation for the value of the Cape Peninsula’s 
natural areas amongst all communities and decision makers on, near or visiting the Cape 
Peninsula;
(e)
results in reductions in the intensity or levels of threats as listed in Red Data 
books published by IUCN for threatened species and hence contribute to reductions in the rates 
of local extinction’s and in the number of species classified as threatened with extinction;
(f)
the enhanced national and international status and level of protection of these 
natural areas;
(g)
an increase in areas free of invasion by alien species;
(h)
a reduction in the risk of unseasonable/unwanted wildfires;
(i)
a reduction in the area affected by environmentally inappropriate development 
and/or activities;
(j)
reductions in any negative effects on neighboring metropolitan areas;
(k)
a reduction in the negative environmental impacts of visitors to the Cape 
Peninsula’s natural areas;
(l)
the enhancement of an organization’s capacity to safeguard the integrity of the 
Peninsula Mountain Chain;
(m)
seeks to involve local communities in a meaningful and sustainable manner; or
(n)
addresses a high conservation priority which is not addressed by existing 
activities.
7.
Terms and Conditions of Subproject Grants from the TMF
Page  16
Each Subproject Grant shall be made pursuant to a Subproject Agreement, to be 
concluded between the TMF and the Beneficiary, under terms and conditions satisfactory to the 
Bank, which, inter
alia
, shall include the following:
(a)
that financing shall be on grant basis;
(b)
the obligation to carry out the activities to be financed out of the proceeds of the 
Subproject Grant in accordance with the Operational Manual, with due diligence and efficiency 
and in accordance with sound environmental, technical, financial and managerial standards;
(c)
the obligation to maintain adequate records to reflect, in accordance with sound 
accounting practices, the operations, resources and expenditures in respect of the Subproject 
Grant;
(d)
the requirement that; (i) the goods, works and services to be financed from the 
proceeds of the GEF Trust Fund Grant shall be procured in accordance with the procedures set 
forth in Schedule 3 to this Agreement and the Operational Manual; and (ii) such goods, works 
and services shall be used exclusively in the carrying out of the activities approved by the 
Recipient to be financed out of the proceeds of the Subproject Grant;
(e)
the right of the Recipient to inspect, by itself, or jointly with the Bank, if the 
Bank shall so request, the goods, works sites, plants and construction financed by the Subproject 
Grant, the operations thereof and any relevant records and documents;
(f)
the right of the Recipient to obtain all information as the Recipient of the Bank 
shall reasonably request regarding the administration, operations and financial conditions of the 
Beneficiary; and
(g)
the right of the Recipient to suspend or terminate the right of the Beneficiary to 
use the proceeds of the GEF Trust Fund Grant upon failure by the Beneficiary to perform any of 
its obligations under the Subproject Agreement.
ANNEX TO SCHEDULE 4
Performance Indicators
Narrative Summary
Key Performance Indicators
Monitoring and 
Supervision
Critical Assumptions and 
Risks
Project Development Objectives
1. Rehabilitate and maintain 
indigenous terrestrial flora and 
fauna on the Cape Peninsula and 
marine conservation in 
immediately surrounding areas
2. Development of a conservation 
Agreed strategic and investment 
Reports from SANP, the TMF 
and NGOs.  Supervision visits
Page  17
of which the Cape Peninsula 
forms a part
Project Outputs
(i)  Enhanced knowledge about 
rational management of flora and 
fauna on and around the Peninsula
(ii)  Long-term financial revenue 
stream that can support sustainable 
conservation activities
(iii)  Political approval and funding 
of a strategic conservation plan
Narrative Summary
(i)  M&E, EIS and study results 
utilized by park management
(ii)  Real rate of net returns from the 
TMF at least 7.5% on average
(iii)  Presentation of a strategic plan 
and investment program for the CFK
Key Performance Indicators
(i)  Study reports and records of 
management decisions
(ii)  Financial management report 
and comparative financial return 
data from financial press
(iii)  Public strategic plan, records 
of approval and funding 
agreements
Monitoring and Supervision
(i)  Management will have the 
resources to act on study 
proposals
(ii)  Successful investment of 
TMF capital
(iii)  External political events will 
not interfere with the finalization 
and implementation of the plan
Critical Assumptions and 
Risks
Project Components
(i)  Invasive alien species 
eradication 
(ii)  Environmental education
(iii) Knowledge management
(iv) TMF management
(v)  CFK strategy development
(i) At least 5 NGOs (including 
volunteer alien clearing 
partnerships) involved by year 
two and onwards
(ii) Development of 30 
customized resource programs for 
target audiences in adjacent 
communities by year 3
(iv) Selection of financial 
manager before grant 
effectiveness
(v) Agreed strategic plan and 
(i) Annual reports from the Park 
authority, the TMF and NGOs. 
Supervisory consultations with 
NGOs and labor engaged in the 
conservation efforts
(ii)  As above plus beneficiary 
evaluations
(iii)  M&E reports, EIS outputs, 
study proposals, decision 
records and study reports
(iv)  Annual audits
(v)  Strategy document.  
Meetings with main 
(i & ii)  Sustained NGO support 
for conservation activities
(iii)  Sufficient interest among 
academics and NGOs, and 
funding from the TMF
(v)  Consensus emerges on 
priorities and funding 
Page  18
identifying priority conservation 
areas and financing completed by 
the end of year 2 after 
effectiveness