THE WORLD BANK IBRDOFTTAL ANABELA ABREU Country Director for Haiti Latin America and the Caribbean Region DO CU M ENTS June 28, 2018 H.E. Jude Alix Patrick Salomon Minister of Economy and Finance Ministry of Economy and Finance Charles Sumner Avenue No. 5 Port-au-Prince, Republic of Haiti Re: PHRD Grant No. TF018710 Improving Access to Social Services and Employment Opportunities for Persons with Disabilities Project Excellency: In response to the request for financial assistance made on behalf of the Republic of Haiti ("Recipient"), I am pleased to inform you that the International Development Association ("World Bank"), acting as administrator of grant funds provided by Japan ("Donor") under the Policy and Human Resources Development (PHRD) Trust Fund (TFO21330), proposes to extend to the Recipient a grant in an amount not to exceed two million two hundred ninety four thousand three hundred and twenty United States Dollars (US$2,294,320) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financing of the project described in the Annex ("Project"). This Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions from the Donor. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donor under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Project in accordance with the terms and conditions set forth or referred to in this Agreement. 7, Rue Og6, P6tion-Ville, Haiti H.E. Jude Alix Patrick Salomon - 2 - June 28, 2018 Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and return it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date specified by the World Bank in accordance with Article IV of the Annex to this Agreement. Very truly yours, INTERNATIONAL DEVE PMENT ASSOCIATION By_____________________ nabela Abreu Country Director for Haiti Latin America and the Caribbean Region AGREED: REPUBLIC OF HAITI By: Authorized Representative Name: hl dILk j'j7 c i 3gC,K ; 1\N Title: At,/7- t4, rlVYep&o,-ue Date: ~JUNG 1) Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012. (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017. -3- PHRD Grant No. TF018710 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated February 15, 2012 ("Standard Conditions") constitute an integral part of this Agreement. 1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions or in this Agreement and the following terms have the following meanings: (a) "BSEIPH" means Bureau du Secr6taire d'Etat 6 l'Intigration des Personnes Handicapdes, the Recipient Secretariat of State for the Integration of Persons with Disabilities established within the MAST pursuant to the Presidential Decree dated May 17, 2007. (b) "DPO" means disabled people's organization. (c) "MAST" means Ministire des Affaires Sociales et du Travail, the Recipient's Ministry of Social Affairs and Labor. (d) "MICT" means Ministare de 1Int6rieur et des Collectivitis Territoriales, the Recipient's Ministry of Interior and Regional Authorities. (e) "Operating Costs" means the reasonable costs for the incremental expenses incurred on account of Project implementation, consisting of office equipment and supplies, banking charges and fees, operation and maintenance of offices, office equipment and vehicles, communication and insurance costs, office administration costs, rental expenses, document duplication/printing, consumables, utilities, travel, per diem for Project staff for travel linked to the implementation of the Project, fiduciary support, and salaries of locally contracted employees for the Project, excluding consultants' services and salaries of civil servants. (f) "Operational Manual" means the Recipient's manual referred to in Section 2.03 (b) of this Agreement, as may be amended in agreement with the World Bank. (g) "Procurement Plan" means the Recipient's procurement plan for the Project, dated June 6, 2017 and provided for under Section IV of the Procurement Regulations, as the same may be updated from time to time in agreement with the World Bank. (h) "Procurement Regulations" means the "World Bank Procurement Regulations for Borrowers under Investment Project Financing" dated July 1, 2016. (i) "PwD" means persons with disabilities. (j) "TDD" means telecommunications device for the deaf. -4- (k) "Training and Workshops" means the costs associated with the training and workshops approved by the World Bank, for reasonable expenditures (other than expenditures for consultants' services), including: (i) travel, room, board and per diem expenditures incurred by trainers and trainees in connection with their training; (ii) course fees; (iii) training facility rentals; and (iv) training material preparation, acquisition, reproduction, and distribution expenses. (1) "UCP-DPC" means the Project coordination unit (UnWit de Coordination de Projets) established within the MICT and referred to in Section 2.03 (f) of this Agreement. (in) "UCP-DPC Agreement" means the agreement to be entered into pursuant to Section 2.03 (g) of this Agreement. Article II Project Execution 2.01. Project Objectives andDescription. The objective of the Project is to increase persons with disabilities' access to social services and employment opportunities. The Project consists of the following parts: Part 1: Registration of persons with disabilities Provision of reliable data on PwDs and design of a platform to support the targeting of social programs and benefits to these PwDs through the carrying out of a program of activities, through the following: (a) the development of a registration system through: (i) the design of a context-adapted tool to assess the functional limitations of PwDs; (ii) (A) the establishment of an information system for a disability registration system, including the financing of hardware, software and data backup services; (B) the carrying out of training for BSEIPH staff in charge of providing information technology support; and (C) the provision of information technology support to BSEIPH regional offices; and (iii) the design and issuance of disability cards to registered PwDs; and (b) the identification and registration of PwDs through: (i) the design and implementation of communication strategies to promote PwDs registration; and (ii) (A) the application of the context-adapted assessment tool; (B) the training of DPOs staff in charge of locating PwDs; (C) the provision of incentives to DPOs, such as basic inputs for their work and assistive devices for PwDs, including screen readers for the blind, training material in braille, TDD phones, and portable ramps; and (D) the carrying out of missions to reach and register PwDs in isolated rural areas. -5- Part 2: Piloting and promoting a model to increase labor market access for persons with disabilities Piloting and promotion of a model to increase labor market access for PwDs through: (a) the reinforcement of the Recipient's job placement service for PwDs; (b) the provision of training to employers to raise their awareness on disability and help them identify the actions needed to employ PwDs; (c) the provision of a management information system for the reinforcement of the Recipient's job placement service; (d) the acquisition of necessary office equipment and the preparation of communication material to raise the visibility of the service; (e) the carrying out of up to six job fairs to facilitate contacts between PwDs and employers; and (f) the provision of assistive devices to training centers and companies hiring PwDs, including, inter alia, screen readers for the blind, training material in braille, TDD phones, and portable ramps in accordance with the Operational Manual to make training centers and companies more accessible for PwDs. Part 3: Project management, monitoring and evaluation, and knowledge dissemination Strengthening the BSEIPH's capacity for effective outreach and communication, as well as monitoring and quality control of the registry through: (a) (i) the provision of support to Project implementation, including audits, coordination, procurement and financial management activities; (ii) the provision of training to BSEIPH staff and consultants on financial management and procurement; and (iii) the acquisition of an accounting software; (b) the provision of support to BSEIPH to carry out Project data collection and monitoring and evaluation; and (c) (i) the carrying out of training to increase the communication skills of BSEIPH staff; and (ii) the carrying out of dissemination and disability awareness events. 2.02. Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project through MAST, and specifically its BSEIPH in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006, revised in January 2011 and as of July 1, 2016 ("Anti-Corruption Guidelines"); and (c) this Article II. 2.03. Institutional and Other Arrangements. (a) For purposes of carrying out the Project, the Recipient shall: (i) ensure that MAST, and specifically its BSEIPH (or any successor to said -6- BSEIPH), is maintained at all times during Project implementation, with adequate staff in numbers, structure and functions acceptable to the World Bank, including inter alia, the responsibility for BSEIPH to carry out the overall institutional coordination of Project implementation; and (ii) hire a program coordinator to be responsible for supporting the implementation and oversight of Grant activities throughout the duration of the Project, a part-time procurement specialist, a part-time financial management specialist, a part-time monitoring and evaluation specialist, and a part-time placement coordinator. (b) The Recipient shall prepare and maintain throughout Project implementation an operational manual ("Operational Manual") satisfactory in form and substance to the World Bank, therein setting forth rules, methods, guidelines, standard documents, and procedures for the carrying out of the Project, including the following: (i) the detailed description of: (A) Project activities; and (B) institutional arrangements in respect thereof; (ii) the administrative, financial, accounting, auditing, procurement, and disbursement procedures for the implementation of the Project including the relevant standard documents; (iii) the plan for the training activities under the Project; and (iv) the plan for the monitoring, evaluation and supervision of the Project, including the Performance Indicators. (c) The Operational Manual may only be amended from time to time in consultation with, and after approval of, the World Bank. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (d) The Recipient shall ensure for the duration of Project implementation that: (i) the UCP-DPC is maintained within MICT with functions, responsibilities, staffing, terms of reference, and resources satisfactory to the World Bank; and (ii) the UCP-DPC is responsible for the Project day-to-day administration and, fiduciary (i.e. procurement and financial management), reporting and communication activities under the Project in accordance with this Agreement and the Operational Manual. (e) The Recipient, through MAST, shall by no later than September 14, 2018 enter into an appropriate contractual arrangement, satisfactory to the World Bank, with MICT (the "UCP- DPC Agreement"), which shall stipulate, inter alia, that: (f) MICT shall, on behalf of MAST, maintain the UCP-DPC within MICT for the management of fiduciary aspects of the Project for the duration of the Project, unless otherwise agreed in writing by the Recipient, through MAST and MICT. (g) MICT shall, through the UCP-DPC, on behalf of MAST: (i) maintain a procurement specialist with qualifications, experience and terms of reference acceptable to the World Bank, to coordinate with MAST the management of the fiduciary aspects and to ensure that the -7- procurement of goods and consultants' services under the Project is conducted as per the Procurement Guidelines and Consultant Guidelines; (ii) enter into contracts with contractors and/or goods and/or service providers; (iii) prepare, maintain and submit monthly, quarterly, and as applicable, annual progress reports to MAST and MICT; (iv) prepare Financial Statements; (v) have the Financial Statements audited in accordance with the provisions of Section 2.06 of this Agreement; (vi) appoint a financial management specialist with qualifications, experience and terms of reference acceptable to the World Bank, to coordinate with MAST and to ensure that documents, reports and information are promptly provided to MAST; (vii) ensure that the Project is carried out in accordance with sound administrative, engineering, accounting, and environmental standards pursuant to the provisions of this Agreement and the Operations Manual; (viii) make available to MAST, the auditors of MAST and the Project auditors referred to in Section 2.06 of this Agreement all documents, books and records pertaining to the Project activities; and (ix) respond to queries, report findings and comments by MAST, auditors of MAST and the Project auditors referred to in Section 2.06 of this Agreement. (h) The Recipient, through MICT, shall, no later than four (4) months after the Effective Date, appoint the independent auditors referred to in Section 2.07 (b) of the Standard Conditions, selected with terms of reference satisfactory to the World Bank and in accordance with the provisions of Section 2.07 of this Agreement. 2.04. Donor Visibility and Visit. (a) The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the Donor's support for the Project. (b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank's request, enable the representatives of the Donor to visit any part of the Recipient's territory for purposes related to the Project. 2.05. Project Monitoring, Reporting and Evaluation. (a) The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank. Each Project Report shall cover the period of one fiscal semester, and shall be furnished to the World Bank not later than forty-five (45) days after the end of the period covered by such report. -8- (b) The Recipient shall cause the Completion Report to be prepared in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six months after the Closing Date. 2.06. Financial Management. (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank not later than forty-five (45) days after the end of each fiscal semester, covering the semester, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the World Bank not later than six months after the end of such period. 2.07. Procurement All goods, works, non-consulting services and consulting services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in the Procurement Regulations and the provisions of the Procurement Plan. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "Disbursement Guidelines for Investment Project Financing" dated February 2017 as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the following table. The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Amount of the Grant Percentage of Category Allocated Expenditures to be (expressed in USD Financed (inclusive of Taxes) (1) Consultants' services 470,320 100% (including audits) (2) Training and Workshops 1,070,500 100% (3) Goods 540,000 100% (4) Operating Costs 213,500 100% TOTAL AMOUNT 2,294,320 100% -9- 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made: (a) for payments made prior to the date of countersignature of this Agreement by the Recipient. (b) under the Project until and unless the UCP-DPC Agreement referred to in Section 2.03(e), acceptable to the World Bank, shall have been executed. 3.03. Withdrawal Period The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is June 30, 2020. Article IV Effectiveness; Termination 4.01 This Agreement shall not become effective until evidence satisfactory to the World Bank has been furnished to the World Bank that the following condition has been satisfied: the execution and delivery of this Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action. 4.02. Except as the Recipient and the World Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the World Bank dispatches to the Recipient notice of its acceptance of the evidence required pursuant to Section 4.01 ("Effective Date"). If, before the Effective Date, any event has occurred which would have entitled the World Bank to suspend the right of the Recipient to make withdrawals from the Grant Account if this Agreement had been effective, the World Bank may postpone the dispatch of the notice referred to in this Section until such event (or events) has (or have) ceased to exist. 4.03. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date 90 days after the date of this Agreement, unless the World Bank, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section. The World Bank shall promptly notify the Recipient of such later date. Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Minister of Economy and Finance. 5.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Ministry of Economy and Finance Charles Sumner Avenue No. 5 Port-au-Prince, Republic of Haiti Facsimile: 509-29-92-103 -10- 5.03. World Bank's Address. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI)