Trust Fund Administration Agreement between the Ministry of Economy and Finance of France, and the International Bank for Reconstruction and Development and the International Development Association concerning the Lebanon Syrian Crisis Trust Fund (LSCTF) (Trust Fund No. 072776 Parallel to Trust Fund No.072143) 1. The International Bank for Reconstruction and Development and the International Development Association (collectively, the “Bank”) acknowledges that the Ministry of Economy and Finance of France (the “Donor and together with the Bank, the “Parties” and each a “Party”) agrees to provide the sum of one hundred seventy thousand two hundred fifty three United States Dollars and seventy nine cents (USD170,253.79) (the “Contribution”) for the Lebanon Syrian Crisis Trust Fund (LSCTF) (TF072776) (the “Trust Fund”) in accordance with the terms of this Administration Agreement. Other donors are also expected to contribute to the Trust Fund on the terms and conditions specified in the Annexes to this Administration Agreement. 2. The Contribution shall be used to finance the activities set forth in the “ Lebanon Syrian Crisis Trust Fund” attached hereto as Annex 1, and shall be administered by the Bank on behalf of the Donor in accordance with the terms of this Administration Agreement, including the “Standard Provisions” attached hereto as Annex 2, “Governance Structure” attached hereto as Annex 3. 3. The Donor hereby authorizes the Bank promptly following countersignature of this Administration Agreement to transfer the Contribution from the Original Trust Fund No. 072143 to this Trust Fund (Trust Fund No. 072776). 4. Any notice, request or other communication to be given or made under this Administration Agreement shall be in writing and delivered by mail, fax or e-mail to the respective Party’s address specified below or at such other address as such Party notifies in writing to the other Party from time to time: For the Bank (the “Bank Contact”): Ms. Mouna Couzi The World Bank Bourie House 119, 5th Floor Abdalllah Bayhum Street, Marfaa, Solidere P.O. Box 11-8577, Beirut, Lebanon Tel: +961-1-987 800 Email: mcouzi@worldbank.org For the Donor (the “Donor Contact”): Mr. François de Ricolfis Head of the regional economic department Beirut, Lebanon Ambassade de France au Liban | French embassy in Lebanon Rue de Damas – Espace des Lettres - Beyrouth Tél : +961 (0) 1 420 170 – Mobile : +961 79 121 927 Mr. Bruno Ménat Regional financial counsellor Ambassade de France au Liban | French embassy in Lebanon Rue de Damas – Espace des Lettres - Beyrouth Tél : +961 (0) 1 420 170 – Mobile : +961 79 121 927 -1- 5. In the event any amounts are to be returned to the Donor under this Administration Agreement, the Bank shall transfer such amounts to the Donor’s applicable donor balance account with the Bank, unless otherwise agreed with the Bank. 6. At the date of Bank’s signature of this Administration Agreement, the Indirect Rate (as defined in the Annex 1 to this Administration Agreement is 17%. 7. All annexes hereto constitute an integral part of this Administration Agreement, whose terms taken together shall constitute the entire agreement and understanding between the Donor and the Bank. Unless otherwise specified in an annex hereto, this Administration Agreement may be amended only by written amendment between the Bank and the Donor; provided, however, that any annexes to this Administration Agreement may be amended only by written amendment of all donors contributing to the Trust Fund. 8. Each of the Parties represents, by confirming its agreement below, that it is authorized to enter into this Administration Agreement and act in accordance with these terms and conditions. The Parties are requested to sign and date this Administration Agreement, and upon possession by the Bank of this fully signed Administration Agreement, this Administration Agreement shall become effective as of the date of the last signature. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND INTERNATIONAL DEVELOPMENT ASSOCIATION By: _______________________________________ Saroj Kumar Jha Name: ____________________________________ Regional Director Title: _____________________________________ 22-Sep-2021 Date: _____________________________________ MINISTRY OF ECONOMY AND FINANCE OF FRANCE By: _______________________________________ Christophe Bories Name: ____________________________________ Deputy Assistant Secretary Multilateral financing and development Title: _____________________________________ 22-sept.-2021 Date: _____________________________________ Enclosures: Annex 1: Lebanon Syrian Crisis Trust Fund Description of Activities Annex 2: Lebanon Syrian Crisis Trust Fund Standard Provisions Annex 3: Lebanon Syrian Crisis Trust Fund Governance Structure -2- Annex 1 Lebanon Syrian Crisis Trust Fund (LSCTF) Description of Activities This Annex shall be applicable to and form an integral part of all administration agreements for the Trust Fund (collectively, the “Administration Agreements” and each an “Administration Agreement”) between the Bank and any entities that provide any funds to the Trust Fund (collectively, the “Donors”). 1. Objectives The main objective of the Multi-Donor Trust Fund is to help mitigate the impact of the Syrian conflict on Lebanese families and hosting communities. 2. Activities The activities (which may be described as “components” of activities) to be financed by the Trust Fund are: 2.1. Bank-executed activities, for which the Bank has implementation responsibility: The TF will also finance Bank-executed activities which will mainly involve trust fund administration, program management, appraisal, supervision, and implementation support. 2.2. Recipient-executed activities, for which the Recipient has the implementation responsibility: The TF is expected to finance new and ongoing activities, as identified under the Roadmap of Priority Interventions for Stabilization from the Syrian Conflict. 3. Eligible Expenditures 3.1. For Bank-executed activities, the Trust Fund funds may be used to finance: (a) contractual services; (b) equipment and office premises lease cost; (c) media, workshops, conferences and meetings; (d) travel expenses; (e) short-term consultants and temporaries; (f) extended term consultants and temporaries; and (g) staff costs (excluding short term consultants and temporaries, and also excluding extended term consultants and temporaries). 3.2 For purposes of this section: (i) “staff costs (excluding short term consultants and temporaries, and also excluding extended term consultants and temporaries)” includes salaries, benefits and indirect rates charged to the Trust Fund as applicable under Bank policies and procedures; (ii) “extended term consultants and temporaries” includes fees, benefits and indirect rates charged to the Trust Fund as applicable under Bank policies and procedures; and (iii) “short term consultants and temporaries” includes fees and indirect rates charged to the Trust Fund as applicable under Bank policies and procedures. -3- 3.3 The “Indirect Rate” means the indirect rate, defined as a percentage of personnel costs and available at the World Bank’s Development Partner Center website, as such rate may be revised from time to time by the Bank and applied to this Trust Fund, in accordance with its policies and procedures. 3.4. For Recipient-executed activities, the Trust Fund may be used to finance: (a) Civil Works; (b) Consulting Services; (d) Goods; (e) Operating Costs; (f) Training; and (g) Non- consulting Services. 4. Taxes 4.1. The foregoing activities and categories of expenditures may include the financing of taxes in accordance with the Bank’s applicable policies and procedures. -4- Annex 2 Lebanon Syrian Crisis Trust Fund Standard Provisions This Annex shall be applicable to and form an integral part of all Administration Agreements between the Bank and the respective Donors. 1. Administration of the Contributions 1.1 The Bank shall be responsible only for performing those functions specifically set forth in this Administration Agreement and shall not be subject to any other duties or responsibilities to the Donors, including, without limitation, any duties or obligations that might otherwise apply to a fiduciary or trustee under general principles of trust or fiduciary law. Nothing in this Administration Agreement shall be considered a waiver of any privileges or immunities of the Bank under its Articles of Agreement or any applicable law, all of which are expressly reserved. 1.2 Each Donor’s Contribution (collectively, the “Contributions”) shall be administered in accordance with the Bank’s applicable policies and procedures, as the same may be amended from time to time, including its procurement, financial management, disbursement and safeguard policies, its framework to prevent and combat fraud and corruption and its screening procedures to prevent the use of Bank resources to finance terrorist activity, in line with the Bank's obligations to give effect to the relevant decisions of the Security Council taken under Chapter VII of the of Charter of the United Nations. The Donors acknowledge that this provision does not create any obligations of the Bank under the anti-terrorist financing and asset control laws, regulations, rules and executive orders of an individual member country that may apply to a Donor. 2. Management of the Contributions 2.1 The funds deposited in the Trust Fund shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The funds deposited in the Trust Fund may be commingled with other trust fund assets maintained by the Bank. The Bank, in its capacity as trustee, has legal title to the funds deposited in the Trust Fund. 2.2 The currency in which the funds in the Trust Fund shall be held is United States Dollars (the “Holding Currency”). 2.3 Donors agree to deposit their Contributions in the Contribution Currency stated in their respective Administration Agreements. In the case of deposits received in a Contribution Currency other than the Holding Currency, promptly upon the receipt of such amounts and the accompanying Deposit Instructions, the Bank shall convert such amounts into the Holding Currency at the exchange rate obtained by the Bank on the date of the conversion. Where deposits prove to be insufficient to complete activities as a result of exchange rate fluctuations, neither the Bank nor the Donor shall bear any responsibility for providing any additional financing. 2.4 The funds deposited in the Trust Fund may be freely exchanged by the Bank into other currencies as may facilitate their disbursement at the exchange rate obtained by the Bank on the date of the conversion. 2.5 The Bank shall invest and reinvest the funds deposited in the Trust Fund pending their disbursement in accordance with the Bank’s applicable policies and procedures for the investmen t of trust funds -5- administered by the Bank. The Bank shall credit all income from such investment to the Trust Fund to be used for the same purposes as the Contributions. 3. Trust Fund Fee 3.1 The Bank shall calculate a fee each time funds (the “Grant Amount”) from the Trust Fund become committed under a Grant Agreement. Such commitment shall occur when such Grant Agreement is fully countersigned (the “Calculation Date”). The fee so calculated by the Bank shall be based on the cumulative total of funds from the Trust Fund committed under all Grant Agreements that have been fully countersigned on or prior to the Calculation Date (the “Cumulative Grant Total”). The calculated fee shall depend on where the Cumulative Grant Total stands as the Grant Amount is added and shall be determined in accordance with the following schedule: (i) 5% of any portion of the Grant Amount that results in a Cumulative Grant Total below or equal to US$ 50 million or equivalent; plus (ii) 4% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 50 million or equivalent and below or equal to US$ 500 million or equivalent; plus (iii) 3% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 500 million or equivalent and below or equal to US$ 1 billion or equivalent; plus (iv) 2% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 1 billion or equivalent. 3.2 Following each Calculation Date, the Bank shall deduct from the Trust Fund, and retain for its own account, the fee as set forth above. Grant Amounts may not exceed the balance of uncommitted funds in the Trust Fund net of the related fee. 4. Accounting and Financial Reporting 4.1 The Bank shall maintain separate records and ledger accounts in respect of the funds deposited in the Trust Fund and disbursements made therefrom. 4.2 The Bank shall furnish to the Donors current financial information relating to receipts, disbursements and fund balance in the Holding Currency with respect to the Contribu tions via the World Bank’s Trust Funds Donor Center secure website. Within six (6) months after all commitments and liabilities under the Trust Fund have been satisfied and the Trust Fund has been closed, the final financial information relating to receipts, disbursements and fund balance in the Holding Currency with respect to the Contributions shall be made available to the Donors via the World Bank’s Trust Funds Donor Center secure website. 4.3 The Bank shall provide to the Donors via the World Bank’s Trust Fund Donor Center secure website, within six (6) months following the end of each Bank fiscal year, an annual single audit report, comprising (i) a management report together with an audit opinion from the Bank’s external auditors concerning the adequacy of internal control over cash-based financial reporting for all cash-based trust funds as a whole; and (ii) a combined financial statement for all cash-based trust funds together with the Bank’s external auditor’s opinion thereon. The cost of the single audit shall be borne by the Bank. 4.4 If a Donor wishes to request, on an exceptional basis, a financial statement audit by the Bank’s external auditors of the Trust Fund, the Donor and the Bank shall first consult as to whether such an external audit is necessary. The Bank and the Donor shall agree on the appropriate scope and terms of reference of such audit. Following agreement on the scope and terms of reference, the Bank shall arrange for such -6- external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be borne by the requesting Donor. 4.5 The Bank shall make available to the Donors copies of all financial statements and auditors’ reports received by the Bank from Recipients pursuant to any Grant Agreements (as defined below) in accordance with the Bank’s Access to Information Policy. 5. Progress Reporting 5.1 The Bank shall provide the Donors with annual reports on the progress of activities financed by the Contributions. Within six (6) months of the End Disbursement Date (as defined below), the Bank shall furnish to the Donors a final report on the activities financed by the Trust Fund. 5.2 Any Donor may review or evaluate activities financed by the Trust Fund at any time up to six (6) months following the End Disbursement Date. The Donor and the Bank shall agree on the scope and conduct of such review or evaluation, and the Bank shall provide all relevant information within the limits of the Bank’s applicable policies and procedures. All associated costs, including any costs incurred by the Bank, shall be borne by the Donor. It is understood that any such review or evaluation will not constitute a financial, compliance or other audit of the Trust Fund. 6. Disbursement; Cancellation; Refund 6.1 It is expected that the funds deposited in the Trust Fund will be fully disbursed by the Bank by September 30, 2023 (the “End Disbursement Date”). The Bank shall only disburse funds deposited in the Trust Fund for the purposes of this Administration Agreement (other than returns to Donors) after such date to the extent such date is changed in accordance with amendments made to the Administration Agreements of all the Donors. Following the End Disbursement Date, the Bank shall return any remaining balance of the Trust Fund to each Donor in the Holding Currency in the manner specified in its respective Administration Agreement on a pro rata basis with regard to the total funds deposited in the Trust Fund by such Donor relative to the total funds deposited in the Trust Fund by all Donors, all calculated as Holding Currency amounts. 6.2 Any Donor may cancel all or part of such Donor’s pro rata share, and the Bank may cancel all or any Donors’ pro rata shares, upon three (3) months’ prior written notice, of any Contributions (paid and not yet paid) that are not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third parties for the purposes of this Administration Agreement, including any Grant Agreements, prior to the receipt of such notice. In the event of a cancellation, the Bank shall return to the relevant Donor or Donors in the Holding Currency in the manner specified by each such Donor in its respective Administration Agreement the pro rata share(s) of any such uncommitted balance of the Trust Fund, in accordance with any additional terms that may be agreed between the Bank and each such Donor. 7. Disclosure; Dispute Resolution 7.1 The Bank shall disclose the Administration Agreements and related information on this Trust Fund in accordance with the Bank’s Policy on Access to Information. By entering into Administration Agreements, the Donors consent to such disclosure of their respective Administration Agreements and such related information. 7.2 The Donors and the Bank shall use their best efforts to amicably settle any dispute, controversy, or claim arising out of or relating to the Administration Agreements. -7- 8. Grants to Recipients 8.1 The Bank shall, as administrator of the Trust Fund on behalf of the Donors, enter into one or more grant agreements (the “Grant Agreements”) with recipients (the “Recipients”) consistent with the purposes of this Administration Agreement and on the terms and conditions set forth in the Grant Agreements. Grant Agreements may be entered into up to the maximum amount of the Contributions that all Donors have agreed to make available under the Administration Agreements between the Bank and the Donors. 8.2. The Bank shall be responsible for the supervision of the activities financed under the Grant Agreements. Subject to the consent of any relevant Recipients, representatives of the Donors may be invited by the Bank to participate in Bank supervision missions related to the Trust Fund. 8.3. The Bank shall promptly inform the Donors of any significant modification to the terms of any Grant Agreements and of any contractual remedies that are exercised by the Bank under any Grant Agreements. To the extent practicable, the Bank shall afford the Donors the opportunity to exchange views before effecting any such modification or exercising any such remedy. -8- Annex 3 Lebanon Syrian Crisis Trust Fund (LSCTF) Governance Structure 1. The LSCTF is overseen by a Steering Board (SB) which is established by decision of the Council of Ministers. The SB would provide overall strategic direction and priorities for the program financed by the LSCTF. The SB would comprise: (i) a Government of Lebanon representative; (ii) the World Bank; (iii) the UN, on behalf of its specialized agencies; and (iv) contributing donors. The Steering Board meetings would be co-chaired by the Government of Lebanon and a World Bank representative and would be scheduled bi- annually or as needed to assess the progress, strategy and priorities for the LSCTF. 2. The SB would be supported by a Technical Group (TG). The TG would be responsible for: (i) recommending specific projects; (ii) agreeing on projects’ implementation modalities; (iii) collating and presenting implementation status reports to the SB. The TG would comprise representation from: (i) Sector Ministries germane to LSCTF's activities; (ii) Council for Development and Reconstruction; (iii) Ministry of Finance; (iv) the World Bank; (v) the UN; and (vi) representatives from contributing donors. The TG would meet quarterly or as needed. Meetings would be conducted in person, or virtually. 3. A World Bank Secretariat, comprised of World Bank staff, will support a World Bank Task Team Leader who will be responsible for the day-to day management of the LSCTF. The World Bank Secretariat will be fully funded from the LSCTF. The World Bank Secretariat will develop an Operations Manual (OM) for managing the LSCTF and provide support to the TG in program implementation following World Bank policies and procedures as referenced in the OM. 4. For the Recipient-executed activities, the Bank’s policies and procedures will apply. -9-