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CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF020412
Global Environment Facility
Trust Fund Grant Agreement
(Natural Resource Management Project)
between
REPUBLIC OF GHANA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an
implementing agency of the Global Environment Facility
Dated September
2, 1998
GEF TRUST FUND GRANT NUMBER TF020412
GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT AGREEMENT
AGREEMENT, dated September
2,
1998
between the REPUBLIC OF GHANA
(the 
Recipient)
and the 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 and 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 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, having satisfied itself as the feasibility and 
priority of the Project described in Schedule
2
to this Agreement, has requested
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assistance from the resources of the GEF Trust Fund in the financing 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)
the Recipient has also requested the International Development 
Association
(the Association) to provide additional financing towards the 
financing of the Project, and by an agreement of even date herewith between the
Recipient and the Association
(the Development Credit Agreement), the 
Association is agreeing to provide such assistance in an aggregate principal
amount equivalent to six million, nine hundred thousand Special Drawing Rights
(SDR6,900,000) (the Development Credit);
(E)
the Recipient intends to obtain or has obtained from various Donors 
(as hereinafter defined) loans and grants to assist in financing the Program; 
(F)
the Bank  has received a letter dated April 30, 1998 from the 
Recipient describing a program of actions, objectives and policies designed to
promote sustainable use of its national land, forest and wildlife resources
(the
Program)
and declaring the Recipient's commitment to the execution of the
Program; 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 December 2, 1997, 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), (4), (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 (a), (c), (d), (e), (f), (i) and (p), 
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
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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; and
(vii)
a new subparagraph (q) is added after subparagraph (p) 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 terms have the following meanings:
(a)
"Special Account" 
means the account referred to in Section
2.02 (b) 
of this Agreement;
(b)
“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 December 2, 1997, as applied to such 
agreements and all schedules and agreements supplemental to the IDA Credit
Agreement;
(c)
“EPA” 
means the Recipient
’s Environmental Protection Agency 
established pursuant to the Environmental Protection Agency Act
(Act Number
490
of
1994)
of the laws of the Recipient;
(d)
“FD” 
means the Recipient
’s Forestry Department within its Ministry 
of Lands and Forestry;
(e)
“GFS” 
means the Ghana Forest Service of the Ministry of Lands and
Forestry, to be established by the Recipient pursuant to Section
6.01 (d) of the 
Development Credit Agreement;
(f)
“MEST” 
means the Borrower
’s Ministry of Environment, Science and 
Technology;
(g)
“MLGRD” 
means the Recipient
’s Ministry of Local Government and 
Rural Development;
(h)
“MLF” 
means the Recipient
’s Ministry of Lands and Forests;
(i)
“MME” 
means the Recipient
’s Ministry of Mines and Energy;
(j)
“MOFA” 
means the Recipient
’s Ministry of Foods and Agriculture;
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(k)
“PCC” 
means Project Coordination Committee to be established by the
Recipient and referred to in paragraph
1
(a) of Schedule 4 to this Agreement;
(l)
“PCU” 
means the Project Coordinating Unit established by the
Recipient and referred to in paragraph
1
(b) of Schedule 4 to this Agreement;
(
m
)
“PIP” 
means the Project implementation plan adopted by the
Recipient, pursuant to Section
6.01 (a) of the Development Credit Agreement 
containing detailed arrangements regarding the implementation of the Project, as
the same may be amended from time to time, in consultation with and with the
consent of the Association, and such term includes any schedules to the Project
implementation plan;
(n)
“WD” 
means the Wildlife Department within MLF;
(o)
“National Biodiversity Strategy” 
means the strategy to be adopted
by the Recipient, pursuant to Section
6.01
(e)
of the Development Credit
Agreement, which defines the actions to be taken for the purpose of protecting
and conserving the biodiversity of its resources;
(p)
“Forest Protection Strategy” 
means the strategy adopted by the
Borrower in
1995
which identifies priority areas for conservation of genetic
resources within the forest reserves and outlines a strategic approach for
maintaining examples of natural assemblages within the high forest zone;
(q)
“Globally Significant Biodiversity Areas” 
means gazetted forest
reserves or parts thereof  that have been identified for protection and
exclusion of logging to conserve rare, threatened or endangered flora and fauna,
or exceptional examples of rare or unique ecosystems;
(r)
“ALIF” 
means the Alternative Livelihood Investment Fund, referred
to in Section
3.04 of this Agreement and in paragraph 3 (b) of Schedule 1 to 
this Agreement, to be established by the Recipient for the purpose of financing
alternative livelihood activities for communities which agree to forego income
from land designated as Globally Significant Biodiversity Areas;
(s)
“ALIF Operational Manual” 
means the manual to be prepared by the
Recipient containing, inter alia, procedures, eligibility criteria and terms and
conditions for activities to be financed under ALIF;
(t)
“Subproject” 
means a project or income
-generating activity, 
prepared and selected in accordance with the ALIF Operational Manual and in
respect of which a Subgrant
(as hereinafter defined) is provided or proposed to 
be provided;
(u)
“Subgrant” 
means a grant made or proposed to be made out of the
proceeds of the GEF Trust Fund Grant to finance a Subproject;
(v)
“Donors” 
means, collectively, the African Development Bank, the
Kingdom of Denmark, the European Union, the Kingdom of the Netherlands, the
United Kingdom of Great Britain, the World Food Program, Germany and any other
national or international agency contributing funds or technical assistance for
the Program, and
“Donor” 
means each and every donor individually; and
(w)
“Second Phase Credit” 
means the credit to be provided by the
Association to finance the second phase of the Program after the Closing Date of
the Development Credit Agreement.
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 six million, five
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hundred thousand Special Drawing Rights
(
SDR
6
,
500
,
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 the Project described in Schedule
2
to this Agreement and to be
financed out of the proceeds of the GEF Trust Fund Grant.
(b) 
The Recipient may, for the purposes of the Project, open and 
maintain in US dollars a special deposit account in a commercial bank or any
other bank acceptable to the Bank on terms and conditions satisfactory to the
Bank, including, in the case of a commercial bank, 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 September 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 as set forth in Schedule
2
to this Agreement and, to this end,
shall carry out the Project with due diligence and efficiency and in conformity
with appropriate administrative, financial, environmental, technical and
forestry practices, and shall provide, promptly as needed, the funds,
facilities, services and other resources required for the Project.
(b)
Without limitation upon the provisions of paragraph (a) of this 
Section, and except as the Recipient and the 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, works, and consultants' services required for the Project and to be
financed out of the proceeds of the GEF Trust Fund Grant extended to the
Recipient under this Agreement 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 Bank not later than six
(6) 
months after the Closing Date or such
later date as may be agreed for this purpose between the Recipient and the Bank,
a plan for the future operation of the Project; and
(b)
afford the Bank a reasonable opportunity to exchange views with the 
Recipient on said plan.
Section
3.04. For the purpose of Part 5 of the Project, the Recipient 
shall:
(a)
establish ALIF as a legal entity which shall be responsible, inter 
alia, for financing Subprojects for communities living in Globally Significant
Biodiversity Areas;
(b)
prepare and furnish to the Bank the ALIF Operational Manual, 
satisfactory to the Bank, which shall contain, inter alia, procedures,
eligibility criteria, and terms and conditions for financing Subprojects; and
(c)
allocate an amount of the GEF Grant, not exceeding such amount as 
may be allocated from time to time to Category
(4) of the table in paragraph 1 
Page  6
of Schedule
1
to this Agreement, to finance Subprojects for communities living
in Globally Significant Biodiversity Areas, in accordance with the ALIF
Operational Manual.
ARTICLE IV
Financial Covenants
Section
4.01. (a) The Recipient shall maintain, or cause to be maintained, 
records and accounts adequate to reflect, in accordance with sound accounting
practices, the operations, resources and expenditures in respect of the Project
of the departments or agencies of the Recipient responsible for carrying out the
Project or any part thereof.
(b)
The Recipient shall:
(i)
have, or cause to have, the records and accounts referred to 
in paragraph
(a) of this Section, including those for the 
Special Account, for each fiscal year audited, in accordance
with appropriate auditing principles consistently applied,
by independent auditors acceptable to the Bank;
(ii)
furnish, or cause to be furnished, to the Bank as soon as 
available, but in any case not later than six
(6)
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, or cause to be furnished, to the Bank such other 
information concerning said records and accounts and the
audit thereof as the Bank shall from time to time reasonably
request.
(c)
For all expenditures with respect to which withdrawals from the 
Grant Account were made on the basis of statements of expenditure, the Recipient
shall:
(i)
maintain, or cause to be maintained, in accordance with
paragraph
(a) of this Section, records and accounts 
reflecting such expenditures;
(ii)
retain, until at least one year after the Bank has received 
the audit report for the fiscal year in which the last
withdrawal from the Grant Account was made, all records
(contracts, orders, invoices, bills, receipts and other 
documents) evidencing such expenditures;
(iii)
enable the 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
Remedies of the Bank
Section
5.01. Pursuant to Section 6.02 (p) of the General Conditions, the 
following additional events are specified:
(a)
A situation shall have arisen which shall make it improbable that 
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the Program, or a significant part thereof, will be carried out
.
(b)
(i)
Subject to subparagraph (ii) of this paragraph:
(A)
the right of the Recipient to withdraw the proceeds of 
the Development Credit or any loan or grant shall have
been suspended, canceled or terminated in whole or in
part, pursuant to the terms of the agreement providing
therefor, or
(B)
such Development Credit or loan shall have become due 
and payable prior to the agreed maturity thereof.
(ii)
Subparagraph (i) of this paragraph shall not apply if the 
Recipient establishes to the satisfaction of the Bank that: 
(A) such suspension, cancellation, termination or 
prematuring is not caused by the failure of the Recipient to
perform any of its obligations under such agreement; and
(B)
adequate funds for the Project are available to the
Recipient from other sources on terms and conditions
consistent with the obligations of the Recipient under this
Agreement.
(c)
the Recipient and the Association shall have failed to agree on the 
terms and conditions for the Second Phase Credit.
Section
5.02. Pursuant to Section 7.01 (k) of the General Conditions, the 
following additional event is specified, namely that the event specified in
paragraph
(b) (ii) (B) of Section 5.01 of this Agreement shall occur, subject to 
the proviso of paragraph
(b) (ii) of that Section.
ARTICLE VI
Effective Date; Termination
Section
6.01. The following event is specified as an additional condition 
to the effectiveness of the GEF Grant Agreement within the meaning of Section
12.01 (c) of the General Conditions, namely, that all the conditions precedent 
to the effectiveness of the Development Credit Agreement, other than those
related to the effectiveness of this Agreement, have been fulfilled.
Section
6.02. 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
6.03. 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 hereunder.
ARTICLE VII
Representative of the Recipient; Addresses
Section
7.01. The Minister of Finance of the Recipient is designated as 
representative of the Borrower for the purposes of Section
11.03 of the General 
Conditions.
Section
7.02. 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 M.40
Accra, Ghana
Cable address: 
Telex:
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ECONOMICON
2205
ACCRA
MIFAEPGH
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) or
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.
REPUBLIC OF GHANA
By
/s/
Koby Koomson
Authorized Representative
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT acting as an implementing
agency of the Global Environment Facility
By
/s/
James W. Adams
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)
Civil works
500,000
100% of foreign
expenditures and
70%
of local expenditures
(2)
Goods (including
600,000
100% of foreign
equipment and
expenditures and 85%
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vehicles)
of local expenditures
(3)
Consultants' services
 1,850,000
100%
and training
(4)
Subgrants under
 1,850,000
100% of amounts disbursed
ALIF
(Part
5
of the
Project)
(5)
Incremental operating
 1,000,000
90% up to December 31,
costs
2000; 50% up to
December
31, 2002; and
25%
thereafter
(6)
Unallocated
700,000
TOTAL
6,500,000
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 such country;
(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)
the term "incremental operating costs" 
means the expenditures
incurred on account of Project implementation, management and monitoring,
including office consumables
(including communication expenses), staff travel 
and associated subsistence allowances, salaries for contractual and temporary
staff, salaries for Savanna Resource Management Center and GFS staff, office
rental, office supplies and maintenance, fuel and maintenance for vehicles but
excluding salaries of the Recipient's civil servants.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall 
be made in respect of: (a) payments made for expenditures prior to the date of 
this Agreement, and
(b) payments made for expenditures under Category (4) unless 
the Recipient has: (i) established ALIF as a legal entity and has appointed 
staff in adequate numbers and with qualifications and experience satisfactory to
the Bank, and
(ii) furnished to the Bank the ALIF Operational Manual 
satisfactory to the Bank.
4.
The Bank may require withdrawals from the GEF Grant Account to be made on 
the basis of statements of expenditure for expenditures for: (i) works and goods 
under contracts not exceeding $100,000 equivalent, (ii) consultants’ services 
(firms) under contracts not exceeding $100,000 equivalent, (iii) consultants’ 
services
(individuals) under contracts not exceeding $50,000 equivalent, and 
(iv) training and  operating costs 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: (a) promote sustainable use of 
national land, forest and wildlife resources; and
(b)
better conserve the rich
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biodiversity of the Recipient
’
s forests
.
The Project consists of the following, subject to such modifications
thereof as the Recipient and the Bank may agree upon from time to time to
achieve such objectives:
1.
Establishment of a biodiversity advisory group in MLF through the 
provision of technical advisory services.
2.
Implementation of key elements of the National Forest Protection Strategy 
and the National Biodiversity Strategy, including: (a) strengthening the 
biological conservation and management capacity of the GFS;
(b) initiating pilot 
activities to generate revenues from activities other than logging;
(c) 
strengthening the capacity of FD in community-based participatory management 
practices and implementing improved technical management practices to enhance
the environmental sustainability of production and forest management, through
the provision of technical advisory services, the carrying out of civil works
and training and the acquisition of equipment.
3.
Carrying out baseline surveys to identify and demarcate 
“Globally
Significant Biodiversity Areas.”
4.
Carrying out a program to identify and demarcate provenance reserves 
within the production forest reserves.
5.
Establishment and operation of an Alternative Livelihood Investment Fund 
through the promotion, design, appraisal, supervision and evaluation of
Subprojects and the provision of financing thereof for communities living in
Globally Significant Biodiversity Areas.
6.
Strengthening the capacity of WD in wildlife management and conservation 
through the provision of technical advisory services, the carrying out of civil
works and training.
* * *
The Project is expected to be completed by March
30,
2004.
SCHEDULE
3
Procurement
Section I.
Procurement of Good and Works
Part A:
General
Goods and works shall be procured in accordance with the provisions of
Section I of the
"Guidelines for Procurement under IBRD Loans and IDA Credits" 
published by the Bank in January
1995
and revised in January and August
1996
and
September
1997
(the Guidelines) and the following provisions of this Section.
Part B:
International Competitive Bidding
Except as otherwise provided in Part C of this Section, goods and works
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.
Limited International Bidding
Goods estimated to cost less than $100,000 equivalent per contract, up to 
an aggregate amount not to exceed $250,000 equivalent, and goods, which the Bank 
agrees can only be purchased from a limited number of suppliers, regardless of
the cost thereof, may be procured under contracts awarded in accordance with the
provisions of paragraph
3.2 of the Guidelines.
Page  11
2.
National Competitive Bidding
(i)
Goods estimated to cost less than $100,000 equivalent per 
contract, up to an
aggregate amount not to exceed
$440,000
equivalent, may be procured under
contracts
awarded in accordance with the provisions of paragraphs
3.3
and
3.4 
of the Guidelines.
(ii)
Works estimated to cost less than $200,000 equivalent per 
contract, up to an
aggregate amount not to exceed
$580,000
equivalent, may be procured under
contracts
awarded in accordance with the provisions of paragraphs
3.3
and
3.4 
of the Guidelines.
3.
National Shopping
Goods estimated to cost less than $40,000 equivalent per contract, up to 
an aggregate amount not to exceed $330,000 equivalent, 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.
4.
Force Account
Works which meet the requirements of paragraph
3.8 of the Guidelines, and 
costing $300,000
equivalent or less in the aggregate, may, with the Bank
’s prior 
agreement, be carried out by force account in accordance with the provisions of
said paragraph of the Guidelines.
5.
Community Participation
Works required for Part
6
of the Project shall be procured in accordance
with procedures acceptable to the Bank.
Part D:
Review by the Bank of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to prequalify for bidding or to
bid for contracts, the proposed procurement plan for the Project shall be
furnished to the Bank for its review and approval, in accordance with the
provisions of paragraph
1
of Appendix
1
to the Guidelines.
Procurement of all
goods and works shall be undertaken in accordance with such procurement plan as
shall have been approved by the Bank, and with the provisions of said paragraph
1.
2.
Prior Review
With respect to each contract for goods and works estimated to cost the
equivalent of $100,000 or more, the procedures set forth in paragraphs 2 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 
(the Consultant Guidelines) and the following provisions of Section II of this 
Schedule.
Page  12
Part B:
Quality- and Cost-based Selection
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:
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
(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 shall have been
given.
3.
Post Review
With respect to each contract not governed by paragraph
2
of this Part,
the procedures set forth in paragraph
4
of Appendix
1
to the Consultant
Guidelines shall apply.
SCHEDULE
4
Implementation Program
1.
(a)
(i)
The Recipient shall, not later than September 30, 1998, 
establish and thereafter maintain a Project Coordinating
Committee
(PCC) under the chairmanship of the Technical 
Director of the MLF. The PCC shall have the responsibility 
to review, on a quarterly basis, proposed work programs and
budgets, monitor implementation performance and foster
inter-agency and inter-
ministerial cooperation in the
management of the country
’s natural resources. Members of 
the PCC shall include representatives, at the director
level, from the following ministries: MLF, MOFA, MEST, MLGRD 
and MME, and their implementing agencies, representatives of
private sector organizations, nongovernmental organizations
and academic institutions and Donors.
(ii)
The Recipient shall, or shall cause the PCC, beginning on 
December
31, 1998, to prepare and furnish to the Bank for 
its review and comments, a progress report every quarter on
Project implementation.
Following such reports, the
Recipient shall continue the implementation of the Project,
taking into account the views of the Bank given pursuant to
such progress reports.
(b)
The Recipient shall continue to maintain the Project Coordinating 
Page  13
Unit
(
PCU
)
within MLF, which shall have overall responsibility for Project
management and coordination, including the preparation of the annual work plans,
budgeting and finance, maintenance of a proper financial management and
accounting system for the Project, preparation of bidding documents and
monitoring of the overall procurement process, management of technical
assistance activities and the preparation of a Project completion report.
The
PCU shall continue to be headed by the Technical Director of MLF.
2.
The Recipient shall:
(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 terms of reference satisfactory to the Bank, and 
furnish to the Bank, on or about June
30,
1999, 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 1999, 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
.
3.
The Recipient shall carry out the Project in accordance with procedures 
set forth in the PIP and, except as the Bank shall otherwise agree, not amend or
waive any provision thereof if such amendment or waiver may, in the opinion of
the Bank, materially or adversely affect the implementation of the Project.
4.
The Recipient shall carry out all actions required under the environmental 
management plan to mitigate and compensate for the impacts that have been
identified through the environmental impact assessment.
5.
With reference to Section 3.04 of this Agreement, the Recipient shall 
ensure that Subprojects are implemented in accordance with the ALIF Operational
Manual, which shall include the requirement that:
(a)
the proceeds of the GEF Grant shall not be used to finance taxes or 
duties levied on, or in respect of, eligible expenditures relating to a
Subproject or any part thereof; and
(b)
goods, services and works required for the purposes of financing 
Subprojects shall be procured in accordance with procedures acceptable to the
Bank.
SCHEDULE
5
Special Account
1.
For the purposes of this Schedule:
(a)
the term "eligible Categories" 
means Categories
(1) through (5) set 
forth in the table in paragraph
1
of Schedule
1
to this Agreement;
(b)
the term "eligible expenditures" 
means expenditures in respect of
the reasonable cost of goods and services required for 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
Page  14
$
750
,
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 the Bank shall otherwise agree, the Authorized Allocation
shall be limited to an amount equivalent to $500,000
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 
2,000,000.
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
Page  15
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 Part B of 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 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 paragraphs 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.