CONFII)ENTIAL PPA Agreement OFFIAC DOCJUMUNTS ' The World Bank jttN.W. (202) 477-1234 INTERNATIONAL BAN ( FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEV-ELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS March 21, 2012 His Excellency Charles Koffi Diby Minister of Economy and Finance Ministry of Economy and Finance Abidjart Republ c of Cote d'Ivoire Re: COTE D'IVOIRE: Supplemental Advance Agreement for the Preparation of the Proposed Abidjan-Lagos Trade and Transport Facilitation Program - P096407 Project Preparation Advance (PPA) No. 0811-CI1 Excellency: In response to the request for financial assistance made on behalf of Republic of Cote d'Ivoire ("Recipient"), I am pleased to inform you that the International Development Association ("Association") proposes to extend to the Recipient an advance out of the World Bank's Project Preparation Facility in an amount not to exceed two hundred thousand Dollars ($200,000) ("Advance") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in financing the activities described in the Annex ("Activities"). The objective of the Activities is to facilitate the preparation of a proposed program designed to reduce trade and transport barriers in the ports and on the roads along the Abidjan-Lagos coastal corridor, of which the Recipient has requested the World Bank's financial assistance. The Recipient represents, by confirming its agreement below, that: (a) it understands that the provision of the Advance does not constitute or imply any commitment on the part of IDA to assist in financing the Project; and (b) it is authorized to enter into this Agreement and to carry out the Activities, repay the Advance and perform its other obligations under this Agreement, all in accordance with the provisions of this Agreement. 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 returning it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date of the countersignature. e truly yours, INTERNATIONA D LOPME SroT By Madani Tall Country Director for Cote d'Ivoire Africa Region The PPA number is assigned by LOA. AGREED: [NAIIE OF RECIPIENT] By-_ DIBY Koffi Charles Name Title Date 23 lR2012 Encl,sures: (1) "Standard Conditions for Advarices Made by the World Bank under its Project Preparation Facility", dated January 15, 2008; (2) "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006; * I (3) "Guidelines: Procurement under IBRD Loans and IDA Credits", published by the World Bank in May 2004 and revised in October 2006; (4) "Guidelines: Selection and Employment of Consultants by World Bank Borrowers", published by the World Bank in May 2004 and revised in October 2006; / ~ (5) Disbursement Letter for the Advance, together with "World Bank Disbursement Guidelines for Projects", dated May 1, 2006. PPA No. 081 1-CI ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Advances made by the World Bank uncer its Project Preparation Facility dated January 15, 2008 ("Standard Conditions") constitute an ntegral 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. Article II Execution of the Activities 2.01. Description of the Activities. The Activities for which the Advance consist of the following parts: Operating costs of the Project Coordinalion Unit (PCU) 2.02. Execution of the Activities Generally. The Recipient declares its commitment to the ob'ectives of the Activities. To this end, the Recipient shall carry out the Activities in accordance with the provisions of (a) Article II of the Standard Conditions, (b) this Article II, and (c) the "Guidelines on Preventing and Combating Fraud and Corrdption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006. 2.03. Monitoring, Reporting and Evaluation of the Activities. The Recipient shall monitor anI evaluate the progress of the Activities in accordance with the provisions of Section 2.08 of the Standard Conditions. 2.04. Financial Management (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.09 of the Standard Conditions. (b) The Recipient shall ensure that interim un-audited financial reports for the Activities are prepared and furnished to the World Bank not later than one month after the end of each calendar quarter, covering the quarter, in form and substance satisfactory to the World Bank. (c)2 The Recipient shall have its Financial Statements audited in accordance with the provisions of Sections 2.09 (b) of the Standard Conditions. Such audit of the Financial Sttements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal ytar in which the first withdrawal under the Project Preparation Advance was made. The audited 2 The policy on audits normally requires annual audits (See OP 10.02). However, if the FMS considers that a one time audit is all that is required, an exception to the annual audit requirement may be made with the approval of the FM Regional Manager or the Head of the FMSB (see footnote 6 to OP 10.02). For PI'As, the one time audit would normally be included as part of the first audit of the follow on operation. -1- Financial Statements for such period shall be furnished to the World Bank not later than six months after the end of such period. Article m Withdrawal of the Advance 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Advance in accordance with the provisions of (a) Article III of the Standard Conditions, (b) this Section, and (c) such additional insiructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as rcised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance 100% of Eligible Expenditures consisting of operating costs inclusive of Taxes. For the purposes of this paragraph, the term "Operating Costs" means costs on account of Activities implementation including office supplies, office equipment, maintenance, c:imunication costs, rental expenses, Designated Account bank charges, utilities expenses, ccnsumables, transport, travel and accommodation, per diem, supervision costs and salaries of locally contracted staff, but excluding salaries of the officials of the Recipient's service. 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of countersignature of this Agreement by the Recipient. 3.03. Refinancing Date. The Refinancing Date is September 15, 2012. Article IV Terms of the Advance 4.01. Refinancing under the Refinancing Agreement: If, on or before the Refinancing Date, a Refinancing Agreement has been executed by all of its parties, then the full amount of the Withdrawn Advance Balance shall be paid to the World Bank as soon as the Refinancing Agreement becomes effective, by reans of a withdrawal by the World B1nk of such amount of the Refinancing Proceeds, in accordance with the provisions of the Refinancing Agreement. 4.02. No Repayment in the absence of a Refinancing Agreement: Notwithstanding any provision to the contrary in the Standard Conditions, if, on or before the Refinancing Date, no Refinancing Agreement has been executed by all of its parties, or if, by such date or at any time nereafter, it has been so executed but terminates without becoming effective, then the Recipient shall not be obligated to repay the Withdrawn Advance Balance. -2- Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative referred to in Section 9.02 of the Standard Conditions is Minister of Economy and Finance. 5.02. Recipient's Address. The Rec pient's Address referred to in Section 9.01 of the Standard Conditions is: Ministry of Economy and Finance Cable: Telex: Facsimile: 5.0: World Bank's Address. The World Bank's Address referred to in Section 9.01 of the Standard Conditions is: International Development As;ociation/ 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INDEVAS Washington, D.C. 248423 (MCI) or 1-202-477-6391 64145 (MCI) -3-