OFFICIAL DOCUMENTS GRANT NUMBER D4400-TJ TF GRANT NUMBER TF0A9568 Project Agreement (CASA1000 Community Support Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and NATIONAL SOCIAL INVESTMENT FUND OF TAJIKISTAN PROJECT AGREEMENT AGREEMENT between INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") and NATIONAL SOCIAL INVESTMENT FUND OF TAJIKISTAN ("Project Implementing Entity" or "NSIFT") ("Project Agreement") in connection with the Financing Agreement ("Financing Agreement") of the Signature Date between the REPUBLIC OF TAJIKISTAN ("Recipient) and the Association, concerning Grant No. D4400-TJ and TF Grant No. TF0A9568. The Association and the Project Implementing Entity hereby agree as follows: ARTICLE I - GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to the Financing Agreement) apply to and form part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Financing Agreement or the General Conditions. ARTICLE II- PROJECT 2.01. The Project Implementing Entity declares its commitment to the objectives of the Project. To this end, the Project Implementing Entity shall carry out Parts 2, 3 and 4 of the Project in accordance with the provisions of Article V of the General Conditions and the Schedule to this Agreement, and shall provide promptly as needed, the funds, facilities, services, and other resources required for its Respective Parts of the Project. ARTICLE III - TERMINATION 3.01. For purposes of Section 10.05 (c) of the General Conditions, the date on which the provisions of this Agreement shall terminate is twenty (20) years after the Signature Date. ARTICLE IV - REPRESENTATIVE; ADDRESSES 4.01. The Project Implementing Entity's Representative is its Executive Director. 4.02. For purposes of Section 11.01 of the General Conditions: (a) the Association's address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and -2- (b) the Association's Electronic Address is: Telex: Facsimile: 248423(MCI) or 1-202-477-6391 4.03. For purposes of Section 11.01 of the General Conditions: (a) the Project Implementing Entity's address is: 25 Bekhzod Street Dushanbe Tajikistan; and (b) the Project Implementing Entity's Electronic Address is: Telex: Facsimile: Email: 221-87-53 251-00-67 info@nsfit.tj AGREED as of the later of the two dates written below. INTERNATIONAL DEVELOP SOCIATION By Authorized Represent ive Name: CIRO - Title: !2 Date: lD&emi / NATIONAL SOCIAL INVESTMENT FUND AJIKISTAN By Authorized Representative Name: &4, Title: S -V76,e Date: /v0vZ A 1 3) 0' -3- SCHEDULE Execution of the Project Implementing Entity's Respective Part of the Project Section I. Implementation Arrangements A. Institutional Arrangements The Project Implementing Entity shall maintain, throughout the implementation of its Respective Parts of the Project, staff and management with experience, qualifications, responsibilities, and resources acceptable to the Association. B. Project Manuals 1 . The Project Implementing Entity shall implement its Respective Parts of the Project in accordance with the Project Manuals. 2. Except as the Association shall otherwise agree in writing, the Project Implementing Entity shall not amend, waive, suspend, or abrogate any provision of the Project Manuals. In case of any inconsistency between any of the provisions of the Project Manuals and those of this Agreement, the provisions of this Agreement shall prevail. C. Subsidiary Agreement The Project Implementing Entity shall exercise its rights and carry out its obligations under the Subsidiary Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Project Implementing Entity shall not assign, amend, abrogate, or waive the Subsidiary Agreement or any of their provisions. D. Subprojects 1 . For the implementation of Part 2 of the Project, the Project Implementing Entity shall make a Subgrant under an agreement ("Subgrant Agreement") to be entered into with each eligible Beneficiary on terms and conditions approved by the Association, which shall include the following: (a) The Project Implementing Entity shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the corresponding Beneficiary to use the proceeds of the Subgrant, or obtain a refund of all or any part of the amount of the Subgrant then withdrawn, upon the -4- Beneficiary's failure to perform any of its obligations under the respective Subgrant Agreement; (ii) require each eligible Beneficiary to: (A) carry out its Subproject with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental, and social standards and practices satisfactory to the Association, including in accordance with the provisions of Safeguard Documents and the Anti-Corruption Guidelines; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works and services, to be financed by the Subgrant in accordance with the Project Manuals and the provisions of this Agreement; (iii) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Subproject and the achievement of their objectives; (iv) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Subproject; (v) at the Association's or the Recipient's request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (vi) enable the Recipient and the Association to inspect the Subproject, its operation and any relevant records and documents; and (vii) prepare and furnish to the Recipient and the Association, all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 2. The Project Implementing Entity shall exercise its rights and carry out its obligations under each Subgrant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Project Implementing Entity shall not assign, amend, abrogate, terminate, waive, or fail to enforce any Subgrant Agreement or any of its provisions. -5- E. Safeguards 1. The Project Implementing Entity shall carry out its Respective Parts of the Project in accordance with the Safeguard Documents. 2. Without limitation upon their other respective reporting obligations under this Agreement, the Project Implementing Entity shall regularly collect, compile and submit to the Association, in accordance with Section II of this Schedule, reports on the status of compliance with the Safeguard Documents, giving details of: (a) measures taken in furtherance of the Safeguard Documents; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the Safeguard Documents; and (c) remedial measures taken or required to be taken to address such conditions. 3. The Project Implementing Entity shall not amend the Safeguard Documents without the prior written approval of the Association. 4. In the event of any conflict between the provisions of the Safeguard Documents and this Agreement, the provisions of this Agreement shall prevail. Section HI. Project Monitoring, Reporting and Evaluation A. Project Reports 1. The Project Implementing Entity shall monitor and evaluate the progress of its Respective Part of the Project and prepare Project Reports for its Respective Part of the Project in accordance with the provisions of Section 5.08 (b) of the General Conditions and on the basis of the indicators acceptable to the Association. Each such Project Report shall cover the period of one calendar semester, and shall be furnished to the Recipient not later than forty-five (45) days after the end of the period covered by such report for incorporation and forwarding by the Recipient to the Association of the overall Project Report.