. OFFICKA IDOCMgr ADMINISTRATION AGREEMETP FOR 'TH7F - SWEDISH TRUST FUND FOR ALBANIA WATER lESOURCES AND IRRIGATION PROJECT (TRUST FUND NO. TF01 1946 / SIDA CONTRIBUTION NO. 5303007101) Article 1 Subject and Amount of the Grant Section 1.01. In pursuance of the Single Donor Trust Funds Framework Agreement between Sweden. represented by the Swec ish International Development Cooperation Agency, Sida ("Sweden") and the International Bank for Reconstruction and Development ("IBRD") and the Internalional Development Associa-ion (the "IDA") (collectively the "Bank") dated March 17, 2011 (the "Framework Agreemen:."), I am pleased to inform you that Sweden will make available a grant (the "Grant") of Swedish Kronor thirty five million (SEK 35,000,000), to be administered by the Bank for Alba-iia Water Resources and Irrigation Project (Trust Fund No. TF071946). Section 1.02. The terms of the Framework Agreement shall apply to the Grant. The Bank shall adminis:er the Grant in accordance with the provisions of the Framework Agreement, except as otherwise provided herein. Section 1.03. The Grant shall be us.ed exclusively for the following activities which form part of the Project to be financed by the Baik: (a) Institutional Support for Integrated Water Resources Management. Establishment of a strategic framework for management of water resources through, inter ilia: (i) Preparation of a national integrated water resource management strategy. (ii) Preparation of river basin Management plans for the Drin-Buna and Semani river basi-is. (iii) Establishment of a consolidated water resources database to be used as a basis for national water resources planning and programming (b) Implementation Support. Provision of support for the implementation of the Project and establishment and implementation of a performance based management information system. Section 1.04. The Grant shall be used to finance the following categories of expenditure: goods, training, consultants' servi,es, and incremental operating costs. Notwithstanding the foregoing, and so long as there is no change in the overall objectives or characteristics of the Grant, the Bank may reallocate the Crant funds between such categories of expenditures in I accordarce with the Bank's applicable policies and procedures on reallocation, without the need to obtai Sweden's approval for any such reallocation. Section 1.05. In addition to the financial reports on the Grant to be made available pursuant to Section 10.01 of the Framework A greement, the Bank shall provide an annual report on the activities financed by the Grant and a final report on the activities following the Completion Date. Article 2 Payment Modalities Section 2.01. Sweden shall deposit the Grant funds with the Bank, upon request from the Bank, in such bank account designated by the Bank, in accordance with the provisions of Section 6.02 the Framework Agreement. The first installment of the Grant will be SEK 14,000,000. Subsequent installments will be made in accordance with the provisions of Section 6.02(b) of the Framework Agreement. Section 2.02. The Bank shall con ert the Contribution funds into the holding currency of the Trust Fnd, namely United States Dollars, promptly upon receipt of the Contribution funds and the Deposit Instruction containing t ie information specified in paragraph 4 at the exchange rate obtained by the Bank on the date of :he conversion. Where the Contribution proves to be insufficient to complete the activities as a result of an exchange rate fluctuation, neither the Bank nor the Donor shall bear any responsibility for providing any additional financing. Article 3 Adninistrative Cost Recovery Section 3.01 Consistent with Section 3.02 of the Framework Agreement, in order to assist in the defrayment of the costs associaled with the establishment of this Agreement, the Bank may, followir.g deposit of the Grant by S weden, deduct from the Grant and retain, for the Bank's own account an amount equal to Thirty-Five Thousand United States Dollars ($35,000). Section 3.02 In order to assist in the defrayment of the costs of administration and other expenses incurred by the Bank under t iis Agreement, the Bank may, following deposit of the Contribution, deduct and retain for its own account an amount equal to five percent (5%) of each Contribution. If the contributions ncrease beyond what was originally expected at the time of countersignature of this Agreement, and the administrative costs increase as a result, the Donor acknowledges that an additional administrative fee may be applied to such new contributions. Article 4 Comnincement and Completion Dates Section 4.01 The Grant funds may be used to finance expenditures for the activities described in Section 1.03 commencing on November 29, 2012, and ending on November 30, 2017. The Bank may make disbursements of the Grant funds for up to six (6) months after such latter date for expenditures incurred on or tefor. such date in accordance with the Bank's applicable policie:s and procedures. 2 Article 5 Cancellation Section 5.01. Either party may, upon giving the other party three (3) months' prior written notice, cancel that part, if any, of the Grant funds provided under this Administration Agreement that the Bank has not committed prir tc receipt of such notice under agreements entered into by the Bank with any third party, including any grant agreement. Article 6 Communications Section 6.01. The offices responsit le for coordination of all matters related to this Administration Agreement are: For Sweden: Robert Nygdrd First secretary, Program Off cer Embassy of Sweden, Tirana Rruga Pjeter Budi, No.56, Tirana, Albania Tel.: +355 4 2380 650; direct +335 4 2380 672 Fax.: +355 4 2380 660 For the Bank: Mr. IJsbrand de Jong Senior Water Resource Specialist Agriculture and Rural Development Unit, Sustainable Development Department Europe and Central Asia Re:ion World Bank 1818 H Street NW Washington DC 20433, USA This Administration Agreement is drawn up in two originals, one for each party. It may be amended only by written agreement of the parties hereto. SWEDEN, REPRES TED BY SIDA By: __ _ Mikael Elofsso Head of Reform Cooperation Western Balkans and Turkey Department for Reform and Selective Cooperation Si.a Date: 'D e r- ibey' 9 gD, 3 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION By:/ _____ Jane itage Country Director for Albania World Bank Date: November 28, 2012 4