The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS CONFORMED COPY November 24, 2010 Mr. Juan Carlos Mato Gómez General Director of Social Policy Families and Childhood Ministry for Health and Social Policy Paseo de la Castellana, nº 67, planta 6ª 28071 Madrid Spain Trust Fund Administration Agreement between the Kingdom of Spain and the International Bank for Reconstruction and Development and the International Development Association concerning the Multi- Donor Trust Fund in Support of the Decade of Roma Inclusion (TF070367) Dear Mr. Mato Gomez: 1. We are pleased to acknowledge on behalf of the International Bank for Reconstruction and Development (“IBRD�) and the International Development Association (“IDA�) (collectively, the “Bank�) that the Kingdom of Spain (the “Donor�) shall make available as a grant the sum of twenty thousand Euros (€20,000) (the “Contribution�) for the Multi-Donor Trust Fund (the “Project�) in support of the Decade of Roma Inclusion (the “Decade�). Other donors are also expected to contribute to this trust fund on the terms and conditions specified in the Annexes to this Agreement. 2. The overall objective of this trust fund is to provide an instrument for the eight countries that make up the Decade of Roma Inclusion and several international donors, including the World Bank, to coordinate activities in support of Decade implementation. The Project will support two types of activities (i) cross-country technical support, training and workshops in the context of implementing the national Decade action plans, and (ii) monitoring and evaluation of Decade implementation across the eight Decade countries. Further details on the implementation of the activities under the Project are set out in “Description of Activities and Expenditures under the Multi-donor Trust fund in support of the Decade of Roma Inclusion (“Description of Activities and Expenditures�) hereto attached as Annex I. Annex I constitute an integral part of this Agreement. 3. The Contribution will be administered by the Bank on behalf of the Donor in accordance with the terms of this Agreement and the “Standard provisions Applicable to the Multi-Donor Trust Fund in support of the Decade of Roma Inclusion (the “Standard Provisions�) attached hereto as Annex II. Annex II constitutes an integral part of this Agreement. RCA 248423.  WUI 64145  FAX (202) 477-6391 Mr. Juan Carlos Mato Gómez -2- November 24, 2010 4. The Donor shall deposit the entire Contribution into such bank account designated by the Bank promptly following countersignature of this Agreement by the Donor and submission of a payment request by the Bank. 5. When making [each] such deposit, the Donor shall instruct its bank to include in its payment details information (remittance advice) field of its SWIFT payment message, information indicating: the amount paid, that the payment is made by the Donor for TF070367 (Multi-Donor Trust Fund in support of the Decade of Roma Inclusion), and the date of the deposit (the “Deposit Instruction�). In addition, the Donor shall provide a copy of the Donor’s Deposit Instruction to the Bank’s Accounting Trust Funds Division by e-mail sent to tfremitadvice@worldbank.org or by fax sent to (202) 614-1315. 6. The offices responsible for coordination of all matters related to the implementation of this Agreement are: For the Bank Ms. Kathy Lindert Sector Manager Social Protection, Europe & Central Asia Region The World Bank 1818 H Street, NW Washington, DC 20433 U.S.A. Tel: (202) 473-9861 Fax: (202) 477-0574 E-mail: klindert@worldbank.org For the Donor: Dolores Ruiz Bautista Deputy Director of Social Programmes Directorate General of Social Policy, Families and Childhood Ministry for Health and Social Policy Paseo de la Castellana, nº 67, planta 6ª 28071 Madrid Spain Tel: +34 91 822 65 70 Fax: +34 91 209 03 72 E-mail: jmatog@msps.es / mruizb@msps.es Mr. Juan Carlos Mato Gómez -3- November 24, 2010 7. This Agreement may be amended only in writing between the Bank and the Donor; provided, however, that Annex I (“Description of Activities and Expenditures�) and Annex II (“Standard Provisions�) to this Agreement may only be amended with the agreement of all Donors contributing to the trust fund. 8. Please confirm your agreement with the foregoing, on behalf of the Donor, by signing, dating, and returning to us the enclosed copy of this Agreement. Upon receipt by the Bank of the copy of this Agreement countersigned by you, this Agreement will become effective as of the date of the countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION /s/ Philippe H. Le Houerou Regional Vice President Europe and Central Asia Region AGREED: KINGDOM OF SPAIN By: /s/ Juan Carlos Mato Gomez Name: Juan Carlos Mato Gomez Title: General Director of Social Policy Families and Childhood Date: December 3, 2010 Mr. Juan Carlos Mato Gómez -4- November 24, 2010 ANNEX I Description of Activities and Expenditures under the Multi-Donor Trust Fund in support for the Decade of Roma Inclusion BACKGROUND The objective of the Decade of Roma Inclusion (2005-2015) is to accelerate progress in improving the economic status and social inclusion of Roma Through Trhee primary activities:  Setting quantitative national targets for improvements in the economic status and social inclusion of the Roma population;  Developing and implementing national action plans to achieve those targets; and  Monitoring progress against agreed targets, and adjusting action plans as necessary over the Decade. The Decade was conceived at a conference “Roma in an Expanding Europe: Chalenges for the Future� which was held in Budapest in summer 2003. The conference was co- financed by the World Bank, the Open Society Institute (OSI), the European Commission, UNDP, the Council of Europe Development Bank and the governments of Hungary, Finland and Sweden. In early February, 20015, the leaders of Bulgaria, Czech Republic, Croatia, Hungary, Macedonia, Romani, Serbia and Montenegro and Slovakia convened in Sofia, Bulgaria to launch the Decade. The participating heads of states signed a declaration proclaiming the following: Building on the momentum of the 2003 conference, “Roma in an Expanding Europe: Challenges for the future�, we pledge that our governments will work toward eliminating discrimination and closing the unacceptable gaps between Roma and the rest of the society, as identified in our Decade Actions Plans, We declare the years 2005 – 2015 to be the Decade of Roma Inclusion and we commit to support the full participation and involvement of national Roma communities in achieving the Decade’s objectives and to demonstrate progress by measuring outcomes and reviewing experiences in the implementation of the Decade’s Action Plans. We invite other states to join our effort. During the preparations for the Decade, the Hungarian Government chaired an International Steering Committee, consisting of government and Roma representatives from the eight participating countries, to oversee Decade preparations and monitor Mr. Juan Carlos Mato Gómez -5- November 24, 2010 progress.1 The International Steering Committee has been meeting regularly over the past two years. The Decade chairmanship rotates among the eight Decade countries. In July 2005, Romania took over the chairmanship from Hungary. Prior to the Decade launch, each participating country adopted its own national Decade Action Plan, prepared by country working groups which were made up of Government and Roma civil society representatives. These action plans include concrete policy measures in the areas of education, health, employment and housing, as well as three cross-country themes discrimination, poverty and gender. Quantitative targets are included in the action plans for measuring progress. While general revenue funding from the eight Decade countries is expected to represent the majority of financial resources for Roma programs, external financing sources will also be necessary. The World Bank stands ready to assist Decade countries with technical assistance, analytical work and lending and the European Commission has stated that it welcomes the use of EU Structural Funds in the new Member States for Decade purposes. In addition, EU candidate countries have been using EU pre-accession funding for Roma inclusion interventions and other bilateral donors such as the Open Society Institute have also been financing Roma inclusion projects in the eight Decade countries. PROJECT The Decade aims at facilitating the exchange of experience and best practice across the participating countries. In the run-up to the Decade launch, the countries participated in sector workshops on the four priority areas, as well as in communications, social accountability, and data. Further workshops are planned during the current Romanian chairmanship. The workshops have involved technical-level government officials from the relevant sector ministries, international and regional experts, representatives of partner organizations and Roma representatives. This Trust Fund will facilitate such cross-country coordination in the implementation of the action plans. The creation of targets and performance indicators are particularly essential to the success of the Decade. Each country has been working, with varying success, on identifying indicators and strengthening datasets that can be used to monitor progress on each of the Decade goals. This is a substantial challenge given the lack of reliable data on the condition of Roma populations. The eight Decade countries have been reviewing their existing country-level data sources to assess the extent to which they will be useful for tracking progress during the Decade. This process of improving the availability of data will be supported through this multi-country Trust Fund. 1 While the Decade of Roma Inclusion was launched by the eight countries that participated in the Budapest Conference, other countries will be invited to join in at a later stage as and when ready. Mr. Juan Carlos Mato Gómez -6- November 24, 2010 Description of Project Activities: The Project will support two principal types of activities (i) cross-country technical support, training and workshops in the context of refining and implementing the national Decade action plans; and (ii) monitoring and evaluation of Decade implementation across the eight Decade countries. The project will finance short term consultant fees, travel, and media and workshop costs.2 Initiatives will be identified and approved by a three person panel which includes a World Bank representative, a one representative each to be named by the current and immediately previous holders of the Decade Presidency. In order to identify funding priorities, the panel will consult with an advisory panel -- to be established -- made up of one steering group member from each of the nine government delegations (including Montenegro). Prior to approval, all contract proposals will be shared virtually (by mail or internet) for comments by the advisory panel. The panel will take into consideration the advice and comments of the advisory committee, but will not be bound by the advice of this committee when approving contracts. The World Bank will report to the Decade Steering Group at each meeting on the status of the Trust Fund, including an update on ongoing and planned activities. 2 Project funding will not be used to cover the cost of travel or other costs of participation in trust fund activities by World Bank staff. Mr. Juan Carlos Mato Gómez -7- November 24, 2010 ANNEX II Standard Provisions Applicable to the Multi-Donor Trust Fund in support of the Decade of Roma Inclusion The following provisions (hereinafter referred to as the “Standard Provisions�) shall be applicable to and form an integral part of all agreements entered into between the International Bank for Reconstruction and Development (“IBRD�) and the International Development Association (“IDA�) (collectively, the “Bank�) and donor countries and/or organizations (hereinafter referred to as “Donors�) that provide grants (referred to as the “Contributions�) to be administered by the Bank for the Multi-Donor Trust Fund in support of the Decade of Roma Inclusion (the “Project�). 1. Administration of the Contributions The Bank shall be responsible only for performing those functions specifically set forth in this 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 Agreement shall be considered a waiver of any privileges or immunities of the IBRD and IDA under their Articles of Agreement or any applicable law, all of which are expressly reserved. 2. Eligible Expenditure Categories The Contribution funds shall be used for short term consultant fees, travel excluding travel by World Bank staff), and media and workshop costs. Equipment and civil works will not be eligible expenditures. 3. Commingling, Exchange and Investment of the Contributions 3.1. The Contribution funds shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The Contributions funds may be commingled with other trust fund assets maintained by the Bank. 3.2. The Contribution funds may be freely exchanged by the Bank into other currencies as may facilitate their disbursement. 3.3. The Bank shall invest and reinvest the Contribution funds pending their disbursement in accordance with the Bank’s policies and procedures for the investment of trust funds administered by the Bank. The Bank shall credit all income from such investment to the trust fund established under this Agreement to be used for the same purposes as the Contribution funds. Mr. Juan Carlos Mato Gómez -8- November 24, 2010 4. Administrative Cost Recovery In order to assist in the defrayment of the costs of administration and other expenses incurred by the Bank under this Agreement, the Bank may, following deposit of Contribution funds, deduct from such funds and retain for the Bank’s own account an amount equal to five percent (5%) of the Contribution. 5. Employment of Consultant and Procurement of Goods The employment and supervision of consultants and the procurement of goods, as the case may be, financed by the Contributions shall be the responsibility solely of the Bank and shall be carried out in accordance with its applicable policies and procedures. 6. Accounting and Financial Reporting 6.1. The Bank shall maintain separate records and ledger accounts in respect of the Contributions deposited in the Trust Fund account and disbursements made therefrom. 6.2. Within ninety (90) days of each March 31, June 30, September 30 and Decembe 31, the Bank shall furnish to the Donors an unaudited cash-based statement of receipts, disbursements and fund balance in Euro with respect to the Contributions. Within six (6) months of the final disbursement date specified in paragraph 8.1., the Bank shall furnish to the Donors a final unaudited cash-based statement of receipts, disbursements and fund balance in Euro with respect to the Contribution funds. 6.3. The Bank shall provide to the Donors, within six (6) months following the end of each Bank fiscal year, a management assertion together with an attestation from the Bank’s external auditors concerning the adequacy of internal control over cash -based financial reporting for trust funds as a whole. The cost of the single audit shall be borne by the Bank. 6.4. If a Donor wishes to request, on an exceptional basis, a financial statement audit by the Bank’s external auditors of the trust fund established under this Agreement, 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 external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be paid by the Donor. 7. Coordination and Progress Reporting 7.1. The Bank shall provide the Donors with an annual report on the progress of activities financed by the Contributions. Within six (6) months of the final disbursement date specified in paragraph 8.1, the Bank shall furnish to the Donors a final report on the Project activities. Mr. Juan Carlos Mato Gómez -9- November 24, 2010 8. Disbursement; Cancellation; Refund 8.1. It is expected that the Contributions will be fully disbursed by the Bank by in accordance with the provisions of this Agreement by December 31, 2015. The Bank shall only disburse Contribution funds for the purposes of this Agreement after such date with the written approval of the Donors. 8.2 Any Donor or the Bank may, upon three (3) months’ prior written notice, cancel all or part of the Donor’s pro rata share of any remaining balance of the Contribution funds that is not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third parties for the purposes of this Agreement prior to the receipt of such notice. 8.3. Upon the final disbursement specified in paragraph 8.1, the Bank shall return any remaining balance of the Contribution funds to the Donors on a pro rata basis. In the event of a cancellation of an individual Donor’s Contribution, the Bank shall refund the Donors pro rata share of the uncommitted Contribution funds in accordance with paragraph 8.2. 9. Disclosure The Bank may disclose this Agreement and information on this trust fund in accordance with the Bank’s Policy on disclosure of information.