OFFICIAL DOCUMENTS . THE WORLD BANK eA1' - I wom.oamMONouP 7 ' L4 CI ,2018 Mr. Patrick Nomo Chief Director Ministry of Finance 28th February Road, Finance Drive Accra - Ghana Re: Ghana: EGPS Grant No. TFOA7700 Implementation of Extractive Industries Technical Assistance Letter Agreement Dear Mr. Nomo: In response to the request for'financial assistance made on behalf of the Republic of Ghana ("Recipient"), I am pleased to inform you that the International Bank for Reconstruction and Development and the International Development Association ("World Bank"), acting as administrator of grant funds provided by various donors ("Donors"), under the Extractives Global Programmatic Support Multi-Donor Trust Fund (TF072699), proposes to extend to the Recipient ("Member Country"), a grant in an amount not to exceed three hundred thousand United States Dollars (USD 300,000) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financing of the project described in the Annex ("Project"). This Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Project in accordance with the terms and conditions set forth or referred to in this Agreement. 1818 H Street NW * Washington, DC 20433 USA -2- 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. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION By: Henry G. R. Kerali Country Director for Ghana Africa Region AGREED: REPUBLIC OF GHANA B . DateK9To iA thorized Repretentative Name: Title: Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012. (2) Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 and as of July 1, 2016. (3) World Bank Procurement Regulations for IPF Borrowers" dated July 2016, revised November 2017. (4) Disbursement Letter of the same date as this Agreement, together with the "Disbursement Guidelines for Investment Project Financing", dated February 2017. -3 - EGPS Grant No. TFOA7700 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated February 15, 2012 ("Standard Conditions") constitute an integral 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 Project Execution 2.01. Project Objectives and Description. The objective of the Project is to support the Government of Chana to orient the implementation of the Extractive Industry Transparency Initiative (EITI) toward achieving wider goals of improved extractive sector governance. The Project consists of the following parts: 1. Production and dissemination of 2017 Ghana EITI Report for mining, oil and gas sectors. Recruitment of consultants to carry out preparation, production, publication and dissemination of the 2017 Ghana EITI National Reports for mining, oil and gas sectors. 2. Artisanal Small-Scale Mining (ASM) stakeholder engagement. Engage ASM stakeholders on the EITI process and sensitize them about the negative consequences of illegal mining. 3. Institutional capacity building for civil society organizations (CSOs) on monitoring the use of mineral royalties. Development and piloting of a monitoring framework and tracking tool of the Minerals Development Fund Act passed in 2016 at the sub-national level by CSOs, with a particular focus on mining host communities' share of the Fund. In addition, activities will be undertaken to orient sub-national level CSOs on the changes in the EITI Standards. 4. Communications support. Provide communications support to ensure visibility of Ghana EITI and its impact in monitoring transparency of the extractive sector. 5. Project Management. Carry out supervision and project implementation support. 2.02. Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project through the EITI Secretariat (established and based within the Recipient's Ministry of Finance and Economic Planning), in accordance with the provisions of: (a) Article 11 of the Standard Conditions; (b) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 and as of July 1, 2016 ("Anti-Corruption Guidelines"); and (c) this Article II. -4- 2.03. Institutional and Other Arrangements. (a) The Recipient shall maintain the EITI Secretariat at all times during Project implementation, with functions and resources satisfactory to the World Bank, and with competent staff in adequate numbers, for the purposes of carrying out day-to-day implementation of the Project. (b) The Recipient shall ensure that the terms of reference for any consultants' services in respect of any activity under the Project shall be satisfactory to the World Bank following its review thereof, and to that end, such terms of reference shall duly incorporate applicable environmental and social standards equivalent to the World Bank safeguards policies then in force, as applied to the advice conveyed through such technical assistance. (c) The Recipient shall throughout Project implementation, pay due attention to and ensure that all terms of reference for any training, technical assistance or studies carried out under the Project are consistent with the World Bank's environmental and social safeguard policies as well as the Recipient's own laws relating to the environment and social aspects. (d) The Recipient shall ensure that, throughout project implementation, any training and workshops to be carried out for the purpose of the Project shall be procured in accordance with the plans which shall have been approved by the World Bank prior to commencement of said training/workshop, and which shall include: (i) details of the training/workshop to be carried out (ii) date and duration; (iii) number of attendees; (iv) number of consultants conducting such training/workshop; (v) detailed cost. 2.04. Donor Visibility and Visit. (a) The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the Donors' support for the Project. (b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank's request, take all measures required on its part to enable the representatives of the Donors to visit any part of the Recipient's territory for purposes related to the Project. 2.05. Project Monitoring, Reporting and Evaluation. (a) The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank. Each Project Report shall cover the period of one (1) calendar semester, and shall be furnished to the World Bank not later than one (1) month after the end of the period covered by such report. (b) The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six months after the Closing Date. 2.06. Financial Management. (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank not later than 45 days after the end of each quarter. covering the quarter, in form and substance satisfactory to the World Bank. -5- (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07(b) of the Standard Conditions. Such audit of the Financial Statements shall cover the entire period during which withdrawals from the Grant Account were made. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the end of such period. 2.07. Procurement All goods, non-consulting services and consulting services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in the "World Bank Procurement Regulations for IPF Borrowers" dated July 2016, revised November 2017 ("Procurement Regulations"), and the provisions of the Recipient's procurement plan for the Project ("Procurement Plan") dated April 11, 2018, provided for under Section IV of the Procurement Regulations, as the same may be updated from time to time in agreement with the World Bank. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "Disbursement Guidelines for Investment Project Financing", dated February 2017, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the following table. The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Percentage of Amount of the Grant Expenditures to be Allocated Financed Category (expressed in USD) (inclusive of Taxes) (1) Goods, consulting 300,000 100% services, non-consulting service, training, and operating cost under the Project. TOTAL AMOUNT 300,000 For purposes of this paragraph, the terms: (a) "Operating Costs" means the reasonable and documented expenditures incurred by Recipient on account of the Project implementation, monitoring and evaluation, which expenditures would not have been the incurred absent the Project, including costs for office supplies, repair of equipment and vehicles, staff travel, rental of office space, fuel costs and costs of contractual staff, but excluding the salaries of the Recipient's civils servants. -6- (b) "Training" means the reasonable costs associated with the training and workshop participation of personnel involved in Project supported activities, including travel and subsistence costs for training participants, rental of training facilities, preparation and reproduction of training and workshop materials, and other costs directly related to training courses and workshops. 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 this Agreement. 3.03. Withdrawal Period. The Closing Date referred to in Section 3.06(c) of the Standard Conditions is February 29, 2020. Article IV Effectiveness; Termination 4.01. Termination for Failure to Become Effective. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date 90 days after the date of this Agreement, unless the World Bnk, after consideration of the reasons for delay, establishes a later date for the purpose of this Section. The World Bank shall promptly notify the Recipient of such later date. Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is Chief Director of the Ministry of Finance of Ghana. 5.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Ministry of Finance Republic of Ghana 28th February Road, Finance Drive Accra - Ghana Email: Chiefdirector(amofep.gov.gh 5.03. World Bank's Address. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Facsimile: 1-202-477-6391