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Administration Agreement between the Agence FranVaise de Developpement and the International
Bank for Reconstruction and Development and the International Development Association concerning
the Palestinian Recovery and Development Plan Multi-Donor Trust Fund
(Trust Fund No. TFO 72593 parallel to original Trust Fund No. TFO 71607)
1. The International Bank for Reconstruction and Development and the International Development
Association (collectively, the "Bank") acknowledge that the Agence Frangaise de Developpment (the
"Donor", and together with the Bank, the "Parties" and each a "Party") agrees to provide the sum of eight
million Euros (E 8.000,000) (the "Contribution") for the Palestinian Recovery and Development Plan Multi-
Donor Trust Fund (Trust Fund No. TF072593) (the "Trust Fund") in accordance with the terms of this
Administration Agreement.
2. The Donor may, from time to time, make one or more additional contributions (each a
"Supplemental Contribution") to the PRDP-TF, by completing and submitting to the Bank a contribution
letter in the format set forth in Annex 3 to this Agreement ("Contribution Letter"). By issuing the call of
funds referred to in the Contribution Letter ("Call of Funds"), the Bank shall be deemed to: (i) acknowledge,
on behalf of the Bank the intention of the Donor to make a Supplemental Contribution and (ii) agree to
administer such Supplemental Contribution under the terms and conditions set forth in the Annexes to this
Agreement. In response to the Call of Funds sent by the Bank, and upon receipt of the Supplemental
Contribution into the account designed by the Bank under the Call of Funds, the term "Contribution" or
"Contribution funds" shall be deemed to include such Supplemental Contribution.
3. The Contribution shall be used to finance the activities set forth in the "Amended and Restated
Standard Provisions Applicable to the Palestinian Recovery and Development Plan Multi-Donor Trust Fund
(PRDP-TF) for the West Bank and Gaza" ("Standard Provisions") attached hereto as Annexes 1 and 2 and
shall be administered by the Bank on behalf of the Donor in accordance with the terms of this
Administration Agreement.
4. The Donor shall deposit the Contribution in accordance with the following schedule and in the
currency specified in paragraph I above ("Contribution Currency") into such bank account designated by
the Bank (each amount deposited hereinafter referred to as an "Installment") upon submission of a payment
request by the Bank
(A) Promptly following countersignature C8,000,000 (eight million Euros)
5. When making any deposit, the Donor shall instruct its bank to include in its deposit details
information (remittance advice) field of its SWIFT deposit message, information indicating: the amount
deposited, that the deposit is made by the Donor for TF072593 (the Palestinian Recovery and Development
Plan Multi-Donor Trust Fund), and the date of the deposit (the "Deposit Instructions"). In addition, the
Donor shall provide a copy of the Deposit Instructions to the Bank's Accounting Trust Funds Division by
e-mail sent to [email protected] or by fax sent to +1 (202) 614-1315.
6. Except with respect to the Deposit Instructions, any notice, request or other communication to be
given or made under this Administration Agreement shall be in writing and delivered by mail, fax or e-mail
to the respective Party's address specified below or at such other address as such Party notifies in writing
to the other Party from time to time:
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For the Bank (the "Bank Contact"):
Mark Eugene AhernProgram Leader, West Bank and GazaThe World BankP.O. Box. 54842Jerusalem, 97200Tel: (972-2) 236 6549Fax: (972-2) 236 6543E-mail: [email protected]
For the Donor (the "Donor Contact"):
Catherine BonnaudCountry DirectorFrench Development Agency /Agence Franqaise de Diveloppement3 Baibars St. - Sheik Jarrah - PB 6671791190 JerusalemTel: +972 2 540 04237+972 2 581 4946E-mail: [email protected]
7. In the event any amounts are to be returned to the Donor under this Administration Agreement, theBank shall transfer such amounts to the Donor, unless otherwise agreed with the Bank. When making anydeposit, the Bank shall include in its deposit details information (remittance advice) field of its SWIFTdeposit message, information indicating: the amount deposited, that the deposit is made by the Bank inrelation to TF072593 (the Palestinian Recovery and Development Plan Multi-Donor Trust Fund), and thedate of the deposit. The Bank shall provide a copy of such information to the Donor.
8. At the date of Bank's signature of this Administration Agreement, the Indirect Rate (as defined inAnnex I to this Administration Agreement) is 17%.
9. All annexes hereto constitute an integral part of this Administration Agreement, whose terms takentogether shall constitute the entire agreement and understanding between the Donor and the Bank. Unlessotherwise specified in an annex hereto, this Administration Agreement may be amended only by writtenamendment between the Bank and the Donor.
10. Each of the Parties represents, by confirming its agreement below, that it is authorized to enter intothis Administration Agreement and act in accordance with these terms and conditions. The Parties arerequested to sign and date this Administration Agreement, and upon possession by the Bank of this fullysigned Administration Agreement, this Administration Agreement shall become effective as of the date ofthe last signature.
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INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENTINTERNATIONAL DEVELOPMENT ASSOCIATION
By: Date:
Name: /2 &JeTitle: _/f
AGENCE FRAN(AISE DE DEVELOPPEMENT
By: '~Date: e lName:Title:-
de
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ANNEX 1
Amended and Restated Standard Provisions Applicable to the Palestinian Recovery andDevelopment Plan Multi-Donor Trust Fund ("PRDP-TF") for the West Bank and Gaza
The following provisions (hereinafter referred to as the "Standard Provisions") shall be applicableto and form an integral part of all agreements entered into between the International Bank forReconstruction and Development ("IBRD") and the International Development Association ("IDA")(collectively, the "Bank") and donor countries and/or organizations (hereinafter referred to as the "Donors")that provide grants (referred to as the "Donors' Contributions") to be administered by the Bank for thePalestinian Recovery and Development Plan Multi-Donor Trust Fund ("PRDP-TF") for the West Bank andGaza (the "Project").
Definitions
"Grant" means a grant made or to be made by the Bank, out of the PRDP-TF, to the PalestineLiberation Organization, for the benefit of the Palestinian Authority, for the purposes and on terms andconditions set forth in the Grant Agreement (as defined in Section 5).
"PRDP" means the Palestinian Reform and Development Plan (PRDP 2008-20 10) dated December17, 2007, prepared by the Palestinian Authority, containing a 3-year fiscal framework, on the basis of whichdonors committed support at the Paris pledging conference or any subsequent development plan preparedby the Palestinian Authority for these purposes.
"Single Treasury Account" means the bank account of the Ministry of Finance of the PalestinianAuthority.
1. Obiectives
The objectives of the PRDP-TF are to provide budget and development support for the PalestinianAuthority's policy agenda as expressed in the PRDP in the period from 2008 until 2010, and include, butare not limited to, the following aims:
(a) pooling different donor funds into one administrative mechanism that will reduce thetransaction costs for the Palestinian Authority; and
(b) helping to alleviate the Palestinian Authority's fiscal pressure by providing reliabledisbursements on a regular basis.
2. Eligible Expenditures
2.1. Grants made from the PRDP-TF shall finance recurrent expenditures by the Palestinian Authoritywith the exception of items described in Annex 2 hereto, which shall not be eligible for financing. Thefollowing eligible expenditures categories may be used to finance Bank-executed activities:
(a) staff costs (excluding short term consultants and temporaries, and also excluding extendedterm consultants and temporaries);
(b) extended term consultants and temporaries;(c) short-term consultants and temporaries; and(d) travel expenses;
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2.2. The following activities may also be financed as Bank-executed activities by the PRDP-TF:
management and administration activities for the PRDP-TF, including but not limited to, supporting PRDP-
TF related meetings; planning and executing work plans and budgets; managing communications and
conducting outreach; disseminating lessons learned; reporting on progress; and monitoring and evaluating
the activities.
2.3. For purposes of the expenditure categories listed above in paragraph 2.1: (i) "staff costs (excluding
short term consultants and temporaries, and also excluding extended term consultants and temporaries)"
includes salaries, benefits and Indirect Rates charged to the Trust Fund as applicable under Bank policies
and procedures; (ii) "extended term consultants and temporaries" includes fees, benefits and Indirect Rates
charged to the Trust Fund as applicable under Bank policies and procedures; and (iii) "short term
consultants and temporaries" includes fees and Indirect Rates charged to the Trust Fund as applicable under
Bank policies and procedures.
2.4. The "Indirect Rate" means the indirect rate, defined as a percentage of personnel costs and available
at the World Bank's Donor center secure website, as such rate may be revised from time to time by the
Bank and applied to this Trust Fund, in accordance with its policies and procedures.
3. Administration of the Contributions
3.1 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.
3.2 Donors' Contributions shall be administered in accordance with the Bank's applicable policies and
procedures, as the same may be amended from time to time, including its procurement, financial
management, disbursement and safeguard policies, its framework to prevent and combat fraud and
corruption and its screening procedures to prevent the use of Bank resources to finance terrorist activity, in
line with the Bank's obligations to give effect to the relevant decisions of the Security Council taken under
Chapter VII of the of Charter of the United Nations. The Donors acknowledge that this provision does not
create any obligations of the Bank under the anti-terrorist financing and asset control laws, regulations,
rules and executive orders of an individual member country that may apply to a Donor.
4. Commingling, Exchange and Investment of the Contributions
4.1. 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 Contribution funds may be commingled with other trust fund assets
maintained by the Bank.
4.2. The PRDP-TF shall be maintained in United States dollars. The Contribution funds may be freely
exchanged by the Bank into other currencies as may facilitate their disbursement.
4.3. 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.
5. Trust Fund Fee5
5.1 The Bank shall calculate a fee each time funds (the "Grant Amount") from the Trust Fund becomecommitted under a Grant Agreement (as such term is defined below in paragraph 6.1 of Section 6 below).Such commitment shall occur when such Grant Agreement is fully countersigned (the "Calculation Date").The fee so calculated by the Bank shall be based on the cumulative total of funds from the Trust Fundcommitted under all Grant Agreements that have been fully countersigned on or prior to the CalculationDate (the "Cumulative Grant Total"). The calculated fee shall depend on where the Cumulative Grant Totalstands as the Grant Amount is added and shall be determined in accordance with the following schedule:
(i) 5% of any portion of the Grant Amount that results in a Cumulative Grant Total below or equal toUS$ 50 million or equivalent; plus(ii) 4% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 50million or equivalent and below or equal to US$ 500 million or equivalent; plus(iii) 3% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 500million or equivalent and below or equal to US$ 1 billion or equivalent; plus(iv) 2% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ Ibillion or equivalent.
5.2 Following each Calculation Date, the Bank shall deduct from TF072593 account, and retain for itsown account, the fee as set forth above. Grant Amounts may not exceed the balance of uncommitted fundsin such account net of the related fee.
6. Grants to Recipient; Role of the Bank; Governance Structure of the PRDP-TF
6.1. The Bank shall, as administrator of the PRDP-TF on behalf of the Donors, enter into a grantagreement (the "Grant Agreement") with the Palestine Liberation Organization (the "Recipient"), for thebenefit of the Palestinian Authority, for the provision of Contribution funds for the purposes of thisAgreement and on the terms and conditions set forth in the Grant Agreement. The Bank shall furnish acopy of the Grant Agreement to the Donors.
6.2. The Bank, in consultation with the International Monetary Fund ("IMF"), shall be solelyresponsible for the supervision and monitoring of the progress towards implementation of the PRDPfinanced under the Grant Agreement.
6.3. In carrying out its responsibilities, the Bank shall call consultation meetings with the IMF, theDonors, and the Palestinian Authority. Such meetings shall be called at least quarterly in each calendaryear.
7. Disbursements
7.1 Disbursements of the Grant will be made on a quarterly basis only after the Bank, inconsultation with the IMF, has determined that the Palestinian Authority has made satisfactory progresstowards the implementation of the PRDP (as further specified in the Grant Agreement), unless the Bankhas granted a waiver following consultations with the IMF and the Donors. Additional disbursements maybe made if upon request by the Recipient in writing in the case of an extraordinary situation the Bank is ofthe opinion that an additional disbursement is justified. Disbursements will be made into a separate depositaccount under the Single Treasury Account opened by the Palestinian Authority for the purposes of thePRDP-TF (the "Deposit Account").
8. Accounting and Financial Reporting
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8.1. The Bank shall maintain separate records and ledger accounts in respect of the Contributions
deposited in the trust fund account and disbursements made therefrom.
8.2. The Bank shall furnish to the Donor current financial information relating to receipts,
disbursements and fund balance in United States dollars with respect to the Contribution funds via the
World Bank's Trust Funds Donor Center secure website. Within six (6) months of the final disbursement
date specified in paragraph 10.1, the final financial information relating to receipts, disbursements and fund
balance in United States dollars with respect to the Contribution funds shall be made available to the Donor
via the World Bank's Trust Funds Donor Center secure website.
8.3. 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
such attestations shall be borne by the Bank.
8.4. 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 most
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.
9. Coordination and Project Reporting
9.1. The Bank shall maintain close consultation and coordination with the Donors on the Bank's policy
dialog with the Palestinian Authority, and shall monitor, in close consultation with the IMF, on a quarterly
basis the progress achieved by the Palestinian Authority in implementing the PRDP. The Bank shall provide
the Donors after each supervision mission with a progress report on the implementation of the PRDP.
Within six (6) months of the final disbursement date specified in Section 10, the Bank shall provide a final
report on the Project to each Donor.
9.2. Any Donor may review activities financed by the PRDP-TF at any time up to six (6) months
following the Disbursement Deadline set forth in paragraph 10.1 of this Annex 1. The Donor and the Bank
shall agree on the scope and logistics of such review, and the Bank shall provide all relevant information
within the limits of the Bank's applicable policies and procedures. All associated costs, including any costs
incurred by the Bank, shall be borne by the Donor. It is understood that any such review will not constitute
a financial, compliance or other audit of the Trust Fund.
10. Disbursement Deadline; Termination; Cancellation; Refund
10.1. It is expected that the Contribution funds will be fully disbursed by the Bank in accordance with
the provisions of this Agreement by August 1, 2020. The Bank shall only disburse Contribution funds for
the purposes of this Agreement after such date with the written approval of the Donors.
10.2. 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, including the Grant Agreement.
10.3. Upon the final disbursement date specified in paragraph 10.1, 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
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individual Donor's pro rata share of uncommitted Contribution funds in accordance with paragraph 10.2,the Bank shall return such cancelled balance to the Donor.
11. Disclosure
The Bank may disclose this Agreement and information on this trust fund in accordance with theBank's policy on disclosure of information.
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ANNEX 2
Items not eligible for financin2 under the PRDP-TF for the Palestinian Recovery and Development
Plan for the West Bank and Gaza
"Excluded Expenditure" means any expenditure:
a. For goods or services supplied under a contract which any national or international
financing institution or agency other than the IBRD or IDA has financed or agreed to
finance, or which the IBRD or IDA has financed or agreed to finance under another trust
fund credit or trust fund grant;
b. For goods included in the following groups or sub-groups of the Standard International
Trade Classification, Revision 3 (SITC, Rev.3), published by the United Nations in
Statistical Papers, Series M, No. 34/Rev.3 (1986) (the "SITC), or any successor groups or
subgroups under future revisions to the SITC, as designated by the Bank by notice to the
Recipient:
Group Sub-group Description of Item
112 Alcoholic beverages
121 Tobacco, un-manufactured, tobacco
refuse
122 Tobacco, manufactured (whether or
not containing tobacco substitutes)
525 Radioactive and associatedmaterials
667 Pearls, precious and semipreciousstones, unworked or worked
718 718.7 Nuclear reactors, and parts thereof;fuel elements (cartridges), non-irradiated, for nuclear reactors
728 728.43 Tobacco processing machinery
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Group Sub-group Description of Item
897 897.3 Jewelry of gold, silver or platinumgroup metals (except watches andwatch cases) and goldsmiths' orsilversmiths' wares (including setgems)
971 Gold, non-monetary (excludinggold ores and concentrates)
c. For goods intended for a military or paramilitary purpose or for luxury consumption;d. For environmentally hazardous goods, the manufacture, use or import of which is
prohibited under the laws in effect in the parts of the West Bank and Gaza under thejurisdiction of the Palestinian Authority or international agreements to which the Recipientor the Palestinian Authority is a party;
e. In the territories (other than the parts of the West Bank and Gaza under the jurisdiction ofthe Palestinian Authority) of any country which is not a member of the Bank or for goodsprocured in, or services supplied from, such territories;
f. On account of any payment prohibited by a decision of the United Nations Security Counciltaken under Chapter VII of the Charter of the United Nations; and
g. With respect to which the Bank determines that corrupt, fraudulent, collusive or coercivepractices were engaged in by representatives of the Recipient or the Palestinian Authorityor of a beneficiary of a Grant without the Recipient having taken timely and appropriateaction satisfactory to the Bank to address such practices when they occur.
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ANNEX 3
CONTRIBUTION LETTER
[Date]
Marina WesCountry DirectorWest Bank and GazaMiddle East and North Africa RegionThe World Bank1818 H Street, NWWashington, DC 20433
Trust Fund Administration Agreement between the Agence Frangaise de Developpement
and the International Bank for Reconstruction and Development and the InternationalDevelopment Association concerning the
Palestinian Recovery and Development Plan Multi-Donor Trust Fund("PRDP-TF") Trust Fund No. TF072593
Supplemental Contribution to the PRDP-TF
[Dear :]
1. We refer to the Administration Agreement dated between the Agence Frangaise de
Developpement and the International Bank for Reconstruction and Development (IBRD) and the
International Development Association (IDA) (collectively, the "Bank") regarding the PRDP-TF
(TF072593), and to discussions in which the Donor has indicated its intention to provide additional
funding for the PRDP- TF.
2. We are pleased to confirm to the Bank the Agence Frangaise de Developpement's intention
to make a Supplemental Contribution to the PRDP-TF in the amount of [currency+ amount in
words] ([currency+ amount in numbers]).
3. We request the Bank to process the Call of Funds for the Supplemental Contribution
specifying the bank account into which the Supplemental Contribution should be deposited.
4. We shall deposit the Supplemental Contribution into such bank account as may be
designated by the Bank in the Call of Funds promptly following receipt of the Call of Funds from
the Bank.
5. All terms defined in the Administration Agreement shall have the same meanings in this
Contribution Letter.
6. All other terms of the Administration Agreement shall remain the same.
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7. We consent to disclosure of this Contribution Letter and related information on this TrustFund in accordance with the World Bank Policy on Access to Information.
Sincerely,
[Donor address/signature]
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