October 24, Dear Dr. Hakim,
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- Gabriel Pitts
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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Banco Mundial nsur entes r 10 piso 4 Tel (52 55) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT an I AL Fax (52 55) INTERNATIONAL DEVELOPMENT ASSOCIATION ' < Dr. Miguel Hakim Simon Coordinador General Coordinaci6n Estatal de Asuntos Intemacionales y de Apoyo a Migrantes Poblanos Via Atlixcayotl No Col. Reserva Territorial Atlixcayotl Puebla Pue., C.P October 24, 2013 Re: United Mexican States: IDF Grant for Fostering Accountability and Efficiency in Public Service Delivery in Puebla Project (IDF Grant No. TFO 15431) Dear Dr. Hakim, Public Disclosure Authorized Public Disclosure Authorized In response to the request for financial assistance made on behalf of the United Mexican States ("Member Country") represented by its Secretaria de Hacienda y Cridito Pzblico, for the Benefit of the State of Puebla, I am pleased to inform you that the International Bank for Reconstruction and Development ("World Bank") proposes to extend to the Coordinaci6n Estatal de Asuntos Internacionales y de Apoyo a Migrantes Poblanos ("Recipient"), a grant from the World Bank's Institutional Development Fund ("IDF") in an amount not to exceed six hundred fifty thousand United States Dollars (U.S.$ 650,000) ("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"). 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. 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.
2 This Agreement shall become effective as of the date of the Recipient's countersignature, upon receipt by the World Bank of a fully signed original; provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received the countersigned copy of this Agreement within 90 days after the date of signature of this Agreement by the World Bank, unless the World Bank shall have established a later date for such purpose. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND D LOPMENT AGREED: COORDINACION ESTATAL DE ASUNTOS INTERNACIONALES Y DE APOYO A MIGRANTES POBLANOS By Glon. 1randof iector Colomb and Mexic Latin America an e Caribbe Region By: (Authorized Representative) Name: Miguel Hakim Sim6n Title: Coordinador de Asuntos Internacionales y de Apoyo a Migrantes Poblanos, Gobiemo del Estado de Puebla Date: October 24, 2013 IN WITNESS THEREOF: ESTADO DE PUEBLA By: (Authorized Representative) Name: Rafael Moreno Valle Rosas Title: Gobernador del Estado de Puebla Date: October 24,
3 UNITED MEXICAN STATES Secretaria de Hacienda y Crkdito P6blico By: (Aut zed Representative) Name: Ju osco Marti Ascencio Title: itular de la Unidad de Asuntos Intemacionales de la Secretaria de Hacienda y Cr6dito Publico Date: October 24, 2013 Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, (3) "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 (4) "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January (5) "Guidelines: Selection and Employment of Consultants under 1BRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January
4 IDF Grant No. TF ANNEX Article I Standard Conditions; Definitions 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 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. (a) "GAPE" means Gobierno Abierto, Participativo y Eficiente, a framework agreed between the Recipient and the World Bank for purposes of the Project, to promote openness, participation and efficiency in the delivery of public services, by fostering a multi-stakeholder (government, civil society and private sector) participatory mechanism aimed at facilitating: (i) an informed dialogue with relevant stakeholders regarding public initiatives and administrative reforms to improve public services; (ii) open discussions to identify challenges in service delivery; and (iii) the creation of a plan to implement and monitor feasible actions to address the identified challenges. (b) "Selected Public Services" means services delivered by the State of Puebla and selected by the Recipient, in a manner acceptable to the World Bank, to participate in the Project. Article II Project Execution Project Objectives and Description. The objective of the Project is to increase transparency, accountability and efficiency in the delivery of selected public services, through the engagement of civil society, and fostering pro-reform multi-stake holder coalitions (private and public sector) in the State of Puebla by generating participation instruments and methodologies. The Project consists of the following parts: Part 1: Citizen Participation to Increase Transparency and Efficiency in Service Delivery Establishment of formal mechanisms to promote civil society participation, transparency and accountability in service delivery, through: (a) The design and implementation of a prototype electronic application for citizens to provide feedback in Selected Public Services, including, inter alia, the preparation of a user manual and the carrying out of training activities for staff of the Selected Public Services. (b) The design, delivery and documentation of five social accountability experiences in the Selected Public Services, including, inter alia, the procurement processes for infrastructure and social subsidy projects, and the monitoring of government performance for processing and delivering of said Selected Public Services. 4
5 Part 2: Facilitate Multi-Stakeholder Coalitions and Government Effectiveness Generation of formal mechanisms for multi-stakeholder participation to facilitate the identification and implementation of government reforms in order to increase the effectiveness of service delivery including, inter alia: (a) The design and implementation of an online platform, in accordance with the GAPE, aimed at facilitating the interaction of stakeholders to identify and implement transparency and accountability mechanisms and to enhance public service delivery, including, inter alia: (i) (ii) (iii) (iv) designing modules and contents for the a virtual platform based on the GAPE framework to: (A) facilitate multi-stakeholder coalitions; and (B) improve service delivery; defining a strategy to implement the virtual GAPE platform in Selected Public Services; implementing, monitoring and documenting the implementation processes and outcomes of specific action plans executed as part of the virtual GAPE platform; and carrying out of training activities for the Recipient's staff on the GAPE framework as well as preparing a user's manual for the virtual GAPE platform to extend its implementation to other public services. (b) The design and implementation of a baseline and evaluation survey to identify changes in users' perceptions as a result of the implementation of the GAPE in Select Public Services. (c) The development of an institutional mechanism to systematically produce user friendly information in Selected Public Services to enable the participation of civil society to monitor performance on public service delivery, including, inter alia: (i) designing a database public services and related processes; (ii) creating a mechanism to disseminate information and to facilitate civil society participation; and (iii) establishing an internal mechanism to ensure periodic updates Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project in accordance with the provisions of: (a) Article II 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 ("Anti-Corruption Guidelines"); and (c) this Article II Institutional and Other Arrangements. For the purposes of carrying out the Project: (a) The Recipient, shall maintain, throughout the implementation of the Project, a working group comprised of representatives of the Recipient, the State of Puebla's Comptroller Secretariat, the State of Puebla's Secretariat of Finance, a representative of the State of Puebla's civil society and a representative of the State of Puebla's private sector, with terms of reference and responsibilities acceptable to the World Bank (the "Working Group"). (b) The Working Group shall be responsible for the oversight of the technical aspects of the Project, including, inter alia: (i) defining the pace of the implementation of the Project; (ii) identifying the services, procedures and programs that will be subject to the implementation of 5
6 the Project; (iii) facilitating project implementation in the institutions responsible for those selected services, procedures and programs; (iv) participating in the selection of an entity, through a competitive process acceptable to the World Bank, to coordinate the implementation of Part 1 (b) of the Project; (v) participating in the selection of the programs and projects to be documented under Part 1(b) of the Project; and (vi) monitoring overall Project implementation 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 calendar semester, and shall be furnished to the World Bank not later than (30) thirty days 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 (4) four months after the Closing Date 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 (30) thirty days after the end of each calendar semester, covering the semester, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the World Bank not later than (6) six months after the end of such period Procurement. All goods, non-consulting services, and/or consulting services required for the Project and to be financed, fully or partially, out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in the "Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 ("Procurement Guidelines"), and the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 ("Consultant Guidelines") Any contract for Eligible Expenditures to be financed in full or in part out of the proceeds of the Grant shall be included in the procurement plan prepared by the Recipient and approved by the World Bank in accordance with the Procurement Guidelines and the Consultant Guidelines, prior to initiating the procurement process for any such contract. 6
7 Article III Withdrawal of Grant Proceeds Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, 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: Amount of the Grant Percentage of Expenditures Allocated to be Financed Cate2ory (expressed in USD) (inclusive of Taxes) (1) Consultants' Services 650, % TOTAL AMOUNT 650, 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 countersignature of this Agreement by the Recipient Withdrawal Period. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is (3) three years after the date of countersignature of this Agreement by the Recipient. Article IV Termination Termination for Lack of Implementation or Disbursement. This Agreement and its obligations shall terminate if, by February 15, 2014, the World Bank has not received evidence that the Recipient: (a) has signed any consulting services contract required for the Project; or (b) has requested a withdrawal of Grant proceeds; unless the World Bank, after consideration of the reasons for the 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 Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its General Coordinator. 7
8 5.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Coordinaci6n Estatal de Asuntos Internacionales y de Apoyo a Migrantes Poblanos Via Atlixcayotl No Col. Reserva Territorial Atlixcayotl Puebla Pue., C.P 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 1818 H Street, N.W. Washington, D.C United States of America Cable: Telex: Facsimile: INTBAFRAD (MCI) or Washington, D.C (MCI) 8
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