Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized OFPM3L Th Op Veb The World Bank 1818 H ree (202) 473-1000 NTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, DC 2043 Cable Address. INTBAFRAD NTERNATIONAL DEVELOPMENT ASSOCIATION Cable Address INDEVAS Hon. Dr. Teuea Toatu Minister for Finance and Economic Development Ministry for Finance and Economic Development P.O. Box 67 Bairiki, Tarawa Republic of Kiribati Dear Minister. Republic of Kiribati: APIP Grant No. TFOA26 74 APIP Grant to Co-finance the Kiribati Road Rehabilitation Project June 21. 2016 In response to the request for financial assistance made on behalf of the Republic of Kiribati (the "Recipient"), I am pleased to inform you that the International Development Association (the "Association'). acting as administrator of grant funds provided by the Government of Australia, represented by the Department of Foreign Affairs and Trade (the "Donor"), under the Australia - Pacific Islands Partnership Trust Fund ("APIP"), proposes to extend to the Recipient a grant in an amount not to exceed three million six hundred forty-eight thousand nine hundred sixty eight United States Dollars (U.S. $3.648.968) (the -Grant") on the terms and conditions set forth or referred to in this letter agreement (the "Agreement-). which includes the attached Annex, to assist in the financing of the project described in the Annex (the "Project"). The Association provided a grant to the Recipient in an amount equivalent to thirteen million Special Drawing Rights (SDR 13.000,000) under the Original Financing Agreement (as this term is defined in Section 1.02 of the Annex to this Agreement) and four million two hundred thousand Special Drawing Rights (SDR 4.200.000) under the Additional Financing Agreement (as this term is defined in Section 1.02 of the Annex to this Agreement). respectively. to finance activities related to the Project. The Association, acting as administrator of grant funds provided by the Donor under the Pacific Region Infrastructure Facilit- ("PRIF") Multi-donor Trust Fund further provided a grant to the Recipient in the amount of: (i) five million se%en hundred ninety thousand United States Dollars (U.S. S5.790.000) under the Original Grant Agreement (as this term is defined in Section 1.02 of the Annex to this Agreement), (ii) seven million United States Dollars (U.S. $7.000.000) under the Letter of Amendment (as this term is defined in Section 1.02 of the Annex to this Agreement): and (iii) two million four hundred seventeen thousand eight hundred torty three United States Dollars (U.S. 52.417.843) under the Amendment to the Grant Agreement (as this term is defined in Section 1.02 of the Annex to this Agreement). respectively, to co-finance activities related to the Project. [his Grant is funded out of the abovementioned trust fund for which the Association receives periodic contributions frtom the Donor. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement). the Association's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donor under the abovementioned trust fund, and the Recipicnt' right to withdraw the Grant proceeds is subject to the availability of such funds. RCA 248423 W1NU 64145 FAX f202) 477-6391
Republic of Kinhati -2- APIP Grant No. TFOA2674 The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Aureement and to carrv out the Project in accordance with the terms and conditions set forth or referred to in this Agreement. Please contirm 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 Association. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Mona Sur Acting Country Director Timor-Leste. Papua New Guinea & Pacific Islands East Asia and Pacific Region AGREED: REPUBLIC OF KI Authorized Representative Name: -C Fitlec: Date: - Enclosures: (1) Standard Conditions for Grants Made b, the World Bank Out of Various Funds, dated February 15. 2012 ( Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006
ANNEX Article I Standard Conditions: Definitions.01. Standard Conditions. The Standard Conditions (as this term is defined in Section 1.02 below) 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, the Original Financing Agreement. the Grant Agreement or in this Agreement (including the cover letter to this Agreement and this Section) as follows: (a) "Additional Financing Agreement" means the financing agreement between the Recipient and the Association, dated April 16. 2015 (as amended) (Grant No. D035- KI) providing additional financing for the Kiribati Road Rehabilitation Project. (b) "Amendment to the Grant Agreement" means the second letter amending the Grant Agreement between the Recipient and the Association. dated March 10, 2016. (c) "Anti-Corruption Guidelines" means the "Guidelines on Presenting and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants". dated October I5. 2006 and revised in January 2011. (d) "Consultant Guidelines" means the *'Guidelines: Selection and EmploNment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 and revised in July 2014. (e) "Letter of Amendment" means the first letter amending the Grant Agreement between the Recipient and the Association, dated April 24, 2015. (f) "Operating Costs" means the reasonable costs of goods and non-consulting sen ices required for the day-to-day coordination, administration and supervision of Project activities, including leasing andor routine repair and maintenance of vehicles, equipment. facilities and office premises. fuel, office supplies, utilities, consumables, communication expenses (including postage, telephone and internet costs), transportation. translation, printing and photocopying expenses. bank charges. publications and advertising expenses. insurance, Projectrelated meeting expenses. Project-related travel, and subsistence and lodging expenses. but excludinu salaries of the Recipient's civil servants, as may be approved by the World Bank. (g) "Original Financing Agreement" means the financing agreement between the Recipient and the Association, dated May 5. 2011 (as amended) (Grant No. H645-KI) for the Kiribati Road Rehabilitation Project. th) "Original Grant Agreement" means the grant agreement between the Recipient and Association. dated Mav 5, 2011 (as amended) (Grant No. rfo99624) to co-finance activities under the Kiribati Road Rehabilitation Project. (0 'Procurement Guidelines" means the 'Guidelines: Procurement of Goods. Works and Non-consulting Seryices under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated Januar% 2011 and revised in JulN 2014.
(J) --Procurement Plan" means the procurement plan prepared and updated from time to time by the Recipient for the Project in accordance with paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines. (k) "Standard Conditions~ means the Standard Conditions for Grants Made by the World 1ank out of Various Funds dated February 15, 2012. (1) "Training' means the reasonable costs of goods and services required for the participation of personnel involved in training and workshop activities and workshops under the Project. including travel and subsistence costs for training or workshop participants, costs associated with securing the services of trainers, rental of training and workshop facilities, preparation and reproduction of training and workshop materials, and other costs directly related to training course or workshop preparation and implementation. but excluding consultants' fees. Article II Project Execution 101 Project Objectives and Description. The objectives of the Project are to improve the condition of South Tarawa's main road network. and help strengthen road financing and maintenance capacity. The Project consists of the Project Description in Schedule 1 of the Original Financing Aurecement. 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 its Ministry of Public Works and Utilities, in accordance with the provisions of: (a) Article 11 of the Standard Conditions: (b) the Anti-Corruption Guidelines: and (c) this Article II. 2.03 Institutional and Other Arrangements. [he pro% isions of Sections I and V of Schedule 2 to the Original Financing Agreement are incorporated herein and apply to this Agreement. and the Recipient hereby undertakes to comply wi th the provisions thereof to the same extent as if such provisions had been set out in full in this Aureement. 2.04. Donor I l7ibility and tisit. (a) The Recipient shall take or cause to be taken all such measures as the Association may reasonabl\ request to identify publiclk the Donor's support for the Project. (b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the Association's request, enable the representatives of the Donor to visit any part of the Recipient*s territory for purposes related to the Project. 2.105 Project Itonitoring, Reporting and Evaluation. (a) The Recipient shall monitor and ekaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2106 of the Standard Conditions and on the basis of the indicators acceptable to the Association. Iach Project Report shall cover the period of one (1) calendar semester, and shall be furnished to the Association not later than one (I) month after the end of the period co\ ered 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 Association not later than six (6) months after the Closing Date. 206 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 Association not later than one (1) month after the end of each calendar quarter. covering the quarter, in form and substance satisfactory to the Association. (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 (1) fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period. 2.07 Procurement (a) General. All goods, works, non-consulting services and consultants' 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: (i) Section I of the Procurement Guidelines, in the case of goods, works and non-consulting services: services, and (t) Sections I and IV of the Consultant Guidelines in the case of consultants' (i) Procurement Plan. the provisions of this Section. as the same shall be elaborated in the (h) Definitions. The capitalized terms used in the following paragraphs of this Section to describe particular procurement methods or methods of review by the Association of particular contracts, refer to the corresponding method described in Sections II and Ill of the.procurement Guidelines. or Sections I. 1Il. IV and V of the Consultant Guidelines, as the case may be. (c) Particular Methods of Procurement of Goods. Works and Non-consulting Services (i) Fxcept as otherwise provided in sub-paragraph (ii) below. goods, works and non-consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. (ii) The following methods, other than International Competitive Bidding. may be used for procurement of goods, works and non-consulting services for those contracts which are speci tied in the Procurement Plan: (A) National Competitive Bidding: (B) Shopping: (C) Direct Contracting; and (D) Community Participation procedures which have been found acceptable to the A-ssociation. (d) Particular Methods of Procurement of Consultants' Serv ices
4 (i) Except as otherwise provided in item (ii) below. consultants' ser- ices shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. (ii) The following methods, other than Quality- and Cost-based Selection. may be used for the procurement of consultants* ser%,ices for those assignments which are specified in the Procurement Plan: (A) Quality-based Selection. (B) Least Cost Selection: (C) Selection based on Consultants' Qualifications: (D) Single-source Selection of consulting firms; (E) Selection of Individual Consultants: and (F) Single-source procedures for the Selection of Individual Consultants. (e) Re% iew b- the Association Bank of Procurement Decisions. The Procurement Plan shall set forth those contracts which shall be subject to the Association's Prior Review. All other contracts shall be subject to Post Review by the Association. 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 Association 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 Association 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 (-Categor\,-). 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 Percentage of Expenditures to be Category Grant Allocated Expen et (expressed in USD) (inclusive of Taxes) Goods. works. consultants' services. Training and Operating 3,649.968 100o Costs under the Project TOTAL AMOUNT 3,648.968 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 June 30, 201 X.
Article IV Recipient's Representative: Addresses 4.01. Recipient's Representative- The Recipient's Representative referred to in Section 7-02 of the Standard Conditions is Minister of Finance. 4.02. Recipient' Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Ministry for Finance & Economic Development P.O. Box 67 Bairiki, Tarawa Cable Address: Facsimile: MINFIN (686) 21307 4.03. Assoiation's Address. The Association's Address referred to in Section 7.01 of the Standard Conditions is: International Development Association 1X19 H Street, N.W. Washington. D.C. 20433 United States of America Telex: Facsimile: 243423 (MCI) or 1-202-477-6391 64145 (MCI)