Official Documents- Grant Agreement for TFSCB Grant TF0A4135

OFFICIAL DOCUMENTS THE WORLD BANK IBRD* IDA I WORLDBMKGOUP December 30, 2016 Mr. Muhammetguly Muhammedov Minister of Finance Ministry of Finance of Turkmenistan Archabil Avenue, 156 744028, Turkmenistan Re: TFSCB Grant No. TFOA4135 Development of a National Welfare Monitoring System Project Letter Agreement Dear Mr. Muhammedov: In response to the request for financial assistance made on behalf of the Government of Turkmenistan ("Recipient"), I am pleased to inform you that the International Bank for Reconstruction and Development ("World Bank"), acting as administrator of grant funds provided by various donors ("Donors") under the Trust Fund for Statistical Capacity Building proposes to extend to the Recipient a grant in an amount not to exceed three hundred twenty eight thousand two hundred ten United States Dollars (USD 328.210) ("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 Donor[s] 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. 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 By_ Ruxandra Costache Acting Country Director Central Asia 1818 H Street NW * Washington, DC 20433 USA -2- AGREED: TURKMENISTAN By Authorized Representative Name&k A n req v/ Title C&,irman, c2 V/ale C~or"I .,ee f!a" b Vtf "2r*,eiH Date: , , £f) Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012 (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006 (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 2011, and as of July 1, 2016 (4) "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 and revised in July 2014 (5) "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 and revised in July 2014 4 Component 1. Welfare estimation. a. Provision of support for the review of the current baseline status of the welfare measurement system in State Statistics Committee (SSC) including, inter alia: (i) household incomes, expenditures, consumption, and access to services; (ii) categorization of expenditures; (iii) methodology and application of weights, price and spatial adjustments; (iv) estimations of subsidies on utilities; (vi) archiving process for household and labor force survey data; (vii) approaches to sharing data and indicators; and (viii) household survey questionnaire, and materials and publications that include indicators based on the household survey. b. Carrying out training and workshops for SSC staff in welfare measurement using Statistical Package for the Social Sciences (SPSS) programming including, inter alia, data cleaning, welfare aggregate computation and estimates using publicly available and nationally representative household survey data; and c. Provision of assistance in the preparation of an operations manual on welfare measurement methodology. Component 2. Strengthening survey implementation. Provision of support to the Recipient for: (i) the revision of the Recipient's household survey questionnaire to ensure that adequate data for measuring welfare are collected; and (ii) the implementation of the household survey. Component 3. Sampling methodology. Provision of support for training the sampling experts working on the household budget survey and the labor force survey through, inter alia: (i) conducting a review of the sampling and weighting capacity of SSC; and (ii) improving the quality of survey implementation through better supervision and interview processes. Component 4. Adoption of computer assisted personal interviewing. Provision of support for training the relevant departments of SSC on adoption of computer assisted personal interviewing for conducting the labor force survey through, inter alia: (i) review of the capacity of SSC to adopt computer assisted personal interviewing methodology; and (ii) carrying out training of SSC staff. Component 5. Project management. Provision of goods, consultants' services, Training and Operating Costs to SSC for effectively carrying out project implementation. 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 SSC 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, and as of July 1, 2016 ("Anti-Corruption Guidelines"); and (c) this Article II. 2.03. Institutional and Other Arrangements. For the purposes of carrying out the Project, the Recipient shall ensure that: 5 (i) during and throughout the Project's implementation, the SSC coordinates the Project Management Group in charge of overall Project implementation and management, monitoring and evaluation; (ii) not later than two (2) months after Effective Date, the SSC establishes: (a) a Project Management Group with terms of reference satisfactory to the World Bank; and (b) an Advisory Committee in a manner satisfactory to the World Bank; (iii) not later than three (3) months after Effective Date, the SSC recruits a Project assistant whose qualifications, experience and terms of reference are acceptable to the World Bank; (iv) during and throughout the implementation of the Project, the Advisory Committee oversights the implementation of the Project; 2.04. 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 quarter, and shall be furnished to the World Bank not later than one 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. In order to assist the Recipient in preparing the Completion Report, the Recipient shall employ consultants in accordance with the provisions of Section 2.06 of this Agreement. 2.05. 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 fumished to the World Bank not later than forty five (45) days after the end of each calendar semester, covering the semester, in form and substance satisfactory to the World Bank. (c) The Recipient shall, upon the World Bank's request, 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 period indicated in the World Bank's request. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the date of the World Bank's request. 2.06. Procurement (a) General. All goods, 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 "Guidelines: Procurement of Goods, Works and Non- consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" 6 dated January 2011 (revised July 2014) ("Procurement Guidelines"), in the case of goods, and non-consulting services; (ii) Sections I and IV of the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 (revised July 2014) ("Consultant Guidelines") in the case of consultants' services; and (iii) The provisions of this Section, as the same shall be elaborated in 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 ("Procurement Plan"). (b) Definitions. The capitalized terms used in the following paragraphs of this Section to describe particular procurement methods or methods of review by the World Bank of particular contracts, refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be. (c) Particular Methods of Procurement of Goods, and Non-consulting Services (i) Except as otherwise provided in sub-paragraph (ii) below, goods, 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, and non-consulting services for those contracts which are specified in the Procurement Plan: (A) Shopping; and (B) Direct Contracting. (d) Particular Methods of Procurement of Consultants' Services (i) Except as otherwise provided in item (ii) below, consultants' services 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' services for those assignments which are specified in the Procurement Plan: (A) Least Cost Selection; (B) Selection based on Consultants' Qualifications; (C) Single-source Selection of consulting firms; (D) Selection of Individual Consultants; and (E) Single-source procedures for the Selection of Individual Consultants. (e) Review by the World Bank of Procurement Decisions. The Procurement Plan shall set forth those contracts which shall be subject to the World Bank's Prior Review. All other contracts shall be subject to Post Review by the World Bank. (f) Document Retention. Notwithstanding the provisions of paragraphs 2(j) and 5 of Appendix 1 to the Procurement Guidelines, and paragraphs 2(k) and 5 of Appendix 1 to the Consultant Guidelines, the Recipient: (i) shall retain all documentation with respect to each contract as described in said paragraphs for at least seven years and six months after the Closing Date set forth in Section 3.03 of this Agreement; (ii) shall furnish such documentation to the World Bank at any time upon request; and (iii) hereby authorizes the World Bank to disclose such documentation to the Donor. 7 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 "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: Category Amount of the Percentage of Grant Allocated Expenditures to be (expressed in Financed USD) (inclusive of Taxes) (1) Goods, Consultants' Services, Non- Consulting Services, Training, and 328.210 100% Operating Costs TOTAL AMOUNT 328.210 * Unless otherwise agreed by World Bank, the Recipient shall ensure that the total expenses incurred for Goods does not exceed 20% of the total Grant allocation. 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 two (2) years from Effective Date. Article IV Effectiveness; Termination 4.01. This Agreement shall not become effective until evidence satisfactory to the World Bank has been furnished to the World Bank that the conditions specified below have been satisfied: (a) The execution and delivery of this Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action. 4.02. As part of the evidence to be furnished pursuant to Section 5.01 (a), there shall be furnished to the World Bank an opinion or opinions satisfactory to the World Bank of counsel acceptable to the World Bank or, if the World Bank so requests, a certificate satisfactory to the World Bank of a competent official of the Member Country, showing the following matters: (a) on behalf of the Recipient, that this Agreement has been duly authorized or ratified by, and executed and delivered on its behalf and is legally binding upon it in accordance with its terms. 4.03. Except as the Recipient and the World Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the World Bank dispatches to the Recipient notice of 8 its acceptance of the evidence required pursuant to Section 5.01 ("Effective Date"). If, before the Effective Date, any event has occurred which would have entitled the World Bank to suspend the right of the Recipient to make withdrawals from the Grant Account if this Agreement had been effective, the World Bank may postpone the dispatch of the notice referred to in this Section until such event (or events) has (or have) ceased to exist. 4.04. 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 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 5.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is the Chairperson of the State Statistics Committee. 5.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: State Statistics Committee 744000, Magtumguli av. Ashgabat Turkmenistan Telephone: Facsimile: Email: 993 12942247 993 12942247 tm.hasabat@mail.ru 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 1818 H Street, N.W. Washington, D.C. 20433 United States of America Telephone: Facsimile: 248423 (MCI) 1-202-477-6391