Conformed Copy - TF029500 - Public Sector Reform Project - Japanese Grant Agreement 1

Page 1 CONFORMED COPY TF029500 Japanese Grant Agreement (Public Sector Reform Project) between UKRAINE and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT on its own behalf and as Administrator of Grant Funds provided by JAPAN Dated December 5, 1996 TF029500 JAPANESE GRANT AGREEMENT AGREEMENT, dated December 5, 1996, between UKRAINE (the Recipient) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting on its own behalf (the Bank) and as Administrator (the Administrator) of grant funds provided by JAPAN (Japan). WHEREAS (A) pursuant to a letter agreement dated July 30, 1990 between Japan and the Bank and International Development Association (the Association), Japan has requested the Bank and the Association, and the Bank and the Association have agreed, to administer grant funds to be made available by Japan for the financing of certain programs and projects supported by the Bank and the Association, as the case may be, in accordance with the provisions of such letter agreement; WHEREAS (B) Japan has agreed to make available to the Recipient a grant out of said grant funds (the Grant) to finance the cost of carrying out the technical assistance described in Schedule 1 to this Agreement (the Technical Assistance) on the terms and conditions hereinafter set forth; WHEREAS (C) the Recipient has requested, and the Bank has agreed, to carry out Parts A, B and C of the Technical Assistance, on the terms and conditions hereinafter set forth; and WHEREAS (D) Part D of the Technical Assistance will be carried out by the Recipient, pursuant to a separate grant agreement of even date herewith between Ukraine and the Bank, acting as Administrator of the Grant; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions; Term of Technical Assistance Section 1.01. The Technical Assistance shall be undertaken by consultants (the Consultants) who shall, as far as practicable, include Consultants with expertise in the following areas: (a) public expenditures and tax issues; (b) accounting; and (c) finance. Section 1.02. As used in this Agreement, the terms "Dollar" and the sign "$" mean dollars in the currency of the United States of America, and the term "Consultants" includes individual consultants as well as any consulting firm that provides any of the experts referred to in Section 1.01. Section 1.03. The Consultants are expected to commence their services on the earlier of October 1, 1996 or the date on which this Agreement becomes effective and to provide a total of 35 man-months of service between that time and October 1, 1997. ARTICLE II Responsibilities of the Bank and the Administrator Section 2.01. The amount to be made available out of the Grant for the purposes of Parts A, B and C of the Technical Assistance shall be three hundred and fifty-three thousand nine hundred Dollars ($353,900). Section 2.02. The Administrator shall utilize the amount of the Grant referred to in Section 2.01 of this Agreement to finance the following expenditures in connection with the services of the Consultants: (a) remuneration, per diem and other allowances; (b) international and local travel expenses; and (c) out-of-pocket expenses, including communications and reports, incurred by the Consultants in foreign currency in the performance of their services. Section 2.03. The Bank shall make reasonable efforts to secure the services of the Consultants. Section 2.04. The recruitment, engagement and supervision of the Consultants shall be the responsibility solely of the Bank and shall be done according to the Bank