Conformed Copy - C3170 - Social Investment Fund Project - Japanese Grant Agreement

Page 1 July 1, 1997 Mr. Valeriu Chitan Minister of Finance Ministry of Finance 277005 Chisinau Cosmonaut Street 7 Republic of Moldova Re: Japanese Grant for Social Investment Fund TF No. 027119 Dear Sir: I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank's agreement, as administrator of grant funds provided by Japan, to make a grant in an amount not exceeding US Dollars three hundred and sixty eight thousand five hundred ($368,500) (the Grant) to the Republic of Moldova (the Recipient). The Grant is made in response to the Recipient's request for financial assistance and for the purposes and on the terms and conditions set forth in the Annex to this Letter Agreement. The Recipient represents, by confirming its agreement below, that it is authorized to contract and withdraw the Grant for the said purposes and on the said terms and conditions. Please confirm your agreement with the foregoing, on behalf of the Recipient, by signing, dating, and returning to us the enclosed copy of this Letter Agreement. Upon receipt by the Bank of the copy of this Letter Agreement countersigned by you, this Letter Agreement will become effective as of the date of the countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ James Q. Harrison Acting Director Country Department IV Europe and Central Asia Region AGREED: REPUBLIC OF MOLDOVA By /s/ Valeriu Chitan Minister of Finance Date: ANNEX Purposes, Terms, and Conditions of the Grant 1. Activities The objective of the Grant is to prepare the Social Investment Fund Project (the Project). 1.1. The activities (the Activities) for which the Grant is given are as follows: (a) Social assessment of community needs and capacity in order to help target vulnerable populations committed to social infrastructure rehabilitation and community participation, particularly in rural areas. (b) Public information, grass roots outreach, training and workshops and Page 2 participation programs aimed at improving access of poor communities to information about Social Investment Fund (SIF) project objectives, microproject application procedures, technical assistance opportunities, and civic participation at all levels. (c) Support for the transfer and management of social assets from state farms (and other public entities dating to the pre-independence period) to local governments, through an interdisciplinary feasibility study detailing the institutional, legal and financial implications of such transfers. (d) Environmental analysis in poor areas with respect to improved management of water resources, upland forests, and agricultural lands. (e) Establishment of a SIF Unit and support for preparation of legal documentation for the Project. 2. Implementation Generally 2.1. The Recipient shall: (a) carry out the Activities with due diligence and efficiency; (b) promptly provide the funds, facilities, services and other resources required for that purpose; (c) furnish all information covering the Activities and the use of the proceeds of the Grant as the Bank shall reasonably request; (d) from time to time exchange views with the Bank's representatives on the progress and results of the Activities; and (e) take all necessary measures required to enable the Bank to visit the territory of the Republic of Moldova for purposes related to the Grant. Without limitation on the foregoing, the Recipient shall, if the Bank shall so request, prepare and furnish to the Bank promptly upon completion of the Activities a report, in form and substance satisfactory to the Bank, on the results and impact of the Activities. 3. Procurement 3.1. Except as the Bank shall otherwise agree, procurement of the consultants