Agreement for Grant TF099736 Conformed

CONFORMED COPY Stefan G. Koeberle Country Director, Indonesia Letter No. CD-265/CPDA/VI/2011 June 17, 2011 Ms. Robin Bush Country Representative The Asia Foundation Jl. Adityawarman No. 40 Kebayoran Baru Jakarta 12160 Indonesia Dear Ms. Bush: Re: CPDA Grant No. TF099736 Building Local Capacity for Policy Advice in Aceh Project In response to the request for financial assistance made on behalf of The Asia Foundation (“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 donors (“Donors”) under the multi-donor Consolidating Peaceful Development in Aceh Trust Fund (TF071413), proposes to extend to the Recipient for the benefit of the Republic of Indonesia (“Member Country”), a grant in an amount not to exceed five hundred forty thousand United States Dollars (U.S.$540,000) (“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”). This Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the Recipient may withdraw the Grant proceeds 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 ISEB Tower 2, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 • Telephone (62-21) 5299 3000 • Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 • Telex: IBRDIA 60086 • Headquarters: The World Bank, Washington DC, USA Ms. Robin Bush 2 of 10 June 17, 2011 The Asia Foundation Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date of the countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT /s/ Stefan G. Koeberle Country Director, Indonesia AGREED: THE ASIA FOUNDATION By:/s/ Robin Bush________________ Authorized Representative Name: Robin Bush________________ Title: Country Representative_______ Date: June 24, 2011______________ Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated July 31, 2010 (2) Disbursement Letter dated June 17, 2011, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006 Ms. Robin Bush 3 of 10 June 17, 2011 The Asia Foundation CPDA Grant No. TF099736 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated July 31, 2010 (“Standard Conditions”) 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 or in this Agreement. In addition, the following terms have the meanings given below. (a) “CPCRS” means Center for Peace and Conflict Resolution Studies. (b) “NGO” means non-government organization. (c) “Operations Manual” means the Operations Manual, dated May 5, 2011 for the Project, prepared by the Recipient and referred to in paragraph 2.03(b) of this Annex, as such Operations Manual may be amended from time to time with the prior written agreement of the Recipient and the World Bank. (d) “Project Sub-Grant” means the funding to be provided pursuant to a Sub-Grant Agreement for a Sub-Project, which may include activities in one or more Parts of the Project. (e) “Project Sub-Grant Agreement” means each agreement to be entered into by a Project Sub-Grantee and the Recipient, setting out the terms and conditions for the use of funds, acceptable to the World Bank, on which the Recipient may make a portion of the proceeds of the Grant available to a Project Sub-Grantee for the purposes of carrying out activities set out in Section 2.01 of this Annex fully consistent with the provisions of this Agreement and the Operations Manual. (f) “Project Sub-Grantee” means a non-government entity or organization or an educational institution eligible to participate in the Project in accordance with the Operations Manual which has entered into a Project Sub-Grant Agreement with the Recipient. (g) “Recipient’s Sub-Grant Manual” means the Recipient’s own manual, in effect on the date of this Agreement, for its existing grant-making activities, for which the Recipient will apply for the purposes of the Project, provided that in the event of any conflict between the Recipient’s Sub- Grant Manual and the Operations Manual, the latter shall prevail. (h) “Sub-Project” means each set of activities for which the proceeds of the Grant shall be made available by the Recipient to an eligible Project Sub-Grantee in accordance with this Agreement and which shall be used for the purposes of carrying out activities set out in Section 2.01 of this Annex, it being understood that a single Sub-Project may include activities across one or more Ms. Robin Bush 4 of 10 June 17, 2011 The Asia Foundation Parts of the Project as described in Section 2.01 of this Agreement, in each case provided that such Sub-Project is fully consistent with the provisions of this Agreement and the Operations Manual. Article II Project Execution 2.01. Project Objectives and Description. The objective of the Project is to enhance the capacity of Aceh-based research organizations to produce analysis that helps guide national and local government policy-making for peace-building in Aceh. The Project consists of the following parts: (a) Part 1. Building the capacity of research centers to produce high quality applied research on matters related to conflict-sensitive development and the consolidation of peace in Aceh. Providing support for: (i) training design and implementation on research methodology; (ii) training on gender perspective for research; (iii) consultative meetings with research and policy experts and local partners; (iv) administration of research grants for universities and NGO research; and (v) dissemination of research findings and policy recommendations to relevant stakeholders. (b) Part 2. Strengthening the ability of local research institutions to effectively inform policy-making. Providing support for: (i) training and mentoring for university researchers and NGO activists on analytical writing and policy brief production; and (ii) networking meetings with policy makers and media. (c) Part 3. Improving the overall organizational capacity of CPCRS. Providing support for: (i) leadership and professional development trainings for CPCRS; and (ii) financial management and staff development training for CPCRS. 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 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. 2.03. Institutional and Other Arrangements. (a) The Recipient shall be responsible for the implementation of the Project and shall establish and thereafter maintain, appropriately qualified staff in such numbers as are necessary to accomplish the objectives of the Project until the completion of the Project. (b) The Recipient shall undertake the Project in accordance with the Operations Manual, acceptable to the Recipient and the World Bank, setting out the details of guidelines and procedures for the implementation, supervision, and monitoring and evaluation for the Project, including: (i) implementation arrangements; (ii) the procurement arrangements meeting the requirements set forth in Section 2.07 of this Annex; (iii) the financial management, audit procedures and reporting requirements set forth in Section 2.06 of this Annex; and (iv) performance indicators set forth in Section 2.05(a) of this Annex. The Recipient shall not amend the Operations Manual except with the prior written agreement of the World Bank. Ms. Robin Bush 5 of 10 June 17, 2011 The Asia Foundation (c) The Recipient shall follow the Recipient’s Sub-Grant Manual in implementing those aspects of Sub-Projects and Sub-Project Grant terms not covered by the Operations Manual or the provisions of this Agreement. (d) In the event of any conflict between the provisions of the Operations Manual, the Recipient’s Sub-Grant Manual or any Project Sub-Grant Agreement and those of this Agreement, the latter shall prevail. (e) Procedures, terms and conditions for Project Sub-Grants. (i) The Recipient shall make available the proceeds of the Grant allocated to Category (3) of the table in paragraph 3.01 of this Annex to one or more Project Sub-Grantee(s), in each case under a Project Sub-Grant Agreement to be entered into between the Project Sub-Grantee and the Recipient for the purpose of carrying out a Sub-Project, on terms and conditions acceptable to the Recipient and the World Bank, for the purposes of carrying out activities in accordance with the Operations Manual. (ii) To be eligible for a Project Sub-Grant, a Project Sub-Grantee must furnish a proposal for a Sub-Project to the Recipient that fully satisfies the criteria specified in the Operations Manual and is for one or more activities set out in Section 2.01 of this Annex. (iii) Project Sub-Grants shall be provided exclusively to Project Sub-Grantees for the purpose of carrying out Sub-Projects. No Project Sub-Grant may be made available to a Project Sub-Grantee unless the Recipient and the Project Sub- Grantee have entered into a Project Sub-Grant Agreement that fully satisfies the criteria specified in the Operations Manual and in sub-paragraph (iv) below. (iv) Each Project Sub-Grant Agreement shall provide for rights of the Recipient adequate to protect the interests of the World Bank and the Recipient, including: (A) the requirement that the Project Sub-Grantee carry out activities specified in the relevant Project Sub-Grant Agreement with due diligence and efficiency and in accordance with sound administrative, financial, technical and managerial standards satisfactory to the World Bank, including, in accordance with the provisions of the Anti- Corruption Guidelines applicable to recipients of grant proceeds; (B) the requirement that the Project Sub-Grantee procure all goods and services required for the Project Sub-Grant in accordance with the provisions of paragraph 2.07 of this Annex; (C) the requirement that all goods and services shall be used exclusively in the carrying out of the Project Sub-Grant activities; Ms. Robin Bush 6 of 10 June 17, 2011 The Asia Foundation (D) the requirement that the Project Sub-Grantee maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with the indicators set out in the Operations Manual, the progress of the Sub-project and the achievement of its objectives; (E) the requirement that the Project Sub-Grantee (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards meeting the requirements set out in the Operations Manual, both in a manner adequate to reflect the operations, resources and expenditures related to the Project Sub-Grant; and (2) at the Recipient’s or the World Bank’s request, have such financial statements audited by independent auditors acceptable to the Recipient and the World Bank, in accordance with consistently applied auditing standards acceptable to the Recipient and the World Bank, and promptly furnish the statements as so audited to the Recipient and the World Bank; (F) rights adequate to enable the Recipient and the World Bank to inspect the Project Sub-Grant, its operation and any relevant records and documents; (G) the requirement that the Project Sub-Grantee prepare and furnish to the Recipient and the World Bank all such information as they shall reasonably request relating to the Project Sub-Grant; and (H) rights adequate to enable the Recipient to suspend or terminate the right of the project Sub-Grantee to the use of the proceeds of the Project Sub-Grant upon the failure by the Project Sub-Grantee to perform any of its obligations under the Project Sub-Grant Agreement. 2.04. Donor Visibility and Visit. (a) The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the Donors’ support for the Project. (b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank’s request, take all measures required on its part to enable the representatives of the Donor(s) to visit any part of the Member Country’s territory for purposes related to the Project. 2.05. 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 the indicators set forth in the Operations Manual. Each Project Report shall cover the period of one calendar quarter, and shall be furnished to the World Bank not later than forty-five (45) 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 six months after the Closing Date. Ms. Robin Bush 7 of 10 June 17, 2011 The Asia Foundation 2.06. 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 as part of the Project Report, not later than forty-five (45) days after the end of each calendar quarter, covering the quarter, 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 entire period during which withdrawals from the Grant Account were made. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the end of such period. 2.07. 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” dated January 2011 (“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 (“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 Ms. Robin Bush 8 of 10 June 17, 2011 The Asia Foundation (i) Goods and non-consulting services shall be procured under contracts awarded on the basis of 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 may be used for the procurement of consultants’ services for those assignments which are specified in the Procurement Plan: Selection based on Consultants’ Qualifications. (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. 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: Ms. Robin Bush 9 of 10 June 17, 2011 The Asia Foundation Category Amount of the Grant Percentage of Allocated Expenditures to be (expressed in USD) Financed (inclusive of Taxes) (1) Goods, Non-consulting Services, Consulting Services 100% 31,000 and Training and Workshops* (2) Project Sub-grants 345,000 100% (3) Direct Operational Costs* 69,000 100% (4) Indirect Operational Costs* 95,000 100% TOTAL AMOUNT 540,000 *For the purposes of this paragraph: (i) the term “training and workshops” means related training and workshops conducted in the territory of the Member Country, including purchase and publication of materials, rental of facilities, course fees, and travel and subsistence of trainees; (ii) the term “direct operational costs” means operating costs incurred by the Recipient and required for the Project including: technical and professional staff costs that have been demonstrated as being directly attributable to the Project, new office cost, designated vehicle rental, operation and maintenance, document production and travel costs (other than for training and workshops); and (iii) the term “indirect operational costs” means operating costs incurred by the Recipient as part of its ongoing operations, the designated portion of which have been agreed may be charged to the Project, including existing office space, existing vehicle operation and maintenance, operating costs for existing office space, support staff costs, and management staff costs. 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 countersignature of this Agreement by the Recipient. 3.03. Withdrawal Period. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is June 30, 2013. Article IV Ms. Robin Bush 10 of 10 June 17, 2011 The Asia Foundation Recipient’s Representative; Addresses 4.01. Recipient’s Representative. The Recipient’s Representative referred to in Section 7.02 of the Standard Conditions is the Recipient’s Country Representative. 4.02. Recipient’s Address. The Recipient’s Address referred to in Section 7.01 of the Standard Conditions is: The Asia Foundation Jl. Adityawarman No. 40 Kebayoran Baru Jakarta 12160Indonesia Telephone: +62-21 72788424 Facsimile: +62-21 7203123 4.03. 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 Cable: Telex: Facsimile: INTBAFRAD 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI)