Conformed Copy - C3564 - Demobilization and Reintegration Project - Arrangement

Page 1 ARRANGEMENT With reference to the General Arrangement among the Netherlands Minister for Development Cooperation (the "Minister") and the International Bank for Reconstruction and Development ("IBRD") and the International Development Association ("IDA") (collectively referred to as the "Bank") dated May 24,1995; The Minister has decided to support the Kingdom of Cambodia (the Recipient) and make available a grant (the "Grant") of seven hundred thirty seven thousand, eight hundred Netherlands Guilders (NLG737,800), equivalent to three hundred ten thousand United States Dollars (US$310,000), to be administered by the Bank for the Cambodia Demobilization Program. The activities (Activities) to be financed are described in the Attachment to this Arrangement. The proceeds of the Grant will be used for the following expense categories: Expenditure Categories NLG Consultant Services 306,185 Goods 68,303 Civil Works 235,527 (Training and 127,785 Workshop Expenses) 737,800 Unless otherwise provided for herein, the terms of the General Arrangement shall apply to the Grant made available under this Arrangement. The Minister shall deposit the Grant with the Bank, upon request from the Bank, in the Bank's Cash Account "T" (the "T-account") maintained with De Nederlandsche Bank, N.V. Dollar Trust Account maintained with the Federal Reserve Bank of New York. It is expected that the Grant funds will be fully utilized in accordance with the provisions of this Arrangement by June 30, 2001 by the Recipient. The Bank shall only disburse the Grant funds for the purposes of this Arrangement after such date upon the approval of the Minister. Pursuant to Article VII of the General Arrangement, the Bank shall provide the Minister with the following reports: (a) a brief annual progress report, as well as a financial statement including a breakdown of expenses by budget category for the preceding calendar year; (b) a final report upon completion of the Project, containing a comprehensive overview of the total Project implementation; (c) a quarterly financial statement with respect to the Project; each financial statement shall be expressed in the currency of commitment; (d) a consolidated semi-annual financial statement on funds provided by the Minister; (e) a quarterly financial statement with respect to the Balance Account, specifying investment income and unspent balances deposited, as well as fees and other costs deducted. The offices responsible for coordination of all matters related to this Arrangement are: For the Minister: For the Bank: Mr. Cees Kieft Mr. Bonaventure Mbida-Essama First Secretary Chief Royal Netherlands Embassy World Bank Office Bangkok, Thailand 10330 Phnom Penh This Arrangement is prepared in duplicate. Page 2 For the Minister for Development For the International Bank for Cooperation of the Netherlands Reconstruction and Development and the International Development Association By /s/ Rob Bosscher By /s/ Julian Schweitzer Charg