Conformed Copy - TF027006 - Public Sector Management Reform Project - Japanese Grant Agreement

Page 1 April 25, 1997 The Hon. Richard Kwame Peprah Minister of Finance Ministry of Finance P.O. Box M 40 Accra, Ghana Re: Japanese Grant for the Public Sector Management Reform Project Grant TF027006 Dear Sir: I am writing on behalf of the International Development Association (IDA) to indicate IDA's agreement, as administrator of grant funds provided by Japan, to make a grant in an amount not exceeding three hundred and ninety-five thousand US dollars (US$395,000) (the Grant) to the Republic of Ghana (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 IDA 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 DEVELOPMENT ASSOCIATION Serge Michailof Country Director for Ghana Africa Region AGREED: REPUBLIC OF GHANA By: __________________________ Richard Kwame Peprah Minister of Finance Page 2 Date: May 21 , 1997 __ ANNEX Purposes, Terms, and Conditions of the Grant 1. Activities 1.1. The activities (the Activities) for which the Grant is given are as follows: The Grant will support the activities of the National Technical Group ( NTG ), which is the technical secretariat of the National Institutional Renewal Program. The NTG is in turn supported by national and international consultants. The work program of the National Institutional Renewal Program, dated February 1997, contains three principal sets of activities: (a) Strengthening the leadership and coordination role of the National Overview Committee, which is the steering committee for the National Institutional Renewal Program. Activities include: development of a "strategic map" of Ghana's public administration; endorsement of a monitorable set of indicators covering the range of public sector reform activities now underway in Ghana; and design and implementation of a public communications program to raise awareness of the National Institutional Renewal Program. (b) Strengthening policy resource linkages in public sector management. Activities include: reinforcement of central policy guidance structures through the establishment of a Policy Management Group in the Office of the President. (c) Reforming the regulatory environment in the public sector. Activities include: proposal of appropriate governance frameworks for subvented agencies and for other categories of agencies in the public sector. 2. Implementation Generally 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 IDA shall reasonably request; (d) from time to time exchange views with IDA's representatives on the progress and results of the Activities; and (e) take all necessary measures required to enable IDA to visit the territory of the Republic of Ghana for purposes related to the Grant. Without limitation on the foregoing, the Recipient shall, if IDA shall so request, prepare and furnish to IDA promptly upon completion of the Activities a report, in form and substance satisfactory to IDA, on the results and impact of the Activities. Page 3 3. Procurement Except as IDA shall otherwise agree, procurement of the consultants