Conformed Copy - TF027387 - Introduction of International Accounting Standards in Turkmenistan - IDF Grant

Page 1 November 6, 2000 H.E. Mr. O. Begmuradov Minister of Finance Ministry of Finance Ashkabat Turkmenistan Re: Grant for the Introduction of International Accounting Standards in Turkmenistan IDF Grant No. 27387 Dear Sir: I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank's agreement to make to Republic of Turkmenistan (the Recipient) a grant in an amount not exceeding two hundred thirty seven thousand and nine hundred United States Dollars (US$237,900) (the Grant). 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/ Kiyoshi Kodera Director Europe and Central Asia AGREED: Republic of Turkmenistan By /s/ O. Begmuradov Deputy Chairman of the Cabinet of Minister Date: January 27, 2001 ANNEX Purposes, Terms, and Conditions of the Grant 1. Purposes and Activities 1.1. The purpose of the Grant is to introduce international Accounting standards in the territory of the Recipient. The activities (the Activities) for which the Grant is given are as follows: (a) provision of training of selected participants involved in the accounting reform process; Page 2 (b) organization of an international workshop on accounting reform process; and (c) provision of technical advisory services in the development of national accounting standards, vis a vis international accounting standards, including inter alia, drafting of methodological guidance, dissemination and training, assisting pilot companies in the implementation of the new accounting standards, and audit services under the Grant. 2. Implementation Generally 2.1. The Recipient, through its Ministry of Finance, 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