Conformed Copy - TF022903 - Policy Formulation and Analysis Support - IDF Grant

February 3, 2000 H. E. Fathallah Oualalou Minister of Finance and Foreign Investments Ministry of Finance and Foreign Investments Avenue Mohammed V Rabat, Kingdom of Morocco Re: Grant for the Policy Formulation and Analysis Support IDF Grant No. TF022903 Excellency: I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank’s agreement to make to the Kingdom of Morocco (the Recipient) a grant in an amount not exceeding three hundred thousand Dollars (US$300,000) (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 countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Christian Delvoie Country Director Maghreb Department Middle East and North Africa Region AGREED: KINGDOM OF MOROCCO By /s/ Fathallah Oualalou By /s/ Ahmed Lahlimi Alami Authorized Representative Authorized Representative Date: February 29, 2000 Date: February 29, 2000 ANNEX  Purposes, Terms, and Conditions of the Grant 1. The purposes of the Grant are to provide the Ministère chargé des Affaires Générales du Gouvernement (MAGG) with the means to design, on the basis of international experience, a suitable institution that can deliver high level advice on economic policy, including supporting the operation, during an initial phase of one to two years, of a small unit in MAGG that would provide technical support for such institution and centralize the inputs from other specialized research centers inside and outside the Moroccan administration. The activities (the Activities) for which the Grant is given are as follows: (a) defining the institutional arrangements pertaining to the establishment of a Council of Advisers and its supporting technical unit within MAGG; (b) contributing to the initial recruitment and training costs of the supporting technical unit’s staff, with the exclusion of salaries, bonuses and pay increases. 2. Expenditures to be financed out of the proceeds of the Grant are as follows: Grant Allocated Expenditures Category (in U.S. Dollars) to be Financed (1) Consultants' 240,000 100% services, including Study Tours and Training (2) Goods 60,000 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 80% of local expenditures for other items procured locally TOTAL 300,000 For the purposes of this Schedule, (a) the term “foreign expenditures