CONFORMED COPY
MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION
FOR
Re: West Bank and Gaza: Second Emergency Services Support Project
(TF052044)
Following a request for assistance from the International Bank for Reconstruction and Development and International Development Association (the “Bank”) I am pleased to inform you that the Government of the United Kingdom of Great Britain and Northern Ireland (the “Government”), acting through the Department for International Development (the “DFID”), will make available to the Bank, from Technical Cooperation Funds (“TCF”) a sum not exceeding two million pounds sterling (£2,000,000) (the “Contribution”) to assist in financing the Second Emergency Services Support Project in West Bank and Gaza (the “Project”) as set out in the Project Appraisal Document, and its associated Trust Fund Grant Agreement (the “Project Legal Agreements”).
2.The Project will be implemented as from March 31, 2003 for a duration not exceeding two years.
3.The Contribution will be administered by the Bank and will be subject to the following provisions:
(a)the Contribution will be applied by the Bank for the provision of goods, works and incremental operating costs as specified in Project Legal Agreements. The Bank will make every effort to ensure timely and full implementation of the Project; and
(b)the Contribution will not be used to meet the cost of import or customs duties (or any similar fees) imposed by the Government ofIsrael or the Palestinian Authorityon the goods imported or services provided.
4.As soon as this Memorandum of Understanding (the "Memorandum") comes into operation, the DFID will deposit the entire Contribution amount of two million pounds sterling (£2,000,000) into the Bank’s IBRD Cash Account “T” Account Number: 39729123; SWIFT BIC Code: MIDLGB22; Internal Route Code: MIDLGB maintained with the HSBC Bank PLC, International Division, P.O. Box 181, 27-32 Poultry, London EC2P 2BX, United Kingdom.
5.When making payment, the DFID shall instruct HSBC Bank PLC, International Division, to advise the Bank’s Treasury Operations Department by SWIFT (IBRDUS33), Telex (MCI 248423) or fax (202-522-1564) as to the amount received, that it is from the Donor for Second Emergency Services Support Project in West Bank and Gaza (trust fund number TF052044), and the date of the deposit. In addition, DFID will also arrange to fax a copy of its deposit instruction to the Bank’s Trust Funds Division utilizing its facsimile number: (202) 477-7163.
6.The Bank will ensure that, prior to disbursing the proceeds of the Contribution in accordance with the provisions of this Memorandum, said proceeds will be kept in an account (the Account) separate from any other funds of the Bank. The funds in the Account may be freely exchanged by the Bank into other currencies as may facilitate their disbursement.
7.In order to assist in the defrayment of the costs of administration and other expenses incurred by the Bank under this Memorandum, the Bank will deduct from the principal, upon deposit of the funds, an amount equivalent to two percent (2%) of the Contribution. Any income earned from the investment or reinvestment of the Contribution’s proceeds or interest earned or unspent funds in respect of the Account, will be returned to the Government.
8.The Bank will administer and account for the Contribution in accordance with its financial regulations and other applicable rules, procedures and practices, and keep separate records and accounts in respect of the Contribution proceeds and disbursement thereof. Within ninety (90) days of each March 31, June 30, September 30 and December 31, for as long as any Contribution proceeds remain in the Account, the Bank will prepare an un-audited statement of receipts, disbursements and fund balance with respect to the Contribution proceeds and forward a copy to DFID. In addition, the Bank will provide DFID annually with a management assertion together with an attestation from the Bank’s external auditors concerning the adequacy of internal control over cash-based financial reporting for trust funds as a whole. The cost of such attestations shall be borne by the Bank.
9.The Bank will, upon completion of the Project, submit to the DFID a terminal un-audited statement of receipts, disbursements and fund balance for the Project.
10.DFID will not be responsible for the activities of any person or third-party engaged by the Bank as a result of this Memorandum, nor will DFID be liable for any costs incurred by the Bank in terminating the engagement of any such person.
11.This Memorandum will come into operation on signature and will continue in operation until March 31, 2005 unless terminated by either party giving three (3) months’ prior written notice to the other party. If any changes occur which, in the opinion of DFID, impair significantly the developmental value of the Project, the DFID and the Bank will normally consult on measures to resolve the problem, and agree on possible courses of action. In the event that such problems cannot be resolved, the DFID may modify or terminate its Contribution to the Project. Upon such termination, and unless otherwise decided by the participants hereto:
(a)any arrangement entered into, or in the irreversible process of preparation, between the Bank and any third party participants will not be affected by the termination and the Bank may continue, for a period not exceeding 6 (six) months, withdrawals from the Account in respect of such arrangements as if this Memorandum had not been terminated; and
(b)any balance of the Contribution remaining in the Account will be returned to the Government, and the Bank’s functions pursuant hereto will be considered terminated. Promptly after termination, the Bank will submit to DFID a terminal financial and progress report detailing receipts into and expenditure from the Account.
12.The Bank may disclose this Memorandum and information with respect to this trust fund in accordance with the Bank’s policy on disclosure of information.
13.I am pleased to inform you that the above correctly sets out the understanding of my Government in this matter, and to request your confirmation that it equally represents the understanding of the Bank. The arrangements set out in this Memorandum will come into operation on the date of your reply to that effect.
FOR THE DEPARTMENT OF INTERNATIONAL DEVELOPMENT
Signature: /s/ Carolyn Miller
Name:Carolyn Miller
Position: Director, Eastern Europe and Western Hemisphere Division.
Date: March 29, 2003
FOR INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION
Signature: /s/ Nicholas Krafft (Acting Country Director)
Name:Nigel Roberts
Position: Country Director, West Bank and Gaza
Date: March 24, 2003