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AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF FINLAND
AND
THE EAST AFRICAN COMMUNITY
ON
FINLAND'S CONTRIBUTION TO THE LAKE VICTORIA BASIN PARTNERSHIP FUND
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The Government of the Republic of Finland (hereinafter referred to as "Finland") and the East African Community (hereinafter referred to as "EAC"), hereinafter jointly referred to as "the Parties",
RECALLING the Millennium Declaration and the Millennium Development Goals;
CONFIRMINGthe eradication of extreme poverty as the main objective for the co-operation between the Parties;
REAFFIRMING their commitment to harmonisation of development cooperation activities;
OBSERVING that the Partnership Agreement on the Promotion of Sustainable Development in the Lake Victoria Basin, came into force on 24th April 2001 (hereinafter referred to as “the Partnership Agreement”), and thereafter a Lake Victoria Basin Partnership Fund (hereinafter referred to as “the Partnership Fund”) was established and administered by the EAC Secretariat;
NOTING THAT the Protocol for Sustainable Development of Lake Victoria Basin (herein referred to as the “Protocol”, see Annex 3) became effective in December 2004 after ratification by the Partner States parties to the Treaty for the Establishment of the EAC; hence effectively establishing the Lake Victoria Basin Commission (Article 33 of the Protocol) (hereinafter referred to as “LVBC”) as an institution of the East African Community, with an Executive Secretary (Article 39 of the Protocol) and whose functions (Article 40 of the Protocol) among others shall be accounting officer of the LVBC.
HAVE AGREED as follows:
ARTICLE I
Execution
The LVBC shall on behalf of the EAC be the executing agency of this Agreement and hence responsible for the administration of the Partnership Fund as provided for in the Protocol. The Executive Secretary of theLVBC is the accounting Officer of the Partnership Fund.
ARTICLE II
Contribution
Finland shall make available, on a grant basis and subject to annual parliamentary approval in Finland, a contribution amounting up to a maximum of Two million Euros (€ 2.000.000) to support the activities of the Partnership Fund during the financing period of 2011-2014.
ARTICLE III
Use and management of the contribution
LVBC shall use the contribution to finance the activities of the Partnership Fund in accordance with the provisions of the Partnership Agreement (Annex 1) and the Lake Victoria Partnership Fund Regulations (Annex 2).
The use of the Finnish contribution and the management of funds shall comply with professionally accepted bookkeeping rules and practices. Procurements shall be made in accordance with the Procurement Rules of the EAC. LVBC shall ensure that no illegal or corrupt practices relate to the use of the Finnish contribution.
ARTICLE IV
Disbursements
The contribution shall be paid to LVBC in three (3) instalments. Payments shall be made to the following bank account:
Beneficiary Bank:Co-operative Bank of Kenya
P.O. Box 1511
Kisumu, Kenya
Account Name:LVBC/Partnership Fund
Account Number:212012767400
Swift Code:KCOOKENA
Correspondent Bank:American Express Bank
Swift Code:ABIBUS33
The first payment of Eight hundred thousand Euros (800.000 €) shall be made in early 2011 against a written request made by LVBC to Finland.
Subsequent payments shall be made in accordance with the actual progress of the Partnership Fund activities and on the basis of the financial needs for the coming financial year, against a written request made by LVBC to Finland. The request shall be accompanied by a progress report and an audited financial statement in respect of the foregoing financial year, as well as by a cash flow budget and a plan of activities for the next financial year.
Subsequent payments shall be made annually as follows:
-up to a maximum of Five hundred thousand Euros (500.000 €) in 2012 after the approval by Finland of above-mentioned reports and statements;
-up to a maximum of Seven hundred thousand Euros (700.000 €) in 2013 after the approval of by Finland above-mentioned reports and statements.
Any amount, including interest, which has already been disbursed, but has not been fully used, shall be taken into account when requests are made.
ARTICLE V
Reporting and auditing
LVBC shall provide Finland within three (3) months from the end of each of its financial years with an annual progress report and audited financial statement on the use of the Partnership Fund, specifying the funding sources and itemised expenditure of Partnership Fund activities against the approved budget and work plan.
LVBC shall permit the representatives of Finland to carry out any inspection or audit in respect of the use of Finland’s contribution. LVBC shall provide the representatives of Finland all information they may need for carrying out of such an inspection or audit.
ARTICLE VI
Information
LVBC shall provide Finland with such other information on the activities of the Partnership Fund as may be reasonably requested from time to time for public information, dissemination or other purposes.
LVBC and Finland shall promptly inform each other of any event or situation which might affect the implementation of the activities of the Partnership Fund and which may necessitate a modification or alteration of the scope, implementation, the agreed budget or other aspects of this Agreement.
In case any change occurs in the schedule or implementation of activities of the Partnership Fund, LVBC shall promptly inform Finland.
LVBC shall in all its publications and reports concerning the Partnership Fund, specifically mention that Finland has provided financing to the Partnership Fund.
ARTICLE VII
Contact details
In matters pertaining to this Agreement, the representatives of the Parties shall be:
For: East African CommunityFor: the Government of the Republic of Finland
Lake Victoria Basin Commission Ministry for Foreign Affairs of Finland
SecretariatUnit for Eastern and Western Africa
P.O. Box 1510-40100P.O. Box 541
Kisumu, 00023 Government
KenyaFinland
ARTICLE VIII
Review/Evaluation Missions
LVBC shall facilitate the participation of the officials or designated representatives of Finland in any preparation, review or evaluation missions or other activities relating to the implementation of this Agreement.
Finland shall have the right to carry out an evaluation of the activities of the Partnership Fund during and/or after the financing period 2011-2014.
ARTICLE IX
Settlement of Disputes
LVBC andFinland shall seek to settle amicably any differences and disputes arising from or relating to the implementation of this Agreement.
ARTICLE X
Special Provisions
Any remaining pro-rata share of the balance of the contribution and the interest accrued thereto shall, at the completion of the financing period 2011-2014 or upon the termination of this Agreement, be returned to Finland or, in consultation with Finland, be reallocated to other activities of LVBC.
Finland reserves the right to suspend payments or claim repayment in full or in part including the interest accrued to the contribution if the funds are found to be misused or not satisfactorily accounted for. Before suspending payments or claiming repayment,Finlandwill consult with LVBC and the other contributors to thePartnership Fund, with a view to reaching a solution in the matter.
Without prejudice to relevant provision of Finnish Law, Finland shall not accept any responsibility or liability for any claims, debts, demands, damage or loss as a result of the implementation of this Agreement.
ARTICLE XI
Entry into Force and Amendments to the Agreement
This Agreement shall enter into force thirty (30) days after its signature by Finland and EAC and remain in force until all the obligations have been duly fulfilled by Finland and EAC, unless terminated earlier by either Party by giving notice in writing to the other Party three months prior to the termination.
Any amendment or modification to this Agreement shall be agreed on between the Parties in writing.
This Agreement is made in [place] in two originals in the English language and duly signed by the authorised representatives of Finland and the East African Community.
______
[place day month year]
______
______
On behalf of the Government of theOn behalf of the East African Community
Republic of Finland
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ANNEXES
Annex 1: Partnership Agreement on the Promotion of Sustainable Development in the Lake Victoria Basin, done on 24 April 2001
Annex 2: Lake Victoria Partnership Fund Regulations
Annex 3: Protocol for Sustainable Development of Lake Victoria Basin
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Erillinen sivu elektronisen version käsittelyyn:
ULKOASIAINMINISTERIÖ / RAHOITUSSOPIMUS / HEL7698-49Afrikan ja Lähi-Idän osasto
ALI-20 / Anu Penttinen / 11.1.2011
Interventiokoodi
29890401
Viite
Rahoitussopimus - Viktoria-järven kumppanuusrahasto
Asiasanat / KEHITYSYHTEISTYÖ OIKEUDELLISET ASIAT, AFRIKKA ALUEELLINEN KEHITYSYHTEISTYÖHoitaa / ALI-20
Hoitaa UE / DAR
Koordinoi
Tiedoksi / KEO-20
ADD; NAI
Laatija jakanut
Lomakepohja: Rahoitussopimus