Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698830368126.pdf (Sierra Leone)
...k(r Lt{ GRANTNUMBER H739- SL Financing Agreement (Decentralizrd Service Delivery Progem II Project) between REPI]BLIC OF SIERRA L,EONE and INTERNATIONAL DEVEI'PMENT ASSOCIATION f-oL*T I + ,2orl Dated PARLIAME NI LtBRA,t ( IOWEft H,tt FfiEti0t;;,.

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...: .l GRANT NI'MBER H739-SL FINANCING AGREEMENT AGREEMENT a"a FeL""'o*Y tl1 , 2012, entertd into b€tween REPUBLIC OF SIERRA LEONE ('RecipienP) and' INTERNATIONAL DEVELOPMENT ASSOCIATION ('Association").
The Recipient and the Association hereby agree as follows: I ARTICLE I - GENERAL CONDITIONS; DETINITIONS I .O l. The General Conditions (as defined in thi Appendix to this Agieement) constitute an integral part oftt';s Agr€ement.

1.02.

Unless the context rcquires otherwise, tfte c"pialized terms used in this Agreemert have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreernant 1.03.
Unless the conte:( .requires otherwise, references in this Agreement to to Decsec Decentralization Secrctariat (DecSec) shall be construed as r€ferences or, upon its establishment, the deccntralization unit in MLGRD.

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ARTICI,Etr_FINANCING 2.Ot.

2.02.

The Associatioo agr€es.to eldend to the Recipieo!


on lfie terms and conditions set forth o-r rcferred -to in ftis Agreemeng a grant in an amount equivalent to sixteen million seven , hundred thousand Special Drawing Rigtts (SDR 16700,000) ("Financine) to assist in financing dre project described in Schedule I to this Agreernent ('"roject").

'1 The Recipicnt may witMraw tte proceeds of the Finaacing in accordance with Section [V ofschedule 2 to this AgtcmenL 2.03.
The ldaximum Commihent Charge Rate payable by lte Recipient on the Unwithdrawn Financing Balance stull be one-halfof one gcent (lD of lY) per annum.- 2.04.

The Palzaent Dales rre March .15 and Scptcmbq 15 in each ),ear.

2.05.

The Paym.ent Currcircy is Dollar.

-2- ARTICLE IU_PROJECT 3.01.

3.02.

The Recipient declares its commitment to the objectives of tlre Project and the Program.
To this end, the Recipient shall carry out the Project, thrcugh MoFED, MLGRD and I-ocal Councils, in accordance with the provisions of Anicle IV of the General Conditions.

Without limitation upon the provisions of Section 3.01 of this Agreemen!

and except as the Recipient and the Association shall otherwise agree, the Recipient shallpnsure that the koject is carried out in accor&nce with the provisions of Schedule 2 to this Agreemenf ARTICLEIV_REMEDIES 4.01.
The Additional Events of Suspension consist of the following namely, that (a) as a result of events which have occuE€d after the date of this Agreemeng a sitration has arisen which shatl make it improbable that the Program, or a signifrcant part of iL will be carried ouq and (b) in the opinion of the Association, the Local Govemrnent Act and related instruments (including the Stsutory Insfiumeot 20M) has substantially changed from.that prevailing as of the datc of this Agr€ement so as to materially and adversely affect the ability ofthe Recipient or of the Local Counci(s) or MDA(s) (or such other entity or entitics) to perform any of its obligations arising undcr or ented into pusuant to this Agreement, or to achieve lie objectives ofthe Project 5.01.
ARTICLE V - EFFECTwENESS; IERMINATION lte Additionatbnditions of Effeaivless consist ofthe folloring (a) The Recipient -tas preparcd ard approved, in form and substance to lhe Associatioq a timc bound aaion plan to integratE the acc€ptable Deoertralization Secretsriat into the MLGiRD; and O) The Grant Agreement has been e:cecuted and delivercd aod all conditions precedent to ib efiectiveoess or to lie rigbt of the Recipient to make witMrarrals uider it (other then thc efectiveocss of this Agr€cment) have been fulfiIled.
s.02.

The Effectiveness Deadline is the date nine$ (90) days aftcr tte date of this Agreement.

-3 - 5.03.

F-or purposes of Section 8.05 @) ofthe General Conditions, the date on which the obligations ofthe Recipient under this Agreement (other than those proViding for payment obligations) shall terminate is twenqr years after the date of rhis Agr€ement.

ARTICLE VI _ REPRESENTATTVE; ADDRESSES 6.01.

The Recipient's Representative is its miniser responsible for finance.

6.O2.
6.O2.

{re Recipient's Address is: Minisry of Finance and Eco[omic Development Treasury Building George Steet Frectowo, Sierra l.cone Facsimile: 23222229060 6.03.

TLe Association's Addrcss is: Intemational Development Associ.tion 1El8 H Stree{, N.W.

WashingtoD, D.C. 20433 United Stat€s of America' Cable: Telex: Facsimile: INDEVAS Washington, D.C. 2484230t1:cx) t-2024774391 -4- AGREED ,, doraL',,,'-g[0" D,c, USA and year first above written.
J as of the day REPUBLIC OF SIERRA LEONE l B Authorized Representative INTERNATIONAL DEVEI'PMENT ASSOCIATION By = Authorized Representative I -5- SCIIEDULE T Project Description The objectives of the Project ar€ to: (a) strengthen the Recipient's capacity to manage decentralized services; @) improve the availability and prcdictability of funding for Local Councils; and (c) strengthen the Recipient's intergovemmcntal fiscal transfer system.

The Projea constitutcs.


the second phase of the Program, and consists of tfie Part 1.

Grants to tocel Councils (L,C Grants) Provision of [X Grants to eligible t ocal Councils (,Cs) for carrying out specific development activities (Subprojeca) in the ducation; health and sanitation; rural water; solid waste rnanagemeng and social assistance service sectors, as elaborated in the respective LC annual work plans and budgets.

Part 2.
Capacity Development and Techdcsl Assistance to Strengthen L(k and MDAs Cepacity (a) (b) (c) Provision of Capacity Development Grants to LCs and MDAs for carrying out spgcific activities designed to enhance the cepacity of such entities to carry out their rsponsibilities (Subprojects not covered under Palt I of the Project), as elaborated in the respegdfp LC os MDA capacity development plan 'Orrying out a progrsm of training to enhance the capacity of Irs to perfonn their oore firctions including: (a) procurco@ (b) fimndal managemeng.
(c) safegrurds; (d) monitoring; (e) gencral-adminisration; in$e eonsolidated Pojd.Annual Work and (f) planning; as elaborat€d PlanandBudgeL .

Srengthening tho .managanent, tschnical and instihttional c€pacities of rvzrd oommittecs for mediating baween communities and lf.s, including planning budgcting oversight, monitoring and evaluation and establishing fedtback nechanisms betweeo.

said ward committees and L&.


(d) Stneaglhening the institrtional nnd technical capacities of the Local Govemmeot Finance Deparmen!

the Decentralization Sec.€t8riat ard the MIfRD, dl fimugh provision of technical advisory services, training, opcrating costs and acquisition ofgoods.

I -6- Part 3.

Results and Social Accountability .


Carrying out a program of activities to improve local govemarrce and service delivery by LCs as well as social accountability mechanisms between I-Cs and citizens, including citizen involvement in local govemance, in particular: (a) Supporting annual implementation of the comprehensive local government performance assessmeot $rstem to assess and monitor cspacity deveiopment in LCs; !
(b) ' Supporting implementition ofthe integiarcd national public services suryey (consisting of tte national public services surey; the peripheral hcalth utility suwey; and the service delivery pelceptions survey); (c) Supporting partnerships between civil society organizations and IXs, as elaborated in tte Consolidated Project Annual Work Plan and Budget (d) Piloting the use of commuaig scuecards in priority sectors; (e) Pilotiog the use of non-financial incentives for top performing service providers at Locality leve[ and (0 Supporting IXs' implemeatatiotr of rcsults-bascd approachs with atl ' 'service proViders including nonitoring ofresulE at the Iocality level.
Part4.

Projectilaaagemeat StsGngthening- the in$imional and technical capacity of 6e IPAU for Project implemeotatim aod oversight including proaremer* and finaacial manegemen!

mooi@fng ald evaftiarion aaQeporting, all lhrcugh pmvisim technical advisory scrviccs, trahiDg opcrating cots and acquisition ofgoods -7- SCEEDT'LE2 Project Erecution fnstitutional snd lmnlementatidn Arrangements Section L A.

1.
1.

Ministry of.Finance and Economic Development (MofED) InstitutionalArrangemenG (b (b) The Recipient shall designate, at all tirfies during the implementatior of the Projecg the MoEED to be responsiblc for prom'pt and efficient oversight and coordination of Project activities, and shall cause to be taken all actions including the provision of funding personnel and other rEsouraes to enable said MoEED to implement the Project.
Without limitation to lte provisions of subaaragraph (a) of this paragraph l, the Recipicat shall maintain, at all times during the implementatim of tho Projoct, a Local Govemmcot Financc Department within MoFED (LGFD), with funciions, saffing and r€sounc€s satisfactory to the Association, to be responsible fo1 day to day administation of LC Grara under Part I of ttre ProjecL The I.GFD shall cany out is firnctions i1 6sondineri6n with tfie DecSec and IPAU, itr accordance with the Opcrational Manual.
(c) Without limitation to the pmvisions of subparagraphs (a) aod (b) of this I, the Recipieot shall maintain, at all times during the implementatim of the Project, au Integrsted Project Adminishation Unit within MoEED (IPAIT), with fimctiong staffag and r€soruc€s satisfactory to the Assooidion for the purpose of €osuring prompt and effroient overall coordinatioq implementatioo .and communication of - Project activities and results inoluding being responsiblo{on (i) fiduciary elemeots of Project implernentdtion (financial managernent and proqrrcmentl (ii) easuring compliance with environniental e"d social safeguards; (iii) preparing the Consoli&tcd Prcject Annusl Work Plan and Budget and ensuring its implcmentatbn; Gv) consolidating peri<rdic prograss reports; (v) monitoritrg and evaluating Project activities; (vi) liaising with other implementing institrtions on issues rclatcd to Project implementation; and (vii) providing other administative support to thc LGFD and rhc DecSeg all in accordartce with thc Operational Manud.
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\ -8- 2.

Ministry of Local Govcrnment and Rural Devclopment (MLGRD) (a) Without limitation to the pmvisions of paragraph I of this Sectign I.A, the Recipient shall designate, at all times during the implementation of the Projecg the MT GRD to be responsible for prompt and efficient oversight and coordination of activities under Parts 2 and 3 of the Projec!
and shall cause to be taken all actions including the provision of funding personnel and other rqsourc€s to enable said MLGRD to implement activitie,s under said Parts of the Projecl - I (b) lVittiout .limitation to the provisions of suEparagmph (a)' of .this paragraph 2, the Rdcipieot shall maintai4 at all times during.

the implementaticr of .


the Project, a Decentalization Secrctariat (the DecSec) within MLGRD, with functions, stalling and resonrpes satisfrctory to the AssociatiorL to be responsible for, inter alia, adninistration of Capacity Development Crants under Part 2.1 of the Project The DecSeg working in cootdination with said MLGRD, shall cany out its functions in coordination with the I.GED and IPAU, all in accordance witt the Operational Manual.

3.
3.

Local Couucils (,G) Without limitation to the provisions of paragaphs I and 2 of this Section t'l4, the Recipient shall designatet at all times during the implementation of the Pmjecl the respective If,s established in the respective Lcalitieg to be responsible for, intq alia, implementing Subpmje.a uoder Parts I aad 2 (a) ofthe Project all in accordance wift the Operational Manual.
Tho Recipient shall cause to be taken all actions including the provision of firnding, personnel and other resoirces to eoable said [f-s to implement said Subprojects.

1.
1.

Mhlstieq Departmen8 and Ageudes (MDAs) Without limiariotr to thc pmvisions of paragr8pts l, 2 and 3 of this Section LA, the Rbcipient shatl designatq at all times during the implcarentation of the ?rojec( the raspec'tiw MDAS established in the rcspecivc priority sedors (education, heatlh and sanitrtio& n5al waler, solid wrste managesnent and social assisaooe servicc), to be responsible for implementing Subprojecb under Part 2 (a) oftte Project, all in accordancc with the Operational Manual.
The Recipiant shall causc to be tikcn all actions including the provision of funding personnel and other resources to coable said MDAs o implemcnt said Subprojects.
-9- B. I ImplementationArrangementslOperationalMaoual The Recipient shall ensue that the Project is carried out in accordance with the arrangements, procedures and guidelines set out in rhe Operational Manual, which shall include .provisions on the following mattes: (a) capacity building activities for sustained achievement of dle Projcct's objective; (b) financial management and disbursernen!
(c) procurement; (d) itrstitutional administratiorL coordination and day-to{ay execution of Project activities; (c) monitoring and cvaluation, reporting, information, education and compunication of Project qctivities; (f) guidelines for carrying out Subprojects under Parts I and 2 (a) of tfie Project including the etigibility criteria and detaited procedures'for the selection, approval and implemenlation of said Subprojec6; and (g) such other as shall be required for technical and oqganizational arrangements and proc€du€s the Project 2 In case of any conflict between the arrangements and procedures set out in the Operational Manual and the provisions of this Agreecreot the provisions of this Agreement shall prevail ond, o<cept as the Association shall otherwise agree, the Recipient shall not amend, abrogate or waine any provision of the Operational Maoual.
C. Anti4ormption The Recipient shall ensure tat the Project is carried out in accordance with the provisions of the Anti€orruption Guidelines.

D. I 2.
Consolidated Projeci AnnuaM,ork PIan and Budget The Rccipicnt shatl througl IvnoFED, prepare aad fiunish to the Association for its approva[ not later than November 30 of each year during thc implernentation of the Projccq a prcposed consolidated Project annual wo* plan and budget containing all eligible adivities under the P6jec*-and expenditures planned for the following Fiscal Year, aod speciSing the source or sources of fmancirig for all eligible erqpeoditures and the p€rcetrtage of financing of such ergenditurcs from each such source.
Each such consolidated Project annual work plan aad budget shatl speci$ among the acivities under Parts 2 @), 2 (c), 3 and 4 oftile Projccq any training activities that may be required under said Parts, including: (a) the t1pe of training; @) the purpose of the.trainiog; (c) the pesonnel to be traiDod; (d) the hstitution wldch .

will conduct the training (c) the locatioo ard duration of tte training; and (f) the ms of the training.

- t0- 3 4.

E. l.
- t0- 3 4.

E. l.

., 3 S l. The Recipient shall atrord the Association a reasonable opportunity to exchange views with the Recipient on each sucir proposed consolidated Project annual work plan and budget, and thereafter to implement the Project or cause it to be implemented during such following Fiscal Ycar with due diligencc in accordance with such consolidaled Project annual work plan and budge!

as shall have been approved by the Association ('Consolidated Project Annual Work Plan and Budget").
The Recipient shall not make or allow to be made any change o the approved Congolidated Project Annual Wor* Plan and Budget withbut prior approval in writing by the Association.

Safeguard hstruments The Recipient shall ensure ttat lhe Project is caried out.

in accordance with the Safeguard Ins[umenb.

The Recipient shall ensure that all measues required for carrying out the recommendations of said Safeguad Instruments ate taken in a timely manner.
Without limitation to its other reporting obligations under this €r€ement and uader Soction 4.08 ofthe General Cooditions, the Recipieot shall include in the Projecr Reports refened to in Section [.A of this Schedulg adequate information otr rhe implemenation of said Safeguard Instruments, giving details ol (a) measures taken in furlfierance of said Saf%uad Instruments; (b) eonditions, if any, wtrich interGrc or trrcaen to interferc with the smooth implementation of said S'aftguard Instruments; and (c) remedial measures taken or required to be taken to addre*s such conditions and to ensure the continued efficient and eftctive implaneotatioa of said Safeguard lnstruments.
Subpmjects; LC Grauts and Capclty Dwdopmeat Greuts General The Rocipient shall ttrougt MoFED and MLCRD, as the csse may be: (a) on the basis ofan approved aDnual wo(t plan and budget submit&d by a LC, review .

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and appmve Subprojea proposals, and monitor and supervise Subpojects under .
Part I of the Projec{ and'administcr the LC Grants in accordance witr the guidelines and procedures sel forfr in paragraphs 2 and 3 beloU and elaborated firther in the Operational Manual; and (b) on the basis ofan approved capacity development plan submited.by a LC or MDA respectiveln rwiew and approvp Subproject proposals, and monitor aad sup€rvise SubprojeAs uoder Part 2 (a) of the Project, and administer the Capacity Development Grarb in accordance with 'i -1 t ':t ',!
- l1- the guidelines and pmcedures set forfi in paragraphs 2 and 3 beloq and elaborated further in the Operational Manual.

2.
2.

(u) Eliglbility Criteria for SubproJects If GranL Each proposed Subproject contained in an approved [.C's annual work plan and budget shatl be eligible for financing upon MoFED's determination, on the basis ofan approval proccss mnducrcd in accordance with this paragraph and, as specifically set forth in the Operational Manual, that the pfopos€d Subproject consists of devolved activities under the Local Government A'ct and its rclated Saotory.

Insturir ent 2O(J/,,' and .


sarisfies the fottowing conditions.

.An I.C Grant shall be made to a rc on a non-reimbursable grant basis.
(i) (iD the Subproject shall cover all activities of a LC to be csried out during the period of one Fiscal Year in the eligible sectors, as further described in the approved annual work plan and budget ofsuch LC; the Subproject shall be,appraised on the basis of an environmental and social assessment aad other guidellres acceptable to the Association (and bc accompanid by an EMP or RAP, respcctiveln ifrequired pursuant to the ESMF or RPF, r€spcctivelr; (iiD the Subproject "h"ll be approved by the If, and MoFED, respectiveln in accordance with criteria set forlh in the Operational lv{anual; and (w) the Subproject, EMP and RAP, ifany, shall be approved by the Recipient and tic Association, unless widr resp€ct to lhe Association's appmval, the Association has uotificd the Rgcipicnt in uriting that is p,rior approval is not required.
(b)- Capacity Devcloprnent Graut Each proposed Subproject shall be eligible for Iinancing uder a Clpacity Devclopment Gra.at upon MLGRD's determination, on the basis ofan approval proccss conducted in accordance with this paragraph, and specifically set forth in the.Operatioal ManuaL that tile propos€d Subproject consisb of capacity building activities not included in Pafis 2 (b), 2 (c),3 and 4 of the hoject, and satisfies tte following conditioiu.

A Capaoity Development .


Grant shall be made to a LC or MDA oD a norFr€imbursable grant basis.
(i) (i') the Subprojea shall hddress spccific capacity dwelop,ment necds of the LC or MDA lhat arc not rd&cssed by an Il Graat; the Subproject shalt bc includcd in the approvcd capacity dcvelopment plan of such [.C or scctor.plan of such MDA (as the case may bc); -t2- (iir) the Subproject shall be approved by the LC or MDA, and MLGRD, respectively, in accordance with criteria set forth in the Operntional Manual; and (iv) the Subproject shall be approved by the Recipient and the Association, unless with respect to the Association's approval, the Association has notified the Recipient in writing that its prior approval is not required.
5 G) Subprojects; Subsidiary Agreements fo 'Limut the carrying out of each Subpfojecr, the '.Recipient shall make: (i) each LE.
'Grang through MoEED (LGFD), to a LC; and (ii) each Capacity Development Grang through MI6RD (Decsec), to a L or MDA, in atl cascs under Subsidiary Ageements, in form and substance satisftctory to the Association, wtrich shall include the following terms and cooditions, and such additional torms aod conditions, as the same nay be elaborated upon in the Operational Manuat A B., c. D The LC (or MDA) shall undertake: (l) to carry out the Subproject with due diligeoce and efficiency and in accordance wilh sound technical, financial, managerial and environmental statrdards apd practices, including in accordance with the pmvisions of the Anti4omrption Guidelines; (2) provide, promptly as needed the resources required for these purposes; and (3) maintain adequate rccor&.
The [,C (or MDA) slnll eosure ttat the gmds, works, non-consulting services and scrvioos to be fin&ccd out ofthe proc€e& ofthe IX Grant (or Capacity Development Grant) shall be pocrred in accordaoce with the provisions ofthis Agrcement and used exclusively in carrying out the SubpmjecL the LC (or MDA) shall mainain policies and procedures adequat+{o enable it to monitor and evaluate in accordance with iadicstors acceptable to tlrc Association, the progrcss of tfie Subprojec and the achievcment of ih objectives, The t C (or MDA) shall: (l) maintaitr a finrncial mam€ement system and prepare finaacial statemenB in aocordance with consistantly applied accounting staoilards acceptable to thc Associatiog both.
in a maoner adequtc to rEflect the oper;ationg rGsounccs aod e.r+cnditues rclatod to lhe Subprojecg and (2) fc each fiscat )aar of the Reqpte@ have such financial stat€ments audited by indepondcnt auditors acceptable b th9 Associatioa, in accorrdaace witt consis{ontly applied auditing stadards acccptable to the Association, and firmish thc stalcments as so audiEd to -t3- E. r' I G H. the Recipient (and the Association, if required), not later than six months after the end ofsuch fiscal year.
The Recipient shall have the right to inspect by itself, orjointly with the Association, if the Association shall so reques!

the goods, works, sites, 8nd plants included in the Subproject, the operations thereof, and any relevant records and documents.

The LC (or MDA) shall prepare and fumish to the Recipient and the Association all such information as the Association shall 'reasonably ' rcquest retating to the implementation of tfie Subpr<ijeu, and the .
performance by the LC (or MDA) of is obligations under iG Subsidiary Agreement The Recipient may suspend or telminate the right of the LC (or MDA) to use thc proceeds of the t C Grant (or Capacity Development Grant) upon failure by the LC (or.
MDA) to perform is obligations under fu Subsidiary Agreernent with the Recipienl The LC (or MDA) shall promptly inform &e Recipient and 0re to interferc Association of any condition which interfercs or thr€atens with the progess of its Subprojecq or the pcrformaoce by it of iS obligations under its Subsidiary Agreement with the Recipient O) The Recipient shall ocercise its rights under ib Subsidiary furecment with each LC (or MDA) in such a manner as to protcct the interests ofthe Recipient and the Association and to accomplish the purposes ofthe Fioancing and, except as the Association shall otrerwise agree in uriting the Recipient shall not assign, amend abrogate or waive any Subsidiary Agecment wilt any LC (or MDA), or any provision thermf,, Sectiou IL * Projecf Repor6 Prolect Monitoring.
Reoortinsand Evaluation I The Recipieot strall monitor and evalude the progress ofthe Projoct and prepare Project Relixts in accotdance with the provisioas of Scaion 4.08 of the Gencral Conditions and on the basis of indicators acceptadle to the Association.

Each Projcct Report shall cover the pcriod of onc calendlr seNrester, aod shall be filmishcd to the Association not la&r ttrrn one mont[ after the cod of thc pcriod covered by such rcport -14- 2.
The Recipient shall:- (') I (D Not later than twenty-four (24) months after the Eflective Date, undertake in conjurction with the Associstion, and the implementing institutions a comprehensive mid-term review ofthe Project and Program during which it shall exchange views with the Association and implementing instinrtions gpnerally on all matters relating to the progress of the Project and Program, the performance by the Recipient of its obligations under this Agreement and the performance by the implementing instiortions, having regand to the indicators referrcd to in I imrnediafely abov Not later dian one month prior to the mid-term review, furnish to the Association for comments, a rcporq in such detail as the Association shall reasonably reques!
oo tfie progress of the Projec and Prograrn, and giving details oftte various matters to be discussed at such review.

(iiD Following the mid+erm review, act promptly and diligently in order to take any corrective acfion deemed nec6ssq/ to rcmedy any shortcoming noted in the implemeotaion of the Project, or to implement suoh other measures as may bi rcquir€d in ftr&erance of the objectivas of the Project or otherwise agreed upon betwee.o tte parties.

B. flnandal llflanagemen!


Financial ReporB and Audits I 2 J Tte Becipient shall maintain or cause to be maintained a financial managemetrt system in accordaoce with the provisions of Section 4.09 of the Gencral Conditions.

The Reipient sball prepare and furnish to the Association not later tian forly-five (afl days after tte .end of each caletrdar quqrtcr, interim unaudited fihencial reports for the Prroject coveri[glhe quarter, in forun -!nd substance.
satis&ctory to the Association The Recipient shall have its Financial Statements audited in acoordancc with the provisions of Section 4..09 (b) of the General Ccinditions.

Each audit of the Financial Statemeots shall cover.

&e period of one fiscal year of the Recipient.


The audited Financial Shrcmcnb.for each such period shall be fumished to the Association not later than six montts after the end of such period - 15- C. Specific Financial Management Covenaat The Recipient shall, not later than four (4) months after the Ef;Fective Date, recruit an independent eldemal auditor, in accordancc with Section trI of this Schedule 2.

SectionlTl- Procurement A. l. 2.

J B, I 2.

General 6ods, Works and Non-c6nsulting Services.

.
.

All goods, works and for the Project and to be financed out of the non-consulting servic€s proceeds ofthe Financing shall be procured in accordance with the requirernents set forth or refened to in Section I of the Procurement Guidetineq and with the provisions of this S€ction rEquir€d Consultantst Services.
AJI consultants' services tEqufu€d for the Project and to be financed out ofthe proceeds ofthe Financing shall be procured in accordance with the requirements sa forth or referred to in Sections I aad IV of the Consultant Guidelines, and with the provisions ofthis Section.

Delinitions.
Delinitions.

The capitalized tcrms used bclow in thic Sedion to describc particular proourement melhods or methods of review by the Association of to the corresponding method described in Sectims tr particular contracts, rcf€r and Itr of the Prrocurement Guidelines, or Sections II, m, IV and V of the Consultant Guidelineg as the case may be.

Particular Methods of Prccur€metrt of Goods, Works and Non-consulting Services International Competitive Bidding.
Except as otherwise provided in paragraph 2 below, goods, uro*s aad non+oasulrin'g iervices shall be procured under contracts awarded ou the basis oflnternrional Competitive Bidding.

Other Methods of Procnrement of Goods, Worlrs aud Non-cousulting Serviirs.

The following mc6ods of procur€mcnt, 6ft6s than Interndional Competitive Bidding may be used for goods, rvorls atrd non-consulting scrvices.

The Procurement Platr shall sp€ciry the circumshnces under u&ich suoh methods may .
be used: (a) National Competitive Biddlunrg @ubject to tlv dditionol prudwes h pzgrqh 3 bdon'); (b) Shopping; (c) Direct Contracting; (d) Procurement from Unitcd Nations Office for Project Sorvices CJNOPS); and (e) Commuaity Participation procedu€s uAich have been found acceptable to the Associatim.

- 16- 3 Additional National Competitive Bidding (NCB) procedures.
The procedures to be followed for NCB shall be those set forth in the Recipient's Public Procur€ment Act Clhe Acf), subject to the following additional procedures (i.e.

exceptions to the Act): (a) hocuring entities shall use appropriate standard bidding documents accpptable to the Association.

(b) I The eligibility of bidders shall be as defined'under.

Section I of the Procure.ment Guldelines; accordingln no bidde5 or.potential bidder shall be dgclared ineligible for contracts financd b5r'the.
Association for reasons other..than those provided in Section i of the Proiudment Guidelines.

(c) (d) (e) (D G) No restrictions in respoot of etigibility to participate in bidding for contracts shall be placed on the basis of nationalig of ttre bidder and/or the origin ofgoods other than those imposed by primary boycots.

Forcign bidders shall be allowcd to participate in NCB procedurcs.

No domestic preferenoe sball be given for domestic bid4crs and/or for domestically manufaraued goods.
Bidding shall not be rcsticted to pre-nryistercd firms, and foreign bidders shall not be r€quircd to be rcgistcrcd with local authorities as a prercquisite for submiuirg bids.

Forcip finns shall not be required to associate with a local partner in order to bid as a joint ventrg and joint venture or consortium partners shall bejointly and severally lhble for their obligations.
(h) -Govemment-owred €nt€rpris€s sha[ be ;tigibleto participile-in bidding only if they can establish that they are legally and financially autonomous, opemte under commercial law and are not @ndent ageocie of the Borrower or Sub.Borrower.

Such eatelpri*s sball be subject to the same bid and performance seourity requir€ments as othcr bidders.

(i) O Subject to these provisions, prccureNnent shall be canied out in .
.accordaoce with the "Opcn Competitivo Bidding" procedures sct forth in the Act B.idders shall be given at least thfuty @0) days from the date of the invitatioo to bid or the date of arailability of bidding documents, ufriohever is later, to prepare and submit bids.

-t7- (k) Bids shall be submitted in a single envelope.
(l) (m) ) (n) (o) An extension of bid validity, ifjustified by exceptional circumstances, may be requested in writing from all bidders before the expiration date and for a minimun pcriod required to complete the evaluation or award a contract, but not to o<ceed thirty (30) days.

No further e:densions shall be requested without the prior concurrence ofthe Association.
All bids (or the sole bid ifonly one bid is received) shall not be rejected, tle procurement process shall not be cancelled, an{ new bids shall not be 'solicited.

without the Association's prior concurrence: Qualification criteria shall be applied on a pass or fail basis.

Bidders shall be given at least twenty-eight (28) days from the receipt of irotification ofaward to submit performance securities.

(p) Each:bidding document add contract financed out of the procceds ofthe .
Financing shall include provisions on mattec peraftting to fraud and comption as defined in paragraph l.l6(a) of tlp Procurement Guidelines.
The Association will sanction a firm or an i4dividual, at any timg in accordance with prevailing Assochtion sanctions procedurcq including by publicly declaring such firm or individual ineligible, ei&er indefinitely or for a statd pedod of time: (i) to be awarded an Association-financed contracq and (ii) to be a nominatcd sub-contractor, conslrltstrt, supplier, or scrvicc provider of an otherwise eligible firm being awarded an Association-financed contracl (q) In accordance with pangaph 1.16(e) of lhe Procur€me$t Guidelines, each bidding document aad pontract financed out of the procceds of the Finaacing shall providc.ltat bidders, srlppliers and coohactors, and their subcontactos, agents, personre[ consultaob, servicc providers, or supplierg shall permit the Association to inspect all accounts, recorrds, and ofter documents relating to the submission of bids and contract perf6rmance, and to have them audited by auditors appointed by the Association.
Acts intended to marerially impede the exercise of the Association's inspcction and audit rights provided for io paragra.ph l.l6(c) of the Procurernent Guidelines const'rtute an Obstructive Practice as defined in paragraph I: l6(a)(v[bb) ofthe Procirement Guidelines.

, - 18- C. :l 2.
, - 18- C. :l 2.

G) The Association mry reaognize, if requested by the Borrower, exclusion from panicipation as a result of debarment under the national system, provided tlut the debarment is for offenses involving fraud comrption or similar misconduct, and further provided that the Association confirms that the padicular debarmeot pldure afforded due process and the debarment decision is final.

.

Particular Methods ofProcurement ofConsultanG' Services Quqlrf- and Cost-based Selec{ion.
Exc€pt 8s otherwise provided in pangraph 2 below, services shall be pnEured under contracB' awardeil on the basis of Quality and Aist-based Selection.

'consultsnts' Other Methods of Procur€Een( of Consultants' Services.

The following methods of procurement, o6er tfian Quality and Cost-bas€d Selection, may be used for consultants' servic€s.
The Procurement Plan shall specify the circumst&ces under which suclt methods may be used: (a) t ast Crst Selection; (b) Seleuion based on Consultsds' Qualifications; (c) Single-sourcc Selectioh of Consulting Firms; (d) hoccdures set forth in paragraphs 52 aad 5.3 of the Consultant Guidelines for tte.Selection oflndividual Consultants; and (e) Single source froccdures for the Sclection oflndividual Consltants.
D. Review by the Association of Proc[r€ment Dec,isious The Procuremeut PIah shatl set forth those oonracs ufiich <hall [6 5u!j6st to the - Associatiou's Prior Revien.

AII olter contracts shall b9 subjeat to Post Review by the Associatioo.

\ ithdrawal ofthe Proceeds ofthe Flnancins Section fV.

A- General 1.

2.
A- General 1.

2.

The Recipient mry withdraw rhe proceeds of the Financing in accordance with the provisions of Article tr of the General Conditions, this Section, and such additional instructions as tbc Assoeiatioa shall speci$ by notice to tte Recipient (including.
thc "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised fiom timc to time by the Association and as made applicable to this Agroement pursuad to such instsuc'tions), to fiunce Etigible E:penditrres as set forth in the table in paragraph 2 below.
The following table specifies the categories of Eligible Eieerditur€s that may be Iinanced out ofthc pocceds ofthe Fi!flrcing Ctatogor:/} the allocations ofthc amouats ofthe Financing to cach Cat€gory, aad lhe pctocntage ofcxpcndiUres io bc.finarced for Higible Eleeoditur€s in each Carcgoryr - 19- Amount of the Financing Allocated (expressed in SDR) r 1,600,000 Percentage of Expenditures to be Financed (inclusive of Taxes) Such percentage as shall be specified in the Consol idated Project Annual Work Plan and Budget for the respective Fiscal Yearr s00,00Q t00% 1,300,000 100% 2,700,000 to0% 600,000 75o/o Catego ry (l ) LC Grants for Subprojects under Part I of the Project | (l) cqacity Development Grants for Subprojec{s uoder Part 2 (a) of the Project (3) Goods, Non- consulting Scrvices, Consultanb' Services, Training and Operating Costs under Parts 2 (b) and 2 (c) ofthe Project I tl) cooa., Non- consulting Serviccs, Consultants' Services, Training and Operating Costs under Part 3 of the Project (5) Gooda Non- consulting Servioes, Consultants' Services, Training and Opcrating Costs under Part 4 of the Project TOTALAMOUNT 16,700,000 For tlc purpose ofthis Scction [V-A.2: (a) the term *Training" means the cost associated with the training; workshops and excharge visits, based on the Consolidated Project Annual Work Plan and Budget approved by the Association pursusnt to Section IJD of Sclrcdule 2 to this Agreement for reasonable expenditurc (odrer tban opcnditurcs for consultarts' I Such perccotage shall not
 o<cccd 78 pcrcent (78%).
-20 - services), including: (i) travel, room, board utd per diem expenditures incurred by rainers and trainees in connection with their training and by non-comultant training facilitators; (ii) course fees; (iii) training facility rentals; and (iv) training material preparation, acquisition, reproduction and distribution expenses; (b) . '

G) the term 'lCperating Costs?


means the incremental expenses incurred on account of Project implementation, based on the Consolidated Projcct &tnual Work PIan and Budget approved by the Association pursuant to Section I.D of Schedule 2 to this Agreemen!

on ac@unt of office equipment and supplies, .vehicle operation andgnaintena&g firel maintenancc of equipme-nt, communication and insurance costs, office administztion costs, baok charg&,.

atlvertising e:<penses, utilities, rental,.
consumables, aocommodation, tavel, per diem, and salaries of selected support staff, but excluding salaries ofconsultants and salaries ofthe Recipient's cMl servants; aad the term *l.Ion-consulting Services" means servicos for ufrich the ptysical aspects of the activity predominate are bid and con@cted on t[e basis of performance of a measurable physical otdput, aad for which performance standards can be clearly identified and consistently applied such as drilling, aerial photographn satellite imagery, mapping and similar operations.
B. Wthdrewel Conditions; Withdrawal Period L NotwiftstandiDg the provisions of Part A of this Secioo, oo withdrawal shall be made: (a) for paymens made priorto the date of fris Agreemeng (b) (c) - umil the Recipient has prcpared and approve4 tte Consolidared Projec't Annual Work Phn snd Budget for the first year of Project implementatioq in form and substanco satis&aory to lte Association; and for palm.eab udc.
Category (l) oi 2 (a) for a Subproject, unless the Rocipient bas fimishcd to the Association, evideoce satisfactory to the Association, +hat (i) thc Recipient has concluded a Subsidiary Agement with the L.C (or MDA) for such Subproject utrder terms atrd coaditions satisfrctory to the Assooiatioq and Qi) in tte case of a Subprojeot to be canied out by a l,C, all fin ocial stalements ofthe said LC.have been auditcd by an auditor and in a maancr satisfacdory to the Association.

2.
2.

The Closing Date is December 3 I , 20 I 5.

-21 - APPENDD( Definitions I 2 J 4.

5 6 7 8 'Anti{orruption Guidelines't means .

the "Guidelines on Preventing and Combating Fraud and Comrption in Projects Financed by IBRD Loans and IDA Credits and Gr8nts", dated October 15,2006 and rcviscd in January 201l.

"Capacity Development Grant'means a grant made or proposed to be made pqsuant to a Subsidiary Agr€ement by the Rccipien!
through MLGRD @Ecsec), out of the proceeds of the Financing tda.I-C.or IvIDA to finarcc the costs of goods, non-consulting services and scrvices for a Subproject un der Part 2 (a) of the Project "Categoqf means a category set forth in the table in Section IV ofSchedule 2 to this Agreement 'Consolidated Pmject Annual \Mork Plan and BudgeP means the approved Consolidatcd Project Amusl Work Plan and Budget referred to in Section I.D of Schedule 2 to this Agrcemenl 'Consultant Guidelines" means the "Guidelines: Selection 6!
F nploynrent of Consultsnts under IBRD [oans and IDA Credib and Grants by World Bank Borrowers" dated January 201l.

*Decentralization Section I3.2 (b) of Schedule 2 to this Agreemcnt and aoy successor thereto.
Sccretadafl or TecSec" meaas the secretariat referred to in 'Displaced Persons" meaff persons wbo, on accourt of the ocecution of the Projcct would suffer direct,economic 8nd social impacts r*ulting in: (a) the involuntary taking of larid rasulting in: (i) relocation or loss ofshelter; (ii) loss of ass sor acoess to assets; atrd (ii0 loss of inconie sources or meass of livelihoo4 location; or (b) lte nfiether or not the affected p€rsons must rirove to anoth€r involuntary restriction of access to legally dcsignated parls and protected areas resulting in adverss imFac8 on the t.ivelihoods ofthe Displiced Penons.
'Eavironmental atrd Social Maosgemetrt Framerrcrll or 'ESMF" .means tte dooument of the Recipicot dated September 29, 2011, and disclosed on September 30, 2011, se{ting foffi the modalitics for environrnental screcning and proccdurcs for the prcparation aod implcmentatiotr of ctrvfuonmental assessD€ats 6d management plans under thc Projcct, aod such t€rm atrn€xcs agrccment of the Associatioo.

includes all schedules ard to the ESlv{F, as the same may be amended tom timc to time witfi tte -22 - 9 10. lt. t2.
13.

14.

15.

= 16. t7.

18.

'Environmental Managem€nt Plan" or "EMP" means an environmental management plan, prepared in accordance with tfie ESMF and the provisions of Section I.E of Schedule 2 to this Agreement for the purposes ofa Subproject and acceptable to the AssociuiorL and giving d€tails of the magnitude of the environmenbl impacts, as well.
as the specific adions, m€asure and policies designed to frcilitate t}e achievement of the objeaive of the ESMF under the Subprojec( including the budget.and cost estimates, and sources offirnding along with the institutional and proceduzl measurcs needed to implernent such actions, measures aad policies.

I "Fisal Y.eai means the fiscal )rcar of the Recipient commencing on Jahuary I and endiag on December 3l ofthe same year.
'GranP means the grant provided for in the Grant AgreemenL rcrant Agreemetrfl meara dre agreement to be entered into betweeo the Recipient aad the lntemational Development Association (World Bank), acting as adminis{rator of tte proposed Sierra Leone Deceritralized Service Delivery Program tr P.roject European Union Trust Fund providing for the Grant 'General Conditions" means lhe'Intemational Developmeqt Association Gencral Conditions for Credis aod Grarts", dated July 31, 2010.
'LC Granf' means a grant made or proposed to be made pusuant to a Subsidiary AgreeNnent by the Recipieat, through MoFED, out of the proceeds of the Financing to a If,, to finance the costs ofgoods, wodcs, noa-consulting services and serviccs for one or more Subprojects qnder Part I ofthe Projea.

a.ocal Council" or *LC meaos a local council established and operatiog pusuant b the Local Governmeat Act and any successor tbcreto, and A,ocal Councils'or a.Cs" means, collectively, all such _lacal Councils.
aapal Government Acfl meaos the Ilcal Govemment Act Number I of ?j,04 of the laws ofthe Recipient, as alreodod ftom time to time.

a.ocalitf means an administrative unit of the Recipient as defined by the Local .
Government Act "MDAt'' mcans lhc Recipicnt's ministricg departmerts and agcncics ttat have devolved thcii firncions to Local Councils pursuant to the Local Govemment Act, and its ancillary insruments, including minisfies, departueob and agencies responsible for the following sectors: education; health and sanitation; n[al water; solid rvaste Datragemenq and social assistmce services and slv{DA" means any of such MDAs, individually.

-23 - 19.

20.

21.

22.

23. u.

25.

26.


'MLGRD" means the Rccipient's Ministry of L,ocal Govemment and Rural Development and any successor therao.

"MoEED" means the Recipient's Ministry of Finance and Economic Development and any successor thercto.
"Operational Manual" means the manual, in form and substance satisfactory to the Associatioq dated October 201 I and referred to in Section I.B of Schedule 2 to this Agreernent; as .such manual may be amended from time to time with wf tten agrcqnent of tbe Association.

sProcurement Guidelines" means'the 'Guidelines: Procuternent of Goods; Works and Non-consulting Services under IBRD Loans and IDA Crcdits and Grants by World Bank Bonowers" dated January 20 I I .
"Procuremenl Plan" means the Recipient's procurement plan for the Project datd Octobcr 31,20ll and refened to in paragraph 1.18 of the Procurement Guidclines and paragraph 1.25 oftle Consultant Giridelines, as the same shell be updatod from time to time in acccdance with the provisions of said paragrapbs.

"Program" means the program desigrred to support delivery of basic services in Sierra [.cone and set forth or referred to in the letter dated August 7, 20(D from the Recipient to the Association.
'Publio Pr,ocruement Act" means the Public Procuremeot Act Number 14 of 2004 ofthe lAws ofthe Recipient as amended ftom time to time- 'T.esefrlement Action Plan" or "RAP" means in respect of any Subprojecl involving r€s€{tlement, a r€seffIement plan for such Subpmject prepard and implemeoted in accordance with the RPF and tbe provisions of Section I.E of Schedule 2'to this Agr€emert and approved by the Association, such resetdement plan to include a program ofadions, measures ind policies for cornpo,saion and rcsetleoeft of the Displaced Persons, and se$ing forth the magritude of displacemea!
proposed compensation and reseslement arrangements, budget and post estimat€E aod sources'of fimding together with adequale institutiooal, monitoring and rcporting arangements designed to ensure prcp€r implernentation of, aad rcgular feedback on compliance with such plan 27. qR€s€trlemont Policy ErameworlC or '?,PF' means the Rcscfflement Policy Framework of the Recipient datcd September 29, 2011, aad disclosed on Septembcr 30, 201 l, scfiiry forth the modalities for resefilement and compeosatim of Displaccd Persons under the Projecg as the same may be amended tom time totime with tie agreement ofthe Associatioo.
: -24 - 28.

29 30.

'Statutory Instrument 2004" means the Recipient's Statutory Instrument No, 13 of 2004 published on Novernber ll,2OO4 pursuaot to Section 126 of the t.ocal Govemment Act "Subproject" means a specific development program of activities to be cgrried out by a rc under Part I or Part 2 (a) of the Project or by an MDA under Part 2 (a) ofthe Project, and'Subproj&ts" means, collectively, all such Subprojects.
'Subsidiary Agreement'' means each agre€ment entered into between the Reqipient and aLC (or MDA) under Section I.F of Schedule 2 to this Agreement, and pursuant to which an t C Grant oi Capacity Development Grant is made or proposed to be made by the Recipient to such LC (or MDA), and "Subsidiary Agreernents" means, collectively, all such Subsidiary Agreemens.

31.

'lSafeguard Instrunents" means tte ESMF, tte RPI relatcd EMPq and RAPs for the Project .

; 1 !.

,ARLlAMENT TIBB I TOWER HIlI.

FRi. - .a -