Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698832509997.pdf (Sierra Leone)
OeVELOp o+ o ,rt oE o I l .T i I J J SUIIIII.Iit\IIiNTARY PROTOCOL OF AGREEMENT BETWEf,N .I'ITE REPUBLIC OF SIERRA LEONE AND TI{E AFRICAN DEVELOPMENT BANK AND THE AFRICAN DEVELOPMENT FUND (ON BEHALF OF THE TRANSITION SUPPORT FACILITY) (SUPPLEMENTARY GRANT FOR THE THREE TOWNS WATER SUPPLY AND SANITATION PROJECT) { { I I + ; .t j ij ; \ 1--- \Ai4E,Ir I r.) 'i I i R dIL \,l + fr -1 I-l I -l I SUPPLEM ENTARY PROTOCOL OF AGREEM ENT BETWEEN THE, REPUBLIC OF SIERRA LEONE AND THE AFRICAN DEVELOPMENT BANK AND THE AFRICAN DEVELOPMENT FUND @N BETALF OF TllE TRANSITION SUPPORT FACILITY) (SUPPLEMENTARY (;RANT FOR THE THREE TOWNS WATER SUPPLY AND SANITATION PROJECT) PROJECT lD No GRANT No : P-SLE00-007 :5900155011851 as the i\il\\ .\i l l This Supplementary Protocol of..{gfccmcnt (hcrcinafter referred to "supplementary Protocol') lr'tgnt*.d into this )';Th day of j r bcrwcrcn the REpuBLrc oF SIERRA LEONE (hcrcinollcr,.rclbmod to as the 'Recipient") and the AFzuCAN DEVELOPMENT DEVELOPMENT FUND (collectively hcrclnoflcr rcfcncd to an thc *Bank') on behalf of the TRANSITION SUPPORT FACILITY (hcrcinaflcr rcfcrred to as the (TSF").
^FRTCAN and rhc 9'4-NK 1 WHEREAS thc Rccipicnt and ttrc llank entercd into a Protocol of Agrccmcnt dstcd 3 Dcrccmbct 2010, Crant No.

5900155001252, Project ID No.
P-S|,-EA0-001 (hcrcinaftcr rcflcrrcd to as the "Initial Protocol"), whcrcby thc Bank providcd a grant, from the TSF's Supplemental Support Window, to the Recipient in an amount not exceeding Six Million Five llundred Thousand Unis of Account (UA 6,500,000) (the Unit of Account being dehned in Article l(l) of the Agreement establishing the Fund) (hereinafter referred to as the *Initial Grant") to frnance the Three Towns Water Supply and Sanitation Project (hereinafter referred to as the oProject') as described in the Initial Protocol and in the Annex hereto; v # 2 ) 4 5 6 7 2 WHEREAS it has been determined that the Initial Grant is insufficient to achieve the developmcnt goals of the Project and additional resources are required to extcnd the network of connections in the three (3) cities to target additional houscholds and create opportunities for employment for youths ; WHEREAS the Rccipicnt ha.s rcqucstcd liom the Bank, supplementary resources to financc part of thc supplcmcntary costs of the Project by providing a supplcmcntary grsnt to lhc Rccipicnt in thc amount specified hereunder; WHEREAS the supplcmcnt{ry grunt will bc Frrvldcd by the 'l'liF, which was establishcd as an autonomoui cnthy rpoclfically to providc assistanc€ to fragilc statcs; :: ' -i,a .
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WHER-EAS thc supplcrnurtsry grsnt wlll tc pruvided from TSF's Supplemental Supprt Window, designcd to provide financing supplemental to a mcmbcr country's African Development Fund allocation; WHEREAS the Rrripicnt qualilic's for supplemental grant financing from the TSF; WHEREAS the Projcct is bcing implemented through the Sierra Leone Water Company (hereinaftcr referred to as *SALWACO" or the 'Executing Agency") and the supplementary grant shall be implemented using the same implementation arrangements as the Initial Grant; and \^ & 3 8.
WHEREAS the Bank has agreed, on behalf of TSF and on the basis, inter alia, of the forcgoing, to provide a supplementary grant to the Recipient upon thc tcrms and conditions hereinafter set forth.

NOW THEREFORE, thc Partics hcrcto hcreby agree as follows: ARTICLE I GENE RAL CONDITION$DEFINITIONS Section 1.01.

Ccncrql Conditions.
Ccncrql Conditions.

The Parties to this Supplementary Protocol accept all thc provisions of lhc General Conditiors Applicable to Protocols of Agreements lor Granls of llrc African Development Bank (as the same may be amended from timc to timc, 0rc 'General Conditions") with the same force and effect as if they wcrc fully sct forth herein.

Section 1.02.

Definitions.


Whcncvcr usr:d in this Supplementary Protocol, unless the context otherwise requins, thc gcvcral terms dehned in the General Conditions shall have the respective mcanings therein set forth.

ARTICLE II THE SUPPLEMENTARY GRANT Section.

2.01.

Amount.
2.01.

Amount.

The Bank agrccs to provide to the Recipieng from the resources of the TSF's Supplemcntal Support Window, an amount not exceeding the equivalent of Three l{undred Seventy Thousand Units of Account (UA 370,000) (the *Unit of Account" being defined in Article l(l) of the Agreernent establishing the Fund) (hereinafter refened to as the -l l I F, I I -4- l_ I I "Supplementary Grant") in accordance with the provisions of this Supplementary Protocol and the Initial Protocol.

Section 2.02.

Pumose.


The purpose of the Supplementary Grant is to furance part of the supplementary costs of the Project as described in Annex I of this Supplementary Protocol.

Section 2.03.

Allocation.

The Supplcmentary Grant shall be allocated to various categories of expenditurcs of thc l'rojcrct in conformity with Annex II of this Supp lementary Protocol.

ARTICLE III CONDITION PRECEDENTTO ENTRY INTO FORCE Section 3.01.

Condition Prcccdcnt to llntry into Force.


This Supplementary Protocol shall enter into force on lhc datc ofsigrraturc by the Recipient and the Bank.

ARTICLE IV CONDITIONS PRECEDENT TO FIRST DISBURSEMENT Section 4.01.

Conditions Precedent to First Disbursement.
The obligation of the Bank to make the frst disbursement of the Supplementary Grant shall be conditional upon the entry into force of this Supplementary Protocol in accordance with Section 3.01 above and evidence by the Recipient in form and substance satisfactory to the Banlq of the fulfillrnent of the following condition: \1// K I -5- Signature of an on-lending agreement between the Recipient and SAI-WACO in which the Recipient agrees to transfer the entire prrcccds of the Supplementary Grant to SALWACO on terms and conditions acceptable to the Bank; .
Opcning o[a Special Account at a commercial bank acceptable to the Ilank to rcccive the proceeds ofthe Supplementary Grant; and lll.

Signuturc of a tripartite Memorandum of Understanding between SALWACO, National Youth Commission (NAYCOM) and the vocstlonsl bain ing institutes.

ARTICLE V PARTICU LA R TJI\DERTAKING Section 5.01.

Purticulur Undcrtaking.


Under this Supplementary Protocol, the Rccipicnt undertakcs 0o implcment the Environmental and Social Managcmcnt Plan and to report on its implementation on a quartedy basis.

ARTICLE VI DISBURS EMENTS AND APPLICATION OF AMOUNTS DISBIJRSED Section 6.01.

Disbursements.
Disbursements.

The amount of the Supplementary Grant shall be disbursed by the Ban( subject to the provisions of this Supplanentary Protocol, the General Conditions and the Disbursement [.etter, for the purposes set forth in this Supplementary Protocol for expenditures made in respect of the services required for the Pdect.

The Supplementary Grant shall not be utitized .t u -6- I to finance taxes or duties.
Disbursements will be made in accordance with the provisions in the Bank Disbursement l{andboolq as amended and the Disbursement Letter signed by the Parties.

Both Direct Payment and Special Account methods will be used for disburscmcnt.

Section 6.02.

Closine Date.

The Closing Datc shall be 31 December 2018 or such later date as shall be agreed upon in writing between the Recipient and the Bank is specified for the purposes of Scai<ln 5.03 (t) (g) of the General Conditions.

Section 6.03.
Section 6.03.

Application of Disbursqoenls.

AmounLs disburscd on account of the Supplementary Grant shall be appticd by thc Rccipicnt solely for the purposes for which they werc disbursed.

ARTICLE VII PROCUREMENT SERVICES Section 7.01 Procurement of Services.
The procurement of consultancy services will be carried out in line with the Bank's Rzles and Procedures for the Use of Consultants dated May 2008 and revised July 2012, as amended from time to time, using the Bank's relevant Standard Bidding Documents and as fi.rther set out below: (i) The National Youth Commission (NAYCOM) who has the mandate to coordinate and implement youth related activities shall be single sourced by SALWACO through negotiation of a memorandum of agreement for the selection and training of youth groups in plumbing and basic business management skill through the t 1 utilization of best technical training institutions in Bo, Kenema and Makcni cities.
Section 7.02. l)rocurcment review All procurcmcnl ol'scrvices will be subject to prior review procedures' The following documcnb are subject to review and approval before promulgation: (i) Gcncrul ltnrcurcmcnt Notice ; (ii) Specifrc Procurement Notices, (iii) l'cndcr ftocumcntr or Rcqucsts for proposal from Consultants; (iv) Tender evaluation tElrod!
or Rcports on Evaluation of Consultants' Proposals including rccommcndstlon$ for contracts award; (v) Draft contracts if these have bccn amcndod md diffcr from thc drafts included in the tender documents, (vl) Roporfr on Evaluation of Consultants' Financial Proposals inctuding rccommcndrtlonr for contract award, (vii) Minutes of negotiations :..: and duly initialcd oontsld documcnts. '

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; , ,sft#& *:'i Section 7.03.

Procurrmcnt Plsn.

The Recipient and the Bank agreed on a Procuremcnt Plon.
Thc Rccipicnt shall update the Procurement Plan annually or as nccdcd throughout thc implcmentation of the Project.

The Recipient shall implcmcnt thc l)nrcurcment Plan in the manner in which it has been grantcd approval by the Bank.

Any revisions proposed to the Procurement Plan shall bc submittcd to the Bank for is prior approval.

ARTICLE VII FINANCIAL MANAGEMENT REPORTING AUDITING AND MONITORING Section 8.01.

Financial Manasement.


maintain or, cause SALWACO, to keep and maintain separate The Recipient shall keeP and records and t fr 8 books of account, which shall identi$, in accordance with consistently maintained appropriate accounting standards and practices, the activities financed out ofthe resources of the Supplementary Grant, pursuant to Section 7.07 of the General Conditions.

Section 8.02.

Reporting.


SALWACO shall prepare (i) on a quarterly basis, consolidated interim unaudited financial rcports to be submitted to the Bank within (thirty) 30 days ofthe end ofthc quartcr rcported on and (ii) quarterly progress reports to be submitted to the Bank within thirty (30) days of the end of the quarter reported on.

Section 8.03.

Auditing.


The Audit Scrvicc Sicrra l,conc (ASSL) will audit the Project directly, or alternativcly outsource thc audit of the Project to an acceptable independent audit firm, selectcd on terms of reference approved by the Bank.

SALWACO will be required to submit to the Bank, the audited project financial statements and associated management letter within six (6) months of the end ofeach financial year audited.

ARTICLE VIII MISCELLANEOUS PROVISIONS Section 9.01.

Authorized Representatives.


The Minister of Finance and Economic Development of the Recipient or any other person as the Minister may designate in writing shall be the authorized representative for the purposes of Section 9.02 of the General Conditions.

v N t- t I I I l -9- Section 9.02.

Date of the Suoplementary Protocol.

For purposes of this Supplanentary Protocol, the date thereof shall be that appearing in the opening sentence of the Preamble hereof.

Section 9.03.

Addrcsses.
The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Recipient: FortheBankand: For The Fund MaiI Address: Ministry of Finance Economic Development Treasury Building George Street Freetown REPUBLIC OF SIERRA LEONE Tel: (232)22.22.58.26 Fax: (232) 22.22.84.72 Headquarters' Address: African Development Bank African Development Fund 01 B.P- 1387 Abidjan 0l REPUBLIC OF COTE D'IVOIRE Tel: (225)20264444 Fax: (225)202131 00 120 33 85 05 e_- d -10- IN WITNESS WHEREOF the Recipicnt and thc llank, cach acting through its authorized representative, have signcd this Supplcmcntary Protocol in two (2) originals counterparts, in English, on thc dutc lirst ahovc written.
FOR THE REPUBLIC OF SIERRA LEONE PA CK SAIDU MINISTER OT STATE FOR FINANCE AND ECONOMIC DB ers > FOR THE AFRICAN DEVETI)IIM FOR THE AFRICAN DEVEU)PM]IIT trUND (oN BEIALF OF THE TRANSITION S ctLrrY) JANVIER K. LITSE :iini, DIRECTOR GDNDRAI, WEST AFzuCA REGIONAL DIIVI]LOPMDNT AND BUSINESS DELIVERY OTTICU I t- t- T T I I I _, J. I I I I I I - lI - ANNEX I PROJECT DESCRIPTION The Project has two (2) broad objectives: I To improve access to safe water supply services in the cities of Bo, Makeni and Kenema through (a) rebuilding of the existing infrastructure and (b) improving sanitation in schools, health centres and other publics places like markets and motor parks; and 2 To enhance the institutional capacity, overall operational performance and long-term financial viability of SALWACO through institutional and organizational reforms and capacity building.
Infrastructure provision ; The Project consists of the following three (3) components: 1.

2.

3.

Project management.

Institutional support; and Supplementary financins Supplementary financing has been requested by the Recipient to enhance the objectives of the Project.
Additional resources is required to extend the network of connections in the three (3) cities to target additional households and also to create opportunities for employment for estimated one hundred and twenty (120) youths that have already been trained as plumbers and will be provided with refresher training to sharpen their skills.
L d -12- The supplementary funds will be utilized to facilitate improvement of vocational skills and support the youth groups in setting up small businesses geared to the water utility industry.

Start-up tool kits will be provide{ and immediate income generation opportunity offered through framework contracts with SALWACO for the ncccssary water distribution network maintenance and water supply connections services.
At least two hundred and forty (240) additional long-tcrm jobs arc expected to be created through this initiative.

The additional activities will also enhance the Project's effectiveness and impact in terms of job crcation with particular focus on youth employment including women.
k)./ fr = T r r I I I I -13- ANNEX II ALLOCATION OF THE SUPPLEMENTARY GRANT The prescnt Anncx indicates the categories of expenditures to be financed out of the resourccs of thc Supplementary Grant and the allocation of the resources to the catcgory financcd.

Categories of Expenditures (ln UA Thousands) uateSory -r ': Services Total project costs :l::,'r.

COsts in Thousands UA Foreign Currency 70 Local Currency 300 370 Total 70 300 370 v d .

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