Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698837566699.pdf (Sierra Leone)
OEVELOp uun, /TY OE LETTER OF AGREEMENT FRAGILE STATES FACILITY (PILLAR III) (GRANT SUPPORT FOR TECHMCAL ASSISTANCE AI\'D CAPACITY BUILDING SUPPORT PROJECT FOR ENERGY PLANNING AND MILLENII]M CTIALLENGE CORPORATION FOR COMPACT DEVELOPMENT PROCESS (TCB-ERPU & MCC)) REPUBLIC OF SIERRA LEONE o 5_ frl >t I nl n'r o -;!

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E I HI € AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND FRAGILE STATES FACILITY ACENCE TEMPORAIRE DE RELOCALISATION I3 - t5 AVENUE DTI GIIANA ANGLI AV.

IIEDI NOUIRA E'I PIERRS DE COIJBI'R1'IN t}.P J2J t002 TtiNts ar:t.VIDERE ]'UNtSt!l Itl{phone : (216) 7l l02E0.l lisr : (216) 7l J3.22.10 Wcb sitc : N1r$rk b.oru VICE PRESIDENT - OPERATIONS II FRAGILE S'TATES UNIT ffi@ a l)ate : 25 -th Ap,\\, rotq PROJECT ID No.

: P-SL-KF0-009 GRANT No.


: 5900155006001 Honourable Dr. Kaifala Marah Minister of Finance and Economic Development Ministry of Finance and Economic Development Treasury Building, George Sfreet Freetown SIERRA LEONE Tel:21222222211 Fax:21222228472 Your Excellency.
SIERRA LEONE: FRA(;ILE STATES FACILITY (PILLAR III) _ GRANT SUPPORT FOR TECHI\-ICAL ASSISTANCE AND CAPACITY BUILDING SUPPORT FOR ENf,RGY RESOURCE PLANNING AND MILLENIUM CHALLENGE CORPORATION FOR COMPACT DEVELOPMENT PROCESS CTCB.f, RPU&MCC) LETTEII OF AGREEMENT In response to your request lor financitrl assistance dated 12 April 2013, made on behalfof the Govemnrent of Siena Leone (the "Recipient" or "GoSL"), I un pleased to inform you that the Atiican Development Bank and the African Development Fund (collectively, the "Bunk), on behalf of the Fragile States Facility ( the "FSF") , propose to extend to the Recipient a grant in an arnount not excecdinq Four Hundred and Forty Nine Thousand, Units of Account (UA 449.000) (the "Grant").
J b A}'RICAI\' DEVELOPM ONl' BANK AI'RICAN DEVEI,OPMEN'T FUND FRAGIT,E STATES I.JNIT , 'fhe Grant shall be made for the purposes and on the terms and conditions set forth in this Letler of Agreement (the "A$eement") which includes Attachments I and II which shall be construed as part of this Agreement hereto.
The Grant will assist in the financipg of the pro.lect dcscribed in Attachment I The resources of the FSF Grant will cover the entire fbreign cunency costs and the entift local currency costs ofthe project as described in Attachment II to this Agreement.
1-he parties to this Agreement accept all the provisions ol the General Conditions applicable b I'roktcols o/ Apyeement ./br Grants o/ the African Devebpmenl Fund, (the "Generul Conditbns") as may be amended from time to time, with the same force and effect as if they were fully set forth herein.

Please confirm yorr agreement with the foregoing on behalf of the Recipient, by signing, dating and retuming to us the enclosed copy of this letler, with each page thereof duly initialled.
This Agreement will become effective on the date of counter signature by the Bank.

Yours sincerely, AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPM[,NT FUNI) Mr. Yero BALDEH Resident Representative Sierra Leone Country Office t t I t I t I I I T I I I t I t I i I II I l t i I I I , I t t I I I l i I -+ Tcmporrry Relocrtion Ag.ncy - 13 - 15 Avenue du Ghrn!

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i -I -iI -tI I t t-tt i^i -t t -it I -[ t-tI I-i I'I i I'l-tt r I I I I I AFIiI('AN I)CVELOPMEN'T BANK AFRICAN DEVELOPMENT TUND FRAGILE STAI'ES UNI'I -3- AGREBD ON BEHALF OF: ITEPUBLIC OF SIERRA LEONE Dr. Kaifala MARAH Minister of Finance and Economic Development Date: 1f L COUNTERSIGNED BY: AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND dq> Mr. Yero BALDEH Resident Representative Sierra l.eone Country Office I)atc: 25\*\,q a lutt l'cmporsry Rclocriion ASGncy ' ll - 15 Avcosc du Ghrnr Anglc Av.
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iFRICA\ DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND ]-RAGIt.E STATES UNIT -4- ATI'ACHMENT I PURPOSES, TE,RMS AND CONDITIONS OF AHE GRANT l. l'urposes and Activities a 'fhe Grant is issued to the Recipient to finance the entie loreigrl currency costs and the entire local currency costs of the Project as described below and as set out in Attachments I and lt. -fhis Grant tiom the Fragile States Facility (Pillar III) resources aims at strengthening thc institutional capacities of the Ministry ol Energy (MoE) and providing supplementary support tbr developing compact development proposals in line with Millerurium Challenge Corporation (MCC) Compact Grant eligibility qualification that GoSL attained recently.
The specific objectives are to strengthen the institutional and staff capacity of the MoE.

and the establishment of the Energy Resource Plaruring Unit (ERPU).

The project firther seeks to provide technical assistance to assist the MCC Secretariat in preparing bankable project proposals fbr inlrastructure development, policy and institutional reforms to aid CoSl.

's sources o[ growth, fbr possible funding by the MCC.
lhe project componcnts lbr which the Grrurt is given are as fbllows Conponent I : Establishment of an ERPU at the MoFl: 'l he main objective of this oomponent is to provide technical assistance for the establishment of an ERPU within the MoE.
The main activilies to be undertaken under the component are (i) recruitment of technical assistant(s) or consultant(s) to assist with the establishment of the Unit; (ii) preparation of an organogram and job descriptions for the Unit: (iii) establishment ol procedures and systems to guide national power grid planning and interconnections to regional power systems and miukets; (iv) tacititating the reoruitment of staff al the Unit; (v) collaboration and coordination with West African Power Pool (WAPP) countries, the regional regulatory authority, and WAPP coordinating centres; and (vi) faining ERPU stafT in power resources planning systems and interconnections as well as in rnonitoring and evaluation.
Component 2 Support tbr tbe MCC Compaol Development and Submission Ppcer;rqs The aim o['this componenl is to support the Recipient in preparing bankable project proposals in finanoing energy, water and sanitation, and policy and institutional reforms tbr rapid economic growth and poverty reduction for possible firnding by the MCC.
The main activities under the component would be (i) the recruitment of an intemational consultant and three (3) local sector specialists to assist with the preparation of MCC Project Concept Notes and Project Concept Papers based on the tindings of the constraints analysis; (ii) training of MCC Compact I)evelopment Secretariat staff in Economic Rates of Retum techniques I'or use in project 'I cmporary Rdorrlion Agency - 13 - l5 Avcnuc du Ghsn, AIlglG Av.
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I I t I l I t I I tl I I I t t I I I I ; A,iRI(]Ati DEVELOPMENl' BANK AFRI(]AN DI]VEI,OPMEN'I' FUNt) FRACI I,I] STA'II]S UNIT -5- preparationdiii)multiple stakeholder consultations to validate the project proposals; (iv) facilitating the Recipient's submission of the MCC Compact to the MCC ; and (v) a roundtable discussion with the MCC Board at its headquarters in Washington DC to present and validate the compact proposals prepared.

2 I mrrlenrent:rtion 2.1 .
The Recipient shall: a (a) Implement the Project with due diligence and elhciencyl (b) Promptly provide the staff, facilities, services and other resources required tbr the implementation of the Project; (c) Fumish to the Bank all information covering such activities and the use of the proceeds ofthe Grant as the Bank shall reasonably request: (d) From time to time, exchange views with the Bank's representatives on the progress and results of such activities through field supervision missions.
continued field office dialogue and submission of quarterly technical and financial reports; (e) Take all necessary measures required to enable the Bank to visit the premises of the Recipient for purposes related to the Grant; and (0 Cause all goods and services financed out of the procds of the Grant to be used exclusively for the purposes of the Project.
Without limitation on the foregoing, the Recipient shall, if the Bank so reque$a prepare and fumish to the Bank upon completion of the Project a hoject C.ompletion Report, in form and substance satisfactory to the Bank, on the results and impact of the activities on or before 30 June 2016 or upon disbursement of ninety-eight per cent (98%) of the Grant.

1'he Executing Agency lor the Project shall be the MoE which shall provide guidance fbr the overall implemenration of the project.
The lmplementing Agencies will be the Department of Energy within the MoE and the MCC Compact Development Secretariat in the Office ofthe Chief of Staff.

Two Project Implementation Units (PIU) will be established, one in the Department of Energy within the MoE and another in the MCC Compact Development Secretariat in the Office of the Chief of Staff to undertake the implementation ol project aotivities.

lt shall also be required to supervise.


monitor and evaluate all project activities including regular updates on performance indicators and preparation of weekly reports.

The Units shall furlher prepare the annual work plan, annual budgets, bidding documents, disbursement projections and requests, financial statements, as well as quarterly, annual progress and /^ _ 'f€mponrry Relocrtion Agcncy - l3 - I5 AvcnuG du Ghans Anglc Av.

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Ihe Management team in the Ministry of Energy and the MC(' National Advisory Council lbr MCC Compact Development Secretariat in the Office of the Chief of Staff will act as a Project Steering Committee (PSC).
The PSC will meet at least once every six months (twice a year) and will provide policy guidance to the project, approve the annual work plan and budget and ensure thal the project objectives are achieved.

a Entry into Force The entry into force of this Agreement shall be subject to the signing o1'this Agreement by the parties hereto.

Disbursement of Grant Procccds The obligation of, the Bank to disburse the Grant shall be conditional upon the entry into force olthis l.etter of Agreement.
Amounts disbursed on account of this Letter of'Agreernent shall be applied b1' thc' Recipient solely for the purposes for which they were disbursed.

3, i.l 4.
4.1 4.2 4.3 The Recipient shall: (a) Ensure that all disbursements under the Grant are made in accordance with the Disbursement Rules and Procedures of the Bankl (b) Ensure that all contracts and disbursement requests are denominared in ei6er United States Dollars or European Euro; in which case requests denminaed in any other currency shall not be disbursed: and (c) In accordance with section 4.06 of the General Conditions of the Bank- provide the Bank with evidence of the authority of the person or persons authorized 1o sign requests for disbursement and authenticated specimen signatures of any such persons.
1.4 Conditions Precedent to First Disbursement of thc Grant.

l'he obligations olthe Fund to make the first disbursement of the Granl shall be conditional upon the entr)' into force of this Agreement in accordance with paragraph 3.1 above nnd the provision by the Recipient of evidence.
in form and substance satislactory to the Bank, of the fulfilment of the tbllowing conditions: (a) The opening of two (2) tbreign currency (United States Dollars or Europcan Euro) denominated special accounts, in a bank acceptable to the Bank for the deposit of the proceeds of the Grant; one special account will be designated for the Ministry of Energy while the other will be for the MCC Compact Development Secretariat: -b \>, 'l emporxry Relocetion Ag.ncy - 13 - 15 AveDuc du Ghrn.

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1002 Trnis Bclvedcrc, Tunilir - Tcl: (2t6) 7l l0 2t (X - lii; (216) 71 332 210 lntc.nct: Ey!4tuDjglg ,\FRlr.AN DEVELOPMENT IIANK .tI.RICAN DEVELOPMENT FUND FRACII,E STATES T]NIT (b) The PIUs shall comprise a Project Coordinator, Procuremenl Expen.
a Monitoring and Evaluation Officer and a Project Accountant whosc' qualifications shall be acceptable to the Bank; (c) The appoinunent of the existing Management Team for the Ministry of Energy and the MCC National Advisory Council for the MCC Conpact Development Secretariat in the Offioe of the Chief of Staff as a Pro.iect Steering Committee (PSC); and (d) The submission of the tlnal Audited Finzurcial Statements and full justification of the Special Account for Technical Assistance to Support Development of Constraints Analysis for Compact Development Process of the Millennium Challenge Corporation (MCC) for Sierra Leone (TA -MCC CA) by MCC Compact Development Secretariat in the Office of the Chief of Statl.
4.-5 Undertakings Under this Agreement, the Recipient undertakes as follous: (a) To ensure that the PIU submits quarterly Interim Financial Reports (lFRs).

rn form and substance acceptable to the Bank and within thirty (30) days of the end ofeach calendar quarter, on all the transactions of the Project and progress repons frorn all consullancies: (b) To submit a final report in form and substrnce acceptable to the Bank at tb.
'rl of the Project; (c) To carry out the Project and ensure that its consultants carry out the Projeu in accordance with all relevant national legislatiou (d) To submit an audit report (with the accompanying mitnagemenl letter) ro the Bank within six (6) months after the end of each fiscal year.

The audit repon shall be carried out by independent auditors on terms zurd conditions acoeptable to the Bank.
The procurement of independent audit services will be done locally under the guidance of the Omce of the Auditor-General.

The Project will meet the cost ofsuch audits; and (e) To ensure that the Pru will maintain adequate intemal control systems in place at all times and an accounting system in accordance with internationally accepted accounting principles and the Bank's guidelines.
The Project financial statements shall be prepared in accordance with either Intemational Financial Reporting Standards (IFRS) or htemational Public Sector Accounting Standards (IPSAS) or National Accounting Standards which comply with either IFRS or IPSAS in all material standards and the Bank's guidelines.

Procurement All consulting services and goods required for the project and to be financed out of' the proceeds of the Grant shall be procured in accordance with the Bank's Ruics, Ii.

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'l-he procurement ofgoods will be done through shopping (SH) bidding procedures.

5.2 Consultancv Services: 'l-he consultancy services shall be procured ttrrougi Shorttisting of individual consultants using the individual consultancy procedures ofthe Bank.

5.1 5.r Audit services: Audit services shall be procured through Shortlist, using Least Cost Selection (LCS).
Short [-ists composed entirely of National or Regional Consultants; Shon lists of' consultants fbr services estimated t o oost less than UA 200,000 equivalent per contract tbr firms and UA 50.000 equivalent tbr individual consultturts may be composed entirely olnational or regional consultants in accordance with Rule 2.7 of the Rules and Procedures for the Use of Consultants.

5.5 The procurement of goods will be done through shopping (SH) and bidding procedures.
5.6 Review Procedure: The followi ng documents are subject to review and approval by the Bank befbre promulgation: General l)rocurement Notice, Specific Procurement Notices; 'fender Documents; Requests tbr Proposals; l-ender Evaluation Repons: Reports on Evaluation of Consultants' Proposals, including recommendations for Contract Award.

Draft Contracts will also be subject to the Bant's appoval, if they have been amended from the original drafts included in the tender documen8.
The Bank's no-objection for consultancy technical proposals' evaluation report will be required before the financial evaluation is carried out.

5.7 Procurement Plan: The Bank shall review the procurement arrangements proposed by the Recipient in the Procurement Plan for its conformity with the Protocol ol Agreement and its Rules.

The Procurement Plan shall cover the period of at least cighteen (18) months.
Any revisions proposed to the Procurement Plan shall be fumished to the Bank fbr its prior approval.

5.8 The Recipient shall not use the Grant tunds tbr the payment of taxes relating to services required for the execution ofthe Project.

6.

Audit 6.1 The Recipienr shall ensure that the acoounts of the project are audited in accordance with generally accepted rules, by independent auditors that meet the Bank's requirements.
Certified copies of the audit report should be submitted to the Bank not later than six (6) months after the financial year to which they relate.

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{ DEVELOPMEN1' BANK AFRICAN DOVEI,OPMENl' FT]ND I'RAGILT] STATES UNTT -9- 6.2 The auditor is required, among other things, to: (a) Review the activities olthe special aor:ount associated with the Proieot: (b) (c) (d) Audit all Statements of Expenditures used as a basis lbr the submission ol' withdmwal applications to the Bank by the Project; a Determine the eligibility of expenditures in accordance with this Agreement and identity zrny ineligible expenditure; Review the internal financial control mechanisms to identify deficiencies and weaknesses which could allect the efficiency of the Projectl (e) Fomr an opinion on the compliance with the Bani< Group policiesl and (f) Form an opinion on the quality and reliability ofthe finiurcial statements 7.
Monitorins The Recipient shall monitor the implementation of the Project and shail allo*' representatives of thc Bank to examine such reports and other documents relating to the Project whenever requested.

8.

Closing Date The closing datc of the Grant is 3(l Junc 2016 or such later date as shall be agreed upon in writing between the Recipient and the Bank.

No withdrawals ol the Grant shall be made afier the Closing Date, and any amount of the Grant then remaining un-withdrawn shall be cancelled.

9.
9.

Addresscs For purposes of any correspondence, notice or demand provided herein, the tbllowing addresses shall apply: 1 t + l'cmporrry Rclocalion Agcncy - 13 - l5 Avenuc du Ghrnr Anglt Av.

lledi Nouin el Pierre dG (ioubcrtin B.P 3Zf.
I 002 Tuoir llelv€dere, l unisis - fclr (216) 7l !0 2E 04 - Fst: (216) 7l Jf,z 210 lntcrnct: rvww xIdb.orq ,\i,iiL.\i lrEvL,LOPillENI' IrANK AFIIICAN DEVELOPI\I EN'I' FUNt) FRAGII,I] STATES UNIT I,'o r the l{ccipiont: -10- Mail Address: Honourable l)r. Kailala Marah Minister of Finance and Economic Dcvelopment Minisqv of Finance and Economic Developmcnt Treasury Building, Georgc Street Freetown SIERRA LEONE Tel: (232)22222211 Fax: (232)22228472 a For the Bank: For thc Fund Mail Address: Headquarters Addrcss: Atrican Devc'lopment B rk Alrican Development Fund 0l B.P.
1387 - Abidjan 0l COTE D'IVOIRE Tel : (225) 2020 M44 /2020 4861 Fax : (225) 20 20 5302 l2(t 20 4919 Temporary Relocation Agency Addrcss: Afiican Development Bank African Development Fund Temporary Rclocation Agency 15, avenue du Ghana Tunis Belvdddre 1002 - TUNISIA Tel : (216) 7l 102004 Fax : (216) 11 33 2210 Fragile Statcs Unit Attention: v-) Tcmporery Relocrtion Agency - l3 - l5 Avcnue du Ghalla Angl.

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t Ai'rdcAll l-TEVELOPM ENT BANK AFRICAN DEVELOPMENT FUND FRA,CILE SI-ATES t]NTT - ll - A'T]'ACIIMIiN'N II PRO.IECl' EXPENDII-UItES The table specifies the categories of Eligible Expenditures that may be financed out ol'thc proceeds of the Grant ("Category") and the allocations of the amounts ol'the Grant to eacl?
Category:l I Category of Expenditure (Sen,iccs) Consultancy Fees 'l-raining and workshops Ollicc liquipment & Accessories Project Management Costs Travel and Lodging Costs Audil Services 'l otal u ( D E Ir I I UNI'T OF ACCOUNT (UA) Foreign Local Cost Cost Total Cost 177,044 r 18,029 29s.074 61.360 40,906 102,266 7.817 5.2 il l3,02ri 6.96 r 4,640 I I .601 () L)66 lo,e+t I I ro,oro I I 6,253 .+.1 69 10,472 269,,t00 179,600 449,000 b--' lt'ri ' - Task Managcr please insert cost table; "Dctailed Project Costs by Components" TcmF)rarv laclocrtion Agency - 13 - 15 -{vcouc du Ghroa ArEh Av.
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