* OFFICIAL DOCUMENTS Administration Agreement between the Agence FranVaise de Developpement and the International Bank for Reconstruction and Development and the International Development Association concerning the Palestinian Recovery and Development Plan Multi-Donor Trust Fund (Trust Fund No. TFO 72593 parallel to original Trust Fund No. TFO 71607) 1. The International Bank for Reconstruction and Development and the International Development Association (collectively, the "Bank") acknowledge that the Agence Frangaise de Developpment (the "Donor", and together with the Bank, the "Parties" and each a "Party") agrees to provide the sum of eight million Euros (E 8.000,000) (the "Contribution") for the Palestinian Recovery and Development Plan Multi- Donor Trust Fund (Trust Fund No. TF072593) (the "Trust Fund") in accordance with the terms of this Administration Agreement. 2. The Donor may, from time to time, make one or more additional contributions (each a "Supplemental Contribution") to the PRDP-TF, by completing and submitting to the Bank a contribution letter in the format set forth in Annex 3 to this Agreement ("Contribution Letter"). By issuing the call of funds referred to in the Contribution Letter ("Call of Funds"), the Bank shall be deemed to: (i) acknowledge, on behalf of the Bank the intention of the Donor to make a Supplemental Contribution and (ii) agree to administer such Supplemental Contribution under the terms and conditions set forth in the Annexes to this Agreement. In response to the Call of Funds sent by the Bank, and upon receipt of the Supplemental Contribution into the account designed by the Bank under the Call of Funds, the term "Contribution" or "Contribution funds" shall be deemed to include such Supplemental Contribution. 3. The Contribution shall be used to finance the activities set forth in the "Amended and Restated Standard Provisions Applicable to the Palestinian Recovery and Development Plan Multi-Donor Trust Fund (PRDP-TF) for the West Bank and Gaza" ("Standard Provisions") attached hereto as Annexes 1 and 2 and shall be administered by the Bank on behalf of the Donor in accordance with the terms of this Administration Agreement. 4. The Donor shall deposit the Contribution in accordance with the following schedule and in the currency specified in paragraph I above ("Contribution Currency") into such bank account designated by the Bank (each amount deposited hereinafter referred to as an "Installment") upon submission of a payment request by the Bank (A) Promptly following countersignature C8,000,000 (eight million Euros) 5. When making any deposit, the Donor shall instruct its bank to include in its deposit details information (remittance advice) field of its SWIFT deposit message, information indicating: the amount deposited, that the deposit is made by the Donor for TF072593 (the Palestinian Recovery and Development Plan Multi-Donor Trust Fund), and the date of the deposit (the "Deposit Instructions"). In addition, the Donor shall provide a copy of the Deposit Instructions to the Bank's Accounting Trust Funds Division by e-mail sent to tfremitadvice@worldbank.org or by fax sent to +1 (202) 614-1315. 6. Except with respect to the Deposit Instructions, any notice, request or other communication to be given or made under this Administration Agreement shall be in writing and delivered by mail, fax or e-mail to the respective Party's address specified below or at such other address as such Party notifies in writing to the other Party from time to time: For the Bank (the "Bank Contact"): Mark Eugene Ahern Program Leader, West Bank and Gaza The World Bank P.O. Box. 54842 Jerusalem, 97200 Tel: (972-2) 236 6549 Fax: (972-2) 236 6543 E-mail: mahern@worldbank.org For the Donor (the "Donor Contact"): Catherine Bonnaud Country Director French Development Agency /Agence Franqaise de Diveloppement 3 Baibars St. - Sheik Jarrah - PB 66717 91190 Jerusalem Tel: +972 2 540 04237+972 2 581 4946 E-mail: bonnaudc@afd.fr 7. In the event any amounts are to be returned to the Donor under this Administration Agreement, the Bank shall transfer such amounts to the Donor, unless otherwise agreed with the Bank. When making any deposit, the Bank shall include in its deposit details information (remittance advice) field of its SWIFT deposit message, information indicating: the amount deposited, that the deposit is made by the Bank in relation to TF072593 (the Palestinian Recovery and Development Plan Multi-Donor Trust Fund), and the date of the deposit. The Bank shall provide a copy of such information to the Donor. 8. At the date of Bank's signature of this Administration Agreement, the Indirect Rate (as defined in Annex I to this Administration Agreement) is 17%. 9. All annexes hereto constitute an integral part of this Administration Agreement, whose terms taken together shall constitute the entire agreement and understanding between the Donor and the Bank. Unless otherwise specified in an annex hereto, this Administration Agreement may be amended only by written amendment between the Bank and the Donor. 10. Each of the Parties represents, by confirming its agreement below, that it is authorized to enter into this Administration Agreement and act in accordance with these terms and conditions. The Parties are requested to sign and date this Administration Agreement, and upon possession by the Bank of this fully signed Administration Agreement, this Administration Agreement shall become effective as of the date of the last signature. 2 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION By: Date: Name: /2 &Je Title: _/f AGENCE FRAN(AISE DE DEVELOPPEMENT By: '~Date: e l Name: Title:- de 3 ANNEX 1 Amended and Restated Standard Provisions Applicable to the Palestinian Recovery and Development Plan Multi-Donor Trust Fund ("PRDP-TF") for the West Bank and Gaza The following provisions (hereinafter referred to as the "Standard Provisions") shall be applicable to and form an integral part of all agreements entered into between the International Bank for Reconstruction and Development ("IBRD") and the International Development Association ("IDA") (collectively, the "Bank") and donor countries and/or organizations (hereinafter referred to as the "Donors") that provide grants (referred to as the "Donors' Contributions") to be administered by the Bank for the Palestinian Recovery and Development Plan Multi-Donor Trust Fund ("PRDP-TF") for the West Bank and Gaza (the "Project"). Definitions "Grant" means a grant made or to be made by the Bank, out of the PRDP-TF, to the Palestine Liberation Organization, for the benefit of the Palestinian Authority, for the purposes and on terms and conditions set forth in the Grant Agreement (as defined in Section 5). "PRDP" means the Palestinian Reform and Development Plan (PRDP 2008-20 10) dated December 17, 2007, prepared by the Palestinian Authority, containing a 3-year fiscal framework, on the basis of which donors committed support at the Paris pledging conference or any subsequent development plan prepared by the Palestinian Authority for these purposes. "Single Treasury Account" means the bank account of the Ministry of Finance of the Palestinian Authority. 1. Obiectives The objectives of the PRDP-TF are to provide budget and development support for the Palestinian Authority's policy agenda as expressed in the PRDP in the period from 2008 until 2010, and include, but are not limited to, the following aims: (a) pooling different donor funds into one administrative mechanism that will reduce the transaction costs for the Palestinian Authority; and (b) helping to alleviate the Palestinian Authority's fiscal pressure by providing reliable disbursements on a regular basis. 2. Eligible Expenditures 2.1. Grants made from the PRDP-TF shall finance recurrent expenditures by the Palestinian Authority with the exception of items described in Annex 2 hereto, which shall not be eligible for financing. The following eligible expenditures categories may be used to finance Bank-executed activities: (a) staff costs (excluding short term consultants and temporaries, and also excluding extended term consultants and temporaries); (b) extended term consultants and temporaries; (c) short-term consultants and temporaries; and (d) travel expenses; -04 4 2.2. The following activities may also be financed as Bank-executed activities by the PRDP-TF: management and administration activities for the PRDP-TF, including but not limited to, supporting PRDP- TF related meetings; planning and executing work plans and budgets; managing communications and conducting outreach; disseminating lessons learned; reporting on progress; and monitoring and evaluating the activities. 2.3. For purposes of the expenditure categories listed above in paragraph 2.1: (i) "staff costs (excluding short term consultants and temporaries, and also excluding extended term consultants and temporaries)" includes salaries, benefits and Indirect Rates charged to the Trust Fund as applicable under Bank policies and procedures; (ii) "extended term consultants and temporaries" includes fees, benefits and Indirect Rates charged to the Trust Fund as applicable under Bank policies and procedures; and (iii) "short term consultants and temporaries" includes fees and Indirect Rates charged to the Trust Fund as applicable under Bank policies and procedures. 2.4. The "Indirect Rate" means the indirect rate, defined as a percentage of personnel costs and available at the World Bank's Donor center secure website, as such rate may be revised from time to time by the Bank and applied to this Trust Fund, in accordance with its policies and procedures. 3. Administration of the Contributions 3.1 The Bank shall be responsible only for performing those functions specifically set forth in this Agreement and shall not be subject to any other duties or responsibilities to the Donors, including, without limitation, any duties or obligations that might otherwise apply to a fiduciary or trustee under general principles of trust or fiduciary law. Nothing in this Agreement shall be considered a waiver of any privileges or immunities of the IBRD and IDA under their Articles of Agreement or any applicable law, all of which are expressly reserved. 3.2 Donors' Contributions shall be administered in accordance with the Bank's applicable policies and procedures, as the same may be amended from time to time, including its procurement, financial management, disbursement and safeguard policies, its framework to prevent and combat fraud and corruption and its screening procedures to prevent the use of Bank resources to finance terrorist activity, in line with the Bank's obligations to give effect to the relevant decisions of the Security Council taken under Chapter VII of the of Charter of the United Nations. The Donors acknowledge that this provision does not create any obligations of the Bank under the anti-terrorist financing and asset control laws, regulations, rules and executive orders of an individual member country that may apply to a Donor. 4. Commingling, Exchange and Investment of the Contributions 4.1. The Contribution funds shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The Contribution funds may be commingled with other trust fund assets maintained by the Bank. 4.2. The PRDP-TF shall be maintained in United States dollars. The Contribution funds may be freely exchanged by the Bank into other currencies as may facilitate their disbursement. 4.3. The Bank shall invest and reinvest the Contribution funds pending their disbursement in accordance with the Bank's policies and procedures for the investment of trust funds administered by the Bank. The Bank shall credit all income from such investment to the trust fund established under this Agreement to be used for the same purposes as the Contribution funds. 5. Trust Fund Fee 5 5.1 The Bank shall calculate a fee each time funds (the "Grant Amount") from the Trust Fund become committed under a Grant Agreement (as such term is defined below in paragraph 6.1 of Section 6 below). Such commitment shall occur when such Grant Agreement is fully countersigned (the "Calculation Date"). The fee so calculated by the Bank shall be based on the cumulative total of funds from the Trust Fund committed under all Grant Agreements that have been fully countersigned on or prior to the Calculation Date (the "Cumulative Grant Total"). The calculated fee shall depend on where the Cumulative Grant Total stands as the Grant Amount is added and shall be determined in accordance with the following schedule: (i) 5% of any portion of the Grant Amount that results in a Cumulative Grant Total below or equal to US$ 50 million or equivalent; plus (ii) 4% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 50 million or equivalent and below or equal to US$ 500 million or equivalent; plus (iii) 3% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ 500 million or equivalent and below or equal to US$ 1 billion or equivalent; plus (iv) 2% of any portion of the Grant Amount that results in a Cumulative Grant Total above US$ I billion or equivalent. 5.2 Following each Calculation Date, the Bank shall deduct from TF072593 account, and retain for its own account, the fee as set forth above. Grant Amounts may not exceed the balance of uncommitted funds in such account net of the related fee. 6. Grants to Recipient; Role of the Bank; Governance Structure of the PRDP-TF 6.1. The Bank shall, as administrator of the PRDP-TF on behalf of the Donors, enter into a grant agreement (the "Grant Agreement") with the Palestine Liberation Organization (the "Recipient"), for the benefit of the Palestinian Authority, for the provision of Contribution funds for the purposes of this Agreement and on the terms and conditions set forth in the Grant Agreement. The Bank shall furnish a copy of the Grant Agreement to the Donors. 6.2. The Bank, in consultation with the International Monetary Fund ("IMF"), shall be solely responsible for the supervision and monitoring of the progress towards implementation of the PRDP financed under the Grant Agreement. 6.3. In carrying out its responsibilities, the Bank shall call consultation meetings with the IMF, the Donors, and the Palestinian Authority. Such meetings shall be called at least quarterly in each calendar year. 7. Disbursements 7.1 Disbursements of the Grant will be made on a quarterly basis only after the Bank, in consultation with the IMF, has determined that the Palestinian Authority has made satisfactory progress towards the implementation of the PRDP (as further specified in the Grant Agreement), unless the Bank has granted a waiver following consultations with the IMF and the Donors. Additional disbursements may be made if upon request by the Recipient in writing in the case of an extraordinary situation the Bank is of the opinion that an additional disbursement is justified. Disbursements will be made into a separate deposit account under the Single Treasury Account opened by the Palestinian Authority for the purposes of the PRDP-TF (the "Deposit Account"). 8. Accounting and Financial Reporting 6 8.1. The Bank shall maintain separate records and ledger accounts in respect of the Contributions deposited in the trust fund account and disbursements made therefrom. 8.2. The Bank shall furnish to the Donor current financial information relating to receipts, disbursements and fund balance in United States dollars with respect to the Contribution funds via the World Bank's Trust Funds Donor Center secure website. Within six (6) months of the final disbursement date specified in paragraph 10.1, the final financial information relating to receipts, disbursements and fund balance in United States dollars with respect to the Contribution funds shall be made available to the Donor via the World Bank's Trust Funds Donor Center secure website. 8.3. The Bank shall provide to the Donors, within six (6) months following the end of each Bank fiscal year, 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. 8.4. If a Donor wishes to request, on an exceptional basis, a financial statement audit by the Bank's external auditors of the trust fund established under this Agreement, the Donor and the Bank shall first consult as to whether such an external audit is necessary. The Bank and the Donor shall agree on the most appropriate scope and terms of reference of such audit. Following agreement on the scope and terms of reference, the Bank shall arrange for such external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be paid by the Donor. 9. Coordination and Project Reporting 9.1. The Bank shall maintain close consultation and coordination with the Donors on the Bank's policy dialog with the Palestinian Authority, and shall monitor, in close consultation with the IMF, on a quarterly basis the progress achieved by the Palestinian Authority in implementing the PRDP. The Bank shall provide the Donors after each supervision mission with a progress report on the implementation of the PRDP. Within six (6) months of the final disbursement date specified in Section 10, the Bank shall provide a final report on the Project to each Donor. 9.2. Any Donor may review activities financed by the PRDP-TF at any time up to six (6) months following the Disbursement Deadline set forth in paragraph 10.1 of this Annex 1. The Donor and the Bank shall agree on the scope and logistics of such review, and the Bank shall provide all relevant information within the limits of the Bank's applicable policies and procedures. All associated costs, including any costs incurred by the Bank, shall be borne by the Donor. It is understood that any such review will not constitute a financial, compliance or other audit of the Trust Fund. 10. Disbursement Deadline; Termination; Cancellation; Refund 10.1. It is expected that the Contribution funds will be fully disbursed by the Bank in accordance with the provisions of this Agreement by August 1, 2020. The Bank shall only disburse Contribution funds for the purposes of this Agreement after such date with the written approval of the Donors. 10.2. Any Donor or the Bank may, upon three (3) months' prior written notice, cancel all or part of the Donor's pro rata share of any remaining balance of the Contribution funds that is not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third parties for the purposes of this Agreement prior to the receipt of such notice, including the Grant Agreement. 10.3. Upon the final disbursement date specified in paragraph 10.1, the Bank shall return any remaining balance of the Contribution funds to the Donors on a pro rata basis. In the event of a cancellation of an .,A 7 individual Donor's pro rata share of uncommitted Contribution funds in accordance with paragraph 10.2, the Bank shall return such cancelled balance to the Donor. 11. Disclosure The Bank may disclose this Agreement and information on this trust fund in accordance with the Bank's policy on disclosure of information. 8 ANNEX 2 Items not eligible for financin2 under the PRDP-TF for the Palestinian Recovery and Development Plan for the West Bank and Gaza "Excluded Expenditure" means any expenditure: a. For goods or services supplied under a contract which any national or international financing institution or agency other than the IBRD or IDA has financed or agreed to finance, or which the IBRD or IDA has financed or agreed to finance under another trust fund credit or trust fund grant; b. For goods included in the following groups or sub-groups of the Standard International Trade Classification, Revision 3 (SITC, Rev.3), published by the United Nations in Statistical Papers, Series M, No. 34/Rev.3 (1986) (the "SITC), or any successor groups or subgroups under future revisions to the SITC, as designated by the Bank by notice to the Recipient: Group Sub-group Description of Item 112 Alcoholic beverages 121 Tobacco, un-manufactured, tobacco refuse 122 Tobacco, manufactured (whether or not containing tobacco substitutes) 525 Radioactive and associated materials 667 Pearls, precious and semiprecious stones, unworked or worked 718 718.7 Nuclear reactors, and parts thereof; fuel elements (cartridges), non- irradiated, for nuclear reactors 728 728.43 Tobacco processing machinery 49 Group Sub-group Description of Item 897 897.3 Jewelry of gold, silver or platinum group metals (except watches and watch cases) and goldsmiths' or silversmiths' wares (including set gems) 971 Gold, non-monetary (excluding gold ores and concentrates) c. For goods intended for a military or paramilitary purpose or for luxury consumption; d. For environmentally hazardous goods, the manufacture, use or import of which is prohibited under the laws in effect in the parts of the West Bank and Gaza under the jurisdiction of the Palestinian Authority or international agreements to which the Recipient or the Palestinian Authority is a party; e. In the territories (other than the parts of the West Bank and Gaza under the jurisdiction of the Palestinian Authority) of any country which is not a member of the Bank or for goods procured in, or services supplied from, such territories; f. On account of any payment prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations; and g. With respect to which the Bank determines that corrupt, fraudulent, collusive or coercive practices were engaged in by representatives of the Recipient or the Palestinian Authority or of a beneficiary of a Grant without the Recipient having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur. 10 ANNEX 3 CONTRIBUTION LETTER [Date] Marina Wes Country Director West Bank and Gaza Middle East and North Africa Region The World Bank 1818 H Street, NW Washington, DC 20433 Trust Fund Administration Agreement between the Agence Frangaise de Developpement and the International Bank for Reconstruction and Development and the International Development Association concerning the Palestinian Recovery and Development Plan Multi-Donor Trust Fund ("PRDP-TF") Trust Fund No. TF072593 Supplemental Contribution to the PRDP-TF [Dear :] 1. We refer to the Administration Agreement dated between the Agence Frangaise de Developpement and the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) (collectively, the "Bank") regarding the PRDP-TF (TF072593), and to discussions in which the Donor has indicated its intention to provide additional funding for the PRDP- TF. 2. We are pleased to confirm to the Bank the Agence Frangaise de Developpement's intention to make a Supplemental Contribution to the PRDP-TF in the amount of [currency+ amount in words] ([currency+ amount in numbers]). 3. We request the Bank to process the Call of Funds for the Supplemental Contribution specifying the bank account into which the Supplemental Contribution should be deposited. 4. We shall deposit the Supplemental Contribution into such bank account as may be designated by the Bank in the Call of Funds promptly following receipt of the Call of Funds from the Bank. 5. All terms defined in the Administration Agreement shall have the same meanings in this Contribution Letter. 6. All other terms of the Administration Agreement shall remain the same. 11 7. We consent to disclosure of this Contribution Letter and related information on this Trust Fund in accordance with the World Bank Policy on Access to Information. Sincerely, [Donor address/signature] 12