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CONFORMED COPY 
 
CREDIT NUMBER 4607-MN 
 
Financing Agreement 
 
(Strengthening the National Statistical System of Mongolia Project) 
 
between 
 
MONGOLIA  
 
and 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
Dated 
June 26
,
2009  
 
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2
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CREDIT NUMBER 4607-MN 
 
FINANCING AGREEMENT 
AGREEMENT dated June 26, 2009, entered into between MONGOLIA 
(
“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION 
(“Association”).  The Recipient and the Association hereby agree as follows: 
ARTICLE I 
—
GENERAL CONDITIONS; DEFINITIONS 
1.01. 
The General Conditions (as defined in the Appendix to this Agreement) 
constitute an integral part of this Agreement. 
1.02. 
Unless the context requires otherwise, the capitalized terms used in this 
Agreement have the meanings ascribed to them in the General Conditions or in 
the Appendix to this Agreement.  
ARTICLE II — FINANCING 
2.01. 
The Association agrees to extend to the Recipient, on the terms and conditions 
set forth or referred to in this Agreement, a credit in an amount equivalent to one 
million four hundred thousand Special Drawing Rights (SDR 1,400,000) 
(variously, 
“Credit” and “Financing”) to assist in financing the project described 
in Schedule 1 to this Agreement (“Project”). 
2.02. 
The Recipient may withdraw the proceeds of the Financing in accordance with 
Section IV of Schedule 2 to this Agreement.   
2.03. 
The Maximum Commitment Charge Rate payable by the Recipient on the 
Unwithdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) per 
annum. 
2.04. 
The Service Charge payable by the Recipient on the Withdrawn Credit Balance 
shall be equal to three-fourths of one percent (3/4 of 1%) per annum. 
2.05. 
The Payment Dates are May 15 and November 15 in each year. 
2.06. 
The principal amount of the Credit shall be repaid in accordance with the 
repayment schedule set forth in Schedule 3 to this Agreement. 
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2.07. 
The Payment Currency is the Dollar. 
ARTICLE III 
—
PROJECT
 
3.01. 
The Recipient declares its commitment to the objectives of the Project and the 
Program.  To this end, the Recipient shall cause the Project to be carried out by 
the NSO in accordance with the provisions of Article IV of the General 
Conditions. 
3.02. 
Without limitation upon the provisions of Section 3.01 of this Agreement, and 
except as the Recipient and the Association shall otherwise agree, the Recipient 
shall ensure that the Project is carried out in accordance with the provisions of 
Schedule 2 to this Agreement. 
ARTICLE IV — REMEDIES OF THE ASSOCIATION
 
4.01. 
The Additional Event of Suspension consists of the following: the 
NSO’s 
Legislation has been amended, suspended, abrogated, repealed or waived so as to 
affect materially and adversely the ability of the NSO to perform any of its 
obligations under the Subsidiary Agreement. 
4.02. 
The Co-financing Deadline for the effectiveness of the Co-financing Agreements 
entered into with the Co-financiers is the date falling thirty (30) days after the 
Effective Date of this Agreement. 
4.03. 
The Additional Event of Acceleration consists of the following, namely, the 
event specified in Section 4.01
 
of this Agreement occurs and is continuing for a 
period of sixty (60)
 
days after notice of the event has been given by the 
Association to the Recipient. 
ARTICLE V 
—
EFFECTIVENESS; TERMINATION 
5.01. 
The Additional Conditions of Effectiveness consist of the following: 
(a) 
The Subsidiary Agreement has been executed on behalf of the Recipient 
and the NSO in form and substance satisfactory to the Association. 
(b) 
The financial management officer and procurement officer of the PCT 
have completed their training in financial management and procurement 
respectively, in a manner acceptable to the Association, to ensure 
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compliance with the accounting, monitoring and reporting requirements 
under the Project. 
5.02. 
The Effectiveness Deadline is the date ninety (90) days after the date of this 
Agreement. 
5.03. 
For the purposes of Section 8.05(b) of the General Conditions, the date on which 
the obligations of the Recipient under this Agreement (other than those providing 
for payment obligations) shall terminate is twenty (20) years after the date of this 
Agreement. 
ARTICLE VI 
—
REPRESENTATIVE; ADDRESSES
 
6.01. 
The Recipient’s Representative is its Minister of Finance. 
6.02. 
The Recipient’s Address is: 
Ministry of Finance  
Government Building 2 
United Nations’ Street 5/1 
Ulaanbaatar, 210646 
 
Facsimile: 
 
976-11-262272 
 
6.03. 
The Association’s Address is: 
 
International Development Association 
 
1818
H
Street, N.W. 
Washington, D.C. 20433 
 
United States of America 
 
Cable: 
  Telex: 
  Facsimile: 
 
INDEVAS 
 248423 
(MCI) 
 1-202-477-6391 
 
Washington, D.C. 
 
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4
AGREED at Ulaanbaatar, Mongolia, as of the day and year first above 
written. 
 
MONGOLIA  
 
By /s/ 
S. Bayarsogt
 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
By 
/s/ Arshad Sayed 
 
Authorized Representative 
 
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SCHEDULE 1 
Project Description
 
The objective of the Project is to improve the efficiency and effectiveness of the 
Recipient’s national statistical system to enable it to provide relevant, timely and reliable 
data for evidence-based policy making in support of the Recipient’s National 
Development Strategy. 
The Project constitutes phase I-b of the Program, and consists of the following 
parts: 
Part A:
Improving Policy, Regulatory, and Institutional Framework and the 
Organizational Structure of the Statistical System
Carry out the following activities in order to improve the policy, regulatory and 
institutional framework and the organization structure of the Recipient’s national 
statistical system: 
1. 
Improve the Recipient’s capacity to carry out the formulation, coordination and 
implementation of appropriate statistical policies and programs, through, 
inter 
alia
:
(i) the review of the existing statistical legislation; and (ii) the development 
of relevant terms of interaction among the Recipient’s institutions and agencies 
for the production, use, exchange and disclosure of statistical information.   
2. 
Improve the relationship between data users and producers, by, 
inter alia
:
(i) conducting an analysis on general user requirements; and (ii) designing and 
regularly conducting user satisfaction surveys.   
3. 
Improve the data dissemination function and procedures to provide a wider range 
of users with easier access to statistics by improving the statistical publications 
and the NSO’s website.   
4. 
Strengthen human resource capacity, by, 
inter alia
:
(i) establishing a training unit 
within the NSO; and (ii) establishing a national statistical training center.   
5. 
Review and improve the organizational structure of the Recipient’s national 
statistical system, by, 
inter alia
:
(i) increasing the manpower in the divisions in 
the NSO responsible for producing/collecting data; and (ii) streamlining the 
existing geographically-based organizational structure for data collection at the 
regional levels. 
Part B:
Strengthening the Statistical Infrastructure
Carry out the activities in order to strengthen the statistical infrastructure 
including: 
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1. 
Improve and update the statistical registers.  
2. 
Develop and improve national statistical classifications (e.g. classifications of 
economic activities, classification of products by activity, etc.) to be in line with 
international standards. 
3. 
Develop and improve sampling methods and build institutional capacity in order 
to introduce sampling in place of full coverage surveys wherever feasible.  
4. 
Develop indicators, questionnaires and techniques for seasonal adjustments and 
build institutional capacity therefor, in order to address seasonal variance of 
production and prices.  
5. 
Improve evaluation skills and data quality by developing a quality model, policy, 
manual, and quality tools, and building institutional capacity therefor. 
6. 
Improve questionnaire design procedures and develop a master questionnaire 
with modules for all relevant sectors.   
Part C:
Upgrading Statistical Operations
Carry out the activities in order to upgrade the statistical operations including, 
improving individual subject matter programs and methodologies, and existing data 
outputs, such as: 
1. 
Implement fully the SNA to produce national accounts that are timely, reliable 
and in line with internationally acceptable methodologies.  
2. 
Improve the calculation of price statistics (including PPI, CPI and other relevant 
indices). 
3. 
Assist with the preparation phase of the Census Master Plan including: (i) census 
mapping; (ii) training of managers, supervisors and enumerators; and (iii) 
procurement of equipment including computer hardware and software required for 
the implementation of the Census Master Plan.  
Part D:
IT Infrastructure and Equipment
Carry out the activities in order to enhance the IT infrastructure and equipment 
including: 
1. 
Prepare an IT plan for the Recipient’s national statistical system to address 
upgrading of IT solutions and IT competencies in all data producing agencies 
including the NSO.  
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2. 
Establish an IT network for the Recip
ient’s national statistical system to 
effectively link the central office with the regional offices and improve 
information flows through: (i) upgrading the existing IT infrastructure (i.e. 
hardware, software, networking and peripheral equipment); and (ii) providing 
hardware, software, network equipment and any other equipment essential for 
carrying out the Project activities.  
Part E:
Project Management
Strengthen the NSO’s capacity for Project implementation, and monitoring and 
evaluation, including, 
inter alia,
 audit arrangements, reporting requirements, 
procurement, disbursement and financial management activities. 
 
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SCHEDULE 2 
Project Execution 
Section I. 
Implementation Arrangements
A. Institutional 
Arrangements
 
1. 
The Recipient shall maintain the NSC, throughout the period of implementation 
of the Project, headed by the chairman of the NSO, with representation from the 
Recipient’s executive branch, the Parliament and scientific research institutions, 
and assigned with adequate staff and sufficient resources, and such functions and 
responsibilities, satisfactory to the Association, as shall be required for the NSC 
to, 
inter alia
:
(i) ensure efficient inter-departmental (inter-ministerial) 
coordination of Project activities; (ii) carry out the overall guidance, support and 
oversight of Project implementation; and (iii) serve as a complaint handling body 
in the event of a procurement dispute.  
2. 
The Recipient shall cause the NSO to:  
 
(a) 
maintain throughout the period of implementation of the Project, the 
PCT, headed by a qualified and experienced project coordinator, and 
provided with sufficient resources and competent staff in adequate 
numbers, under terms of reference satisfactory to the Association, 
comprising, 
inter alia
,
a
financial management officer and a procurement 
officer; which unit shall be assigned with such functions and 
responsibilities, satisfactory to the Association, as shall be required for 
the day-to-day implementation of the Project, including: (i) the carrying 
out of the financial management, procurement, training and monitoring 
and evaluation of Project activities; (ii) the coordination of dialogue with 
the Association and other development partners; and (iii) the preparation 
of the Annual Plan, updates of the Procurement Plans, maintenance of 
websites, and compliance with Project reporting requirements; and  
 
(b) 
establish within the NSO, by no later than one (1) month after the 
Effective Date, and thereafter maintain throughout the period of 
implementation of the Project, a review and monitoring committee, 
headed by the deputy chairman of the NSO, with representation from, 
inter alia
,
the three (3) department heads of the NSO, and staff of the 
PCT, and assigned with adequate staff and sufficient resources, and such 
functions and responsibilities, satisfactory to the Association, as shall be 
required for the monitoring and evaluation of outputs and outcomes of 
the Project.  
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3. 
For the purposes of Section II.B.3. of this Schedule, the Recipient shall cause the 
NSO to select and engage, by no later than December 31, 2009, the services of an 
independent auditor acceptable to the Association, under terms of reference 
satisfactory to the Association.  
B. Subsidiary 
Agreement 
 
1. 
To facilitate the carrying out of the Project, the Recipient shall make the proceeds 
of the Financing available to the NSO under the Subsidiary Agreement, under 
terms and conditions satisfactory to the Association, which shall include the 
following undertakings: 
(a) 
the Recipient shall extend to the NSO the proceeds of the Financing for 
the sole purpose of carrying out the activities described in Schedule 1 to 
this Agreement; 
(b) 
the NSO shall ensure that the activities to be implemented under the 
Project are technically and financially viable, environmentally 
sustainable and economically justifiable;  
(c) 
the Recipient shall require the NSO, and the NSO shall undertake, to 
comply with the provisions of Sections I.A.2., I.A.3., I.C.2., I.D., and 
Sections II and III of this Schedule 2; 
(d) 
the NSO shall undertake to abide by the Anti-Corruption Guidelines, the 
Procurement Guidelines, the Consultant Guidelines and the terms and 
conditions applicable to a Project Implementing Entity pursuant to the 
General Conditions; and 
(e) 
the Recipient shall have the right to suspend or terminate the Subsidiary 
Agreement, and/or accelerate the recovery of any outstanding amounts 
withdrawn thereunder, upon: (A) the NSO’s failure to perform any of its 
obligations under the Subsidiary Agreement; or (B) the Association’s 
exercising any of the remedies under Article VI of the General 
Conditions.  
2. 
The Recipient shall exercise its rights under the Subsidiary Agreement in such 
manner as to protect the interests of the Recipient and the Association and to 
accomplish the purposes of the Financing.  Except as the Association shall 
otherwise agree, the Recipient shall not assign, amend, abrogate
 
or waive the 
Subsidiary Agreement or any of its provisions
.
3. 
The terms and conditions of the General Conditions applicable to the Project 
Implementing Entity and the Project Agreement apply respectively to the NSO 
and the Subsidiary Agreement.   
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C. 
Anti-Corruption; Governance and Accountability 
1. 
The Recipient shall ensure, and shall cause the NSO to ensure, that the Project is 
carried out in accordance with the provisions of the Anti-Corruption Guidelines. 
2. 
The Recipient shall cause the NSO to establish by no later than six (6) months 
after the Effective Date, and thereafter maintain throughout the period of 
implementation of the Project, in a manner and substance satisfactory to the 
Association, a publicly accessible website showing, 
inter alia,
:
(i) the 
Procurement Plan and the updates thereto; (ii) the status of procurement of 
various contracts (the summary of bidding documents, pre-qualified contractors 
and suppliers, proposals received, bid evaluations and awards), their performance 
and payment delays; (iii) a list of procurement complaints and status thereof;   
(iv) the Financial Statements and annual audit reports (including qualification 
and respo
nses); and (v) the Association’s mid-term review report on the progress 
achieved by the Project. 
D. Additional 
Implementation 
Covenants 
1. 
The Recipient shall cause the NSO to apply in the implementation of the Project, 
the Project Operations Manual satisfactory to the Association, which shall set 
forth, 
inter alia
:
(a) 
the institutional arrangements for the implementation of the Project other 
than the arrangements set forth in this Schedule (e.g. institutional 
organization of the PCT, roles and responsibilities of staff);  
 
(b) 
the Financial Management Manual, satisfactory to the Association, 
providing the detailed guidelines on financial management, internal 
control, accounting procedures, funds flow arrangements, withdrawal 
application procedures, asset management, reporting and auditing 
arrangements; 
 
(c) 
the procedural steps for the update of the Procurement Plan, and the 
preparation of the Annual Plan;  
 
(d) 
an outline of the redressal mechanism and its procedural steps for the 
solution of any procurement controversy under the Project; and  
 
(e)  
procedures for the disclosure of information and the maintenance of the 
Project’s procurement/information website. 
2. 
The Recipient shall not, and shall cause the NSO not to, amend, waive suspend 
or abrogate the Project Operations Manual, or any provision thereof without the 
prior concurrence of the Association.  
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3. 
The Recipient undertakes to cause the NSO to prepare, and regularly update, an 
Annual Plan for the Project identifying Project activities by component and sub-
component, and their related expenditures and financing sources; which plan 
shall be submitted to the Association for review and comments. 
Section II. 
Project Monitoring, Reporting and Evaluation 
A. Project 
Reports 
1. 
(a) 
The Recipient shall cause the NSO to monitor and evaluate the progress 
of the Project and prepare Project Reports in accordance with the 
provisions of Section 4.08 of the General Conditions and on the basis of 
the indicators set forth below in sub-paragraph (b) of this paragraph.  
Each Project Report shall cover the period of one (1) calendar semester, 
and shall be furnished to the Association not later than forty-five (45) 
days after the end of the period covered by such report.  
(b) 
The performance indicators referred to above in sub-paragraph (a) 
consist of the following: 
(i) 
user satisfaction rates have increased by at least sixty percent 
(60%) by the Closing Date; 
(ii) 
by the Closing Date, targeted statistical products are easily 
accessible in relevant media, with metadata and interpretation of 
findings;  
(iii) 
by the Closing Date, internationally accepted statistical 
techniques in collection, compilation and authenticity 
verification are applied by the Recipient, and regular validations 
are carried out for data sources and statistical products; and 
(iv) 
by the Closing Date, statistical outputs are released in a timely 
manner in accordance with internationally accepted frequency 
and timeframes. 
2. 
For the purposes of Section 4.08(c) of the General Conditions, the report on the 
execution of the Project and related plan required pursuant to that Section shall 
be furnished to the Association not later than six (6) months before the estimated 
final disbursement. 
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B. 
Financial Management, Financial Reports and Audits 
1. 
The Recipient shall maintain, and cause the NSO to maintain, a financial 
management system in accordance with the provisions of Section 4.09 of the 
General Conditions. 
2. 
Without limitation on the provisions of Part A of this Section, the Recipient shall 
cause the NSO to prepare and furnish to the Association, not later than forty-five 
(45) days after the end of each calendar quarter, interim unaudited financial 
reports for the Project covering the quarter, in form and substance satisfactory to 
the Association. 
3. 
The Recipient shall have its Financial Statements, and cause the NSO to have its 
Financial Statements, audited in accordance with the provisions of Section 
4.09(b) of the General Conditions.  Each audit of the Financial Statements shall 
cover the period of one (1) fiscal year of the Recipient and/or the NSO, as the 
case may be, commencing with the fiscal year in which the first withdrawal was 
made.  The audited Financial Statements for each such period shall be furnished 
to the Association not later than six (6) months after the end of such period.
 
Section III. 
Procurement
A. General
 
1.
 Goods.
 
All goods required for the Project and to be financed out of the proceeds 
of the Financing shall be procured in accordance with the requirements set forth 
or referred to in Section I of the Procurement Guidelines, and with the provisions 
of this Section. 
2.
 
Consultants’ Services.
 
All consultants’ services required for the Project and to 
be financed out of the proceeds of the Financing shall be procured in accordance 
with the requirements set forth or referred to in Sections I and IV of the 
Consultant Guidelines, and with the provisions of this Section. 
3.
 Definitions.
 
The capitalized terms used below in this Section to describe 
particular procurement methods or methods of review by the Association of 
particular contracts, refer to the corresponding method described in the 
Procurement Guidelines, or Consultant Guidelines, as the case may be. 
B. 
Particular Methods of Procurement of Goods
 
1.
 
International Competitive Bidding.  
Except as otherwise provided in paragraph 
2
below, goods shall be procured under contracts awarded on the basis of 
International Competitive Bidding. 
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2.
 
Other Methods of Procurement of Goods.  
The following table specifies the 
methods of procurement, other than International Competitive Bidding, which 
may be used for goods and works.  The Procurement Plan shall specify the 
circumstances under which such methods may be used: 
Procurement Method 
 
(a) Shopping 
(b) Direct Contracting  
C. Particular 
Methods
 of Procurement of Consultants’ Services 
 
1.
 Quality- 
and 
Cost-based 
Selection.
 
Except as otherwise provided in paragraph 
2
below, consultants’ services shall be procured under contracts awarded on the 
basis of Quality- and Cost-based Selection.
 
2.
 Other
 Methods of Procurement of Consultants’ Services
.
The following table 
specifies methods of procurement, other than Quality- and Cost-based Selection, 
which may be used for consultants’ services.  The Procurement Plan shall specify 
the circumstances under which such methods may be used. 
 
Procurement Method 
 
(a) Quality-Based Selection  
(b) Least-Cost Selection  
(c) Selection Based on the Consultants’ Qualifications 
(d) Single-Source Selection 
(e) Individual Consultants 
D. 
Review by the Association of Procurement Decisions 
 
Except as the Association shall otherwise determine by notice to the Recipient, 
the following contracts shall be subject to Prior Review by the Association:      
(a) each contract for goods estimated to cost more than the equivalent of 
$100,000; (b) each contract for goods procured on the basis of Direct Contracting 
regardless of the contract value; (c) each contract for consultants’ services 
provided by a firm estimated to cost more than the equivalent of $100,000; (d) 
each contract for consultants’ services awarded on Single-Source Selection 
regardless of the contract value; and (e) each contract for consultants’ services 
provided by individual consultants estimated to cost more than the equivalent of 
$50,000.  All other contracts shall be subject to Post Review by the Association.
 
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Section IV. 
Withdrawal of the Proceeds of the Financing
A. General 
1. 
The Recipient may withdraw the proceeds of the Financing in accordance with 
the provisions of Article II of the General Conditions, this Section, and such 
additional instructions as the Association shall specify by notice to the Recipient 
(including the “World Bank Disbursement Guidelines for Projects” dated May 
2006, as revised from time to time by the Association and as made applicable to 
this Agreement pursuant to such instructions), to finance Eligible Expenditures as 
set forth in the table in paragraph 2 below. 
2. 
The following table specifies the categories of Eligible Expenditures that may be 
financed out of the proceeds of the Financing (“Category”), the allocations of the 
amounts of the Financing to each Category, and the percentage of expenditures to 
be financed for Eligible Expenditures in each Category: 
 
Category 
Amount of the 
Financing 
Allocated 
(expressed in 
SDR) 
 
Percentage of 
Expenditures to be 
Financed 
(inclusive of Taxes) 
(1) Goods and 
consultants’ services for 
Parts A through D of the 
Project 
1,270,000 100% 
(2) Goods, consultants’ 
services and Incremental 
Operating Costs for Part 
E
of
the Project 
70,000 100% 
(3) Unallocated 
60,000 
 
TOTAL AMOUNT 
1,400,000  
B. 
Withdrawal Conditions; Withdrawal Period 
1.
 
Notwithstanding the provisions of Part A of this Section, no withdrawal shall be 
made for payments made prior to the date of this Agreement, except that 
withdrawals up to an aggregate amount not to exceed $200,000 equivalent may 
be made for payments made prior to this date but on or after April 24, 2009, for 
Eligible Expenditures. 
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2.
 
The Closing Date is December 31, 2014. 
 
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SCHEDULE 3
 
Repayment Schedule 
Date Payment Due 
Principal Amount of the Credit 
repayable 
(expressed as a percentage)* 
On each May 15 and November 15: 
 
commencing November 15, 2019 to and including 
May 15, 2029 
1% 
commencing November 15, 2029 to and including 
May 15, 2049 
2% 
*
The percentages represent the percentage of the principal amount of the Credit to be 
repaid, except as the Association may otherwise specify pursuant to Section 3.03(b) of 
the General Conditions. 
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APPENDIX 
Section I. 
Definitions 
1. 
“Annual Plan” means the implementation plans covering the activities of each 
calendar year of Project implementation, to be prepared by the NSO pursuant to 
Section I.D.3. of Schedule 2 to the Agreement.  
2. 
“Anti-Corruption Guidelines” means the “Guidelines on Preventing and 
Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA 
Credits and Grants”, dated October 15, 2006. 
3. 
“Category” means a category set forth in the table in Section IV of Schedule 2 to 
this Agreement. 
4. 
“Census Master Plan” means the 2010 Census Master Plan that is formulated by 
the NSO to obtain an official enumeration of the population in Mongolia including 
the collection of related demographic information, and which consists of five (5) 
major phases, namely: (i) preparation; (ii) census operation (actual field work);       
(iii) data processing; (iv) data dissemination; and (v) post-census evaluation.  
5. 
 
“Co-financier” means the Association, acting as administrator of (i) the funds 
provided by the Republic of Korea through the Korea Trust Fund; and (ii) the 
grant fund provided by the Trust Fund for Statistical Capacity Building, referred 
to in paragraph 10 of the Appendix to the General Conditions, and “Co-
financiers” means any of the Co-financiers. 
 
6. 
“Co-financing” means: (i) the aggregate amount of one million one hundred 
thousand United States Dollars ($1,100,000), to be provided by the Co-financiers 
to assist in financing the Project; and (ii) any other funding that may be provided 
by other donor(s) for the purposes of co-financing this Project. 
 
7. 
“Co-financing Agreements” means the agreements to be entered into between the 
Recipient and the Co-financiers providing for the Co-financing. 
 
8. 
“Consultant Guidelines” means the “Guidelines: Selection and Employment of 
Consultants by World Bank Borrowers” published by the Bank in May 2004 and 
revised in October 2006. 
9. 
“CPI” means the Consumer Price Index.  
10. 
“Financial Management Manual” means the section of the Project Operational 
Manual setting out the financial administration, book keeping, recording, 
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18 
 
payment, and auditing procedures described in Section I.D.1(b) of Schedule 2 to 
this Agreement.  
11. 
“General Conditions” means the “International Development Association 
General Conditions for Credits and Grants”, dated July 1, 2005 (as amended 
through October 15, 2006), with the modifications set forth in Section II of this 
Appendix. 
12. 
“Incremental Operating Costs” means the expenditures for office rentals, offices 
consumables, in-country travel costs, lodging and per-diems for Project staff, 
salaries of contractual staff (other than consultants), advertising expenses and 
banking charges, incurred by the NSO in connection with the management and 
coordination of Project activities, which expenditures would not have been 
incurred absent the Project, but excluding salaries of civil servants. 
13. 
“IT” means information technology. 
14. 
 “National Development Strategy” means the long-term development vision 
approved by the Recipient’s Parliament in 2007.  
15. 
“NSC” means the Recipient’s National Statistical Council, established pursuant 
to the Recipient’s Law on Statistics of 1994 as amended, and referred to in 
Section I.A.1. of Schedule 2 to this Agreement. 
16. 
“NSO” means the Recipient’s National Statistical Office, an autonomous body 
established pursuant to the Recipient’s Law on Statistics of 1994 as amended.  
17. 
“NSO’s Legislation” means the Law on Statistics of 1994 as amended. 
 
18. 
“PCT” means the Project Coordination Team referred to in Section I.A.2(a) of 
Schedule 2 to this Agreement.  
19. 
“PPI” means the Producer Price Index.  
20. 
“Procurement Guidelines” means the “Guidelines: Procurement under IBRD 
Loans and IDA Credits” published by the Bank in May 2004 and revised in 
October, 2006. 
21. 
“Procurement Plan” means the Recipient’s procurement plan for the Project, 
dated April 24, 2009, and referred to in paragraph 1.16 of the Procurement 
Guidelines and paragraph 1.24 of the Consultant Guidelines, as the same shall be 
updated from time to time in accordance with the provisions of said paragraphs. 
22. 
“Program” means the Statistical Capacity Building Program (STATCAP) 
designed to provide assistance to strengthen the national statistical systems and 
increase the capacity thereof, in order to produce more reliable, timely and 
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19 
 
accurate data, and referenced in the letter dated November 11, 2007, from the 
Recipient to the Association. 
 
23. 
“Project Operations Manual” means the manual to be adopted and applied by the 
NSO in the carrying out of the Project, setting out the implementation 
arrangements and administrative procedures provided in Section I.D.1. of 
Schedule 2 to this Agreement. 
 
24. 
“SNA” means the System of National Accounts, a conceptual framework that 
sets the international statistical standard for the measurement of the market 
economy in a country.  
 
25. 
“Subsidiary Agreement” means the agreement referred to in Section I.B.1. of 
Schedule 2 to this Agreement, signed between the Recipient and the NSO 
pursuant to which the Recipient shall make the proceeds of the Financing and the 
Co-financing available to the NSO. 
 
Section II.   
Modifications to the General Conditions 
The modifications to the General Conditions for Credits and Grants of the Association, 
dated July 1, 2005 (as amended through October 15, 2006) are as follows:   
1. 
Paragraph (i) of Section 6.02 is modified to read as follows: 
 
“Section 6.02. 
Suspension by the Association 
 
... (l) 
Ineligibility
.
The Association or the Bank has declared the Project 
Implementing Entity ineligible to receive proceeds of any financing made by the 
Association or the Bank or otherwise to participate in the preparation or 
implementation of any project financed in whole or in part by the Association or 
the Bank, as a result of a determination by the Association or the Bank that the 
Project Implementing Entity has engaged in fraudulent, corrupt, coercive or 
collusive practices in connection with the use of the proceeds of any financing 
made by the Association or the Bank.”