OFFICIAL 0wott DOCUMENTS The World Bank 1818 H Street N.W. (202)473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS December 17, 2015 Mr. Raymund Furrer Head Economic Cooperation and Development State Secretariat for Economic Affairs (SECO) Holzikofenweg 36 3003 Bern SWITZERLAND Supplemental Contribution and Fourth Amendment to the Trust Fund Administration Agreement between the Swiss Federation represented by the State Secretariat for Economic Affairs, and the International Bank for Reconstruction and Development and the International Development Association concerning the Multi-Donor Trust Fund for Strengthening Accountability and the Fiduciary Environment in South East Europe and Central Asia (TFO71422) Dear Mr. Furrer: 1. We refer to the Administration Agreement (Agreement) between the Swiss Confederation represented by the State Secretariat for Economic Affairs SECO (the "Donor") and the International Bank for Reconstruction and Development ("IBRD") and the International Development Association ("IDA"), (collectively, the "Bank") concerning the Multi-Donor Trust Fund for Strengthening Accountability and the Fiduciary Environment in South East Europe and Central Asia (TF071422) (the "Trust Fund") effective February 15, 2010 as amended. 2. The Bank acknowledges that the Donor agrees to provide a supplemental contribution in the amount of Swiss Francs one million five hundred thousand (CHF 1,500,000) (the "Supplemental Contribution") for the Multi-Donor Trust Fund for Strengthening Accountability and the Fiduciary Environment in South East Europe and Central Asia, No. TFO71422 (the "Trust Fund") in accordance with the terms of this Amendment. 3. The Donor shall deposit the Contribution in the currency specified in paragraph 2 above into such bank account designated by the Bank promptly following effectiveness of this Amendment. 4. When making a 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 No. TFO71422 (the Multi-Donor Trust Fund for Strengthening Accountability and the Fiduciary Environment in South East Europe and Central Asia), 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 tfremitadviceAworldbank.org or by fax sent to (202) 614-1315. 5. Additionally, the Donor and the Bank agrees to amend the Agreement by deleting Annex 1 in its entirety and replacing it with Annex 1 in the Attachment to this Agreement. 6. All other terms and conditions of the Agreement that have not been amended hereby shall remain unchanged and in full force and effect. 7. The Bank will disclose this Agreement and related information on this Trust Fund in accordance with the World Bank Policy on Access to Information. By entering into this Amendment, the Donor consents to disclosure of this Amendment and related information on this Trust Fund. 8. Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Amendment shall become effective upon the date of its countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Samia Msadek Director, Public Resource Mobilization and Management Governance Global Practice AGREED: STA E ECRETARIAT FOR ECONOMIC AFFAIRS By: Name: 0(~QJ''A V1 L Title: 00 c Date: A ANNEX I Description of Activities and Expenditures under the Multi-Donor Trust Fund for Strengthening Accountability and the Fiduciary Environment in South East Europe and Central Asia. This Annex shall be applicable to and form an integral part of all agreements entered into between the Bank and entities (collectively, the "Donors") that provide contributions (the aggregate of all contributions from the Donors, the "Contributions") to be administered by the Bank for the Trust Fund. A. DESCRIPTION OF ACTIVITIES 1. The objective of the Trust Fund is to provide support for the improvement of public financial management and accountability in the South East Europe and Central Asia. The eligible beneficiaries under the public financial management aspects of the Trust Fund are: (a) the countries of Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Belarus, Georgia, Kyrgyz Republic, Kazakhstan, Moldova, Montenegro, Macedonia, Tajikistan, Turkmenistan, Turkey, Ukraine, Uzbekistan, Kosovo and Serbia and (b) and the beneficiary countries under the public sector accounting aspects of the Trust Fund are Albania and Serbia, all jointly referred to as the ("Beneficiary(ies)"). (a) Bank-executed Activities: (i) Provision of technical assistance for: * carrying out diagnostic assessments on the status and performance of Public Sector Accounting (PSA); and Public Financial Management (PFM) performance reviews using the international Public Expenditure and Financial Accountability (PEFA) framework; * improving PSA and PFM performance, including training and workshops on PFM and PSA characteristics, assessment and implementation, benchmarking and change management; and * supporting the Recipient in the preparation and implementation of PFM and PSA reform action plans. (ii) Carry out Trust Fund management and administration, and supervision and monitoring of Recipient-executed Activities. (b) Recipient-executed Activities: (i) Provision of support to the Beneficiaries in: * conducting reviews on the status and performance of PFM using PEFA and PSA framework or related diagnostic and analytical tools; * preparing and disseminating reports on the performance of PFM and PSA; * conducting research and analysis on PFM and PSA reforms, including research and analysis on the results of PFM and PSA diagnostic assessments to identify the achievements and weaknesses as well as the actions needed to address the weaknesses and to strengthen the achievements. * designing PFM and PSA reform action plans, and establishing and facilitating networks of government officials, private sector and other non-government bodies for consultation, cooperation and implementation of PFM and PSA reform activities; * development and design of public sector accounting standards, instructions, charts of account and legislative documents; and * design and delivery of public sector accounting syllabus, training courses and /or examinations. (ii) Provision of support to facilitate wider experience and knowledge sharing between Beneficiaries on good practices in public financial management, including exchange of information and experience through workshops, training, study tours, research, reports, and joint activities to address common priorities. B. CATEGORIES OF EXPENDITURE 2. For Bank-Executed activities, the Contributions may be used to finance (a) staff costs, (b) associated overheads (i.e. communication and translation), (c) consultants fees, (d) contractual services, (e) media and workshop, (f) travel expenses of staff, short-term consultants, short-term temporary consultants and extended-term consultants, and (g) costs of extended term consultants. 3. For Recipient-Executed activities, the contributions may be used to finance (a) consulting services, (b) training and study tours, (c) workshop and (d) operating costs. 4. The foregoing categories of expenditures may include the financing of taxes. C. GOVERNANCE TERMS 5. The Bank manages and administers the Trust Fund, and provides monitoring and supervision for Recipient-executed activities. The PFM and PSA Activities will have different administration arrangements. 6. With regard to the PFM Activities of the Trust Fund, a Project Steering Committee (PSC) chaired by the Bank, which consists of representatives of the Bank and the Donors contributing to the Trust Fund, is established to carry out the following functions: (a) defining strategic directions and priorities of the Trust Fund; (b) mobilizing resources for the Trust Fund; (c) making decisions on regional and/or country specific Trust Fund activities; (d) deciding the amount of fund to be allocated per fiscal year (January 1 - December 31) for each Component; (e) approving the criteria for selection of projects to be funded under the Trust Fund, which would include, at a minimum: i. Existence of demonstrable improvement in understanding, standards or capability in relation to one or more indicators of the PEFA or associated aspects of PFM; ii. Consistency with the development priorities, policies and plans of a potential Beneficiary; iii. No conflict and/or duplication of activities with projects funded from other sources; iv. Having benefits for more than one Beneficiary in relation to comparative assessment and knowledge and/or experience sharing activities; v. Beneficiaries have to demonstrate the existence of implementation capacities and the project's contribution to mid-to long term development objectives. vi. Beneficiaries have to demonstrate that there is a high likelihood that results achieved through the project will be sustainable and/or will enhance the effectiveness of the other PFM/PSA reform initiatives. (f) Adding new countries to the eligible beneficiary countries' list; (g) Reviewing the progress of the Trust Fund operation in every six months against the objective and strategic direction of the Trust Fund. 7. The decisions of the PSC shall be made on the basis of majority voting. The Bank shall be responsible to select Recipient-executed activities to be funded under the Trust Fund based on the criteria and within the annual budget approved by the PSC. The PSC shall, based on an explicit request of a Beneficiary, make decisions on Bank-executed activities to be funded under the Trust Fund, excluding, however, activities concerning Trust Fund management, administration, and monitoring and supervision of Recipient-executed activities. 8. With regard to the PSA Activities of the Trust Fund, a Program Window Steering Committee (PWSC) chaired by the Bank, which consist of representatives of the Bank and the Donors contributing to the Trust Fund, is established to carry out the following functions: a) approving Trust Fund strategic directions, priorities, work plan, allocation of funds and administration arrangements; b) mobilizing resources for the Trust Fund; c) approving regional or country specific Trust Fund financed activities; d) reviewing financial; and non-financial reports and progress on implementation of the Trust Fund; and e) ensure maximum coordination with other assessments of other Donors/international organizations on the Trust Fund.