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CONFORMED COPY
TF 029131
Japanese Grant Agreement
(Drainage Project)
between
UZBEKISTAN
and
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
as Administrator of Grant Funds
provided by JAPAN
Dated November 30, 1995
TF 029131
JAPANESE GRANT AGREEMENT
AGREEMENT, dated November 30, 1995, between UZBEKISTAN (the Recipient) and the 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) acting as 
Administrator (the Administrator) of grant funds provided by JAPAN (Japan).
WHEREAS (A) pursuant to a letter agreement dated July 30, 1990 between Japan and 
the Bank and International Development Association (the Association), Japan has 
requested the Bank and the Association, and the Bank and the Association have agreed, 
to administer grant funds to be made available by Japan for the financing of certain 
programs and projects supported by the Bank and the Association, as the case may be, 
in accordance with the provisions of such letter agreement;
WHEREAS (B) Japan has agreed to make available to the Recipient a grant out of 
said grant funds (the Grant) to finance the cost of carrying out the technical 
assistance described in Schedule 2 to this Agreement (the Technical Assistance) on the 
terms and conditions hereinafter set forth;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
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Section 1.01. (a) The following provisions of the General Conditions Applicable 
to Loan and Guarantee Agreements of the Bank, dated January 1, 1985, with the 
modifications set forth in paragraph (b) of this Section (the General Conditions) 
constitute an integral part of this Agreement:
(i)
Article I;
(ii)
Sections 2.01 (1), (2), (3), (4), (6), (8), (9), (10), (11), (18) 
and (20), 2.02 and 2.03;
(iii)
Section 3.01;
(iv)
Section 4.01 and the first sentence of Section 4.09;
(v)
Article V;
(vi)
Sections 6.01, 6.02 (a), (c), (d), (e), (f), (i) and (k), 6.03, 
6.04 and 6.06;
(vii)
Section 8.01 (b);
             (viii)Sections 9.01 (a) and (c), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09;
(ix)
Sections 10.01, 10.03 and 10.04; and
(x)
Article XI.
(b)
The General Conditions shall be modified as follows:
(i)
the term "Bank," wherever used in the General Conditions, other 
than in Sections 2.01 (8) and 6.02 (f) thereof and the last use of 
such term in Section 5.01 thereof, means the International Bank 
for Reconstruction and Development acting as Administrator of the 
Grant pursuant to the letter agreement between Japan and the Bank 
and the Association referred to in Recital (A) of this Agreement, 
except that in Section 6.02, the term "Bank" shall also include 
the International Bank for Reconstruction and Development acting 
in its own capacity;
(ii)
the term "Borrower," wherever used in the General Conditions, 
means the Recipient;
(iii)
the term "Loan Agreement," wherever used in the General 
Conditions, means this Agreement;
(iv)
the term "Loan," wherever used in the General Conditions, means 
the Grant;
(v)
the term "Loan Account," wherever used in the General Conditions, 
means the Grant Account, an account opened by the Administrator on 
its books in the name of the Recipient to which the amount of the 
Grant is credited;
(vi)
the term "Project," wherever used in the General Conditions, means 
the technical assistance described in Schedule 2 to this 
Agreement; and
(vii)
Section 4.01 shall be modified to read:
"Withdrawals from the Grant Account shall be made in yen; 
provided, however, that if the expenditures to be financed out of the 
Grant have been paid or are payable in another currency, the 
Administrator shall, at the request of the Recipient, purchase such 
currency with the proceeds of such withdrawal."
Section 1.02. Wherever used in this Agreement, unless the context otherwise 
requires, the several terms defined in the General Conditions and in the Recitals to 
this Agreement have the respective meanings therein set forth; and the following 
additional terms have the following meanings:
(a)
"Yen" and "¥ " mean the currency of Japan.
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(b)
"Operational Services" means services such as translation and 
communication required for carrying out the Technical Assistance as may be agreed by 
the Administrator.
ARTICLE II
The Grant
Section 2.01. The Administrator agrees to make available to the Recipient, on 
the terms and conditions set forth or referred to in this Agreement, the Grant in an 
amount of one hundred and six million yen (¥106,000,000).
Section 2.02. The amount of the Grant may be withdrawn from the Grant Account in 
accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may 
be amended from time to time by agreement between the Recipient and the Administrator, 
for expenditures made (or, if the Administrator shall so agree, to be made) in respect 
of the reasonable cost of carrying out the Project and to be financed out of the 
Grant.
Section 2.03. The Closing Date shall be December 31, 1998, or such later date as 
the Administrator shall establish.  The Administrator shall promptly notify the 
Recipient of such later date.
ARTICLE III
Execution of the Project
Section 3.01. The Recipient shall carry out the Project with due diligence and 
efficiency and in conformity with appropriate administrative, financial, and 
engineering practices, and shall provide, promptly as needed, the funds, facilities, 
services and other resources required for the Project. 
Section 3.02. Except as the Administrator shall otherwise agree, procurement of 
the goods and consultants' services required for the Project and to be financed out of 
the Grant shall be governed by the provisions of Schedule 3 to this Agreement.
Section 3.03. (a) The Recipient shall maintain or cause to be maintained records 
and accounts adequate to reflect in accordance with sound accounting practices the 
operations, resources and expenditures in respect of the Project of the departments or 
agencies of the Recipient responsible for carrying out the Project or any part 
thereof.
(b)
The Recipient shall:
(i)
have the records and accounts referred to in paragraph (a) of this 
Section for each fiscal year audited, in accordance with 
appropriate auditing principles consistently applied, by 
independent auditors acceptable to the Administrator;
(ii)
furnish to the Administrator as soon as available, but in any case 
not later than four months after the end of each such year, the 
report of such audit by said auditors, of such scope and in such 
detail as the Administrator shall have reasonably requested; and
(iii)
furnish to the Administrator such other information concerning 
said records and accounts and the audit thereof as the 
Administrator shall from time to time reasonably request.
(c)
For all expenditures with respect to which withdrawals from the Grant 
Account were made on the basis of statements of expenditure, the Recipient shall:
(i)
maintain or cause to be maintained, in accordance with paragraph 
(a) of this Section, records and accounts reflecting such 
expenditures;
(ii)
retain, until at least one year after the Administrator has 
received the audit report for the fiscal year in which the last 
withdrawal from the Grant Account was made, all records 
(contracts, orders, invoices, bills, receipts and other documents) 
evidencing such expenditures;
(iii)
enable the Administrator's representatives to examine such 
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records; and
(iv)
ensure that such records and accounts are included in the annual 
audit referred to in paragraph (b) of this Section and that the 
report of such audit contains a separate opinion by said auditors 
as to whether the statements of expenditure submitted during such 
fiscal year, together with the procedures and internal controls 
involved in their preparation, can be relied upon to support the 
related withdrawals.
Section 3.04. Without limitation upon the applicable provisions of Article IX of 
the General Conditions, the Recipient shall:
(a)
prepare, on the basis of guidelines acceptable to the Administrator, and 
furnish to the Administrator not later than six (6) months after the Closing Date or 
such later date as may be agreed for this purpose between the Recipient and the 
Administrator, a plan designed to ensure the continued achievement of the objectives 
of the Project; and
(b)
afford the Administrator a reasonable opportunity to exchange views with 
the Recipient on said plan.
ARTICLE IV
Effectiveness; Termination
Section 4.01. This Agreement shall become effective upon its execution by the 
parties hereto.
Section 4.02.  This Agreement shall continue in effect until the Grant has been 
fully disbursed and the parties to this Agreement have fulfilled all their obligations 
hereunder.
ARTICLE V
Representation
Section 5.01. The Minister of Finance of the Recipient is designated as 
representative of the Recipient for the purposes of Section 11.03 of the General 
Conditions.
Section 5.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Recipient:
Ministry of Melioration and Water Management
5-a, A. Kodyri St
Tashkent, 700128
Uzbekistan
Telex:
116180 MELIO SU
For the Administrator:
International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INTBAFRAD
197688 (TRT),
Washington, D.C.
248423 (RCA),
 64145 (WUI) or
 82987 (FTCC)
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IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names as 
of the day and year first above written.
UZBEKISTAN
By /s/ Yukon Huang
Authorized Representative
INTERNATIONAL BANK FOR RECONSTRUCTION
  AND DEVELOPMENT
as Administrator of the Grant
By /s/ Rim A Ginniyatullin
Authorized Representative
SCHEDULE 1
Withdrawal of the Grant
1.
The table below sets forth the Categories of items to be financed out of the 
Grant, the allocation of the amount of the Grant to each Category and the percentage 
of expenditures for items so to be financed in each Category:
Amount of the  
    % of
Grant Allocated
Expenditures
Category
    (in Yen Equivalent)
to be Financed
(1)
Consultants'
  98,600,000
100%
services
(2)
Equipment
   6,400,000
100% of
foreign expen-
ditures
100% of local
expenditures 
(ex-factory
cost and 85%
of local expen-
ditures of  other
items procured
locally)
(3)
Operational Ser-
   1,000,000
100%
vices
TOTAL
 106,000,000
2.
For the purposes of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Recipient for goods or services supplied from the 
territory of any country other than that of the Recipient; and
(b)
the term "local expenditures" means expenditures in the currency of the 
Recipient or for goods or services supplied from the territory of the Recipient.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement.
4.
The Administrator may require withdrawals from the Grant Account to be made on 
the basis of statements of expenditure for expenditures for equipment and Operational 
Services under contracts not exceeding $15,000 equivalent, under such terms and 
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conditions as the Administrator shall specify by notice to the Recipient.
SCHEDULE 2
Description of Technical Assistance
The objective of the technical assistance is to facilitate the preparation of a 
drainage water disposal project on the right bank of the Amu Darya in Uzbekistan.
The technical assistance consists of the following services by an international 
consulting firm in association with local consultants or design institute, subject to 
such modifications thereof as the Recipient and the Administrator may agree from time 
to time to achieve such objectives:
(a)
Phase I: (i) Collection of data on water resources, irrigation water 
supply and drainage water discharge (in terms of quantity and quality), and the extent 
of drainage and salinity problems; (ii) a review of irrigation and drainage in the 
basin, focusing on relationships between irrigation water supply, agricultural water 
use, drainage processes, drainage water discharge, and land and water quality issues; 
(iii) identification of alternative solutions to the issue of drainage water disposal; 
(iv) assistance to run workshops with participation of stakeholders to discuss the 
identified options; and (iv) determination of additional data needed for the study of 
the options for drainage water disposal on a pre-feasibility study level.
(b)
Phase II: (i) Collection of additional data to evaluate alternative 
drainage disposal options identified under (a) above; (ii) the study of the identified 
alternatives at the pre-feasibility level; (iii) assistance with a workshop to discuss 
the findings of the studied alternatives; and (iv) recommendations for the most 
promising alternatives to be studied at detailed feasibility study level.
(c)
Phase III: Preparation of, in the form of a feasibility report, the most 
promising alternative(s) selected under (b) above and assistance with a workshop for 
key stakeholders to discuss the results and recommendations.
SCHEDULE 3
Procurement
1.
Employment of Consultants
In order to assist the Recipient in carrying out the Technical Assistance the 
Recipient shall employ consultants whose qualifications, experience and terms and 
conditions of employment shall be satisfactory to the Administrator. Such consultants 
shall be selected in accordance with principles and procedures satisfactory to the 
Administrator on the basis of the "Guidelines for the Use of Consultants by World Bank 
Borrowers and by the World Bank as Executing Agency" published by the Bank in August 
1981. For complex time-based assignments, the Recipient shall employ such consultants 
under contracts using the standard form of contract for consultants' services issued 
by the Bank, with such modifications as shall have been agreed by the Administrator. 
Where no relevant standard contract documents have been issued by the Bank, the 
Recipient shall use other standard forms agreed with the Administrator.
2.
Procurement of Equipment
Equipment shall be procured under contracts awarded on the basis of 
international shopping procedures in accordance with the provisions of paragraphs 3.5 
and 3.6 of the Guidelines for Procurement under IBRD Loans and IDA Credits published 
by the Bank in January 1995.
3.
Procurement of Operational Services
Operational Services shall be procured in accordance with procedures 
satisfactory to the Administrator.