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CONFORMED COPY 
 
GRANT NUMBER H251-0-HA 
 
Financing Agreement 
 
(Electricity Loss Reduction Project) 
 
between 
 
REPUBLIC OF HAITI 
 
and 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
Dated September 11, 2006 
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GRANT NUMBER H251-0-HA 
 
FINANCING AGREEMENT 
AGREEMENT dated September 11, 2006, between REPUBLIC OF HAITI (
“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 the Financing 
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 grant in an amount equivalent to four million one 
hundred thousand Special Drawing Rights (SDR 4,100,000) (
“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 Payment Dates are January 15 and July 15 in each year. 
2.05. 
The Payment Currency is Dollars. 
ARTICLE III 
—PROJECT
 
3.01. 
The Recipient declares its commitment to the objectives of the Project.  To this end the 
Recipient shall: 
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(a) 
through PCU, carry out the coordination of the Project and the fiduciary aspects 
thereof; and 
(b) 
cause PTU-EDH to carry out the technical implementation of the Project;  
all the above 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 
–
EFFECTIVENESS; TERMINATION 
4.01. 
The Additional Conditions of Effectiveness consist of the following:  
(a) 
the Subsidiary Agreement has been executed on behalf of the Recipient and 
EDH, satisfactory to the Association; 
(b) 
the Operational Manual for the Project, satisfactory to the Association, has been 
adopted by the Recipient; 
(c) 
a financial management system, satisfactory to the Association, has been 
established in PCU for purposes of the Project; 
(d) 
PCU has been established and staffed with a Project coordinator, a financial 
management specialist and a procurement specialist, all appointed in accordance 
with the provisions of Section III of Schedule 2 to this Agreement; and 
(e) 
PTU-EDH has been established and staffed with a technical chief of Project and 
a
consultant has been recruited, following procedures set forth in Section III of 
Schedule 2 to this Agreement, to prepare the terms of reference and the 
recruitment guidelines in respect of staff of PTU-EDH remaining to be appointed 
under Part 2.1 of this Project, as further set forth in the OM.
 
4.02. 
The Additional Legal Matter consists of the following, namely that the Subsidiary 
Agreement has been duly authorized or ratified by the Recipient and the Board of EDH 
and is legally binding upon the Recipient and EDH in accordance with its terms. 
 
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4.03. 
Without prejudice to the provisions of the General Conditions, the Effectiveness Deadline 
is the date (90) days after the date of this Agreement, but in no case later than the 
eighteen months after the Association’s approval of the Financing which expires on 
February 4, 2008. 
 
4.04. 
For purposes of Section 8.05 (b) of the General Conditions, the date on which the 
obligations of the Recipient shall terminate is 20 years after the date of this Agreement. 
ARTICLE V 
–
REPRESENTATIVE; ADDRESSES
 
5.01. 
The Recipient’s Representative is its Minister of Economy and Finance. 
5.02. 
The Recipient’s Address is: 
Ministère de l’Economie et des Finances 
Palais des Ministères 
Port-au-Prince 
Republic of Haiti 
Facsimile: (509) 299 17 32 
 
5.03. 
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) 
or 1-202-477-6391 
 
Washington, D.C. 
 64145 (MCI) 
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AGREED at the District of Columbia, United States of America, as of the day and year 
first above written. 
 
REPUBLIC OF HAITI 
 
By /s/ Raymond Joseph 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
By /s/ Caroline Anstey 
Authorized Representative 
 
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SCHEDULE 1 
Project Description
 
The objectives of the Project are to assist the Recipient in achieving sustainable 
improvement in the quality of electricity services to customers and strengthening the financial 
and operational performance of its power utility. 
The Project consists of the following parts: 
Part 1
:
Improving management practices of EDH towards a more customer-oriented 
 
provision of services
 
1.1. 
Establishment and operation of a new corporate commercial management system for 
increased customer satisfaction, through the acquisition of equipment, the provision of 
technical advisory services and the carrying out of training activities in relation thereto.  
1.2. 
Establishment and operation of a new technical service management system, aimed at 
optimizing attention to customer claims
 
through the acquisition of equipment, the 
provision of technical advisory services and the carrying out of training activities in 
relation thereto.   
1.3. 
Implementation of newly generated customer oriented system procedures and rules in 
respect of, 
inter alia
,
metering, billing, payment collection, treatment of fraudulent 
connections and outstanding debts and customer service. 
Part 2: Improving EDH quality of service and increase in revenue collection for selected 
 
groups of customers 
2.1.  
Strengthening of EDH through: 
 
(a) 
the appointment of a manager and relevant staff to EDH local commercial 
 agency; 
 
(b) 
the establishment of LCU, including the appointment of a manager
 
therefor;
 
and
 
(c) 
the restructuring of EDH
 
anti-fraud
 
unit.
 
2.2. 
Piloting in a selected socio-economically mixed area of 
Port-au-Prince
 the 
implementation of the new customer oriented management approach through the carrying 
out of renovation works for the distribution network and installation works for customer 
connection and the carrying out of relevant training for local EDH agency personnel. 
2.3. 
Piloting the implementation of the new customer oriented management approach of 
services for EDH large consumers through:  
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(a) 
the carrying out of field assessments; and 
(b) 
the acquisition and installation of selected equipment and the carrying out of 
 
training for EDH personnel in relation thereto. 
Part 3: Project Participatory approach, management, monitoring, evaluation and  
 replication 
strategy
 
3.1. 
Developing a participatory approach to
 
promote ownership of the Project in all 
stakeholders and foster sustainability of its objectives, including through
 
the carrying out 
of a communication strategy designed with a participatory approach. 
 
3.2. 
Providing support for the carrying out of activities and associated acquisition of 
equipment relevant to 
Project’s management, monitoring and impact evaluation. 
3.3. 
Developing a plan to scale up the Project activities under a medium-term strategy for the 
sector. 
 
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SCHEDULE 2 
Project Execution 
Section I. 
Subsidiary Agreement,
 
Institutional and Other Arrangements
A. Subsidiary 
Agreement 
1.
 
To facilitate the carrying out of the Project by PTU-EDH, the Recipient shall make the 
proceeds of the Financing available to EDH under a subsidiary agreement between the 
Recipient and EDH, under terms and conditions approved by the Association 
(“Subsidiary Agreement”)
 
which shall include the following: 
 
(a) 
the requirement that legal representation and administration of the Board of 
 
Directors and other managerial and executive functions in respect of EDH, 
 
including in respect of, 
inter alia
,
PTU-EDH Project chief, EDH LCU manager 
 
and the manager of the local agency of EDH in the selected socio-economically 
 
mixed area of the Recipient’s territory, be at all times during Project 
 
implementation satisfactory to the Association;  
 
(b
)
the commitment to effect any changes to such managerial and executive 
 
functions and to the corresponding staff appointments only in consultation with 
 
and after approval of
 
the
 
Association;  
 
(c) 
the requirement that PTU-EDH shall be the unit responsible for the technical 
 
implementation of the Project; and 
 
(d) 
the requirement that PTU-EDH shall carry out the Project in accordance with the 
 OM. 
 
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, waive, or fail to enforce the Subsidiary Agreement or 
of any of its provisions. 
 
B. Institutional 
Arrangements 
1. 
The Recipient, through MTPTC, shall, for purposes of the Project, establish and 
thereafter maintain throughout Project implementation a Project coordinating unit which 
shall: 
(a) 
have its staff appointed in accordance with the provisions of section III of 
 
Schedule 2 to this Agreement, each one of them to have at all times during 
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Project implementation, terms of reference, functions and resources satisfactory 
 
to the Association;  
(b) be 
responsible, 
inter alia
,
for: (i) field coordination of Project activities; and (ii) 
 
Project procurement, financial management and reporting; and 
(c) 
remain under the authority of MTPTC and report  periodically to the minister in 
 
charge thereof, as specified further in the OM.  
2. 
The Recipient shall, not later than 2 weeks after the Effective Date, establish and 
thereafter maintain throughout Project implementation, a strategic steering committee 
responsible for Project oversight, orientation and coordination, to be chaired by
 
the 
minister in charge of public works, transportation and communication and comprising the 
minister in charge of economy and finance and the minister in charge of planning and 
external cooperation, the director general of EDH and a representative of CMEP, as 
further set forth in the OM
.
C. Implementation 
Documents 
1. 
(a) 
The Recipient shall cause PTU-EDH to adopt an operational manual satisfactory 
in form and substance to the Association consisting of different schedules setting 
forth, respectively, rules, methods, guidelines, specific development plans, 
standard documents and procedures for the carrying out of the Project, including 
the following: 
 
(i) 
(A) the detailed description of Project implementation activities, their 
sequencing and the prospective timetable and benchmarks in relation 
thereto; and (B) the institutional arrangements in respect thereof and the 
ensuing respective responsibilities for the Project activities, including, 
inter alia
,
the financing, reporting and auditing aspects thereof; 
(ii) 
(A) the Project administrative, accounting, auditing, reporting, financial, 
and disbursement procedures, including all pertinent standard documents 
and model contracts in relation thereto; and (B) the institutional 
arrangements in respect thereof; 
 
(iii) 
the plan for the training and capacity building activities under the 
Project;  
 
(iv) 
the plan for the monitoring, evaluation and supervision of the Project; 
and 
 
(v) 
the Performance Indicators for the Project. 
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(b) 
The Recipient shall cause PTU-EDH and PCU to carry out the Project in 
 
accordance with the OM. 
2. 
In the event that any provision of the OM shall conflict with any one under this 
 
Agreement, the terms of this Agreement shall prevail. 
 
3. 
The OM may only be amended from time to time
 
in
 
consultation with, and after 
 
approval of, the Association.
 
D. Implementation 
Arrangements 
1. The 
Recipient 
shall:
 
(a) 
ensure that PTU-EDH and PCU submit annual Project work plans and budget to 
 
the Association for its review and approval; 
(b) 
cause the Strategic Steering Committee to convene its first meeting not later than 
 
two weeks after the Effective Date and, thereafter, quarterly during the  course of 
 Project 
implementation; 
(c) 
ensure that MEF shall furnish to the Association a written report with supporting 
 
documents, satisfactory to the Association, about the status of its payments to 
 
EDH, including the amounts billed by EDH for the Government's consumption 
 
of electricity, the transfers  from the MEF to cover the purchase of the fuel and 
 
the costs of energy paid to independent power producers, as well as the net 
 
amount effectively transferred to EDH: (i) not later than two weeks after the 
 
Effective Date, and, thereafter; (ii) semiannually during the course of Project 
 implementation; 
(d) 
ensure that the Board of Directors of EDH shall, upon receipt, furnish to the 
 
Association not later than two weeks after the Effective date, in respect of the 
 
first year of Project implementation, and thereafter, 4 months prior to the 
 
beginning of each subsequent Fiscal Year during the course of project 
 
implementation, an annual plan prepared by EDH, submitted to be agreed upon 
 
between MEF and MTPTC and furnished thereafter to EDH, which shall be 
 
presenting the minimum electricity supply  of hours per day that it intends to 
 
finance and that will be supplied either by EDH or by third parties to serve 
 customers:
 (i) in the Recipient’s capital city of 
Port-au-Prince,
 with further 
 
disaggregations showing the electricity provided to 
Port-au-Prince
 mixed 
 
neighborhood and the industrial zone; and (ii
)
in the main cities of 
the Provinces, 
 
regional areas in the Recipient’s territory.
 
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Section II. 
Project Monitoring, Reporting, Evaluation 
A. Project 
Reports
 
1. 
The Recipient shall through PCU, and shall cause PTU-EDH to: (a) monitor and evaluate 
the progress of the Project; and (b) prepare Project Reports in accordance with the 
provisions of Section 4.08 of the General Conditions and on the basis of indicators agreed 
with the Association and set forth in the OM.  Each such Project Report as prepared 
respectively by PCU and PTU-EDH shall cover the period of one calendar semester, and 
shall all be furnished to the Association by PCU not later than 45 days after the end of the 
period covered by such report.  
2. 
For 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 August 30, 2010. 
B. 
Financial Management, Financial Reports and Audits 
1. 
The Recipient shall maintain or cause to be maintained 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 prepare, 
through PCU assisted by PTU-EDH, interim un-audited financial reports for the Project 
covering each calendar quarter, in form and substance satisfactory to the Association, all 
to be furnished to the Association by PCU not later than forty-five days after the end of 
each calendar quarter. 
3. 
The Recipient, through PCU, shall have its Project Financial Statements audited and shall 
cause EDH to have its Financial Statements audited, all in accordance with the provisions 
of Section 4.09 (b) of the General Conditions.  Each audit of the 
Project’s Financial 
Statements and those of EDH shall cover the period of one Fiscal Year of the Recipient 
and of EDH.  The first audit in respect of the Project shall cover the period from the 
Effective Date up to September 30, 2007.  The audited Financial Statements for each 
such period shall be furnished to the Association not later than six months after the end of 
such period.
 
4. 
For purposes of Paragraph 3 above, the Recipient, through PCU, shall,
 
not
later than six 
months after the Effective Date, appoint and shall cause EDH to appoint, all the 
independent auditors referred to in Section 4.09 (b) (i) of the General Conditions with 
terms of reference satisfactory to the Association and selected in accordance with the 
provisions of Section III of Schedule 2 to this Agreement
.
5. 
For purposes of paragraph 4 of this section, the Recipient shall assume exclusive 
financial responsibility for the carrying out of all the audits of EDH required under the 
Project. 
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Section III. 
Procurement
A. General
 
1.
 Goods 
and 
Works.
 
All goods and works 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 Schedule. 
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 Schedule. 
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 and Works 
 
1.
 
International Competitive Bidding.  
Except as otherwise provided in paragraph 2 
below, goods and works shall be procured under contracts awarded on the basis of 
International Competitive Bidding.  
2.
 
Other Methods of Procurement of Goods and Works.  
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) National Competitive Bidding, subject to using 
Standard Bidding Documents agreed with the Association 
 
(b) Shopping, subject to using  Standard Request for 
Quotations
 
agreed with the Association 
 
(c) Direct Contracting, subject to the Association’s prior 
consent 
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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) Selection under a Fixed Budget 
 
(c) Least Cost Selection 
 
(d) Selection based on Consultant’s Qualifications 
 
(e) Single Source Selection, subject to the Association’s 
 
prior written consent  
 
(f) Procedures for the selection of Individual 
 
Consultants 
D. 
Review by the Association of Procurement Decisions 
1. 
The Procurement Plan shall set forth those contracts which shall be subject to the 
Association’s Prior Review.  All other contracts shall be subject to Post Review by the 
Association. 
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: (a) Article II of the General Conditions; (b) this Section; and (c) such 
additional instructions as the Association may 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 100% of Eligible Expenditures as set forth in 
the table in paragraph 2 below. 
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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 
(1)  Goods, training and 
consultants’ services for  Part 1 
of the Project 
 1,422,000 
100% 
(2)  Goods, works and 
consultants’ services for  Part 2.2 
of the Project 
 1,025,000 
100% 
(3)  Goods, works, training and 
consultants’ services for  Part 
2.3(b)
 
of the Project 
 1,018,000 
100% 
(4)  Goods, training, consultants’ 
services and operating costs for  
Part 3 of the Project 
 262,000 
100% 
(5)  Refund of Project 
Preparation Advance 
 
366,000
Amount payable 
pursuant to Section 
2.07 of the General 
Conditions 
(6) Unallocated 
 
7,000 
 
TOTAL AMOUNT 
 4,100,000 
 
B. 
Withdrawal Conditions; Withdrawal Period 
1.
 
Notwithstanding the provisions of Part A of this Section no withdrawal shall be made: 
(a) 
for payments made prior to the date of this Agreement, except that withdrawals 
up to an aggregate amount not to exceed SDR400,000 equivalent may be made 
for payments made prior to this date but on or after April 7, 2006, for Eligible 
Expenditures;  
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(b) under 
Category 
(
3) until and unless  the manager and staff of EDH local 
commercial agency referred to respectively  under Part 2.1 (a
)
of
the Project and 
listed in Section C of  this Schedule shall have been appointed satisfactory to the 
Association; and 
(c) 
under Category (5) until and unless the manager of the LCU in EDH referred to 
in Part 2.1 (b) of the Project shall have been appointed satisfactory to the 
Association. 
2.
 
The Closing Date is February 28, 2010. 
Section V. 
Other Undertakings
The Recipient shall carry out the requirements of Section IV.B.1 (b) of Schedule 2 to this 
Agreement in accordance with the following list of staff positions: 
1. 
Manager of the commercial agency (Responsable Centre Commercial). 
2. Secretary 
(Secrétaire). 
3. 
Commercial manager (Responsable Gestion Clientèle). 
4. 
Administrative manager (Responsable Administratif). 
5. 
Distribution manager (Responsable Distribution). 
6. 
Team leader for internal customer services (Internal) (Chef d’équipe d’intervention). 
7. 
Team leader for external customer service (external). 
8. 
Meter readers Leader (Responsable des Lecteurs de Compteurs). 
9. Warehouseman 
(Magasinier). 
10. 
Three Cashiers (3 Caissières). 
11. 
Installation and Maintenance team leader  (Chef d’équipe installation/entretien). 
12. 
Two Emergency and Repair team leader (2 Chefs d’équipe urgence et réparation). 
13. Anti-fraud 
team
 leader (Responsable de l’Unité de Lutte contre la Fraude). 
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APPENDIX 
Section I. 
Definitions 
1. 
“Board of Directors of EDH” means the 
Conseil d’Administration 
of EDH, an organ of 
EDH consisting of the body of appointed directors (administrateurs) responsible for EDH 
general administration and supervision.
 
2. 
“Category” means a category set forth in the table in Section IV of Schedule 2 to this 
Agreement. 
3. 
“
CMEP” means the Recipient’s
 Conseil de Modernisation des Entreprises
,
the council 
for the modernization of enterprises, established through parliamentary law dated 
September 26, 1996, signed and published by the Recipient’s executive branch on 
October 02, 1996. 
4.
 
“Consultant Guidelines” means the “Guidelines: Selection and Employment of 
Consultants by World Bank Recipients” published by the Bank in May 2004.
 
5
.
“EDH” means
 Electricité d’Haiti
,
the Recipient’s power utility, established through 
Décret 
signed and published by the Recipient’s executive branch on August 20, 1989. 
6. 
“Fiscal Year” and “FY” mean the Recipient‘s fiscal year commencing October 1 and 
ending September 30, twelve calendar months thereafter. 
7.
 
“General Conditions” means the “International Development Association General 
Conditions for Credits and Grants”, dated July 1, 2005.  
8. 
“LCU” means Large Customer Unit, the unit to be created within EDH, as referred to in 
Part 2.1(b) of the Project. 
9. “MEF” 
means 
Ministère
 
de l’Economie
 
et
 
des
 
Finances
,
the Recipient’s ministry of 
economy
 
and finance. 
10. “MPCE” 
means 
Ministère de la Planification et de la Coopération Externe, 
the 
Recipient’s Ministry of Planning and External Cooperation. 
11.
 
“MTPTC” means 
Ministère des Travaux Publics, des Transports et de la 
Communication, 
the Recipient’s ministry of public works, transport and communication.  
12. 
“Operating costs” means in respect of Category (4) in the table of Section IV.A(2) of 
Schedule 2 to this Agreement, the incremental expenses incurred on account of Project 
implementation, including office equipment and supplies, vehicle operation and 
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maintenance, communication and insurance costs, office administration costs, utilities, 
travel, per diem and supervision costs and salaries of locally contracted employees. 
13. 
 “Operational Manual” and “OM” mean the manual referred to in Section I.C.1(a) of 
Schedule 2 to this Agreement. 
 
14
.
“PCU” means the Project coordinating unit referred to in Section I.B.1. of Schedule 2 to 
this Agreement. 
15.
 
“Performance Indicators” means the indicators for evaluating the performance of the 
Project referred to in Section I.C.1.(a)(v) of this Agreement and set forth in the OM. 
16. 
 “Procurement Guidelines” means the “Guidelines for Procurement under IBRD Loans 
and IDA Credits” published by the Bank in May 2004. 
17. 
“Procurement Plan” means the Recipient’s procurement plan for the Project, referred to 
in paragraph 1.16 of the Procurement Guidelines and paragraph 1.24 of the Consultant 
Guidelines, signed and dated June 23, 2006, as the same shall be updated from time to 
time in accordance with the provisions of said paragraphs. 
18. 
“PTU-EDH” means the Project technical unit of EDH, responsible for the technical 
implementation of Project activities. 
19. 
“ Project Preparation Advance” means the advance referred to in Section 2.07 of the 
General Conditions, granted by the Association to the Recipient pursuant to the letter 
agreement signed on behalf of the Association on June 30, 2006 and on behalf of the 
Recipient on July 3, 2006. 
20. 
“Strategic Steering Committee” means a committee established for the oversight of 
Project implementation and referred to in Section I.B.2. of Schedule 2 to this Agreement. 
21. 
“Subsidiary Agreement” means the agreement between the Recipient and EDH referred 
to in Section I.A.1. of Schedule 2 to this Agreement. 
22.  
“Training” means in respect of Categories 
(
1), (3), and (4
)
respectively in the table in 
Section IV.A(2) of Schedule 2 to this Agreement: (i) reasonable travel, room, board and 
per diem expenditures as incurred by trainers and trainees in connection with their 
training and by non-consultant training facilitators; (ii) course fees; (iii) training facility 
rentals; and (iv) training material preparation, acquisition, reproduction and distribution 
expenses not otherwise covered under said Section IV.A(2) of Schedule 2 to this 
Agreement.
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