Page 1 ADMINISTRATION AGREEMENT In pursuance of the Framework Agreement between the GOVERNMENT OF THE KINGDOM OF DENMARK (Denmark) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) (collectively, the Bank) dated October 6, 1998 (the Agreement), I am pleased to inform you of the intention of Denmark to make available a contribution (Contribution) of six million nine hundred thousand US Dollars (US$6,900,000), to be administered by the Bank for the implementation of the HAMSET Diseases Control Project in Eritrea (Trust Fund No. 028941). The terms of the Agreement shall apply to the Contribution. The Bank shall administer the Contribution in accordance with the provisions of the Agreement, except as otherwise provided herein. The Contribution is for a Recipient-Executed Technical Assistance Grant and shall be used exclusively for the following purposes: (i) consultants’ services; (ii) equipment, materials and vehicles; (iii) civil works, including minor civil works for construction of toilet facilities, waste disposal units and promotion of environmental sanitation in schools; (iv) training, workshops, school health club funds; and (v) operating costs. The activities are described in the Attachment to this Agreement. Denmark shall deposit the Contribution as follows: (a) an initial deposit of US$840,000 shall be deposited into IBRD’s Cash Account "T" (Account No. 000125199, Routing Code 021001088, Swift Address MRMDUS33) which is maintained with HSBC Bank USA in New York City; and (b) the remaining amount of the Contribution shall be deposited into the said IBRD’s Cash Account in the installments set out below: (i) US$1,700,000 by December 31, 2002; (ii) US$1,820,000 by December 31, 2003; (iii) US$1,330,000 by December 31, 2004; and (iv) US$1,210,000 by December 31, 2005. When making payment, Denmark shall instruct HSBC Bank USA to advise the IBRD’s Treasury Operations Department as to the amount received; that it is from Denmark for TF028941, HAMSET Diseases Control Project in Eritrea and, the date of the deposit. In addition, Denmark shall arrange to fax a copy of its deposit instruction to IBRD’s Trust Funds Division utilizing Fax No. (202) 477-7163. It is expected that the funds will be fully utilized in accordance with the provisions of this Administration Agreement by March 31, 2006. The Bank shall only disburse the funds for the purposes of this Administration Agreement after such date upon the approval of Denmark. If, at any time, either party determines that the purposes of this Administration Agreement can no longer be effectively or appropriately carried out or if the Agreement is terminated, this Administration Agreement may be terminated at the initiative of either party by giving the other party a three (3) months’ written notice to this effect. Upon the termination of this Administration Agreement, and unless the parties agree on another arrangement, any Danish Grant Agreement entered into by the Bank, as administrator on behalf of Denmark, shall also terminate at such time, and any funds or other property of Denmark held hereunder by the Bank shall be Page 2 returned to Denmark, and the Bank’s administration shall be considered terminated. The officers responsible for coordination of all matters related to this Administration Agreement are: For Denmark: For the Bank: Ms. Nanna Hvidt Trust Funds and Cofinancing Head of Department for World Bank East and West Africa 1818 H Street NW Ministry of Foreign Affairs Washington DC, 20433 Asiatisk Plads 2 DK-1448 Copenhagen K Denmark Fax: +45 33 92 09 64 I would like to propose that this letter shall, upon your confirmation in the manner indicated below, constitute an agreement between Denmark and the Bank. Sincerely yours, [Ambassador] Confirmed and Agreed International Bank for Reconstruction and Development International Development Association By /s/ Oey Astra Meesook Country Director for Eritrea Africa Region Date: _________________ ATTACHMENT The activities (the Activities) for which the Grant is given are as follows: (a) promoting healthy lifestyles through the education system, including: (i) the strengthening of the central and regional skills in school health programming; (ii) promoting healthy practices and behavioral change in students and teachers; (iii) the establishing of school-based support and health services; and (iv) promoting healthy practices and behavioral change in adults; and (b) enhancing access to preventive, diagnostic, and treatment care for conscripts, including: (i) promoting healthy behavioral changes in conscripts through multiple channels of communication; (ii) strengthening health care services available (including HCT or voluntary counseling and testing); (iii) promoting increased use of condoms and insecticide treated materials; and (iv) establishing of a program to address HAMSET concerns in the context of demobilization. Page 3