TFGWB GRANT NUMBER TF0C6225 Trust Fund Grant Agreement (Second Additional Financing to the Palestinian Emergency Financing Facility Project) Between PALESTINE LIBERATION ORGANIZATION (for the Benefit of the Palestinian Authority) and INTERNATIONAL DEVELOPMENT ASSOCIATION (acting as administrator of the Trust Fund for Gaza and the West Bank) TFGWB GRANT NUMBER TF0C6225 GRANT AGREEMENT AGREEMENT dated as of the Signature Date between the PALESTINE LIBERATION ORGANIZATION (for the benefit of the Palestinian Authority) (“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION (“Bank”), acting as administrator of the Trust Fund for Gaza and the West Bank, established on October 19, 1993, by Resolution No. 93-11 and IDA 93-7, as amended by Resolution No. 95-6 and IDA 95-3 and Resolution No. 96-11 and IDA 96-7, and as further amended by Resolution No. 99-3 and IDA 99-2 and Resolution No. 03-193 and IDA 03-208 of the Executive Directors of the International Bank for Reconstruction and Development and the International Development Association (“Trust Fund”). WHEREAS (A) the Board of Governors of the International Bank for Reconstruction and Development and the International Development Association have resolved, on July 30, 2024 to, inter alia, replenish the Trust Fund in the amount of three hundred million United States Dollars ($300,000,000), such amount to be transferred from the surplus of the International Bank for Reconstruction and Development and to be used for financing rehabilitation projects in parts of the Gaza Strip (“Gaza”) and the West Bank (“West Bank”), which are under the jurisdiction of the Palestinian Authority. (B) the Palestine Liberation Organization and the Government of the State of Israel have entered, on September 28, 1995, into an agreement which, among other things, sets out certain interim self-government arrangements in Gaza and the West Bank (“Interim Agreement”); (C) Section 5(b) of Article IX of the Interim Agreement authorizes the Palestine Liberation Organization to conduct negotiations and, in certain cases described thereunder, sign agreements with states and international organizations for the benefit of the Palestinian Authority; (D) the Recipient has requested the Bank to assist in financing the project described in Schedule 1 to this Grant Agreement (the “Project”); and (E) the Bank has agreed, on the basis, among other things, of the foregoing to extend a Grant to the Recipient, for the benefit of the Palestinian Authority, for the purpose of providing a second additional financing to the Original Project and activities related to the Original Project (as defined in the Appendix to this Agreement) (“Project”) upon the terms and conditions set forth in this Agreement. -2- The Recipient and the Bank hereby agree as follows: Article I Standard Conditions; Definitions 1.01. The Standard Conditions (as defined in the Appendix to this Agreement) apply to and form 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 Standard Conditions or in the Appendix this Agreement. Article II The Project 2.01. The Recipient declares its commitment to the objective of the Project described in Schedule 1 to this Agreement (“Project”). To this end, the Recipient shall carry out the Project in accordance with the provisions of Article II of the Standard Conditions, and Schedule 2 of this Agreement. Article III The Grant 3.01. The Bank agrees to extend to the Recipient a grant in an amount not to exceed eighty million United States Dollars ($80,000,000) (“Grant”) to assist in financing the Project. 3.02. The Recipient may withdraw the proceeds of the Grant in accordance with Section III of Schedule 2 to this Agreement. Article IV Effectiveness; Termination 4.01. This Agreement shall not become effective until evidence satisfactory to the Bank has been furnished that the conditions specified below have been satisfied in a manner and in form and substance satisfactory to the Bank: (a) The execution and delivery of this Agreement on behalf of the Recipient has been duly authorized or ratified by all necessary governmental and corporate action. (b) The Subsidiary Agreement referred to in Section I.A.1 of Schedule 2 to this Agreement has been executed on behalf of the Recipient and the Palestinian Authority. -3- 4.02. By signing each of: (a) this Agreement; and (b) the Subsidiary Agreement (for purposes of this Section, each, a “Warrantied Agreement”), the Recipient shall be deemed to represent and warrant that on the Signature Date, or on the date agreed by the parties thereto to be the date of the Subsidiary Agreement, the respective Warrantied Agreement, has been duly authorized by, and executed and delivered on behalf of, the Recipient and is legally binding upon the Recipient in accordance with its terms. 4.03 Except as the Recipient and the Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the Bank dispatches to the Recipient notice of its acceptance of the evidence required pursuant to Section 5.01 (“Effective Date”). If, before the Effective Date, any event has occurred which would have entitled the Bank to suspend the right of the Recipient to make withdrawals from the Grant Account if this Agreement had been effective, the Bank may postpone the dispatch of the notice referred to in this Section until such event (or events) has (or have) ceased to exist. 4.04. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date ninety (90) days after the date of this Agreement, unless the Bank, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section. The Bank shall promptly notify the Recipient of such later date. Article V Recipient’s Representative; Addresses 5.01. The Recipient’s Representative referred to in Section 7.02 of the Standard Conditions is its Ministry of Planning and International Cooperation. 5.02. For purposes of Section 7.01 of the Standard Conditions: (a) the Recipient’s address is: Ministry of Planning and International Cooperation. Ramallah West Bank Telephone: Facsimile: 970-2-297 8846 970-2-297-8845 5.03. For purposes of Section 7.01 of the Standard Conditions: (a) the Bank’s address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and -4- (b) the Bank’s Electronic Address is: Telex: Facsimile: 248423 (MCI) or 1-202-477-6391 64145 (MCI) -5- AGREED as of the Signature Date. PALESTINIAN LIBERATION ORGANIZATION (for the Benefit of the Palestinian Authority) By _____________________________________ Authorized Representative Mr. Wael Zakout -Minister of Planning and Inte Name: __________________________ mINISTER OF pLANNING AND INTERNATIONAL COOPER Title: __________________________ 13-Oct-2024 Date: ___________________________ INTERNATIONAL DEVELOPMENT ASSOCIATION (acting as administrator of the Trust Fund for Gaza and West Bank) By _____________________________________ Authorized Representative Stefan Emblad Name: __________________________ Country Director West Bank & Gaza Title: ___________________________ 10-Oct-2024 Date: ___________________________ -6- SCHEDULE 1 Project Description The objective of the Project is to contribute to service delivery in the West Bank. The Project consists of the following Parts: Part 1: Supporting Salaries of Education and Health Sector Employees Provision of financing of salaries of :(i) Education Employees; and (ii) Health Sector Employees in the West Bank. Part 2: Project Audits Provision of technical assistance to carry out the Project audits. -7- SCHEDULE 2 Project Execution Section I. Institutional and Other Arrangements A. Subsidiary Agreement 1. To facilitate the carrying out of the Project, the Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement (“Subsidiary Agreement”) between the Recipient and the Palestinian Authority, under terms and conditions approved by Bank. 2. The Palestinian Authority shall: (a) perform in accordance with the provisions of the Subsidiary Agreement; (b) take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (c) not take or permit to be taken any action which would prevent or negatively interfere with the carrying out of the Project. 3. The Recipient shall exercise its rights under the Subsidiary Agreement, as the case may be, in such manner as to protect the interests of the Recipient and the Bank and to accomplish the purposes of the Grant. Except as the Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any of its provisions. B. Institutional Arrangements 1. The Recipient shall vest responsibility for overall coordination and implementation of the Project. The MOF shall assign the DGIRP as the Project implementing unit (“PIU”) within MOF through Project implementation in a manner acceptable to the Bank, to be responsible for supporting the coordination of activities under the Project. To this end, the Recipient shall take all actions, including the provision of funding, resources, and personnel, with qualifications and experience, and under terms of reference, satisfactory to the Bank, as further detailed in the Project Operations Manual (“POM”). 2. The Recipient shall, at all times during Project implementation, ensure that MOF’s Payroll Directorate is maintained with mandate, composition and resources acceptable to the Bank and is responsible for reporting to DGIRP on consolidated wage bill expenditures and monitoring of wage bill spending under the Project in accordance with the provisions of the POM. C. Project Operations Manual 1. The Recipient shall continue implementing the Project in accordance with the abbreviated POM prepared and adopted under the Original Project and amended -8- under the first Additional Financing (“Project Operational Manual” or “POM”), in a manner satisfactory to the Bank, to reflect the rules, methods, guidelines, standard documents and procedures for the carrying out of the Project, including: (a) verification protocols and procedures for payment of salaries, including a definition of Education Employees and Health Sector Employees; (b) grievance mechanism for the Project; (c) personal data collection and processing in accordance with applicable national law and good international practice; and (d) such other overall Project administrative, accounting, auditing, reporting, financial, environmental and social, procurement and disbursement procedures. 2. In the event that any provision of the POM conflicts with this Agreement, the terms of this Agreement shall prevail. The Recipient, through Palestinian Authority, shall ensure that the POM is not amended without the prior written agreement of the Bank. D. Environmental and Social Standards 1. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Bank. 2. Without limitation upon paragraph 1 above, the Recipient shall ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan (“ESCP”), in a manner acceptable to the Bank. To this end, the Recipient shall ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, and as further specified in the ESCP; (b) sufficient funds (from the Recipient and the Project), are available to cover the costs of implementing the ESCP; (c) policies, procedures and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP; and (d) the ESCP or any provision thereof, is not amended, revised or waived, except as the Bank shall otherwise agree in writing and the Recipient has, thereafter, disclosed the revised ESCP. In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions of this Agreement shall prevail. 3. The Recipient shall: (a) take all measures necessary on its part to collect, compile, and furnish to the Bank through regular reports, with the frequency specified in the ESCP, and promptly in a separate report or reports, if so requested by the -9- Bank, information on the status of compliance with the ESCP and the management tools and instruments referred to therein, all such reports in form and substance acceptable to the Bank, setting out, inter alia: (i) the status of implementation of the ESCP; (ii) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (iii) corrective and preventive measures taken or required to be taken to address such conditions; and (b) promptly notify the Bank of any incident or accident related to or having an impact on the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including without limitation any potential Project-related occupational health and safety accidents and incidents or Project-related allegations of GBV or Project-related child labor, in accordance with the ESCP, the instruments referenced therein and the Environmental and Social Standards. 4. The Recipient shall maintain and publicize the availability of a Grievance Redress Mechanism (“GRM”), in form and substance satisfactory to the Bank, to hear and determine fairly and in good faith all complaints raised in relation to the Project and take all measures necessary to implement the determinations made by such mechanism in a manner satisfactory to the Bank. Section II. Project Monitoring, Reporting and Evaluation A. Project Reports 1. The Recipient shall furnish one Project Report to the Bank not later than forty-five (45) days after the Closing Date. 2. Except as may otherwise be explicitly required or permitted under this Agreement or as may be explicitly requested by the Association, in sharing any information, report or document related to the activities described in Schedule 1 of this Agreement, the Recipient shall ensure that such information, report or document does not include Personal Data. Section III. Withdrawal of Grant Proceeds A. General 1. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) Disbursement and Financial Information Letter; and (c) this Section; to finance Eligible Expenditures in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: -10- Category Amount of the Grant Percentage of Allocated (expressed in Expenditures to USD) be Financed (Inclusive of Taxes) (1) Salaries of Education Employees under Part 1(i) of the Project (a) Salaries paid in the 50,747,870 100% months of July and August 2024 (b) Salaries paid in the 15,537,130 months of May and June 2024 (2) Audit under Part 2 of the 15,000 100% Project (3) Salaries of Health Sector Employees under Part 1(ii) of the Project 13,700,000 100% TOTAL AMOUNT 80,000,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for: (a) payments made prior to the Signature Date, except that withdrawals up to an aggregate amount not to exceed $79,985,000 may be made for payments made prior to this date but on or after April 1, 2024 for Eligible Expenditures under Categories (1) and (3); and -11- (b) payments under Categories (1b) and (3) until the Bank has received the final signed audit report of the PEFF First Additional Financing, in a manner acceptable to the Bank. 2. If the Bank determines, at any time, that an amount of the Grant was used to make a payment for ineligible expenditures, the Recipient shall, promptly upon notice from the Bank, refund an amount equal to the amount of such expenditures financed by the Bank. All amounts so refunded to the Bank pursuant to the abovementioned request will be subsequently cancelled. 3. The Closing Date is December 31, 2025. APPENDIX Section I. Definitions 1. “Anti-Corruption Guidelines” means, for purposes of paragraph 2 of the Appendix to the Standard Conditions, the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006, and revised in January 2011, and as of July 1, 2016. 2. “Category” means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 3. “DGIRP” means MOF’s Directorate General of International Relations and Projects, or any successor thereof. 4. “Education Employees” means staff working in institutions providing basic, secondary, pre-primary, and vocational education in the West Bank, as defined in the ESSP and further detailed in the POM, and including teachers, school principals, janitors, administrative assistants, counselors and other support staff eligible for payment of salaries. 5. “Environmental and Social Commitment Plan” or “ESCP” means the Recipient’s environmental and social commitment plan, acceptable to the Bank, dated August 29, 2024 which sets out a summary of the material measures and actions to address the potential environmental and social risks and impacts of the Project, including the timing of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any instruments to be prepared thereunder; as the ESCP may be revised from time to time, with prior written agreement of the Association, and such term includes any annexes or schedules to such plan. 6. “Environmental and Social Standards” or “ESSs” means, collectively: (i)“Environmental and Social Standard 1: Assessment and Management of Environmental and Social Risks and Impacts”; (ii) “Environmental and Social Standard 2: Labor and Working Conditions”; (iii) “Environmental and Social Standard 3: Resource Efficiency and Pollution Prevention and Management”; (iv)“Environmental and Social Standard 4: Community Health and Safety”; (v)“Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement”; (vi) “Environmental and Social Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources”; (vii) “Environmental and Social Standard 7: Indigenous Peoples/Sub- Saharan Historically Underserved Traditional Local Communities”; (viii) “Environmental and Social Standard 8: Cultural Heritage”; (ix) “Environmental and Social Standard 9: Financial Intermediaries”; (x) “Environmental and Social Standard 10: Stakeholder Engagement and -2- Information Disclosure”; effective on October 1, 2018, as published by the Association. 7. “Education Sector Strategic Plan” or “ESSP” means the Recipient’s plan for the Education Sector for 2017-2022, dated April 2017, based on the vision of a “Palestinian society that possesses values, knowledge, science and technology and is able to employ that knowledge for liberation as well as development”, the sustainable development goals and the National policy agenda of 2017-2022. The plan focuses on preschool, basic, pre-primary, secondary, higher technical and vocational education, and training, as well as scientific research. 8. “First Additional Financing” means the grant agreements between the Palestinian Liberation Organization (for the benefit of the Palestinian Authority) and the Bank, acting as administrator of the Trust Fund for Gaza and West Bank and the Palestinian Umbrella for Resilience Support to the Economy Multi-Donor Trust Fund (“PURSE MDTF”), for the provision of additional financing for the Original Project, dated July 6, 2024, 2024 and August 8, 2024 respectively (Grants No. TFC5270 and TFC5693). 9. “Health Sector Employees” means staff working in hospitals, primary health care centers and other public health institutions located in the West Bank, including doctors, nurses, technical specialists, administrative staff, janitors, counselors, and other support staff eligible for payment of salaries, as further detailed in the POM. 10. “MoF” means the Recipients’ Ministry of Finance or any successor thereof. 11. “Original Grant” means the financing provided to the Recipient under the Original Grant Agreement. 12. “Original Grant Agreement” or “PEFF” means the grant agreement between the Palestinian Liberation Organization (for the benefit of the Palestinian Authority) and the Bank, acting as administrator of the Trust Fund for Gaza and West Bank, for the Palestinian Emergency Financing Emergency Project, dated February 29, 2024 (Grant No. TFC4120). 13. “Original Project” means the Project described in Schedule 1 to the Original Grant Agreement. 14. “Payroll Directorate” means the MOF’s department responsible for monitoring monthly wage bill payments for School Employees as further detailed in the POM, or any successor thereto. 15. “Personal Data” means any information relating to an identified or identifiable individual. An identifiable individual is one who can be identified by reasonable means, directly or indirectly, by reference to an attribute or combination of -3- attributes within the data, or combination of the data with other available information. Attributes that can be used to identify an identifiable individual include, but are not limited to, name, identification number, location data, online identifier, metadata and factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of an individual. 16. “PIU” means the Project coordinating unit within MOF referred to in Section I.B of Schedule 2 to this Agreement. 17. “Procurement Regulations” means, for purposes of paragraph 20 of the Appendix to the Standard Conditions, the “Bank Procurement Regulations for IPF Borrowers”, dated September 2023. 18. “Project Operational Manual” or “POM” means the manual referred to in Section I.B of Schedule 2 of this Agreement, satisfactory to the Bank containing detailed institutional, administrative, financial, social, technical and operational guidelines and procedure for the implementation of the Project. 19. “Salaries” means the monthly wages received by Education Employees as further described in the POM. 20. “Signature Date” means the later of the two dates on which the Recipient and the Bank signed this Agreement and such definition applies to all references to “the date of the Grant Agreement” in the Standard Conditions. 21. “Standard Conditions” means the “International Bank for Reconstruction and Development and International Development Association Standard Conditions for Grant Financing Made by the Bank out of Trust Funds”, dated February 25, 2019, with the modifications set forth in Section II of this Appendix. 22. “Subsidiary Agreement” means the agreement referred to in Section I. A of Schedule 2 to this Agreement pursuant to which the Recipient shall make the proceeds of the Grant available to the PA. Section II. Modifications to the Standard Conditions The Standard Conditions are modified as follows: 1. Section 2.09 is amended to read as follows: “Section 2.09. Visibility and Visits. The Recipient shall: (a) ensure that all measures as the Bank may reasonably request to identify publicly the donor(s) to the trust fund supporting the Project are taken; and -4- (b) throughout the implementation of the Project and for a period of ten (10) years thereafter enable the Bank’s representatives, and, if requested by the Bank, the representatives of the donor(s): (i) to visit any facilities and sites included in the Project; and (ii) to examine the goods financed out of the proceeds of the Grant, and any documents relevant to the performance of its obligations under the Grant Agreement.” 2. Section 3.07 is amended to read as follows: “Section 3.07. Financing Taxes. (a) The Grant Agreement may specify that the proceeds of the Grant may not be withdrawn to pay for Taxes levied by, or in the parts of West Bank under the jurisdiction of the Palestinian Authority on or in respect of Eligible Expenditures, or on their importation, manufacture, procurement or supply. In such case, if the amount of any such Taxes decreases or increases, the Bank may, by notice to the Recipient, adjust the percentage of such Eligible Expenditures to be financed out of the proceeds of the Grant specified in the Grant Agreement, as required to ensure consistency with such limitation on withdrawals.” 3. Sub-sections (a) and (h) of Section 4.02 are deleted, and consequently, Sub-sections (b) through (k) are re-lettered as Sub-sections (a) through (i). 4. Re-lettered Sub-section (b) of Section 4.02 is amended to read as follows: “(b) Fraud and Corruption. At any time, the Bank determines that any representative of the Recipient (or any agency thereof or any entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, or any other recipient of any of the proceeds of the Grant) has engaged in corrupt, fraudulent, coercive or collusive practices in connection with the use of the proceeds of the Grant, without the Recipient (or any such agency thereof or any such entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority or any other such recipient) having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur.” 5. Re-lettered Sub-section (c) of Section 4.02 is amended to read as follows: “(c) Cross Suspension. IBRD or IDA has suspended in whole or in part the right of the Recipient or any agency thereof, or any entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, to make withdrawals under any agreement with IBRD or with IDA because of a failure by the Recipient, or any agency thereof, or any entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, to -5- perform any of its obligations under such agreement or any other agreement with IBRD or IDA.” 6. Re-lettered Sub-section (f) of Section 4.02 is amended to read as follows: “(f) Assignment of Obligations; Disposition of Assets. The Recipient or any other entity responsible for implementing any part of the Project has, without the consent of the Bank: (i) assigned or transferred, in whole or in part, any of its obligations arising under or entered into pursuant to the Grant Agreement; or (ii) sold, leased, transferred, assigned, or otherwise disposed of any property or assets financed wholly or in part out of the proceeds of the Grant; provided, however, that the provisions of this paragraph shall not apply with respect to transactions in the ordinary course of business which, in the opinion of the Bank: (A) do not materially and adversely affect the ability of the Recipient (or such other entity) to perform any of its obligations arising under or entered into pursuant to the Grant Agreement or to achieve the objectives of the Project; and (B) do not materially and adversely affect the financial condition or operation of the Recipient (or such other entity).” 7. Re-lettered Sub-section (g) of Section 4.02 is amended to read as follows: “(g) Condition of Recipient. (i) If the Grant has been made to a Recipient which is not a member of IBRD: (A) Any action has been taken for the dissolution, disestablishment or suspension of operations of the Recipient (or of any other entity responsible for implementing any part of the Project). (B) The Recipient (or any other entity responsible for implementing any part of the Project) has ceased to exist in the same legal form as that prevailing as of the date of the Grant Agreement. (ii) In the opinion of the Bank, the legal character, ownership or control of the Recipient (or any other entity responsible for implementing any part of the Project) has changed from that prevailing as of the date of the Grant Agreement so as to materially and adversely affect the ability of the Recipient (or such other entity) to perform any of its obligations arising under or entered into pursuant to the Grant Agreement, or to achieve the objectives of the Project.” 8. Re-lettered Sub-section (h) of Section 4.02 is amended to read as follows: -6- “(h) Ineligibility. IBRD or IDA has declared the Recipient ineligible to receive proceeds of any financing made by IBRD or IDA or otherwise to participate in the preparation or implementation of any project financed in whole or in part by IBRD or IDA (including as administrator of funds provided by another financier), as a result of a determination by IBRD or IDA that the Recipient has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of the proceeds of any financing made by IBRD or IDA.” 9. Sub-section (c) of Section 4.03 is amended to read as follows: “(c) Fraud and Corruption. At any time, the Bank determines, with respect to any amount of the proceeds of the Grant, that corrupt, fraudulent, collusive or coercive practices were engaged in by representatives of the Recipient (or any agency thereof or any entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, or any other recipient of the proceeds of the Grant) without the Recipient (or any such agency thereof or any such entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, or any such other recipient of the proceeds of the Grant) having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur.” 10. Sub-section (a) of Section 4.05 is amended to read as follows: “(a) If the Bank determines that an amount of the Grant has been used in a manner inconsistent with the provisions of the Grant Agreement or these Standard Conditions, the Recipient shall, upon notice by the Bank to the Recipient, promptly refund such amount to the Bank. Such inconsistent use shall include, without limitation: (i) use of such amount to make a payment for an expenditure that is not an Eligible Expenditure; or (ii) (A) engaging in corrupt, fraudulent, collusive or coercive practices in connection with the use of such amount, or (B) use of such amount to finance a contract during the procurement or execution of which such practices were engaged in by representatives of the Recipient (or any agency thereof or any entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, or other recipient of such amount of the Grant), in either case without the Recipient (or such agency thereof or such entity in the West Bank and Gaza under the jurisdiction of the Palestinian Authority, or other such recipient) having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur.” -7- 11. Sub-section (k) of Section 5.03 is amended to read as follows: “(j) If, within thirty (30) days after counterparts of the award have been delivered to the parties, the award has not been complied with, any party may: (i) enter judgment upon, or institute a proceeding to enforce, the award in any court of competent jurisdiction against any other party; (ii) enforce such judgment by execution; or (iii) pursue any other appropriate remedy against such other party for the enforcement of the award and the provisions of the Grant Agreement. Notwithstanding the foregoing, this Section shall not authorize any entry of judgment or enforcement of the award against the Recipient except as such procedure may be available otherwise than by reason of the provisions of this Section.” 12. Paragraph (18) of the Appendix is deleted and, consequently, paragraphs (19) through (28) are re-numbered as paragraphs (18) through (27).