OFFICIAL DOCUMENTS GEF GRANT NUMBER TFOB3321 Global Environment Facility Grant Agreement (Africa Environmental Health and Pollution Management Project) between REPUBLIC OF GHANA And INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (acting as an Implementing Agency of the Global Environment Facility) GEF GRANT NUMBER TFOB3321 GLOBAL ENVIRONMENT FACILITY GRANT AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF GHANA ("Recipient") and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("Bank"), acting as an implementing agency of the Global Environment Facility ("GEF"). 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 objectives of the project described in Schedule 1 to this Agreement ("Project"). To this end, the Recipient shall carry out the Project through the Environmental Protection Agency ("EPA") in accordance with the provisions of Article II of the Standard Conditions, Schedule 2 to this Agreement and with applicable Multilateral Environment Conventions. Article III The Grant 3.01. The Bank agrees to extend to the Recipient a grant in an amount not to exceed eight million, seven hundred and fifteen thousand, five hundred and ninety-six United States Dollars (USD 8,715,596) ("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. 3.03. The Grant is funded out of the abovementioned trust fund for which the Bank receives periodic contributions from the donors to the trust fund. In accordance with Section 3.02 of the Standard Conditions, the Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the donors -2- under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. Article IV Recipient's Representative; Addresses 4.01, The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its minister responsible for finance. 4.02. For purposes of Section 7.01 of the Standard Conditions: (a) the Recipient's address is: Minister for Finance Ministry of Finance P.O. Box MB 40 Accra, Ghana; and (b) the Recipient's Electronic Address is: Email: chiefdirector(mofep.gov.gh 4.03. For purposes of Section 7.01 of the Standard Conditions: (a) the Bank's address International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Bank's Electronic Address is: Telex: Facsimile: 248423 (MCI) or 1 -202 477-6391 64145 (MCI) -3- AGREED as of the Signature Date. REPUBLIC OF GHANA By Authorized Representative Name: , Title: Y \ Date: 1(S it INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as an Implementing Agency of the Global Environment Facility By Authorized Representative Name: Claire Kfouri Acting Regional Director Title: Africa and Middle East and North Africa Date: August 7, 2020 -4- SCHEDULE 1 Project Description The objectives of the Project are to reduce exposure to mercury and uPOPs pollution at pilot sites and strengthen the institutional capacity to manage and regulate mercury use in artisanal small-scale gold mining (ASGM) and e-waste in selected countries in Africa. The Project consists of the following parts: Part 1. Institutional strengthening, knowledge and capacity building 1.1. Mercury management in ASGM Strengthening mercury management in ASGM through: (a) development of a national mercury inventory; (b) comprehensive mapping of the mercury ceo-system to assess the stakeholders along the supply-demand chain and development of an appropriate communications strategy for raising awareness on environmental health risks of mercury mismanagement; (c) raising awareness of artisanal and small-scale miner associations on environmental health risks and use of cleaner technologies in mining and mineral processing, including mercury-free methods; and (d) improving national institutional mechanisms for mercury management and participation in regional knowledge exchange platform, 1.2. e-Waste management Strengthening the capacity of institutions, including EPA, MESTI and Customs, for environmentally-sound disposal and recycling of e-waste, in particular through: (a) undertaking a country-wide situation analysis on e-waste to understand the physical flow of e-waste by provenance and type, and assess the economic and social weight of the sector; (b) preparation of a comprehensive stakeholder mapping of the e-waste ecosystem as a basis for outreach and communication, targeting in particular (i) the general public, (ii) those companies which pay the levy, and (iii) potential beneficiaries from the e-waste fund; -5- (c) building capacity, through provision of technical assistance and training to targeted stakeholders such as e-waste cooperatives, Customs officers, and EPA/MESTI staff; and (d) operationalization of the Hazardous Waste and Electronic Waste Management Committee and strengthening of the capacity of EPA and MESTI for coordination of initiatives on e-waste management as well as participation in regional knowledge exchange platform. Part 2. Policy dialogue and regulatory enhancements 2.1 Mercury management in ASGM (a) Carrying out of an assessment of the policy and legislative gaps on mercury management and development of an appropriate legal framework consistent with the Minamata Convention as well as development of interim standard for mercury management along the value chain pending the phasing out of use of mercury. (b) Preparation of technology and financial roadmaps for adoption of new practices and technologies more respectful of environment, including assessment on access to finance for artisanal and small-scale miners. 2.2 e-Waste management (a) Preparation of implementation plan, monitoring and evaluation plan and communication strategy in support of the national integrated e-waste management scheme. (b) Carrying out economic assessments for e-waste processing and management to inform regulation of e-waste. Part 3. Demonstrating the application of technological tools and economic approaches 3.1 Mercury management in ASGM Establishment of clean mining demonstration centers for training and promotion of alternative mercury free technologies in the ASOM sector. 3.2. e-Waste management Design and implementation of pilot investments and approaches for environmentally- sound e-waste management (including techniques to improve collection, transportation and safe disposal/recycling of e-waste) consistent with the provisions of Article 6 of the Stockholm Convention. In particular: establishment of collection and dismantling centers -6- in e-waste hotspots outside Accra; and construction of holding centers to facilitate e-waste recovery, storage and disposal. Part 4. Project coordination and management Providing technical support, advisory services and Operating Costs for Project coordination, management as well as monitoring and evaluation at national and local levels including implementation and supervision of Project activities, administration of procurement and financial management as well environmental and social risks management. -7- SCHEDULE 2 Project Execution Section I. Institutional and Other Arrangements A. Institutional Arrangements. 1 National Steerin Committee. The Recipient shall maintain, throughout the implementation of the Project, a National Steering Committee, co-chaired by senior officials from the Ministry of Environment, Science, Technology and Innovation and the Ministry of Lands and Natural Resources and comprising among other senior officers of the ministries responsible for finance, health, local government, trade, water and justice with mandate, composition and resources acceptable to the Bank to be responsible for, inter alia, (a) providing overall policy guidance and strategic directions on Project activities; (b) reviewing and approving Annual Work Plans and reviewing Project reports; and (c) facilitating coordination across agencies and implementation including coordinating with regional knowledge platform to facilitate knowledge across the region. 2. Project Implementation Unit. The Recipient shall maintain, throughout the implementation of the Project, a Project Implementation Unit in EPA with staff (including a Project coordinator, technical specialists, financial management specialist, monitoring and evaluation specialist, procurement specialist, environmental and social risks management specialists and communication specialist) with the terms of reference and resources satisfactory to the Bank, to be responsible for overall coordination and implementation of Project activities, including preparing Annual Work Plans. B. Project Implementation Manual. No later than three (3) months after Effective Date the Recipient shall prepare a Project implementation manual in form and substance satisfactory to the Bank, containing detailed arrangements and procedures for implementation of the Project including inter alia: (a) delineation of roles and responsibility of various entities, institutions and agencies involved in Project implementation and their coordination; (b) disbursement, procurement and financial management; (c) environmental and social risks management; (d) monitoring and evaluation, reporting and communication, including performance indicators; and (e) such other administrative, financial, technical and organizational arrangements and procedures as shall be required for the Project. 2. The Recipient shall: (a) furnish to and exchange views with the Bank on such manual promptly upon its preparation; and (b) thereafter adopt such manual as shall have been approved by the Bank (Project Implementation Manual or PIM). -8- 3. The Recipient shall ensure that the Project is carried out in accordance with the arrangements and procedures set out in the PIM (provided, however, that in case of any conflict between the arrangements and procedures set out in the PIM and the provisions of this Agreement, the provisions of this Agreement shall prevail), and shall not amend, abrogate or waive, or permit to be amended, abrogated or waived, the PIM or any of its provisions without prior approval in writing by the Bank. C. Environmental and Social Standards. 1I 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 I 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 provided in the ESCP; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies and procedures are maintained, and qualified and experienced staff in adequate numbers are retained to implement the ESCP, as provided in the ESCP; and (d) the ESCP, or any provision thereof, is not amended, repealed, suspended or waived, except as the Bank shall otherwise agree in writing, as specified in the ESCP, and ensure that the revised ESCP is disclosed promptly thereafter. 3. In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions of this Agreement shall prevail. 4. The Recipient shall ensure that: (a) all measures necessary are taken 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 Bank, information on the status of compliance with the ESCP and the environmental and social 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 -9- (iii) corrective and preventive measures taken or required to be taken to address such conditions; and (b) the Bank is promptly notified 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 in accordance with the ESCP, the environmental and social instruments referenced therein and the Environmental and Social Standards. 5. The Recipient shall establish, publicize, maintain and operate an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances of Project-affected people, and take all measures necessary and appropriate to resolve, or facilitate the resolution of, such concerns and grievances, in a manner acceptable to the Bank. 6. The Recipient shall ensure that all bidding documents and contracts for civil works under the Project include the obligation of contractors, subcontractors and supervising entities to: (a) comply with the relevant aspects of ESCP and the environmental and social instruments referred to therein; and (b) adopt and enforce codes of conduct that should be provided to and signed by all workers, detailing measures to address environmental, social, health and safety risks, and the risks of sexual exploitation and abuse, sexual harassment and violence against children, all as applicable to such civil works commissioned or carried out pursuant to said contracts. D. Annual Work Plans 1. The Recipient shall prepare and furnish to the Bank not later than November 1" of each Fiscal Year during the implementation of the Project (beginning in calendar year 2020), a work plan and budget containing inter alia: (a) all activities proposed to be implemented under the Project during the following Fiscal Year; (b) a proposed financing plan for expenditures required for such activities, setting forth the proposed amounts and sources of financing therefor and disbursement schedule; and (c) the training plan for such period. 2. The Recipient shall ensure that in preparing any training plan proposed for inclusion in an annual work plan and budget it shall identify in the training plan: (a) the objective and content of the Training envisaged; (b) the selection method of the institutions or individuals conducting such Training, and said institutions if already known; (c the expected duration and an estimate of the cost of said Training; and (d) the selection method of the personnel who will attend the Training, and number and names of such personnel if already known, -10- 3. The Recipient shall afford the Bank a reasonable opportunity to exchange views with the Recipient on each such proposed annual work plan and budget and shall thereafter ensure that the Project is implemented with due diligence during said following Fiscal Year in accordance with such work plan and budget as shall have been approved by the Bank ("Annual Work Plan"). 4. The Recipient shall not make or allow to be made any changes to the approved Annual Work Plan without prior approval in writing by the Bank. 5. Without limitation on the provisions of Part D of this Section, the Recipient shall prepare and furnish to the Bank the first proposed Annual Work Plan and required under the Project not later than one (1) month after the Effective Date. Section II. Project Monitoring, Reporting and Evaluation A. Documents; Records In addition, and without limitation to the obligations set forth in Section 2.05 of the Standard Conditions, the Recipient shall ensure that: (a) all records evidencing expenditures under the Project are retained for seven (7) years and six (6) months after the Closing Date, such records to include: (i) this Agreement, all addenda thereof, and any amendments thereto; (ii) the Recipient's financial and narrative progress reports submitted to the Bank; (iii) the Recipient's financial information related to the Grant, including audit reports, invoices and payroll records; (iv) the Recipient's implementation documentation (including sub-agreements, procurement files, contracts, purchase orders); and (v) the corresponding supporting evidence referred to in Section 3.04 of the Standard Conditions; and (b) the representatives of the Bank are: (i) able to examine all records referred to above in paragraph (a); (ii) provided all such information concerning such records as they may from time to time reasonably request; and (iii) able to disclose such records and information to the Donor(s). B. Project Reports The Recipient shall ensure that each Project Report is furnished to the Bank not later than one month after the end of each calendar semester, covering the calendar semester. -11- 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; and (b) this Section; to finance 100% of Eligible Expenditures consisting of goods, works, non-consulting services, consulting services, Operating Costs and Training inclusive of Taxes. B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section no withdrawal shall be made for payments made prior to the Signature Date. 2. The Closing Date is July 31, 2025. -12- APPENDIX Definitions 1. "Annual Work Plan" means the work plan and budget prepared annually by the Recipient and approved by the Bank in accordance with Section LD of Schedule 2 to this Agreement; and "Annual Work Plans" means more than one Annual Work Plan 2. "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. 3. "Basel Convention" means the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal adopted on 22 March 1989 by the Conference of Plenipotentiaries in Basel, Switzerland and entered into force on 5 May 1992. 4. "Effective Date" means the date on which the Grant Agreement enters into effect in accordance with Section 6.01 of the Standard Conditions, 5. "Environmental and Social Commitment Plan" or "ESCP" means the environmental and social commitment plan for the Project, dated 9 June 2020, as the same may be amended from time to time in accordance with the provisions thereof, which sets out the material measures and actions that the Recipient shall carry out or cause to be carried out to address the potential environmental and social risks and impacts of the Project, including the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any environmental and social instruments to be prepared thereunder. 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"; -13- (x) "Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure"; effective on October 1, 2018, as published by the Bank. 7. "Environmental Protection Agency" and the acronym "EPA' mean Recipient Agency established and operating pursuant to the Environmental Protection Agency Act, 1994 (Act 490) responsible for the protection of the Environment, 8. "Fiscal Year" and "FY" mean the twelve months period starting January I and ending December 31 of the same year. 9, "Minamata Convention" means the Minamata Convention on Mercury adopted by the Conference of Plenipotentiaries on 10 October 2013 in Kumamoto, Japan and entered into force on 16 August 2017. 10. "Ministry of Environment, Science, Technology and Innovation" and the acronym "MEST' mean the Recipient's ministry responsible for environment, 11. "Ministry of Lands and Natural Resources" means the Recipient's ministry responsible for land. 12. "Multilateral Environment Conventions" means Minamata Convention, Stockholm Convention and Basel Convention. 13. "National Steering Committee" means the committee referred to in Section I.A. I of Schedule 2 to this Agreement. 14. "Operating Costs" means the incremental expenses incurred on account of Project implementation, based on the Annual Work Plan approved by the Bank pursuant to Section I.D of Schedule 2 to this Agreement, and consisting of expenditures for office supplies, vehicle operation and maintenance, maintenance of equipment, communication and insurance costs, office administration costs, utilities, rental, consumables, accommodation, travel and per diem, and salaries of Project staff, but excluding the salaries of the Recipient's civil service, meeting and other sitting allowances and honoraria to said staff. 15. "Procurement Regulations" means, for purposes of paragraph 20 of the Appendix to the Standard Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. 16. "Project Implementation Unit" means the unit referred to in Section I.A.2 of Schedule 2 to this Agreement. 17. "Project Implementation Manual" or "PIM" means the manual referred to in Section I.B.2 of Schedule 2 to this Agreement as the same may be amended flom time to time with the prior written approval of the Bank. -14- 18. "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. 19. "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. 20. "Stockholm Convention" means the Stockholm Convention on Persistent Organic Pollutants adopted by the Conference of Plenipotentiaries on 22 May 2001 in Stockholm, Sweden and entered into force on 17 May 2004. 21. "Training" means the costs associated with training, workshops and study tours provided under the Project, based on the Annual Work Plan approved by the Bank pursuant to Section LD of Schedule 2 to this Agreement, consisting of reasonable expenditures (other than expenditures for consultants' services) for: (1) travel, room, board and per diem expenditures 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.