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I]XECUTIoN COPY Assillanc! Agr! mcnt PrinciP.rl Tcrl. USAID Assirluncc Agree ent No AAG- lll-G- 10'001 ASSISTANCE AOREEI.4ENT BETWEEN OEORCIA AND THE UNITED STATES OF AMERICA FOR IMPROVED INFRASTRUCTURE. ECONOMIC OPPORTUNITIES, AND SUPPORT INTERNALLY DISPLACED PERSONS August 12,20l0 009/2010' Nl'1207'X-2010, Nl-x'2010 and Humanharian Assislancc A 18. A 19. A20' A22 Amonnt Obli8Elcd: S77,069,599 Agr€cmcnl Numbc.: AAG - Il4-C- I0 - 002 FOR t,XFlC(l.l ION COPY Assistirlct Al|r!lnlorl T'1ble ofConlcols Arricle ?r Fulltliulal Objccl;vc. Progranr S€clio'r ? rcar:rnd Pn)tsrxm lil€nr|.nrs l l-unctionrlOhjtcliv! ProSarnr Arurs' Srcliol : 2. ProErrrr Elcrncnts' Scclion:.1. Antrcr l. Alnplilitd Dcscriplion' Anicle I Cortlribrrlions oflhe Padi€s I l. USAID Contribution S.clion J 2. Cr.ntc! Contribulion' Scction A(iclc 4: ConrPletion Dttc. Adiclc5:Condilions Pr.c.d.nl to Disbo6.mcnt' Slclioo 5.1. Firsl Disburs.mcnl' Scclion 5.2 Addilionrl Disburs'mcfll Scction 5-3. Notificdion' S.ction 5.4. Termiotl Dltcs forCondilions P'lcedcnl' Aniclc 6: SFci.l CoYcn$B. Articlc 7: Misccll.ncous Scction 7 I Communicstions' S.ction ? 2 RcPEssltltivcs. Saction 7.3. Slirdlrd Plovisiofls Aoncx' S.ction 7.4. lrngu!8. of AglEmcnl Amp[fied DescrrPtion Slandard Provisions EXECUTION COPY ASSISTANCE ACREEMEN T Darcd: Ar'8ust 12.2010 Betwccn GEORGIA, rcrin8 rhrough rhc Ministry ol Fim'rcc (herei'trner rcfened lo as the "Gra lae") arrd ThcUoit.dSlatcsofAmcrica'act;nslhroushlhcUnitedslal€sAgencyforlnlcmstionel DEvclopmcnl ("USAlD") Arlicle l: PurPos€. oul.lhe undcrstlndin8 of Th. DurDos. oflhis Assislancc ASrcemcnl ohc 'Aglstmenf) is lo s'l pant nsmcd abovc (lhc "Pariics") in conneclion wilh lhc Obi'ctrvc dcscnDeo o'row' rhe Aniclc 2: Functional Objcclive. Progmm Ar'0s and ProBEm Elemenls Slction 2.1 Funclional Objccliv€, Pmgram Arcts ln order lo funhcr the for'i8n assistrncc for ad Soluliont (cotlcclivcly, the "ProB lhr "Obi.ctivc"). Objeclivc, Assistonce hi.vc lhc Objcclivc, lhc Parlics t8t .lo work nicip6l Infrsslructur., 2 Municip,l Crisi! Assistancc and Recov€ry (lDP which Drocrcss loward lnd achiev.mcnt oflhe .scriM in-Anncr within th. limilsof thc 2.l. rhis Scclion 2.2 mry be chtnS.d by writlen I c Parl;Es wilhout formtl Imcndmcnl oflhis Agre!mcnt, bc of .s oflhe Panics withoul formal amcndmenl of lhis Agrccmcnl. Arlicle3: Scction IL Conlribu(ionsoflhcPartics USAID Conlrib'rlion DXUCUI ION COPY USAID The Crarrt to hclD achieve lhc Objcclivc scr firnh in lhis A8rccnrcnr' h'rehv grarrls lu lhe orantcc p,ir.,r,rnr r,, rtre frr.ign A;sislance Acl of I96l as urn€ndcd y-s(vcn million si(y lo crc(a'l rol rnounl under lh. l€rms ol lhc A8rccment (t77 069 s9e) U S Dollnrs Srflrc'( ) Urrired ,,i,"-ir.'"','ra. ,r*'r',,i'e'l trincr)-nnre {v!' in (rhe "crurl") (b) toral Esrirnnlcd tlSAlD Co'rrri a!hievcnl€trl ofrhe Obje!livc ttill b€ ci hundrcd ninety-ninE U S. Dollf,rs (t81,0 2 Aay such incr'as' in lhc incn.sc lhe Cranl6's conribuliofl und'I Se,rlion I ii*ii..'t .."oiU., i.^ tttall bc subjccl lo formal Amendmcm in accordrncc with Sccrion 7.4. lc) lfal any lime USAID delermi ercceds lhc amount rvhich rcasonably durinB th. cuneni or nc:(l U S Grenlac. wtthdra* lhc cxcess amounl,l fiscalle I i"ii;" !e.rio" l.It,l n'tions r'ak'n p'ir D's r;ral estim6tcd conlribution set fonh rn 3 l(b) Scction 3 ral 2 CranEe Conlribution Thc Cr.nl.c agrces lo Providc or causr lo :';",rJt,J J;;6*"&iiJ il;#;."|;il; bG providcd tll funds in addilion torhosc -comPlete' on or ln nnn., l rnd 6ll othcr nsourccs ,.quircd to D;ii' all acti'iries ncccss ry to achievc rhc objccrivE' lD! conlribution in s.clion l.l(a), will not b' dinc in.kind conlribulions lo fie objcctivcs of rhc-amounl of thc Cranr in SGcl'on l' l(a) cc's conlribulion shall incrcase or decre&se wilh 's con(ribulion will not be less lhan the I rhsl h used lo supPon acliviti.s lhat eilhcr mm.nl ofGcorgir or involves thc di!€ct,nd 'fCEo'8i! in thc rdmrnislralion' conlrol or in ofGmnle' conlribution sh'llbc indic'lcd manasemcnl oftuch sssislancc. Ttc precise rmouni rh' Granree! totar estimared Pr'nncd co'rriuurion incrcmenrar will hc subiccr ro 0v'ilabilitv orfunds to rhe cranr" ror rhis ilffi";:;;,;:ffi ;;;i;rci ;#il;;;;dj;.iivc prrp.." ."J," USefO p.viding lhc tolal cslim'l€d anounl in Scdion Article 4: I l(b)' comPlelion Datc {.rTheComDlctionDatr,whichisDcc.mb'rll,20l4,orsucholherdslctslhePsrlicsmey ,g.. a i, *aii"i it ,f'" aslc bv *hich lh. Psrti'r cslimalc thal rll lh€ aclivilics ncccssary lo !chicve lh! Objcclivc will bc complcted' EXT)CU'tION COPY (b) Excc as USAID rnay olhcrwis€ a8rce lo irr writrtrB. UsAID will nol issut or iPProle dorunrcnrarron lhol would aulhorizc disbtrrs.mcnl ol-lhc Gr.rnl l-or rerviccs performed or Soods tunrishcd aftcr rhc Cornplclio Dxr. (c) Rtql'csls for disbursem.rrl. accornPanicd by nccessary supportirrg d(xumcrralion prr:scribcd iir lmplcrncrrati(nr l-cn€ls. arc lo he ruccrvcd by USAID no l'rlcr lhan nin€ (9) monlhs iollo*ing the Conrplction Drre, or such other pcriod ns USAID lBreet ro in lvrilitrg belbrc or rrfrer nch prnorl. Alicr srch pc.iod USAID. at iny linte or rirncs' nrrv tsi!c trorice itr sririnS ro rh€ Cr.lntee ind reduc€ lhe anrount of thc Granl hy nll ur llny pia lltctcof lor r!hich rcqrcsls lbr disburscntctrr. accoNp,nicd by ncccss0ry supPorling docunrcrrhlion prescribcd in lmplernenlalion Lcucrs, .u]rc nor rec€ived tcfor,.: rhe crpirarion ofsuth Period Arti.le 5: Condilions Prccedenl to Disburscmc l Firsl Disburscmcnl Priorlo lhc firsl disbursemcnl trnd€r thc Chnl' ot to lhc issuance by USAID otdocurne tation Pursuont lo which disborsemenl will b€ madc' lhe Granlee will, excepl as lhe Panies mny orhenvise a8re€ in wrhinS, lu'nish lo USAID in form 0nd substance sarisfactory lo USAIDI Sdtion 5 I An oP;nion ofrhe Minislry ofJuslic€ accePtable lo USAID rhar (i) lhjs ASrccmcnt hfls b€cn duly aulhorized or raiificd by' and crcculcd on bctalfoflh'. Ci"ntc.,1i4 this lg.ccmcnl constitulcs t vslid ond legElly bindinB obliSation of thr Grantlc in accorda;ce wilh allofils lerms, a'rd (iii) all intlrnel sctions and epprovals ncccsery lo give €ff€tt lo lhis Agreemcnl havc bcen oblaincd by or on behalfoflhc Crrnrccl and G) (b) A si8ned statemenl in the namc oflha P€rson holdin8 or rcting in lhc omc' of 5.2 Additional Disbu6cmcnt Prior lo sddilional disburscmcfll undcr lhc Cranl ihe Crantcc ipecified in Scclion 7 2, which dcsiSnates by name and titlc any sddilional reprctartatives cach ofwhom may acl Pursuant to Section 7 2 Secrion @wards municipal infraslructurE, municiPal dcvelopmcnl and economic oPPorlunilics, or IDP housing, or to thc issuancc by USAID ofdocumcfllation Pursuafll lo which additional disbursemcnt willbc made, lhc following condilions musl b€ mct: (a) Prior lo isburscmcnl in support of a sPec ific pmj "t. €ach project usl r'&ive Lllto opproval ttrar it mccts USAID d.velopmenl obiectivcs aod was sclcclcd.ulilizin8 d m a proccssiiar informcd and incorporatcd opinions from afTccted rc8ions, municiPalilics' and communilies Plior lo disbu6em.nt to pay. spccific conlracl or Sranl u errhisA8rccm€nq thc ihe Grantee rnust reccive USAIDconcuncncc lhst to lhc bc$ ofUSAlD's knowlcdSc' all contain'd oPcn manncr, ard in a trsnsparent out rclcv0nl procuremcnt was carried malcrial elcmcnts rcqUired by USAID, and rcPrcscnl a fair valu€ for scrvices and (b) rendcred. Prior to any disbur$ment lo pay a sPecific Project lha,lvo ld causc USAID's share' )ggregatc disbursement forthc projecl lo cxcccd 90 pcrcent of UsAID's cosl wrillen a and complelc Utel-D rnd the Grantcc shall conducl a I nal insp€ction wilh lh' conlracl cEnification thal Ell work has bc€n comPletcd in sccordancc G) EXECUTION COPY S€clio'1 5.1. Norificarion LJSAID will Prornpllv rrolili lhe Orntrle€ whcn USAID has del€nnirrcd thal a condilion Prcc€dcnl hi15 bcco rrtct Slr.;liun t€rminal Drlcs for Cotrdilions Prcccdenl [hc lcnrinal dale for rneclirrS lhc 5.4 condinolsspe(rficdinsecliorr5-lisg0daystroulhcdaleoflhisAgrccntcntorsrchltlcrdalc lflh'condilions as USAID;ry rgre€ to in \rriting bcforc or afler rhe rbovc lerminaldale b€en mel by thc abovc lcrnrirml dxtc' USA|D rt arrv limc' mav p.eced"nr in Secrlon 5 I havc '1ol iemrirate lhis Agrecrnenl by writlen nolicc lo rlE Cra'll€c Articl.6: SpecialCovenanls The Cmnlec, in coniurrclron wilh lhc approprirlc Covcmmcnl of-Ccorlia ilica, h...by co,.nunt" and agrccs to issuc' rencw and/or ertcnd frce ofchffg' and in a limcly permirs. visa;, crcmplions and any olher p'missions (iocludint all aPprovalr Nlinislrics and G) mrnneiatt ofic;at projed silcs and ar may b€ rtq!ired from timc lo lime lo cnsun fult access lo informalion' fo. ,r'. lpplicsblc Persons (as dcfin€d b€low) c'rrving our acriviri's financld bv [r.#i"ff"-iO i-ii,rio-a..ir'i'ne*";;nr(correcrivcrv'rrre'Rcquircd"Ti1"'lii,];"i,Xllff"Ti"'i"lli:,, sclivities conlemplaled (b) ivnics finlnc.d by UsAID undcr this Agrccment tants' households Any rcnewals or cxlcnsions of ome requircd. in ordar for such.mploye.s' egally rcsidc in Gcorgia and undcdalc lhe by aod financcd undcr this Agrctmcnl shall also be issucd frcc ofcharte' Subcommittin&subobliS und€r rhis Agrcemcnt, th. C.anLc forth in Scclion 5.1, USAID may s undcr Scclioo I(s) lhrough such conEacts and 0s such rctions and disburscmcnts rrl consislant (Amplificd Description) hcrcofwilhout any furrh" spPrcval or concurence' I (c) USAID shall periodicrlly inform the Grrntc' USAID und.r lhis Agrccmcnl, pmvidinBlh. Grrntct disbursemEnl(s). Prior aPProvrl oflhc Cranlec, howc ofGmnl funds msdc dirEclly to lhc Gnnle.. thall Housi acl Panics fd) MuniciPal DcvcloPmeni Fund Thc Prrrics arr.! rhat USAID -Aoard lnfnstructuE aclivitics fund'd ' IDP for iliOf) 'Su p"." io.y cnt'd by lhc MDF Forthosc such una", it it ligr""o"nt ro rhc.xl.Ill i Commincc' which mly 'Stcltin8 the activitics roiimplcmcnted by MDF, Displaccd oflntcmrlly lhc Ministry USAID' include rcprcs.ntslion from ltl. U S Embassy' (MIDPOTAR) and lhc ,nd Rcfugc's Accommodation Pcrsons from thc Occupicd Tcmlorics, and monhor (MRDI) coordinatc lojointly lnfrrslruclur. Minislry of RcSional DovcloPmcol tnd acrivities rnder lhis Agreemcnl ArliclcT: Miscellancous I Communicalions. Any nolicc, r.qucst, documcnl, or olher commu n ication Sccrion 7 submined by eithcr Party lo the olhcr under lhis Agrcement will be in writing or by l€lcBram, 5 EXECUTION COPY r€lcfar..!ble or ei.clro'ric !il("c-mn'1"). a'rd will hc dcc'ncd dulv tsiven or sc'tl whcn d€livcrcd lo such lrrly ar thc lblkrvinB nddrcss: 'lo USAID/CorSie: UIirrd Stores Errhassy Ctorgia MnilAddrcss: I I Ccorgc Ralxrluhine Slrett lbilisi0lllCcortia (995 lt) 5{1 l.l5 rclctar: rolheCmrlee(Arnendmenls): Minisrcrof Finance N.{ail Address: 16 Corgasali Slrccl Tbilisi, Georgia Telefa( (995 ]l) 161 444 To lhe Cmntcc' Minirtcr of Regional Developmen( 0nd lnfrasiru.lurc MailAddressl l2 Kozbegi Ave. fbilisi. Georgi6 Telefax: (e95 l2) 5r0 757 All such communicalions wtll b€ in EnSlish, untcss lhc Panies olhcrl,isc agree in wriling Oficr addresses may bc subslituled for the above upon lhc Srving of nolicc Rcprcsentativcs. For all formal Amcndmenls to this Agreement the Cmnte! sh'll Section be rcpresented by tire individual holding or aclin8 ss Minislcr of Finance otCeorsia md USAID will L rcprcscnlcd by thc individurl holdins or acring Ls Mission Dircdor .Fgl lll otl:'. .. prrpo*si"t"""nr ro itti.,rgrcemcnl, thc Crnnrec willb€ represcnled bv lhe individual holding or ictine as the Millister ofReBional Devclopment and lnfrasrruclurc. snd UsAID w'll bG reprcientcd by thc individua-l holdinS or sclinB rs Mission Director' Each Reprcscnlalive, by wilncn notice, may dcsignalc add'tdnal repres€nlslives for all purPoses olher lhan siSningformal lhc amendmcns to thi AgrimEnl or €xercising lhc Power under S€clions 2 2or 2 3 lo rcvisc ?.2. ProgmmEt€menls.lndicatorsorAnncrlThcnamcsandtillcsoflh'addilionalr€Prcsenhnves ofttCrantcewilhspccimensign.lurEs.willbcprovidcdpursuanlloSeclionil(b)loUSAlD' (or which may acc.pl as duly autho;iz.d any instrumcnl signed by soch additional rePr'senlatives in accordance r'prcsenlatives) ofsuch in lhc omc€ any individuals ir:bsequenl holdinS or Ecling wiih this Section 7.2, ;nlil rcccipt of wriflen nolicc ofr.vocation oflheir aulhority' Standlrd Provisions Anncx. A 'slandtrd Pmvisions Annex" (Anncx 2) is Scction 7 atlached lo and forms Part ofthis Agrccm€nl. L Amendment Format Amendmenls lo lhis Agreemcnl may be agrccd tipon by.lhE inl" force ofwrinen Amendmcnls by lhc Pnnies, and such Amcndm'nB shall ""a.".y "*".r,io, constilute an inlcgral pan oflhrs A8rccmcnl Scction ? 4. ofrEc€ipt by ScctionT5 Enlry lnlo Forcc This Agreement shallenter inlo force on thc dat€ to bc bound as ,r," ij,,i,Js,","t. ,"i"t"nted bv usAID,;fGeorSia's nolificalion rcquired by Anicle 5 l(a) S.ction 7 6. of its consenl Language ofAgrccmcnt. This Agrecment is prcpar€d rn EnBlish in lwo copies' LXUCU TION COPY lN WIIIlESS WIIEREOF.lh€ UnitL{ Shte! ofA'ncrici ond ihc Cm ice' cach rclinglhrough its J;,;ii,.ili;;;;;,ii".'.1'"***.-r'r'i"rsrcc,rcntrob€ri$cdnlrhcirn mcs asorrhc doy and yeur lirsl xbole wrrllcn. CEORGIA: IJNI TED SI'A tES OF AMERICA: Byi 12 Minister of Finance UNITED STATES AGENCY fo. INTERNATIONAL DEVELOPMENT: Jonathan M. ConlY Mission Direclor FiXtrcUllON COP'r Arncr I lo Aislrtrncr Agrccmcrt A pli6rd Drscripln'o I hrrodneti(nr l-his Lleseriber the aclivitics n) hc trndenrkctr ind lhc prorress tu'd xchic!|jlncnls to be 'rne\ rlJc \r'rh lhe lunds ol'litsIted nndcr lhis A8rccflrcnl Nothing in lhis Anner I shr be ro'rstrL€d rs rmcndi'r8 n'ry ol rhc deliritions or lcr s ol the grce re t ll Bickgrotrnd Tfie dual shocks o[lhe Augusr 200E war belwcen Russia and Georgia and global economic dorvntum pose serious challengcs to Gcorgia's .conomic strbility, which rn lum adds to prcssure! on OcorBia's poliliral stab'lity The connicl. crisis. ond subscquent slorvdowD in econohic growlh and forcign direcl ;lve(ment have plic.d !-srrai on Gco.gia's nalional budgcr ond abiliry ro financc cor€ investments in critical rctional devclopmcnr initiatives [,{any yeErs ofdecline in th€ qlllllity, coveragc efld rnaintenance ofbasic scrviccs (e 8., warcrlnd sewa8c systems, Iocal roads. and irigalion sysr.ms) have reducEd Oeorgia's ruralquality oftifc and consrrsined privatc scctor Browrh. ln many inslanccs, tarifTs do not y.r cover dircct operalion afld m:linlenancc costs or dcpr€.iation costs, and poor qualiry infrEstruclur. undcrmines a pillingness lo pay for such serviccs Georgiat challenSesarc fu n her compo undcd by rhe nacd to provide assinanc€ lo irrcmally disphc€d peoplc (lDP) locar.d lhroughoul the country, wirh many IDP families i nced ofdurable hous'ng. The PllT ies lher€ fore scek lo ptomotc Et:onontic Grcwth o d Hun,anitotion Alsistance lot vulneroble Populotiont, inc lud ing by providing suppon to addr.sr Ceorgia's tDP housing, mun icipa I dcvc lopm.nl rnd economic opportunitier. and municipel infrlslructurc priorki€s lll Fundin& Finrncial Pl6n. The finrncial plan for rhe Pro8ram is set fonh rn thc attachcd rablc ChanScs may ofthe Ps(ies withoul formal amendnenl to Ihc ASrccmcnt, ifsuch changes do nol causc (l) USAIDs contribulion lo exc.cd lhc arnounr specified in S€clion 3 I oflhc Agrcemcnt, or (2) thc Cr.ntee's contriburiofl to b. Icss than rhc amounl spacificd in Soction 3 2 ofthc Agrcemenl. b€ madc ro lhe fin.ncial plan by rurhoriz€d rcprcscntativcs lv Rcsults Framework. It is anricipatEd thar effons canied out in suppo( of the mutual shared objectivet of Eco ontic Cro|tha Hwunirtian Asli\t.t ftht vuhvrublc Popttu iot t sl'all focts on three sectors' Mu icipol Infrasrrucrurc, Municipal Dcvelopmcnl and Economic Oppo(unirics. and IDP Housirg Acrivilies shall scek to achieve lnrcrm.diatc Resu[s (lRs) and be measured by corresponding lndicalors as set forih below. F,XE('I.J fION COPY A MuIiciorl lrli stru.lun {Elonomic Crorvth Ohic!livcl Inlc.rndirlc Rcs lt l: lrlprovud hfr:rshrcrur. in Shtegic Sertors . Irdicntor: Vuluc ofccono ric nDprct of(olnptcred p.ojccrs, \hcre appropriare lnrerNcJi e Rrnrk l. l rproved htiastrueturc . l dicdor: Arnountot USAtDassisrrncc . fidicator: PercentaBc oflcvcagcd trmount for infr?structurc projccrs reherE . . . . . appropriatc lndicalor Numbdlnd v6lucotUSAtD fundcd municipat infrasl.ucturc pmjects (disaggr.garcd by ryp.: c g. wal€r, road, inigalion. etc) lndicalor Numbcrofrural houscholds b€Dcfiiirg dirrctty from USO inGrventions (Agriculturc ard Non-Agricullurr) lndicalor Numbcr ofmunicipslirics bcncfiring flom rhc assisrancc Indicator Numbcr ofmcchrnisms supponcd w;lh USC ,ssistance fot cilizens to cngagc 8ovcmmcnt lndicator: Numbcr ofadditional snd improvcd hcctrrEs irrigatcd as i rlsult of IJSC assisrancc B, lnlcfircdirl€ Result l: lmprovcd Economic Security for Tar8crcd Vulnerablc Populations and S.clo.s r lodicator: Numb.r ofrursl housrholds bcnefiting dirEclly fiom USC intcrvcntionr - TIis will includc numbcr of houscholds who wiltbcn.fit frorn c.mmunity dcv.lopmcnt projcc.s rnd/or rEcrivc rcEhnicsl assislrncc, grlnrX rgricultural inpulsand orhcr rssistancc contributin8 ro thcir living shndsrd rmPmv€mcnt Inlcrm.di6tc Rcsuh 2: Establishcd li'lunicipal Dcvclopmcnr Modcl . lndicetor: Municipal Development Plans Adopted lntcrncdistc Rcsult J: Implcmentationof Municipal Dcvclopmcnt Plans . . . . . . . . lndicatori N umb.r of devc lopment plrns adoptcd/udatcd lndrcalor: [Iollar valuc lcvcragcd from govcmmcnl private s.ctor rnd/or olhcr donor protrams for infrastructur. .Ehabiliration l dicaior: Economic impact of in frast ructurc d€v€lopmcnr projects lndicator Numtc, ofsmsll-rcsl. infiastructurc projcEls implcmcnlcd lndicalor Increrscd rgricukurrl producrion and pmduclivity lndicator: Divcrsificd sourccs ofincome for households lndicaror: Number ofhous.holds classificd as poor or vulncrablc assislcd to improve incomc or food sccur;ty. lndicator: Numb.r ofyouth rccciving training to build employm.nt or income genaration skilh I]XECU-I ION COPY . . . lnJic:rror: l )provcd cccsr b lir ncc by rrrB(lcd poplll li(xr a d scclols l'rriicalor Vrhrl. ol rl'r ip!ri.rl l rdvk)an! i\sncd rhis lcirr lo l!rgd gro ps lndic.rlur. Vrluc ol Brxrrls pro\id.d lo lxrgcl Emups C IDP tlousirt (l lurn:r'tilJrilln Assi!l3nc. ObieLlivcl lrlcancdirte Rcsuh I Assista c€ and Rc(ovcry (P.o8fln Elcmenl) . . . Lrdiclllori Ntlnrbcrofrar8crcd IDP limilyti\tellin8s r(hnbiliraled iccordinB to ITIIDPOTAR slindards lndicalor: Nu'nbcroflDP fam;ly dwcllings with LrpgrEded strndardized living facilitics lndic.lor: Number ofrehrbililaled buildings and r€nlements thal have established a longicnn rppro6ch (c.t., homeowncr's associalions) for rh. managemcnt ond muilll€nn ccof rhcirrcsidcnacstrnd lhaleristaneroneyerr Inlermediare Resull 2: lmproved Communrty Infiasructur. . . . Inlermediate Resuh lndicalor Vslue ofUSO assistancc Indicator: Perccnt!Bc of l.vcragcd amou nl for comm Lrn ity d€velopment Indicalofl Numberofmunicipalitics benefiting from thc arsistancc l: Improvcd Economic Sccurity for Trrgclcd Vulncrable Popuhlions and Sectors . lndicaror: N umb€r of rura I houscholdr b.n€finin8 dir€cily from USC rnlervenlrcns Intcrmediatc Re$k 4: Provision ofK.ySocisl, Harhh Scrvices Expanded to Mlcr Needs of Vulncrablc Groups . . V lndicator: Numb€r ofp€ople in targel ar.rs with access ro improved sanitarion facililies as a rcsult ofUSC lssislrrcc. Indicator: Numb€rofpeoplc wilh acccst to improv.d drinlingwaler AcrivilieYActivirySeleclion. A Municipal lnfrastruciure (E onohrc Orowth Objcctivc) Implemefltrlion ofmul|icipal infrr3lnrclure dcvelopmenl pmj€cts. Those projecls wtll focus on rchabrlitating municipal infrastructurc ifl ar leesr 5 municipalities impacted by the 200E conflicl wilh Russia. Those municipalities will be sclected iI consultation with MRDI, and projccl selection crrteria also will b. dev€lopedjointly by USAID/Georgia and MRDI It h expected thal s€l€cted projlcts will addrcss cconomrc and social dcv€lopmenr in rural aress and be relaled lo lhe developmenr or rcpair ofcriticsl infr0slructur., including but nol Iimired to water, roadr and inigation Proposcd iofmstructurc rchab ilitation activitics will inc lude cvidcncc ofcivic panicipalion in sclectron and moritoring of projccts thmugh hnsparent and inclusiv€ prrcliccs and will benefit (directly and indirccrly) significant porrion ofpopularion in fie hr8cred municipalities. t0 hXECUI ION COPY Rchnbilillllion ofirrigalion slclcnrt This conrporrent will ftrcr's on rth bililxrioo ofil leflsl on' ini8 rion syslc'n (prirnxrv and possibly suconlls,r- irigali ! channcls) kr prurnrnc igricuhural Llcrckprncnr B<aLrse olrhc sizc 'r(l scdl,t ollheteRhnbilililionclli)ns. sel(cliorr willbe col'd'rclcdjoirlly h!l\\ccn UsAID/Gcorgia. MRDI and rhc Miristry ol Agriculrurc h is uxp.crcd rhrl *lectcd slsren$ will cotrlribulc ro impro\cd livclihrx'ds rhroutsh ncw or 8'early ctrharccd igricullure producrive cnpncirl.- o[d rvill lircL,s on .urol rNpl'16rions. IDPs or pcrsons iflicred by lhc:00E conll'cl \tirh Russia B Slimrhllnt Ruml Economlc DcvcloPmrrl. Assislance will be provid.d to local Sovcmm'nts, cnrerpri$s;nd individuals lo creatc economic opporlunilies snd raiscincomes whilc addressinS' rlrc needs of poor snd vulnerabl€ 8.oupr rnd individoals in sevcn municrPalilies lo bc mutually faced by arrrerd by thi Panies. FollowinB broad BpPmachcs' thc projeci will address challengcs tlic rural poor. rncluding disadvantaged. food insecure, vulo€rable ond or inlernally displaccd p€lsons (lDPs). the ln pannership wilh munrcipalSovemmcnts and communitics, assistrnce willsuPPon plans' sPccific municipality aevcloomcniofde,elopminr planning rools, and communitv and livclihood rapid_rcsPons! and Such pians will includc social safety nas for the most vulncrablc ;eco!;ft shlesi€s to assisl comnru,titics to recover from nalurrl disaslers or othcr localizcd tr,o.it. ro cnsure sustainabiliry' the Pmjctl willdeveloP lhe capacity of approPrialc aoremment Dcrsonnel ind commurlity lead€rs lo msinlain planniI|8 tools tenemtc plans and .."*.1. ir""sur. ,asuls. tl,c p.oj..t will support lintrtes with fic cslablishmcnl and implcm'nElion of ncgionalocvelopmcnt itans rnd lh;St!l. stralcE/ for Rctional DcvcloPmenl- lnlin'wilhsu'h dcvelopment plans, thc assistsncc will: . . . . conlributc lo dcsigning and funding smrll infraslruclur' Projccts (e I irriSrlion channel clcanin& farm lo miacl mads) Pmvid€ lechnictl assisl.ancc lo dcv€lop lirgeled economic oPPonunilies (e 8. horiicullurc, b€€kc.pin& liv€stock) from p.oduction ftrough markct linka8cs Facilit tc incrc&scd acc€ss lo information, inPuls. linancint Exptorc, and iffessiblc dcvcloP, ahcmlliv. cmploym.nt cFstion schcmcs' Th€ Proj.rt willalso assisl hiEhly vulncrsble Sroups. ircludint theeldcrly' the disabled' rnd youth r; en8rg. in socialrnd cconomh rc(ivilics in lhc community or rcgions. lnaddition lo addrcssinB iivclihood constninls faccd by thc rurrl Poor, assislsnce will focus on IDP communiics to esrablish e model lo Promotc the suslainablc maintensnce and op€rstionsof housing ulits that werc financcd wilh USG funds C IDP Housins (Humanitarian Assistrncc Obiectivc) Upgrding of tDP Sltllcmcnlt Built Aflcr (hG Augult 200t w.r, USAID willprovide upgrades for nearly 4,000 houscs conslruclcd ane.thc August 2008 war by lhe COC- Due lo lhc dn.rgency situalion following thecoflflicl,lhcsc houscs were oncn focuscd on meeling only esscnlialhousing nc€ds. The GOC is now in lh. proctst ofimprovinS thc overallcondition of rhcs. housls USAID will complimcnl th. work officGOC by Providin8 f3crlrties such as a showcr. sink,loilcl, and watcr laps in rcsidenccs whcrc aPProPriatc. In addition lo improvinSlha II !XECU'I'ION COPI ovc(ll living rondiri(xrs ,,l lhc lDPs. ir is nlicrpxrcd lhxr rhcsc lknrs;lrg IpgEdes will incrcns€ lll€ re-sale value uflhcsr huusLs. LlSAlD proposc$ to providc rcchllicol fi a[!.ial rss;sto'rce ro des'g !nd inslall porrble wnrer '1d slstems rnd i'nprovc liqr'id solid w.lsle disF)srrl tlesc sc lenrcnts. Sp€cific retlons to b. ,r undrrhlDn tts a pan ofthis acrivity i'rclude: \!nter supply i rprovcrnents. i slJllrrio oI indoor plurnbinB.{nd i'rstallntion ufscptic s)stcrns USAID will prioriLize lDP sculeme ls where warer nlril hiliry is not a corslroi[t lbr rllc i stnllxliur ul indoor \! cr taps Whcrc w cr supplies aa ils lllcirn( ro supporl lhe insullntio of rrdoor wxler lflpr, USAID will c\plorc opportuniries ro l:ilher drill,ddilionil(or dccpcr) watc vells or to ob(arn wnrcr fro orhcrsourccs In addition, Panies will se.k to usc apprcpriale rvatcr conservalion and recycling nrcasures- This mighr includc the use of . . . . . . lndoor waler lap control devrccs; Warer re.use syslenrs for rhc inigarior ofagriculrurc crops; Usc ofgrey watcr ro flush loilcrs; Rene*ablc and.ncrry cmcicnr water hertinB mechanisms; Wlsrc walcr trcalm.nt in constructcd w€tlands; and Water melering, scheduling, and paymcnt systems. R.hrbililrrior of Hourlng for IDP! Afccted by rh. lE)0r Connict. Mrny ofthe tDps from thc I990s connict remrin in collectivc ccnters wh.rc thc Iivirg conditions are er(trcmcly poor Wfiile the GOC hopes to provide new ho sing for a ponion of rhis populario'r. il atso intcnds ro rehsbilitatc collcctivc ccnlcrs and olhcr buildinSs for lDPs. Thc rchabiliralion ofthes€ buildings is consisrcnt wilh rhc MIDPOTAR's rnlcrcsr in improving the ovemll living conditions of tDps Th. MIDPOTAR is in lhc proccss ofid€ntiryin8 additional buildings for USAID rchabilitation. Thc lisr ofbuildinSs to bc rchabilirarcd i5 pan ofthe MIDPOTAR IDP housing dat bas. As pan oflhc selctrion process, thc MDF is ass.srin8 thc pocnlial ofapproximdcly rhirry-fivc buildin$ rhal could potcnrially be rchabiliratcd. (Appmximalcly onc-hundrcd buildings \yill bc ass€sscd for rchflbililation durin8 thc coursc ofrhe activiry.). Th. buildingsarc both Stareand privately ownd. Privatcly owncd buildinSs lhat hsvc b€cn idcntificd for r.h6biliration wiil bc purchascd by thc GOC. Th€ b'rildings lhat arc bcin8 considcr.d for rEhabililstion arc locat€d incilics lhroughoul thc country. and mry inclodc Tbilisi, Ruslavi, Qarcli, Khrshori, Kurasi, Khobi, Jvari and Zugdidi. Followin8 building rchsbilitation, the property titles will bc traflsferrcd lo the IDPs USAID will panicipale in thc selection ollhe buildinSs lo b! rchabilitarcd Some oflhe kcy crilcria for maft'ng this detcrrnination will includc th.: ovcrallinllSrityoft]e buildin& sizcof apanm.nts, rchabilitalion cost p€r occupant, and condition ofbuilding infrastructure (c g, walcr, s€wago, el€ctricily), and livelihood opponuniiics. lflhc GOC is nol able to idenriry a signillcanr nunber ofexisrinS buildinBs ro rehabr,itarc, lh€n USAID may consider olhcr altemrtivcs to assisl lDPs in who arc in need ofdurablc housing based upon lhe IDP housir8 plsn and rhc mutualagrc.mcnl ofthc PE(ies. Conlribul€ lo Ovcrall Sultiinrbility oflh.IDP Houliog. A variety of acl ions cou ld b. us.d ro cnsurE that thc rehabililsred housing units do nor fEll into disreprir This ac(ivity component willpromolc community-basGd parlicipalion by lDPr in thc mainl.nance, repair, and nrana8emenl oftheir housing units. USAID will pmvide t€chnical assistancc, training, and small granls to assurc ovcmll physical and financial susrarnabiliiy oflhc housing proSram Bclow ar. illuslrative rpproaches thar could b. used lo addrcss lhe loaS.rerm susrainabiliry of IOP housin8 t2 I.,XIiCUTION CoPY kcy f nclion oflhe I Ettihli\h Ik ntditkr\ .ltttx it r"'shr tD? Ih'ttsitt!(i' t itict. Thc disrcp{ir ll w'll r.,,rco*nrrs rss.,ciarr.rrrs v idcrrly. rlre (c.g.. homc nrovidc a 'vill b! lo prclcrll lhc hotrsing fro[r lilling into ot lhc horsing nrea' crranl tuppon servrccs r)s to develop eflecrivc rrrr:rhunisnt : p I blncliiiiari€s i'r sing infiastnl(lur€ tnainlenalEc is a sid$pretd c frirm a farrnirrg backgnrund lh'y arc oRen svslcms Tmioints could be Provrdcd lo ( lrainirrB tvill bc po(iculnrly irnponanl ifn'w thu nrniDlcnance hornc ^nrli'lc n,rainno*r;"einfrasrrucrurct.chrl()loBitsar.uted)'lhiscouldic[dethePmvisionof mrifltcnilnce lool kils, elc Vl Rolcs and Rcsponsibilil ics of lhe Pani.t' A Covcmmcnt oflhe Ullitcd Slatcs ofAm'ricd ln sddilion lo ptoviding up lo 18l'059.599 for MuniciPal lnflastruclurc'-Municrp'1.. ilr"r"pr""i l"a e*i""'iic OPPodunitics and IDP housing assisrance' USAID will: rebled lo' i. As oPProprirle, allow Grrnlce PaniciPstion in' and nccess lo hformation includlnS r8(tmcnl' lhis under p,o.urcm.nl sctivilics i.JSaiO ptoj"ct n such an cvcnl' "nv *'r'ti"ir"i",iitirr*l,..enl .valurlion and rctulntion shallcomP ii. iiJ,,..it.p,.t n EPProprrare "nivc panal pcrtaininB lo prniciPllion in such non-ditclosrre and connicl of inl'retl do'umentsi t ncrs to inform lheCrante! ofdecisions rcgardiog ii. '' Prov'dc lmplemcnbtion i.pi"i."iii* ,*r,!nisms 'nd rwlrdr for Performancc ofacrivirics unde' this Atrccmcnl; iii. lnvil. r.Prcscnbrivcs ofthc Mininry of RlSional Dcvelopment aod lnfr&slruclurc' Terrilories' Minislry oflnlcmllly Disphccd Pc6oos fro lhc Occupied panicipde in audils to ofAgiculturc Ministry a'd n*"tccs, al"ori Jnio" "ni rcquittd lo s5lisry USC rcSulrlions; proc€durcs r€laled to iv. Collaborrle with lhe Crrnle€ on monitorin8and evalualion municipaVrcgional infraslructure lssisl'tncc; and v Shsr€ vith fic Grrnlc! sny USAID-fundcd lnvironmcnlal ass€ssm€nls rcl'tcd lo thc assistancc. B oovemmant ofGeor{ia i Stralcgic Planning A lignm.nt: ln consulBlron witt local aulhorilics,lhc ld€v€top ajoinl work Plan wilh an,PproFisle housing rehabilitalion, conslruction' and tl I]XECU TION COPY ithotiL'tnl Dc*bp,tc,l I'h i"x tlolcl.lhe Anuiec sholl urrdcrtikc nccesslty aclio s ro adoPl rhc MuIicrpal Dcvclopnc r PlatrninS pftrcess ii Tra'rspnrc'rcv and Accounl bililv. the Criolec srrppons transpirertc, lod consullarion in lhe dcliv€ry ofassislancc u dcr lhis ASrccrrenl as followsl I he OfiIrtce sh{llensrrre llll rpplicalion oflhc COli Guihtt! Prhki e\,(iifiltiuu d Pnxrlttrut gowrnng otl Proces <l Dwuhle howittg llhx\tion'. ilcluditig complianc€ wilfi applicflblc itrtematiolal rrandards adoprcd by Geor8ia and Georgian low regadinB rhe riShts of lDPs '[h€Crafl.c shallupdatc lhe IDPaclion plan pcriodically,l0ki g inlo account informalion receivcd rhrough mo irori,rg and conrullalion. Thc Granter shall us. a paniciPalory consuhaliv€ prccess rnvolvinS lDPs durinS lhc dcvclopmcnl oflhc Aciion Pl.n and IDP housing tnd infmstlucturc activit;es T[e Grantce shall makc public thc crilcria used to priorilize lDPs sclcctcd 1o reccivc durablc housin8 and shall usc a consultativc approach involyinB IDP bencficiaries rehlb'lilrlion io be The Cranrct shall usc a civic consullation proccss for dcv€lopmenl. selcdion and implemcotation ofall ilfrasrrucru.e projects, which shall commurricalc infraslructure developmenl plans to aff€ctcd local citiz.ns snd $th€r and incorporatc padicipanl fecdbrck 6nd conc.ms iii. Suslainrbilitv. Th€ Cnntc€ will develop and implcmcnl tll housing and rnfrastruclurc acliyilics in a manner !o €nsurc lonS.lem sustainability, as follows: TheCrrntcc may. wherc rpproprislc, Encourzge lhe useofhomeowncrs associations for lhe managcmcnt and mrinlcnencc ofhousintcommon trounds and walcr, Sarbage, and s€w!8c systcmt Priorto rhc complelion ofrhis ASrccm.nt, the Granlcc shalllransfcl fullrille for all IDP housing supponcd onder rhis Agrccmcnl to lDPr. ThcGnnlcc shall includc a suslainabilily plan in.ach proj.ct d.si8n for municiprl infmslruclurc and inigation, including, ar lppropriatr, fcos and collcclion methodologics, managarhcnt responsibilities, manogcmcnt cspacity, maintenanc! and funding. Whcrcvcr approprial. Granl.c r€sponsibility to providc ne€ded ycsrly funding for rehabililatcd municipal/communiiy infr.struclurc maint.nance lo lhc r€spcclivc local adminislrations rhould 'rnderlakc The Grantee shall retain conlrol ofall USAlD.funded municiprl infraslruclure worts throu8houl lhc p.riod ofthe Agrccmcnl, exc€pt as lhc Partics may olherwisc agrEc in wrilinB Assitnmcni ro enrilies under Granlee's controlling ownership shall b€ consislent wilh lhis commilmenl. iv St0ndards. The Crantee shall ensure lhal all housing, infrastruclure and olher works providcd under lhis Agr.cmcnt are constructed and m0inlained in accondance wirh all spplicable standards, includingi l4 EXECUl'ION COPY The Crlnlcc shntl cnsurc lhal nll corrslnrcliort furrdcd urd€r lhis A8retrll€nl is uotrrplionl wilh Icgrlly adoplcd CcorSian Boikl;llg Srn'rdnrds, cxccPr as tJSAID ma] oih€nvisE nPpnw€ in rriririg lliet'ir.urreeshallcrrsureco'rrpliance$ilht{IDPOtAR9d'i/"'rltr)'Rchubilitutu' Qnn;\iut ot (",\t, Ltintt tti"k! lot Du. htu lh,h/i/X/dr /Dfr lbr xll cotrslruclion of IDP housinB Tle Cmnlce rgrces lhal allcoflnruclio,r o d irrlirslnrclurc s;ll rnake usc oIcrtcrg]'olficienl m rertils rrd lcchoiqrlEs at appropri te TheGrartce grccs locotnPly wilh lhc Georgia crrvrronorcrrlal lawIr|dt'ryUS ID .n",ronorcntaireluirc.c,rls in all USAID fundcd aclivilics c ried oul rodcr l[is A8reem!tri procuremcnts fund'd undcr lhis To rh€ .\lcnl lhc Murricipal DeveloPrn€n( Fund (MDF) conducls muluallv atrced Proccdures for alt us. MDF shall A8rc.mcnl, th. Crinl€c ;hrll cnsurc lhal lhc oflhc oeor8ian Pnocurcmcnl srrih procuremcnts, strch Procurcmcnli may combinr Proccdur's Law rvith requir€ments specific lo USAID. cffons lo link IDP v Links lo olhcr Proiccts: Thc GRANTEE shill nlakc rEasonablc proSrams tro*irg ana .uni.;put infraslructurc lclivili's lo olhet USAID wi$ Ihe USAID prcjects' The ORANTEE should sclivcly s.ek intcgrarion ind collabontion incl'ding Inlegratcd Natuml RcsourEc MrnaSem.nl nt walcrshcds (llNRMW) Program' econom-ic fmipcrity In;rislivc (EPl), Good CoYcmancc in Oeo8ia (Ol), FORECASTand vocalionalEducslioo. In Psdicular. rhe Prnies will s€ek to Iint UsAID FoRECAST 6nd Gl cffods lo suppo( and Rrgional DcvclopmEnl Slrale&/ implcmenlalion Nalional VIl. Moniloring and EvElurtion fi. indicators agrccd uPon in Articlc lV. rbovc, mry bc funhcrdevcloPcd in lmpl'mcntation or mclns Letterc to includi additionel dcscriPtions. quinlitics' p.tiodicity and rpProPrial' sourccs forobhining rnd mcasuring dalr. Subslantiv€ chanB6 or addil ions will rEqu irc m ulually lt'ctd lmplcmcntaiion Lrtlcrs. TarS.ls eslablishcd by tmplcmcntatron L€ncrs w;ll bc basrd on clrrcnl rrcnds ar rhe timc and lhe eslimatcd impacls ofUSAID. Grantcc and olhcr donor inlerlentions' Targcti will be rl-examined lnd adjusl.d, if nectssary, ts addilional data bccomcs svailabl' an indcp€ndent lhird party archit€clurc lnd enginccring firm to suPPon uSAID inlends lo 'ise moniloringofrhe acliv(ies funded under this Agrccmcnl Addilion.lly. sp€cific moniloringand evatu.lion plans,lo includc sptcific inlcrnal. joiol or lhird'perty evalualions, reporls to be develop€d and €valuations schedules. shlll be s.t forlh rn lmPlem€nlalion Leners USAID may lakc corrective sction bascd on lhe rcsults oflhc monitoring and evalualion oflhc activitlcs a;d rcsults framcworft dsla, or al lhe rcquesl ofth€ Cnnrcc Corective aclion msy include, bur is not limited to, disconlinuing, redrcing or olhcrwisc modiryin8 onc or more ongoing activrtics, oradding ocw aclivilics Fundsallolted loaclivilies may bedisconlinucd' rcduceJ or shifted ro e:risting aclivilics or n€w ac('vili6 in funhcrancc ofrhe Ohjeclivc I5 EXECU'TION COPY VIll. Olherlnplcnrenlrrtion Issues. lhc Pildi€s x8rcc rhar $irh rcspecl ro rhc udnpn)visionsselfonh;nSeclionB5ofAnnexIlo thir A8rccnlcnr (Sra d.rd P.ovisionr. ro rhE c\l€rl USAID fundr no'l-trinlc€ inrplcmcnring plnncrr direcrly lbr nny uclivilics uldcr Ihis ABrccrncnl. USAID will include r)ecessary aL'dir pro!isions iI irs inrplcmcrni g nSrccrncors $ith \u.h p.dners i'1 lieu ol lhe Crant.e srbmilrinE rlrr r(\uired nudn pl:|n Is dcscribed in rhat s€crron To lhc crlclt USAID fu ds xctiviries under lh is Agreenlenl lhrough Crintee ertilies or Grcntee. owned cnlilics. delail€d audiling plsns shall b€ included in thc i'nplc'ncnlinB granls or conlracls. ond snrh audiliog plons shall b€ consirlent rvith rh. provisions otB 5 oflhc Srandard Provisions Annc:( and illcludc provisions on the n|cthodolo5/. funding and tirning of audils ofhosl counlry co tradorJ. hosl gover nrcnl owncd orBanizllions !nd other sub-recipients receivin8 funds dir.crly from the Craniec t6 I]XECU I'ION COP\ All'rchmcnl I to Anrer I t]SAID FINANCIAI, IiLAN: INFRASTRUCTURE. ECONOMTC OPPORTUNITIES AND IDP ]IOUSINC ASSISTANC' ACREf,MENT FOR FY !OIO-2OIJ Iot l F'l 12 FYoe9upp IEECA N€O lr3 531 Ssg t1 Iot t t.ru.t E.tt.r.t.d Recov.r, Obllg.llon ContrlolUon tixIiCUI ION COP'r .*"ulJTL'"".* fable ol Contcl|ts Afliele A Dcliritiurs x'rd lrplcnl(1rr linn I.cflrrs sce I'ur A L l\liririons Section 4.2- lmplcntc tior Lclle6 Arlicle B: Cercrrl Covcnrnls S€riion B. L Consullution. Scction B.?. Executi ofAgrcement. S€ction B.l. Urilizariur ofGoods and Scrviccs. Slrtion 8.4. [a\ation Section B 5. Repons ond Information, Agreenlent Books and Rccords. Atrdirs. and Insp.ctions. Section 8.6 Cotrrpl€tencss of lnformation. Scction 8.7. Orhcr Psym.nts. Seclion B.t. lnfo.rnrtion and M.rti 8. Anicle c: ProcurEmcnt Provisions. Section C.l Sourcc and Orig;n SeclionC 2 EligibiliryDare Secriol C.J. Plaos, Sp€rifirjtions and Col|tracts Section C.4 Reasonsble Pric.. Secrion C.5. Notificrrioo to Potentirl Supplicrs. Scdion C.6. Tmnsponition S.clion C 7. Insurarcc. Scction C.8. U S. Covcmmcnt-Owncd Exccss Propcrty. Aniclc D: Disburscmcnts. Scction D.l. Disburscmcnt for ForEitn ExchanS! Costs. Secliofl D 2. Disburscment for LocnlCunEncy Cosls. Scclion D 3. Olhcr Forms ofUsburscmcnt. S.ction D4 Ratc of Exchan8c. Articl. E: Tcrminetion; Remcdi.s I Scction E Susp€nsion and Terminr(ion. Sc.tion E.2. Refunds. Sect;on E L Non-wiivcr of Rcmcdies Sccrion E 4. Assignmcnl. Arlicl€ F: Miscellaneous. Scctioo F L lnveshcnt Promotion Section t 2 Prohibition on Assistance to DruB Traflickdls Scclion F Terrorisl Firancint. I Scclion F.4. Prohibition on Funding Forcign Covcmmenl Drlcgalions to Inlcmltion.l Conferenccs. l8 I.XECUI'ION COPY Stao(l:r.d Pruvisions Arlich A: DcfiIiriulr flnd Irnplc'ftrrtrtioll l-cllcrs I Dell iriolrs As uscd irr rhis n ruer. rhe 'ABrcc,rcrr" rclcrs ro rhc Assishnce Ag.eeD. t to which Ihis Annex is rtiached {rd ol rvh;cI th's Anrte\ fonns a prrl- fenns trscd ir llis Anrrer h.1ve Ihe same rncnnnlg or rcttrcnc. as in thG ABrEernenrScclion A SrclionA2. lnplcrnEnrarion l.etters. To assisr lhe Cmnrcr i rhe irnplcnrcntation ofthc A8recrnlnl, USAID. froh time lo tinrc, will rssue implenlcnlation lcters ("lnrplementotion Letl€rs") rhar rvill lumish addirional information aboul miners staled in rhis Agreement The Panics may ,lso issu.joirtly agrecd-upon lmpl.mcntalion Lcrers ro confirm flnd record thcir mu(ral underslanding on aspects ol lhc implenlenlalion ofdris ABrcemenl lmplemenlalion L€ners crn rlso bc issucd ro rccord rcvisions orerceplions which are p€rmined by rhe Articl. B: General Covenrnls I S€crion B Constlllation. Thc Parties will coopemlc lo assure thfl( lhe Obj€clivc and Prcgram Elements of this Agrccm€nt will b. occomplishcd. To thi5 end. the Parlies. at thc rtquest of eirher, will erchangc vicws on prosrcss lorvard thc Objcclivc and Protram Elemcnls. lhc performancc ofoblgations under this Agrccmcnl. thc pcrformancc ofany consullanls, conlraclors, or supplicrs cngagcd undcr the Agletmenl, and olhcr nutleE rclsling to thc Section I2 F-recution ofAgrlcmenl- Th. G.utlct will: (a) Carry oul lhe Agrc€mcnl and rhc ac(ivities required lo b. und€nakcn direclly (or crusd to b. undcrlakcn) by lhc Clantce, or causc lhc ASrcemcnl and such activili6 to bc crried oul wifi ducdiligEncc ind efficicncy, in conformity whfi sound lcchnic!1, fin5ncial, and managcmcnt prsctices, and in confo.mity with lhotr documcnrs, phn\ sp.cificetions, contracts. sch.dules, or other anangcmcnts, and with any modificltions thcrcin, ,pprovcd by USAID pursuant lo lhis Ag,lrmcnl; 6nd (b) Providc qualificd tnd cxpcricnccd mrnrSemcnt for. rnd tmin such rtaffrs may b€ rppropri6tc for thc maintenancc and oprralion ofrctivilics financcd undcr thc A8reem€nt, rnd, as applicabb for conlinuin8 activkics, cause those act;vities to br opcmtcd and ,nainlained in such manncl u; to assur! thc conlinuing ond successful achi€vcment ofthc Objcctiyc and Protrrm El€menls undcr lhc Agrcemcnl. Scclion 8.3. Utilization ofCoods and Serviccs. Any goods and services financed under this Agrccment, unless o(h€rwis€ agr.ed in w linS by USAID, will b. dcvoled lo thc Agrc€mcot unlil rhe complclion or tcrmrnatrcn ofrhc AgneEnlent, and thercsf,cr (es well !s during lny pefiod ofsuspension ofthc Agreem.nt) will be uscd to furlher the Objeclile ofthe ASrcemenr o, as USAID msy direct in lmplcmcntzlion Lcn€rs l9 F]XI]CUI]ON COPY Scerio[ B 4 faxaliun (:rl Gcntrit frt'l'prion I he grco'n(nr trfld rllc trsistrncc lhcundcr a.c lilt fro'n (b) Il\cepl ns pruvidcd olhcn!isc in lhis provisior). rhc (jcrrcrnl ExcrnPliofl in nny lll\cs irtrposcd undiir [r\vs in (lTccl in rhe lcnilr)ry ol-lhc (;rarrtc€ sublccrioo(a)rpplicslo.bl'srl(lllimilcdlo(l)anyrclivily,cunrocl.Sranlorolher rrnplemcnling a8rccment liranc€d by USAID u'lder lhis Agrecrnc r; (2) any lrJnsaclion orsnppliEs. cqurpDcnt. nr:ltcrinls, p.opcny orolher l(x)ds (herein0ller colleclivcly ''Boods ) undc. ( I) above;(l) {ny conlraclor. granlcc. ur ollt€r or8arrizrlion canyirB oui activilies fi anced by USAID under this Agrcemcnr: (4) 0ny cmPloy.e ofstlch orBnnizalions: and (5) any individual co'llmclor or granrcc uarryinB oxl acrr!ilies lhrs Agreemenl. llnhnccd by USAID 'rnder (c) Except as provided olh.rwise in lhis provision, lhe Gerrcral ExcmPtion in rubscclion (a) applics (o, bul is not limilcd lo. lh. followinE hxes: ( I ) Exernpt ion L Custorns dut ies, tari lfs, inr pod lares, or olhcr lcv ics ofl lhc irnponalion, osc and rc-c:rponalion ofgoods or the perso al bclongings arrd effecls (includrng p€rsonally_ o*ned automobiles) for lhe personal use ol rron-nalional individuals orlheir family m.mbers- Excmption I ircludcr, but is nol limilcd (o, all char8cs bascd on lhe valuc of such imponcd 8oods, but docs nol includc scryice charg.s directly relarcd lo scrviccs pc(formed to lransfer Soods orcargo (2) Exemption 2. Taxcs on lh€ incomc, prolils or ProPert, ofsll(i) non-nal iona I organ izrtions of any rypc, (ii) non-national cmploye€s ofntlional and non_nal ionn I organ izations, or (iii) noi-national individual conlraclors and 8runlcrs. Excm ion 2 includcs incomc 3nd social security t.xcs ofall iypcs and all tires on lh€ Propeny. Prsonal or real, owncd by ruch oon-n.lional orgaDizrlions or persons. Tlrc lcrm 'n6tional" refe6 to or8@izllions esllblished undcr thc lsws oflhc Granl6 rnd cilizans oflhc Granlcc, olhcr than pcrmrncnl rcsidcnt aliens in thc Unilcd Slslrt. (l) Excmption l. Tax€s levied on lhc la$ lransaction for lhc purchas€ of goods or serviccs finrnc€d by USAID under lhrs Age.mcnt, incl'rdinB salcs t&xes, value_odded hxcs (vAT), or taxcs on purchascs or rcntal5 ofnal or p.Eonal Prop€ny- Thc lcrm "hsl ransaclion" rcf€rs to lhe lsst trtnsaclion by which the Soods or serviccs wcre Purchrscd forusc in the aclivilies financ.d by USAID undcr lhis Agreem€nl (d) lfa lax ha5 bcen levicd and paid conltary to Ih€ prcvisions ofan exemplion, USATD may. in ils discretron, ( I) rcquire lhc Granl.e lo refund lo IJSAID or to oth.6 !5 direcl the amounl ofsuch lax wilh funds olhcr lhln lhosc provided undcr th. USAID 'nay (2) offs€t lhe amount ofluch lax from amounls lo be disbursed undcr lftis AgrE.menl, or or rny olhcr aBrecmcnl bedYe.n lh€ Panics (e) ln lhe avent ofa disaSrcemenl rbout lhe applicslion ofan ex€mplion, the Panrcs agr.e lo promPlly m€et and .csolvc such ma(crs, Suided by lhe princiPle that th' aisistancc furnished by USAID is frc€ from dircct laxalion' so lhat all ofthc assislancc furnished by USAIO willcontribule dircclly to lhc €lonomic d€velopmenl oflhc counlry oflhe Oranle€ 20 EXECUTION COPY Seclior B (a) (h) '' 5. Rcpods Rcpods n, hrlirnnnliotl. A8ruemuol Books xrrd Rccordt' Audils' 'nd ar lnlbrmalion lhe Grantce rhall fumish USAID accaulr'rrts rccords a'ld such oll;s informal'un and rcporlt rtlrling lo lhc AgrEtnlctrl ls tJSAID nray rccsonably rccounling books' Clantee ASrcc'n€nl oooks ond Records Thc Cmnlee shall mainhin to shou" records. d,icu'nents and olhercvidcoce rclalilg to lhe ABreement adcquale lhe lhc Agr'enrEnt undcr Cranle€ by lhc iocurred dircclly all cosls willloul linrilalion, dcrlheAgrc'mml' reccipl and osc ofSoods.nd services ccquircd by lheCrarrlce u c\lenl ol sollctlallons ot r€m.trls. fte noturc 'nd tnd scrviccs rcquir'd by lhe CrantEc' lhe basis ofaward iEclly by thc Glanlcc' snd lhcovclsll proSrcssollhc Atrtem.nl toward complction ('Agr.cmcnl ring .ii""i" eg..,n*, ul,rs rnd.ncirds in orinciDles orevriling in lhe Uniled Steles. or 'userb. tir*t*-i"l"g Principles such ls lhotc(l) pret'ribcd by lhc lnlcmalional Fcdcmlion offld eccouniing Stanaaras ci;minec (an aflilatc ofthc lnlcmalional ac Iasl disburs.mcnl bY iEation. cl6ims or li6 solcly lo Orant funds cxPcndcd dirccllv by lhcCmnl'c I.r cmree Audir. lf 3100.000 or molE of USAID funds t'! cxpcnd'd directly by lhc .. ;;; shall hrvc financisl rudirs lil i;;i;;r rndc. rh. Atr'cmcnL rhc crrnrcc tcrms' cxccPt as lh' Prnies i.J. .-f it .*p""alir*, in accordan;. with lhc following " tgrlc in w linS: mty ofierwis€ Il " r wilh USA|DsoDroval. thc Cralllcc sh,ll us' ils SuPrcmc Audit lnslilulion or *r"", ri i"a"riirdeni auditor in ccordancc v'ilh lh"Guidclines fo' Financial lnsP€ctor. Audits Conttsctcd by Focign RcciPicnls' ist'rcd by lhc USAID wrti thc in accordancc Oenc.rt ("Guidclincs')' and th' ludilsshallbc Pcrfomcd "Cuidelincs"; aod (2) Thc Eud it shall dclcnn ine wh.thar lhe rcce ipl and crP€nd ilurc of lhe funds whcthcr thc allbe y€sr undcr compl€tcd no tatcr lhan nine monlhs.ftcr thc close ofthc Orant'€'s audit. (d) writin& Sub-r.cipienl Audils. The Crnntc.. exccpl !5lhc Psni's m'y olhc'wisc tgrEcin plan for thc audil shalt submil lo USAID, in form and subslance salisfeclory lo USAID. a funds in bclow, lhat reclivc iPicnt-s. as d€fined oflhc exp€nd il ures of "covcrcd' tub-r.c wilh thc Crrnlcc inlodir€clly .nlcrrd conncclion wilh i dirlct conltactor a8rllmcnl pursurnl to lha rct ivil ics coltcmPlaled by lhis Agracmcnt 2t TJXECUTION COPY () A "covered" sub-rccipicnr is o'rc rvho crp€flds t100.00 or orc in its fis<al ycat "USAID .wards" (i e . r's sxb-rccipicnrs und€r USAID srritcrrc objeclivc and 'n orher grr r xBrcerrr.nls will lbrriBn guvenr'n!,rls) (e) (l) Ih. plitn shall dcsrribc lhe mrrhodokiBy lo bc usd by lhe Crarrtce lo satisry its 0udir respo'Nibiliries for cov€rcd sub-recipiells lhcCmnlec rnaysrlisfy such nudir rcsponsibilitics by relyi'rg o'r indcp€ndcnl ordits ofrhe sub-rccipicnls: crpandiog rhe scop€ olihe ildcpend€nt linanci,rl ardit oflhc Grantee lo clcolrpass leslin! ofsub-rec;picntS accourrtsi or a conrbinalion oflhese (l) Thc plan shall ide'rril'y rhe funds made iviihblc to covered sub-recipienh rhar will be covEred by 0rdils conduclcd in accordance with other ludil provisions rhal ryould snlisfy lh€ Oranlee's audrl resporlsibilili€s. (A nonprofit organizalion or8anized in lhc UIired Stales ls rcquired lo arrtn8c for its own audils. A forprofir contmctor organized in lhc Uflircd Starcr rhal has a dircrt conhct wilh USAID is audiled by the cognizrnt U.s. Governmenl Agcncy A privalc volunlary orgarizalion orSaflized oulsde lhe Un'led Stales wilh a direct granl required lo srranBc for ils own audits A hosGcouniry cofllrrclor frotrr USAID 's should b€ audilcd by the Granlc!'s audiling !8cncy ) (4) Thc CrEnrce shsIIcnsurc ihat covcrcd sub-rccipi€nls ur crdirccl conlricls or agreernelts wilh tlrc Grante.lakc appropfiate rnd trmely correclive aclions; considcr whether sub.rccipients'audi6 n€c.ssitatc adjuslmrnl of iB own rctords; snd rEquirc €ach such sutFr€cipicnl lo p€rmit indcpcndont suditors lo havc scccrt lo rrcords and financial slalemcnts as necetsary Audil Rcpods. The Cranrcc shrll furnish or causc to bc furnishcd lo USAID an audir r€port forcach audit arranged for by lhc Grantce in accordsnce with lhh Scction wilhin l0 d.ys aRcr compl.tion ofthc audit and no laler fian ninc monlhs aflcr lhc cnd of lh. period undcr audit. (0 Other Covcrcd Sutsr€cipicnh. For 'cov€rcd" sub-rccipients who rcceive funds undcr lhc Agreement pursuant lo dir€cr contracls or agrEcmenls wilh USAID, USAID will includc appropriar. rudil requircm.nts in such contracts or egrccmcnts and will, on befulfoflhc Cmntec, conduct th€ follow-up activilics wilh reSard lo lhE audil r€porls fumishcd puBuant to such requircrncnls (g) Cosl ofAudits. Sub.iecl lo USAID approval in wrilin8, cosls ofaudits pcrformcd in accordancc with the tcrms oflhis scction may bc charted to lhc Ag.etmcnl. (h) Audit by USAID. USAID rclsins rhc ri8hl lo perform thc audits requircd und€r this ASreemcnt on behalfofth. Crantee by ulilizing l'unds under lhe Agr€cment or olher esourc.s availablc lo USAID for this purPos., conducl a financial rcvi€w, or otherwisc corurE sccounlability oforganizilions cxpanding USAID funds r.S6rdlcss oflh. audil requiremenl. (i) Opportunity to Audil or lnspccl. The Gmntcc shall llrord authorized rcprcsenlativcs of USAID thc opponunity al sll rcasonablc limcs to audil or insp€ct activrlics financed under th€ AgrEemenl,lhc utrli2ition ofgoods a0d scrviccs financcd by USAID, and books. records and other documents relalinB to the Agracment 22 IIXECUTlON COPY U) Sub-rN'picnr Burks anrl Rceords fhc Grflntrc $rll incorporale para8rrpfis (a). (b). (d). (c). (8). (h) nnd (i) ol Lhis pro!isio'r ink, all rub.trErccrrcnls \!ith non-U-S. organiz:rlions shich nrcel rhe S100,000 thrcshold ofparaBr,rph (c) otlhis provision Sub-agre€nrents \vi(h Ion-U S orgrniz:rtio'rs, which do nol mcel lh€ $l00.000 lh reshold. shall, ar a nrini um, irtcorporale Flrngmphs (h) n'td (i) oflhis provision. Sub-ngrecmenls wilh U S orgarizarions lhall shte lhrl lhc U S or$nizrli'. ;s suhjcll ro llc iudir rcquiremenls colriincd in OMB Circulcr A.lll. Scction B 6. Cornplclcncss of lrt'onn6tion fhc Gradce confirmsl (a) ll|al thc flcrs nnd crrcurnsranccs ofwhich il has inlbrmed USAID. or caused USAID lo b€ in fonred. rn lhe cou rsc of llach irrg 38rceme l w ilh USA l D on l h. A8reem.nt. are occ trEl€ and conrplorc. and includc all frcls rnd circumstanccs lhal rniShl moterially affccl lhc Atrc.mcnt and thc discherge ofrcsponsibililics undcr lhis Agrecmenl; xnd (b) rhal n will infom USAID nr limely faihion ofrny subscqrent facls and circumslances rhal mighl marcrially affccl. or lhal il is reasonabl. to bcliev! miShl so affect. lhe Agr.€mcnl or the dischaEe ofrcspontibilities under lhis A8rcement. 8.7. S€crion Olher Paym€nts- Gmnlcc arlirms lhal no pryments h.ve bcEn or will b. rcctilcd by any omcial ofthc CrEnlcc in conn.clion wilh the procurEmcnl of Sods or scrviccs financcd rundcr rhc A8r€crnent. cj(ccpl fces,l6xcs, or similarptymcnts lc8rlly cslablished in thc counlry of lfu Cmnter, Lt. Section l,formalion snd M.rking. Thc Grsnt ! will Sivc appmPrist. publicity lo thc pro8rnm to which th€ UnitEd Strlcs hrs conlribul.d, idcntiry ASrecmcnt scliviiy A8rc€mcnr as s goods by UsAlD, ss dcscrih.d in lmPlcmcn(ation Lcncrs. mark finrnced sitcs, and Adiclc C: Section C L Procuremcnt ProvisionsSourcc and Origin C.l. SourEc lnd Origin. Excepl as noled herein, or in s suEagrccmcnl issu.d by USAID, Granl funds will bc us€d ro firsncc lhc cosl of goods and serviccs haYinB thcir sourcc and oriSin, and wilh rcsFcl to suppticrs of goods and serviccs,lhc nationality. in counlrics included in Ccographic Codc 000 or I l0 (Ocorgia. lhe Unil.d Slates, aDd lhe Newly lndcPendcnt Slarcs) ss in effecl al lhc limc ord..s aIt placed o. contracts cnt€rcd inlo for such goods or s€rvic.s Exccplions to lhis rEquir.ment includc local pro.uEmcnl lransaclions in acco.dance with LJSAID policy or procurem.nls madc sRcrobtain;ng sourcc, oritin, tnd nttionrlity waivers f.om USAID in wriling. lfaclivilics arc implcment€d by Clanlra orSanizrtions, such as MDF, undcr ihc A8rc.m€nt, USAID will provide lhe dclarls ofits sourcc, oriSin and nalionaliry rule5, includint rls loca I procuremcnt policy. in an lmplemetrla(ion bner. G) Additionally: (l) Occan lransporlation cosls shall be finrnccd under the Agreement only on vcsslls undcr llaS rcgislry ofcounrics includcd in Codc 915. Also s.c section C 6 on usc of U.S fla8 vess.ls 23 EXECI'TION COPY (2) 'rxriIe thc counrry otrhe Crintcc is in clis'blc sourc. for lbruisn cxcftcn8e corr for iosuronce, ilolhcnvise cligible uIder Section C.7(n) (l) Any nrclor vehiclcs ll anced under the Agrccrncnt will he ol U'lired Shres Hnulhclurc. €rcept ns USAID rnoy olher\visc agrc€ i[ writi g. (b) l-o.il Currcncy Cosrs. Disburscmctrls tor Lo(tr| Currency Cosrs will bc uscd c\clutivcly to financc lhe cosls ofgoods snd serrrces required for lhe Agrermcnt which meet the rcqLr'remcnts ol USAlD's local procurcnlent F)licy rvhieh rvill be provided in sn l rpt€ment0tion Lurcr (c) Thc source and ori8in ofocean and .rir shipping will bc deerned lo b€ thc oc.an vcss€l's or aircran's cou lry ofrESinry the timc ofshipme l. (d) Provisions concemin8 r.srricrcd a'd incliBibtc goods ond serviccs may bc prov;dcd ln an lmplcmcntalion L€tler. (e) TlEn sportat ion by a i, of prop€rty or person r financcd under rh is agr.cm.nt will bc on caricrs holdinS Unilcd Slatcs ccnification, to thc enlcnt scrvic. by such csrricrs is available undcr lhe FIy America Act This r.quircmcntmay bc furthc. dcscribed by USATD io lmplcmcnlation Lcncrs. 2 Scclion C EliSibiliiy Date. No goods or rervices may b€ finaoccd und.r thc Agr!.mcnr which arc procurcd pursuanr ro ordcrs orconhcrs firmly placcd orcnlcrcd into priorto lhc dstc oflhis AgErmcnl, cxcept rs thc P6rli€s nayolhcnr/is. agr.c in wriring. Seclion C.l. Plans, Specificationr and ConlracB In ordcr fo, rhcrG to be murullagrccmml on rhe following maners, and exccpt as thc Panies may olhcnris. r8re. in writingl (r) Ihc Grsntcc will fumish to USAID upon p.epanlion: ) any phns, spcci fication s, proc urement or construcr ion schedubs, conlrscts, or o(h.t documcntation betwccn thc Crankc and third panics, rclating to goods or sdvicca to be financed undcr the Agr.cment, including documcntanon rehtint lo the prcqualificrrion and sclection ofcontroctors and lo the solicitstion ofbids rnd proposals. Makri.l modificarions in such documcnrarion will lilewise br fumishrd lo USAlDon Prepsrtl ioni snd (2) such documcnlalion will also b€ fumished lo USAID, upDn preparation, relating to any goods or s€rvices, which. Ihough not financed unde. thc Agrc.ment, are dccmed by (I USAID to b€ of major nnponanc€ to the Agrccmenr Aspcclsoflti€ Agrcemcnt involvin8 maneB under lhis subscclion (aX2) will be identified in lmplementation Leflers (b) Documen(s relaled lo rhc prcqualirlcation ofcorrtracto.s, and to the soliciration of bidt or propoels for Boods and services financed under the Agreement will bc approved by USAID in wriling prior ro lheir issuancc, and thcir tcrms wiil includc Unir.i Srrtcs slendards and measurcments; (c) Con(racts and conrractors financed undcr rhc Agreement for cnginccrint and oth€r professionalservices, forconstruction scrvices, and for such olher tarvices, equipment, or materials rs may b€ specificd io lmplenl€ntation Lette6, will be approv.d 24 EXECU'TION COPY by tJSA lD in \trilrn8 prior lu c\eculion ol lhc conlracl Materia, ttr(xJilications iI such corlrlc(s will .,l$ be pprovcd n' \rrilinS bv USAID prior ro cNcculion: and (d) Co'rs'iliin8 finrs [sed by lhc Crirlt'! lbr lhe Atsrccmenl bul nol fir|anced undcr rhe ABNcm.nl. the scopc ol lhcir 5tfliccs !nd su!h (rflhcir pcrsorrnclassignEd lo spc!iry' and corrlruclion octiviiics finilnc(d undcr lhc Agrccmenl !s USAID 'n,ytlot linanlcd lrnder lhe AtsrEement. hul lLr for lhc ABrccmenl by lhc Gr:r used contmclors lhall bc rcccplnblc lo lJSAlD. SecrrcnC4. Rersonable Pricc No rcrc lhnn rersonablc pr'cd rvillbc paid for any Bmds or ssNic.s linanced, in wlolc or in Parl. undcr lhc ABrccment Such ilems will bc Procurcd on t ferr nnd. to thc rnarifium cxtenl Pmclicablc, comPelilivc b$is se.iion C.J Notification lo Pdcnliil Supplicrs To pcrmil oll Uniled Slat.s firms lo havc thc ooDonunily to podicipatc in fumishing goods and services to bc finn'rccd undcr lhc AgrEcmml, rt'i C.rnrce wiil funristr USAID such infonnilion wilh rc8ud thcrllo' and at such limcs' as USAID mty requcsl in lmplcmcnlation L€n.R S.ction C 6 TmnsponBlion (a) ' lrsnsPonalion tnd In addilion lo lhe rEquiEm.flts in Scclion C l(a)' cons ofoccan or rir arc for relat€d dclivcry senices may not be financcd uodcr lhe Atreem'nl. iflhc costs prior receivcd USAID transportrtion unrler an otcan vcsscl oraircha(cr which has rrot apprcval. rhl thlesc USA lD detcrmincs lhet prival.ly owncd Unil'd SEtcaflag commcrcisl o'c!n vesslls arE nol avsilrblc !t fair tnd rers( nrblc ratcs for such vcsscls' o' olhen'ris€ atlrls in writinS: (l) ofallSoods (compuled rnd lrnkcrs),inmccd bY UsAID bc tr.nsPorlcd on Privttcly owned Unitcd Stalcs'fkg commrrcial vcssrh; and (2t .' al lcssl fifty Frccnl (selc) ofthc Sross frEithl rlvcnuc 8'nc'!lcd by all lhc lc"itoty of lhr Cr.nlc! on sh ipmcns hnanccd by USA I D rnd lransponcd lo privalcly owncd Unil'd of thc b'ncfit paid for loor lincrs shall'bc drycargo . (2) Statcs-iag commcrcialvcss€ls. Compliancc wilh lhe requirEm€nls ot(l) 'nd ofthis sub-'scction must bc achiclcd with rlsP.ct io bofi any c!r8o tlsnsporld from U.S. ports and soy carSo lransPoncd ftom non_U S Potls, comPul'd s€ParatelY. Secrion C tat 7. lnsurame Mtrin. insurancc on soods financcd by USAID which srt lo he transported lo lhe ASrccmenl tcritory oflhc cmnt; may bc financcd as a forEign exchargc cosl ondet this provided (l) such insurancc it placcd rtlhc mosl adYanlrscous comp'lilivc 25 rate; EXECU'TION COPY (l) nr.h i sur0nuc is Plnccd in 6 cottrrtry \vhich is arrrhorizcd undcr seclion C l(0)i nnd (l) clxims rhcft ndtr .rc pav ble in U S Jolhrs or nv ficcl) corrvcniblc curencv unlcts lJSAlL, trlGcs,nhenvi\c itr srrlrng lflheGmrrr!{(org,,vtnrnetrloflheGranlce).b)slrltrlc d€crcc nrle' tgulalion'or. prrrlice discrinrrnales \vilh respecl to USAID'llnrrlcrjd prucorcnrcnl ag;rrotl noy mann' i,,*rl'r.. .n,np"ny outhuriztd lo do business in arly slal€ oflhE Urrited Sblcs' lhen !ll be r,-,o,js shroo.dio tirc tcnitorv ul lle CraN.€ finnrccd by USAID hcrcundcr Jlrrll wirh phced slales in lhe Urriled i,r*"J rJii*, .*ir",itksind such insrrrance shull be Slalcs in lhc Uriled business o.orpan'y ot.o,np"nie. nnLhorizcd lo do mrriae insurance (b) or cause lo b€ a insured, incidcnt Erc€pt a8linsl riskt inturance will t. irrr.a on r"rnt" rna "ondilions consist.nl with sound commerci'l practicc and will und€r insurc ihc full valuc ofthc 8oods. Any irdcmn;ficarion recciv'd by lhc Crantc' pair any malerial damage or any loss oflh'lhe Gr,nlce for lhc replacemenl or neparr ol such good such USA e ofsource and origin ofcountrics lislcd in t at the I ime of rcplscem€nl and' cxccpl as lhc Padies rnay agrce in writinS. will be oth.rwisc subjecl to thc provisions oflhc Agrcemcnl, C.8. U. Unilcd thc Sccrion practicable hnrnced under financc thc costs ofobt!ining such proPcrty lhrt whcrevcr s ProPcny' The Cranlee '8re€s lreu ol n'w rlems in ccss P.rsonalproPlrty. msy b€ used to lhc Agreement . Funds under Disbu.semcnls Disbursemenls will bc made lhrooBh such mcans ts lhc Panics aSrec ro in wrhing orss set forih in Ann€x I Anicl. D: Serlron D.l Rate ofExchangc lffundsprovidcd und€r the Agrcemenl are introduccd inlo- C.oreia bv USAID or anv public or privale r8cncv for purposcs ofcarrying oul obliBalions of useio lcreunacr. thc Cianlc. wrll make such arran8cmcnts as mty bc nccEsssry so lhal such Nelional funds may bc convcncd into ,ocsl currmcy !l lhc hiShcst lawfvl ratc avrilablc to thc Eank ofGeoryia on lhe date oflhc convcrsion Anicl. E: Scction (a) E.l. Terminalion: Remedies Suspension and Terminalion Eilher Pstty nay terminalc rhis ASnemcnl in ils enlirety by tiving lhe olher Party lhirty (J0) days wrinen noticc USAlD also mry tcrminalc this A8reement in pan by giving lhc dnnrec rhirty (lO) days writlen notie, and susP€nd lhis Agrccment in wholc o' in parr upon giving ihe Cranrec wrinen nolicc ln addilion. USAID may lerminalc lhrs Agreemcniin whole or in pan, upon Sivins lhe Grantee wrillen notice, if(D thc Grant€c fails lo comply wilh.ny provision ofthis A8reem€nl, (ii) En cvcnt occurs lhal USAID delermincs m6kcs it improbsblc that lhc Objcctiv€ or Program El€menls ofthc Agrccmcnt o. lh€ assislrncc Progam will be anained or that lhe Cranlcc will bc ablc to 26 EXECU'tION COPY perlonn ils obliSrlions ulrdcr lhts AS.ccrncnl. or (iii) nny disbursemcnl or use o[ funds tn rhe nranncr hercin co lernplalcd would bc irr violltlion ol lhe legislation Eoverning US ID. whclhcr now or hcrenller in clccr (b) E\ceprforpnymcnlwhicl)IhtPfli(snrc.ommillcdlornakepursrranrronor-cuncellable comnrilmenls cnl€rEd inlo wilh lhird panics Prior lo such strsp.jnsion or lenninalion' ruspcnsion or lcnnnralion ol lhrs cnlirc Agrcenr.ol or pan lhcrcofwill strspend (tor lhe pcriod of the suspension) or lennimte. as spplicible. ally obliSalion ofthe Padies lo ploride financi0lor olher rtsources lo the Ageemenl or lo lh€ sLrsPended orlerminal'd ponion oflhc Agrftmcrl. as apPlisblc Any ponion ofrhis A8r€enrcrrl which it not s spendcd or lcrminaled shall rcmoin in full forcc and efTctt. ln addition, r:pon such tull or panitl s(sPcnsion or lcrminElion' USAID m0y. USAIDS crpcnsc, dirEcl lhal lhlc lo Soods finrnccd undcr lhc Agr€€mcnl or [ndcr lhc applicabl' portion of the Agreem€nt. bc lransfarEd to USAID ifthc Soods arc in ! delivemble stalc (c) scclion (a) 8.2 Refunds. In lhe case ofany disburscmcnt which is rol suPPoded by valid documentation in accordance wilh Ihis Agrcemenl, o. which is nol madc or us€d in accordancc with lhis Agre€ment, or wh;ch was for Eoods or servic.s nol us.d in accordance wilh lhis Aarccmenl, USAID, nolwithstondinS lhe av!ildbility or cxcrcise ofany olhcr 'emcdics un-de. this ASrcemcnt, rnay rcquire lhe Gmnlcs lo rcfund thc amount ofsuch (60) ofr rcquesr rftcr receipr d,ys disbunement in U-S Dollels to usAlD wilhin sixtv rhcrcfo. (b) Iftic failurc ofcmnlcc lo comply with rny ofits obliSations unde' lhis ASrcement hls thc resutl lhal goods orscrviccs fiianc€d or sltpPorlcd und'r thc ABrcemcnt ,I lot usEd cffcctivcly in icordancc wilh lhis AgEtmcnt' USAIO m0y requirE the Crantc' lo rcfund !llor any part offic amounl otlh. disbuE mcnts undc,this Agrccmcnt for or in connGtio; with such toodt or scrvic6 in U.S. Dolla6 to USAID wilhin sixty (60) davs aacr rccciPl of a rcqucsl lhellfor. (c) Th€ righl undcr subscclions (a) or (b) to rcquirc r rcfund ofa disbursemenl willconlrnuc, nolwifishndinS any olharprovision ofthis AgrecmcnL for thrc€ yeaG from lh' datc of lhc lasl disburtemcnt under lhis ABrllmcnt (d! or(b)' or (2) any Efund to USAID from a ' (ll Anv r€funds underbansubseclions(t) k or olh.r lh ird psrty w ilh rcsPcl lo goods or scrv iccs fi nanccd conrru.tor, srppt icr, uodcr lhe Agrecmcnl, which rcfund relal€s lo an unrcasonable price for or erroneous or services' or lo goods lhat did nol conform to tpccifications, or to iflvoicing of Soods -were inadequatc, wrll (A) ba mad. aYaalablc firsl for lhe Agrcemcnl, to thc se*ices-that exlentjuflified, and (B) ihe remainder, ifany, will bc apPlied to redoce lhc amount offic Grhnt (e) Any inlercs! or olhcrcrmings on funds disbursed by USAID to the GranleE underthis Agrccmenl prio! Io thc suthorru.d us! ofsuch funds tor lhc Agrccmenl will bc rcUmcd ro-USAID i; U S. Dollsrs by ftc Cranlcc, unlcss USAID olherwis€ agrecs in \rriling- 21 EXECUTION COPY Srrtii,n !: L Nonrvrivcrol Rcrrcd'c\. No 'lulry in c\(rci\irrts:r'ry riuhl o' rcrnl\jv rccruing lo ,r P.rfl) irr cornretrirnt Nilh ils linrrlcirrS trrtdcr rhir AErccnrcnr $ rll bc (orrsln.cd :1s a \v'.rr!tr ol sueh righr or rcrrrcdY SctrronE{- AssiEnrntol l llc C r nl('c ngr(\.s. uFnr njquesl. lo c\ecrte an irss r8n nlcnl lo LlSAlD otiloy eatse_ol iclir)n \!hieh rn.r, rccnE lo the Crrrrlcc irr cotrnetlion wilh or arisinB oul olrhe contmcirrrl perlomrntrce or brureh ofFrfomrincc bv a Prnv to a diE-ct U'S Dollar . . USIrO n,':rnccd i'r whole.r irr pan oul of rtrnds smnrcd bv USAID under rhis "r,,,n., "i';.r, ArticleF: Miscellarlcous Sect;oo G) '' F.l. lnveshcnt Promolion. Ercepr as specifically ser fodh in lh. A8r..mcnl or olhcrwise uuihorized by USAID.in writing, nohrnds or othcr support providcd trercuMcr may bc uscd for any activiiy that irvolves inve(m€nl promolron in a forciSn counlry in thc abovc arca or (b) the evcnl the Crartec is requcslcd or wrshea lo providc assistance '-' ll."qrires would b€ consislent with lhe clurificrrion from USATD as to *helher lhe aclivity Iimitation set fodh sbove. lhe Crsnlcc rlrusi noliry USAID and providc a dctailed a"r.rifton oftn" p.pot"d aclrvity. The Cranle! must nol procred with lhe activity unlil advised by USAIDlhar il maydo so (c) Th€ Crdnlcc musl cnsurc lhat rls cmPloyccs and subcoolractors tnd sub-rcciPicnts. Drovidine invcslmcnl oromolron s€rvic?s hcrcundcr arr madc awarc oflhe r'striclions scl ionh ln riis ctrrtc oni Inust includc lhis clausc in all subcontraclt and olher suE agreements enlercd inlo harcundcr section F.2. Prohibilion on AssinancE lo DruSTmmckcrs UsAlD tEscrvcs lhe riShl to t.-rmi.r,",r,it lgr..r"n, or takc othcr appropriarc mcasur's iflhc Granlc' or a kcy individual to have bcefl eng6ged in rtre Crantcr is fo-una ro tave becn convicl€d ofa narcolics offensc or drug ramcking as defined in 22 CFR Pan 140 of T€rrorist FinancinS- Thc Cranlec is rcmindcd lhsl U S Exccutivc ordcrs tnd slcrion F 3 lo, individuals and U S law prohibit tansaclions with, and lhe provision ofresourEes and suPport persons and block€d or8sniations assGiated with terrorism and specially dcsiSnaled nalionals llistheleS!l idlntified by the U.S. Depanmcnl ofTreasury (Ollicc of Foreign Ass€ls Conlrol) resoonsibilitv ot the Cranlec rrnder lhis Agtetmenl lo cnsure complianc€ wilh lhese Execulivc issued under Orders and la*s. This provision mun be included in allsubconlracts or subawards dris Agreemenl. Prohibilion on li[nding Foreign Covemmtnl Delegations lo lnlernalional this Confcrcnces. Except as USAID rnay otherwise agrcc in \'/rilin8, funds obliSsled under and financin& Erpon Opcmtions, lh€ ForciSn A8r€€menl which are provided by USAID from 1999 ycar fiscalyear after fiscal Rilated Prog.ams ,Apiropriat ioni Act tor any U S Covemm€nt Section F.4 olher mey nol b€ ;sed to i;ancc lhc lravel, per diem, hotel expenses. mcals' confereoc€ fe€s or fo, any member ofa forei8n govemm€nt's delegalion lo an intcmalionrl "onfer"n"..osts cr confercncc sponsored by r Public inlernational orgtnizllion This reslriclion may be fu descriM by USAID in lmplementalion L.n.rs. 28

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