OFFICIAL THE WORLD BANK DOCUMENTS IRD * IDA I WORLD ANKGROUP cCe~Q irk* 2019 H.E. Sahar Ahmed Nasr Minister of Investment and International Cooperation Ministry of Investment and International Cooperation 8 Adly Street Cairo Arab Republic of Egypt Re: TFSCB Grant No. TFOB0639 (Support to Preparation of Egypt's First National Strategy for Development of Statistics Project) Letter Agreement Excellency, In response to the request for financial assistance made on behalf of the Arab Republic of Egypt ("Recipient"), I am pleased to inform you that the International Bank for Reconstruction and Development ("Bank"), acting as administrator of grant funds provided by various donors ("Donors") under the Trust Fund for Statistical Capacity Building, proposes to extend to the Recipient a grant in an amount not to exceed one hundred fifty-nine thousand four hundred twenty United States Dollars (USD $159,420) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financing of the project described in the Annex ("Project"). This Grant is funded out of the abovementioned trust fund for which the Bank receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Project through CAPMAS, in accordance with the terms and conditions set forth or referred to in this Agreement. -2- Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement and returning it to the Bank. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By: Marina Wes Country Director for Egypt, Yemen and Djibouti Middle East and North Africa Region ARAB REPUBLIC F EGYPT By ; tAo'zeRekesentative Name Title ___ ___ o4ZJ 4 (c Qr itd Date ~ ~ A d O ~ , ( Enclosures: (1) "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. (2) Disbursement and Financial Information Letter of the same date as this Agreement, together with the "Disbursement Guidelines for Investment Project Financing", dated February 2017. (3) "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. (4) "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. -3 - TFSCB Grant No. TFOB0639 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions (as defined in Section 1.02 below) constitute an integral part of this Agreement. 1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions or in this Section: (a) "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. (b) "National Strategy for Development of Statistics" or "NSDS" means a national strategy for development of statistics to be prepared by the Recipient. (c) "NSDS Design Team" means the team to be established pursuant to Section 2.03(a) of this Annex to be responsible for the design and preparation of the NSDS. (d) "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. (e) "Project Agreement" means the agreement between the Bank and the Project Implementing Entity relating to the implementation of all or part of the Project, as such agreement may be amended from time to time. "Project Agreement" includes the Standard Conditions as applied to the Project Agreement, and all appendices, schedules and agreements supplemental to the Project Agreement. (f) "Project Implementing Entity" or "CAPMAS" means the Recipient's Central Agency for Public Mobilization and Statistics established by law no. 2915, 1964. (g) "PIU" means the project implementing unit to be established by CAPMAS according to Section 2.03(b) of this Annex. The CAPMAS staff of NSDS Design team will be part of the PIU. (h) "SDG" means the Sustainable Development Goals" set by the United Nation's General Assembly in 2015 as part of the 2030 Agenda (Resolution 70/1). (i) "Signature Date" means the later of the two dates on which the International Bank for Reconstruction and Development and the Project Implementing Entity signed the Project Agreement. (j) "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. -4- (k) "Training" means the reasonable cost of training under the Project, including costs associated with seminars and workshops and study tour, travel and subsistence costs for training participants, services of trainers, rental of training facilities, preparation and reproduction of training materials and other activities directly related to course preparation and implementation. (1) "Vision 2030" means the Recipient's Sustainable Development Strategy. Article II Project Execution 2.01. Project Objectives and Description. The objective of the Project is to support the national statistical agency in designing the National Strategy for Development Statistics. The Project consists of the following parts: (a) Carrying out sectoral statistical assessments; including an initial diagnostic of at least five sectors critical for the role they play in Vision 2030 and monitoring SDGs (such as those covered by the Recipient's ministries of finance, planning, education, health and CAPMAS); NSDS design team will work with sector experts to prepare these assessments; (b) Preparation of the NSDS and support relating to publishing of communication materials; (c) Carrying out of capacity building activities for NSDS design team and sectoral statistical assessment experts; including: (i) workshops on: (A) NSDS concept and processes; (B) effective assessment of statistics for specific sectors; (C) strategic foundation and directions; and (D) implementation, monitoring and evaluation of the NSDS; and (ii) study tour for selected members of the NSDS Design team to countries where sector-inclusive NSDS has been successfully implemented; and (d) Project implementation support to the PIU at CAPMAS covering external financial audits. 2.02. Project Execution Generally. The Recipient, through CAPMAS, declares its commitment to the objective of the Project. To this end, the Recipient shall cause the Project to be carried out by the Project Implementing Entity in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) the Anti-Corruption Guidelines; (c) this Article II; and (d) the Project Agreement. 2.03. Institutional and Other Arrangements. (a) The Recipient, through CAPMAS, shall establish an NSDS Design team, which shall include representatives from inter alia CAPMAS, and the Recipient's ministry of planning, to be responsible for the preparation of the NSDS, and ensure that the NSDS Design team has adequate resources to carry out its responsibilities. (b) The Recipient shall ensure that CAPMAS establishes, and thereafter maintains throughout the implementation of the Project, a project implementation unit ("PIU") within CAPMAS, with a composition, mandate and resources satisfactory to the Bank, to be responsible for the implementation of the Project, including the financial management, procurement, disbursement, reporting, monitoring and evaluation and co-ordination of the Project activities. -5- (c) To ensure the proper and efficient implementation of the Project, the Recipient, through CAPMAS, shall ensure that personnel in adequate numbers, each with qualifications, experience and terms of reference satisfactory to the Bank, are assigned to the Project. (d) The Recipient, through CAPMAS, shall, within three (3) months from the Effective Date, recruit an independent external auditor to carry out an audit of the Project. 2.04. Project Monitoring, Reporting and Evaluation. The Recipient, through CAPMAS, shall ensure that each Project Report is furnished to the Bank not later than one month after each calendar semester, covering the calendar semester. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient, through CAPMAS, 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 Eligible Expenditures in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Percentage of Amount of the Grant Expenditures to be Allocated Financed Category (expressed in USD) (inclusive of Taxes) 1. Consulting Services, Goods (not 159,420 100% exceeding 20% of Grant amount) and Training under the Project. TOTAL AMOUNT 159,420 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of this Agreement. 3.03. Withdrawal Period. The Closing Date is June 30, 2020. Article IV Effectiveness; Termination 4.01. Effectiveness. This Agreement shall not become effective until the Bank has received a letter from the Recipient's Ministry of Investment and International Cooperation confirming that all necessary constitutional procedures have been undertaken by the Recipient. 4.02 Termination for Failure to Become Effective. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date one hundred eighty (180) days after the date of this Agreement, unless the World Bank, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section. The World Bank shall promptly notify the Recipient of such later date. -6- Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its minister responsible for investment and international cooperation. 5.02. Recipient's Address. For purposes of Section 7.01 of the Standard Conditions: (a) the Recipient's Address is: Ministry of Investment and International Cooperation 8 Adly Street Cairo Arab Republic of Egypt; and (b) the Recipient's Electronic Address is: Facsimile: (202) 2391-2815 5.03. Bank's Address. For purposes of Section 7.01 of the Standard Conditions: (a) the Bank's address is: 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)