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December 1, 2000 
Special Representative of the Secretary General
United Nations Interim Administration in Kosovo 
Pristina
Kosovo
Re:
DFID Grant for Poverty Assessment
Grant No. TF 024733
Dear Sir:
I am writing on behalf of the International Development Association (IDA) to 
indicate the IDA's agreement, as administrator of grant funds provided by the 
Government of the United Kingdom of Great Britain and Northern Ireland, through its 
Department of International Development (DFID), to make a grant in an amount not 
exceeding forty thousand pounds sterling (£40,000) (the Grant) to Kosovo (the 
Recipient). 
The Grant is made in response to the Recipient’s request for financial 
assistance and for the purposes and on the terms and conditions set forth in the Annex 
to this Letter Agreement. The Recipient hereby confirms its request that IDA carry out 
the activities described in paragraph 1 of the Annex to this Letter Agreement, and 
represents that it is authorized to contract the Grant for the said purposes and on 
the said terms and conditions.
Please confirm your agreement with the foregoing, on behalf of the Recipient, by 
signing, dating, and returning to us the enclosed copy of this Letter Agreement.  Upon 
receipt by IDA of the copy of this Letter Agreement countersigned by you, this Letter 
Agreement will become effective as of the date of the countersignature.
Very truly yours,
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Christiaan J. Poortman
Country Director and Regional Coordinator for South-East Europe  
Europe and Central Asia Region
AGREED:
UNITED NATIONS INTERIM ADMINISTRATION IN KOSOVO
By /s/ Hans Haekkerup
Special Representative of the Secretary General, 
United Nations Interim Administration in Kosovo
Date:
2/12/2001
ANNEX
Purposes, Terms and Conditions of the Grant
1.
The purpose of the Grant is to support the carrying out of a poverty assessment 
in Kosovo which has the main objective of (i) generating reliable and statistically 
representative information of the living standards of the Kosovar population as it 
enters this new phase of development; (ii) analyzing the living standards and 
socio-economic welfare in the Kosovar population as it emerges from the post-conflict 
period; (iii) analyzing the inequality in living standards, including access and 
quality of basic social services; (iv) providing the analytical framework for the 
development of better-targeted and more cost-effective public interventions to reach 
the most vulnerable (the Project). The activities under the Grant shall focus 
primarily on (a) construction of a poverty line that reflects actual consumption 
patterns of the Kosovar population, (b) estimation of the incidence, depth and 
severity of poverty, broadly defined, and its correlates; (c) identification of some 
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of the root causes of poverty; and (d) the coverage and effectiveness of private and 
informal safety nets.
2.
The Grant shall be used to finance consultants’ services required for the 
Activities.
3.
IDA shall carry out the Activities on behalf of the Recipient. The Recipient 
shall cooperate with IDA to the extent necessary to permit IDA to carry out the 
Activities promptly and effectively, and to evaluate the results of the Activities. 
4.
The Activities shall be completed by not later than June 30, 2001, or such later 
date as IDA may establish by notice to the Recipient (the Closing Date). After the 
Closing Date, IDA may at any time cancel the remaining balance of the Grant.
5.
The engagement and supervision of the consultants (the Consultants) required to 
assist in the carrying out of the Activities shall be the responsibility solely of IDA 
and shall be governed, except as otherwise decided by IDA, by the provisions of the 
Attachment to this Annex.
6.
The Recipient may at any time request IDA in writing to terminate the 
Activities. Whether or not the Recipient has made such a request, IDA may at any time 
suspend or, after consultation with the Recipient, terminate the right of the 
Recipient to receive Grant funds for the Activities if any of the following events has 
occurred and is continuing: (a) the Recipient has failed to perform any of its 
obligations under this Letter Agreement; or (b) the right of the Recipient, to make 
withdrawals under any loan agreement with IDA or any development credit agreement with 
the International Development Association shall have been suspended. IDA may also 
terminate the right of the Recipient to receive Grant funds if: (a) IDA has decided, 
at any time after consultation with the Recipient, to withdraw its support to the 
Project; or (b) the Recipient has withdrawn its request for IDA’s assistance in the 
financing of the Project. 
7.
IDA is not an agent of, or trustee for, the Recipient and shall not have any 
fiduciary relationship with the Recipient.  The Recipient shall have no right to any 
portion of the Grant that is not expended by IDA pursuant to this Letter Agreement.
Attachment
Consultants' Services
1.    Consultants' services shall be procured in accordance with the relevant 
provisions of Statement 15.00 of IDA's Administrative Manual, dated July 1997 (the 
Administrative Manual), the Introduction and Section IV of the "Guidelines: Selection 
and Employment of Consultants by World Bank Borrowers" published by the Bank in 
January 1997 and revised in September 1997 and January 1999 (the Consultant 
Guidelines) and the following provisions of this Attachment.
2.  Services for the software design and data entry training shall be procured under 
contracts awarded in accordance with the provisions, which are consistent with the 
provisions of the Administrative Manual, of paragraphs 3.1 through 3.4 of the 
Consultant Guidelines (Quality-Based Selection).
3.  All other services under the Grant shall be procured under contracts awarded in 
accordance with the provisions, which are consistent with the provisions of the 
Administrative Manual, of paragraphs 3.1 and 3.7 of the Consultant Guidelines 
(Selection Based on Consultants' Qualifications).
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