THE WORLD BANK IBRD * IDA I WORLD BANKGROUP Public Disclosure Authorized H.E. Dr. Rania EI-Mashat OFFICIAL Minister of International Cooperation DOCUMENTS Ministry of International Cooperation 8 Adly Street Cairo Arab Republic of Egypt Public Disclosure Authorized Re: Trust Fund Grant No. TFOB3715 Additional Financing for Sustainable Persistent Organic Pollutants Management 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 and International Development Association ("Bank"), acting as administrator of grant funds provided by various donors ("Donors") under the Pollution Management and Environmental Health Multi Donor Trust Fund (TF072732), proposes to extend to the Recipient, a grant in an amount not to exceed seven hundred and fifty thousand Dollars (USD 750,000) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), Public Disclosure Authorized 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 EEAA in accordance with the terms and conditions set forth or referred to in this Agreement. Public Disclosure Authorized 1818 11 Street NW * Washington. DC 20433 USA -2- Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date this Agreement, and returning one duly executed copy to the Bank. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND INTERNATIONAL DEVELOPMENT ASSOCIATION By:- Marina Wes Country Director for Egypt, Djibouti and Yemen Middle East and North Africa Region AGREED: ARAB REPUBLIC OF EGYPT By: Authorized Representative Name: Dt.VxXa Title: _ nat An~ci,c oQt Date: -af:> i i t cz2 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 March 29, 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. 1818 -1 Street NW - Washington. DC 20433 USA -3- Trust Fund Grant No. TFOB3715 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) "Category" means a category set forth in the table in Section 3.01 of this Agreement. (c) "GEF Grant Agreement" means the Agreement dated August 26, 2014 entered into between the Arab Republic of Egypt and the International Bank for Reconstruction and Development (acting as an Implementing Agency of the Global Environment Facility) for the Project (GEF Grant Number TFO 17336). (d) "Greater Cairo Area" or "GCA" means all cities in the Cairo Governorate as well as Giza, 6th of October, Sheikh Zayed City in the Giza Governorate and Shubra El Kheima and Obour in the Qalyubia Governorate. (e) "Persistent Organic Pollutants" or "POPs" means organic compounds that are resistant to environmental degradation through chemical, biological, and photolytic processes. (f) "Polychlorinated Biphenyl" or "PCBs" means an organic chlorine compound once widely deployed as dielectric and coolant fluids in electrical apparatus. (g) "Pollution Management and Environmental Health Multi Donor Trust Fund" means trust fund Number TF072732. (h) "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. (i) "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 March 29, 2019. -4- Article II Project Execution 2.01. Project Objectives and Description. The objective of the Project is to improve the management and disposal of targeted stockpiles of obsolete pesticides, including Persistent Organic Pollutants (POPs) and Polychlorinated Biphenyl (PCBs), in an environmentally sound manner. The Project consists of parts A and B described in the GEF Grant Agreement and the following additional part C, subject to such modifications thereof as the Recipient and the World Bank may agree upon from time to time: Part C: Air Quality Monitoring and Laboratory Equipment Provision of air quality monitoring and laboratory equipment and associated supplies for the collection and chemical speciation analysis of manual, filter-based fine particle air pollution from the Greater Cairo Area (GCA). 2.02. Project Execution Generally. The Recipient, through EEAA, declares its commitment to the objective of the Project. To this end, the Recipient, through EEAA, shall carry out the Project in accordance with the provisions of: (a) Article 11 of the Standard Conditions; (b) the Anti- Corruption Guidelines; and (c) this Article 11. 2.03. Institutional and Other Arrangements. The provisions of Sections L.A and L.B of Schedule 2 to the GEF Grant Agreement (and related definitions) are hereby incorporated by reference in this Section and shall apply to this Agreement, nutatis mutandis, and the Recipient, through EEAA, undertakes to comply with the provisions thereof to the same extent as if such provisions had been set out in full in this Agreement, subject, however, to the following qualifications: (a) references to "World Bank" shall be construed as references to the Bank, acting as administrator of the Pollution Management and Environmental Health Multi Donor Trust Fund; and (b) references to "Grant" shall be construed as references to the Grant provided for under this Agreement. 2.04. Safeguards. The provisions of Section l.D of Schedule 2 to the GEF Grant Agreement (and related definitions) are hereby incorporated by reference in this Section and shall apply to this Agreement, nutatis mutandis, and the Recipient undertakes to comply with the provisions thereof to the same extent as if such provisions had been set out in full in this Agreement. 2.05. 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 the period specified in Section 2.05(c) of the Standard Conditions, 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 -5- 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 Donors. 2.06. Project Monitoring, Reporting and Evaluation. The Recipient, through EEAA, 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 EEAA, may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article Ill 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. Category Amount of the Grant Percentage of Allocated Expenditures to be (expressed in USD) Financed (inclusive of Taxes) (1) Goods, non-consulting 750,000 100% services, consulting services and Training under Part C of the Project TOTAL AMOUNT 750,000 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement,