The Government of the RussianFederation(hereinafterreferred to as the <Donor>>),

Transcription

1 DONORAGREEMENT betweenthe Governmentof the RussianFederation,the Permanent International Secretariatof the Organization of the Black SeaEconomic Cooperationand the Black SeaTrade And DevelopmentBank in respect of the Black SeaProject Promotion Facility The Government of the RussianFederation(hereinafterreferred to as the <Donor>>), the PermanentInternationalSecretariatof the Organizationof the Black SeaEconomicCooperation(hereinaftercalled as <BSEC PERMIS>)and the Black Sea Trade and DevelopmentBank (hereinaftercalled as <BSTDB)) (hereinafterjointly referredto asthe <Parties>); Bearing in mind the CooperationAgreementbetweenthe BSEC PERMIS and the BSTDB in respect of the Black Sea Project Promotion Facility (hereinaftercalled as <<Facilitp)signedon July 11'n,2016 (hereinaftercalled as the <CooperationAgreement>>), Consideringthe importanceof fosteringeconomiccooperationamongthe BSEC Member States; Considering the principles and objectives of BSEC in attaining a sustainedgrowth of national economiesof BSEC Member States and the socialwellbeing of their peoplesas well as developingand diversi$'ing bilateral and multilateral cooperation and economic collaboration in the Black Sea region; Considering the purpose to accelerate development and promote cooperationamongthe shareholdercountriesof BSTDB by supportingregional trade and investment, providing financing for commercial transactionsand projects in order to help its Member States to establish stronger economic linkagesand contributeto the transitionprocessof the Member Statestowards the economicprosperityof the peoplesof the region; Have agreedas follows:

2 Article 1 Purpose The Parties concludethe presentagreementfor the purposeof defining the relationsbetweenthem in view of the Donor's contributionto the Black Sea Project Promotion Facility, as well as delineatingthe rules of operationof the Facility, including the structureof the SteeringCommittee of the Facility and the responsibilitiesand representation of the Partiesin it. Article 2 Contribution 1. The Facility shall be initially financed by the contribution from the Donor amountingto USD 1,000,000(one million United Statesdollars)which shallbe contributedby the Donor until December3 I't, The Facility may also benefit from the contributions of additional potentialdonors. 2. Additional contributionsby the Donor could be agreedby the Parties and will be subjectto a review of the Facility operations. 3. The contributionsof the Donor shall be madein United Statesdollars. 4. Any interestincome derived from contributionsto the Facility shall be creditedto the Facility and consideredas part of the initial contribution. 5. The Donor shall deposit the contribution through the Ministry of Financeof the RussianFederationby wire transfer,in United Statesdollars,to the following account,to be usedexclusivelyfor the purposesof the Facility, on the basis of the Donor's financial regulationsupon submissionof the payment requestby BSEC PERMIS: Name of the Bank: Name of Branch Office: BranchCode: BranchAddress: Ttirkiye iq BankaslA.$. istinye Branch 1103 Emirgan StreetNo. II2, POB , istinye, Sanyer,istanbul

3 3 SWIFT Code : IBAN No.: Owner of Account: AccountNumber: Currency: ISBKTRISXXX TR Permanent International Secretariat of the Organizationof the Black Sea Economic Cooperation(Black Sea Project Promotion Facility Account) (Karadeniz Ekonomik igbirli[i UluslararasiDaimi Sekretaryasi) USD Orgritti The Donor shall inform BSEC PERMIS when a contributionis paid via an messagewith remittanceinformationto info@bsec-organization.org. ljpon the deposit of the contribution to the BSEC account, BSEC PERMIS shall officially inform accordinglythe Donor and BSTDB. Article 3 Managementand Administration of the Facilify 1. BSEC PERMIS, acting through the Manager of the Facility, shall administer the Facility in accordancewith the provisions of the present Agreement,the CooperationAgreementand the OperutrngGuidelines. In administering the contribution of the Donor, BSEC PERMIS shall follow the provisions of this Agreement and the CooperationAgreement,the OperatingGuidelines,as well as the decisionstaken by the SteeringCommittee of the Facility. 2. Overall leadershipof the Facility shall be provided by the Steering Committeeof the Facility which shall have the authority to decide on submitted proposals,approveallocation of funds under the Facility, review the resultsof allocationsand track Facility-wide progress. 3. The Steering Committee of the Facility shall ensure an equitable distributionof the Donor's contributionamongstprojects implementedor to be implementedfor the benefit of BSEC and BSTDB as well as the allocationof at

4 4 least 50% of the Donor's contribution to finance consultants and service providersfrom the Donor's country. 4. The SteeringCommitteeof the Facility shall compriserepresentatives of the Donor, potential future contributorsand BSEC PERMIS. The Russian Federationshall be representedby the Ministry of Finance(or by the Ministry of ForeignAffairs as an alternate). 5. The composition of the Steering Committee of the Facility, when convenedto decideon the uttlizationof the Facility by BSTDB shall includeone representativeof each of BSEC PERMIS, BSTDB and the contributorsto the Facility. 6. The Steering Committee of the Facility shall take decisions by consensus. 7. The SteeringCommittee of the Facility shall hold annual meetingsat the BSEC Headquartersto review and approvethe financial statementsfor the previousfiscal year of the Facility, its operatingresults as well as new project proposals. 8. The Steering Committee of the Facility shall adopt the Operating Guidelinesof the Facility by the end of 2016 by coffespondenceor at its first meeting and approve all supportive documents deemed necessaryfor its functioning, subject to the provisions of this Agreement and the Cooperation Agreement. 9. The preparation,appraisal and supervision of the projects managed throughbsec PERMIS shall be the sole responsibilityof BSEC PERMIS, and shall be carried out by BSEC PERMIS in accordancewith the BSEC PERMIS internal rules, policies and procedures,the presentagreement,as well as the CooperationAgreement,under the guidanceof the SteeringCommitteeof the Facility. 10. The preparation,appraisaland supervisionof the eligible usesof the Facility by BSTDB shall be the sole responsibilityof BSTDB, and shall be

5 5 carried out by BSTDB in accordancewith its internal rules, policies and procedures,the presentagreement,as well as the CooperationAgreementand pursuantto the relevant approvalsof the Steering Committee of the Facility issuedin accordancewith the OperationalGuidelines. I 1. As appropriate the Parties shall encourageclose consultation and information sharing relatedto all activities financed or to be financedwithin the frameworkof the Facilitv. Article 4 Managementcosts 1. The SteeringCommitteeof the Facility shall define the administrative expensesnecessaryfor the functioningof the Facility. 2. The SteeringCommitteeof the Facility shall decide on the salary and otheremolumentsof the Managerof the Facility. 3. The aggregateof the amountsbudgetedfor the projects, togetherwith the estimatedmanagementfees,shall not exceedthe total resourcesavailable. Article 5 Audit All contributionsshall be subjectexclusivelyto the internal and external auditing procedures provided for in the Financial Regulations and Rules, policiesandproceduresof BSEC. Article 6 Reporting l. The Managerof the Facility shall report to the Steering Committee of

6 6 the Facility on the activitiesof the Facility. 2. The Managershall provide the SteeringCommitteeof the Facility with the following reports, preparedin accordancewith the BSEC accountingand reporting procedures,as well as with any other information on the operationof the Facility requestedby the SteeringCommitteeof the Facility:. A consolidatedannual narcativeand financial report on the Facility and all projectsfinancedor to be financedwithin the framework of the Facility as of 31 December every year to be submitted during the Steering Committee's annual meeting of the following year, including data on the allocation of the Donors'contributionamongstBSEC and BSTDB projectsand consultantsfrom the Donor.. An annual audited financial statementon the Facility as of 3 1 December every year to be submittedduring the SteeringCommittee'sannualmeetingof the following year. 3. All financial reportsand statementsshall be expressedin United States dollars. Article 7 Add resses/co m mu n ication Unless otherwisespecifiedin writing to the other Party, colrespondence relating to the implementationof this Agreement shall be addressedto the following: (a) For the Donor: Departmentfor InternationalFinancialRelations,Ministry of Finance of the RussianFederation ,Russia,Moscow,llyinka Str.,9 tel.:+7 (495) fax: +7 (495) abokarev@minfin.ru (b) For BSEC PERMIS:

7 Office of the First Deputy Secretary GeneraI, Sakip Sabanci Cad. Musir Fuad Pasa Yalisi; Eski Tersane,34467 Emirgan - Istanbul - Turkey Tel.: Fax: E-mai I : s ec-or ganizati on. org (c) For BSTDB: Office of the Secretary General Black Sea Trade & Development Bank 1, Komninon street GR Thessaloniki, Greece Tel.: Fax: stdb. org Article 8 Settlement of Disputes Any dispute arising from or in connection with this Agreement, including the interpretation or application of any provision contained herein, shall be resolved through consultations between the Parties. Parties. Article 9 Amendment This Agreement may be modified only by written consent between all Article 10 Entry into Force and Termination 1. This Agreement shall enter into force upon signature by all Parties.

8 2. The Agreement shall remain in force within 3 years after effective date and may be extended upon the decision of the Parties, 3. Either Party may terminate the Agreement by giving the other Parties ninety (90) days' written notice. Notwithstanding the termination of the present Agreement, all its provisions shall remain in effect with regard to all projects initiated while this Agreement was in force unless otherwise agreed by the Parties. Any balance remaining after disbursing the funds from the Facility shall be returned to the Donor in proportion to its respective contribution. IN WITNESS WHEREOF, the duly authorized representatives of the Parties affix their signatures below to this Agreement. 8 Done at Thessaloniki, Greece, on the 18'h of November, 2016, in three copies in the English language. For the Government of the Russian Federation K& For the Black Sea Trade and I)evelopment Bank hotjl' For the Permanent International Secretariat of the Organization of the Black Sea Economic Cooperation