November 30, Re:

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized CONFORMED COPY The World Bank 1816 H StreettN.W. (202) INTERNAT ONAL DANKFOR RECONSTR UCTION ANOEVELOPMENT WashiNgton, D-C Cable Address: INTaAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S-A. Cable Address: INCSVAS Hans Magnusson Director Department for Conflict and Post-Confli ct Cooperation Swedish International Development Cooperation Agency Valhallavagen 199 SE Stockholm, Kingdom of Sweden Re: Dear Mr. Magnusson: November 30, 2011 Trust Fund Administration Agreement between the Swedish International Development Cooperation Agency and the International fank for Reconstruction and Development and the International Development Association concerning the Liberia Integrated Public Financial Management Reform Multi-Donor Trust Fund (LIPFMR MDTF) (TF No ). We are pleased to acknowledge on behalf of the International Bank for Reconstruction and Development ("1BRD") and the International Development Association ("IDA.") (collectively, the "Bank") that the Swedish International Development Cooperation Agency (the "Donor") shall make available as a grant the sum of one hundred and four million, five hundred sixty-eight thousand, three hundred seventy-nine Swedish Kroner (SEKl4,568,37900) (the "Contribution") for the Liberia Integrated Public Financial Management Reform Multi-Donor Trust Fund (LIPFMR MDTF) (the "Trust Fund") in accordance with the terms of this Agreement. Other donors are also expected to contribute to the Trust Fund on the terms and conditions specified in the Annexes to this Agreement. 2. The Contribution shall be used to finance the activities and the categories of expenditure set forth in the "Description of Activities and Expenditures under the LIPFMR MDTF Trust Fund" attached hereto as Annex I, and shall be administered by the Bank on behalf of the Donor in accordance with the terms of this Agreement including the "Standard Provisions Applicable to the T.IPFMR MDT Trust Fund" (the "Standard Provisions") attached hereto as Annex The Donor shall deposit the Contribution into such bank account designated by the Bank in installments in accordance with the following schedule: (a) promptly following countersignature of this Agreement by the Donor and submission of a payment request by the Bank, SEK 41,568,379; RCA , U WUI W FAX (202)

2 -2- November 30, 2011 (b) on or before November 30, 2012, and upon submission of a payment request by the Dank, SEK 26,000,000; (e) on or before November 30, 2013, and upon submission of a payment request by the Bank, SEK 26,000,000; and (d) on or before November 30, 2014, and upon submission of a payment request by the Bank, SEK 11,000, When making each such deposit, the Donor shall instruct its bank to include in its payment details information (remittance advice) field of its SWIFT payment message, information indicating: the amount paid, that the payment is made by the Donor for TF (the Liberia Integrated Public Financial Management Reform Multi-Donor Trust Fund), and the date of the deposit (the "Deposit Instruction"). In addition, the Donor shall provide a copy of the Donor's Deposit Instruction to the Bank's Accounting Trust Funds Division by sent to tfrcmitadvice@worldhank.org or by fax sent to (202) The Bank shall convert the Contribution funds into the holding currency of the Trust Fund, namely United States dollar, promptly upon receipt of the Contribution funds and the Deposit Instruction containing the information specified in paragraph 4 at the exchange rate obtained by the Bank on the date of the conversion. Where the Contribution proves to be insufficient to complete the activities as a result of an exchange rate fluctuation, neither the Bank nor the Donor shall bear any responsibility for providing any additional financing. 6. Except as provided for in paragraph 4 above, any notice, request or other communication to be given or made under this Agreement shall be in writing and delivered by mail, facsimile or to the respective party's address specified below or at such other address as such party notifies in writing to the other party from time to time: For the Bank: Ismaila B. Cecsay Lead Financial Management Specialist AFTPM The World Bank 63 Dr. Isert Road North Ridge, Accra, P.O. Box M27 Ghana Tel: Fax: iceesayworldbank.org

3 -3- November 30, 2011 For the Donor: Gisela Strand Head of Liberia and Sierra Leone Unit Department for Conflict and Post Conflict Cooperation Swedish International Development Cooperation Agency (Sida) Valhallavilgen 199 SE Stockholm, Kingdom of Sweden Tel: Fax: (isela.strand@sida.se 7. All annexes hereto constitute an integral part of this Agreement. This Agreement may be amended only in writing between the Bank and the Donor; provided, however, that such annexes may be amended only with the agreement of all donors contributing to the Trust Fund. 8. Please confirm your agreement with the foregoing, on behalf of the Donor, by signing, dating, and returning to us the enclosed copy of this Agreement. Upon receipt by the Bank of the copy of this Agreenient countersigned by you, this Agreement will become effective as of the date of the countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Is/ Sergiy Y. Kulyk AGREED: Acting Country Director for Liberia Africa Region SwEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCv 1sf H ans Magnussom Date: November 30, rf 2011, r e D DU et r nf1y f nfilcv1t Director, Department of Conflict and Post-Conflict Cooperation

4 -4- November 30, 201I ANNEX I DESCRIPTION OF ACTIVITIES AND EXPENDITJRES UNDER THE LIPFMR MDTF TRUST FUND This Annex shall be applicable to and form an integral part of all agreements entered into between the Bank and entities (collectively, the "Donors") that provide contributions (the aggregate of all contributions from the Donors, the "Contributions") to be administered by the Bank for the Trust Fund. A. DESCRIPTION OF ACTIVITIES (1) Bank-Executed Trust Fund Activities: The Trust Fund will finance Bank-Executed activities aimed at providing enhanced supervision and implementation support to and oversight for the Integrate Public Financial Management Reform Project (as described in Sub-section A.(1) of' this Annex: the "IPFMRP"). Costs for enhanced supervision as defined above up to a maximum of US$889,000 of the total Contributions tinder [his Trust Fund will be charged to the Trust Fund on an actual basis The Contributions may be used to finance (a) Consultant Fees; (b) Travel Expenses; (c) Staff Costs; (d) Coniraclual Services; (e) Media and Workshop Costs; (f Associated Overheads; (g) Extended Term Consultants; and (h) Temporary Staff Costs. (II) Recipient-Executed Trust Fund Activities: The LIPFMR MDTF will support and jointly finance the activities of the proposed IPFMRP in accordance with the annual work program to be prepared by the Recipient in consultation with the Donors and the Bank. The Trust Fund is intended to jointly finance the following IPFMRP components: Part 1: Enhancing Bud2et Planning Systems, Coverage and Credibility Establishment of effective systems and procedures for aggregated fiscal policy, management budget formulation and process and improved central and local government management, through: (1) Macro-Fiscal Framework. Provision of training to relevant staff of MoF and MoPEA in macroeconomic modeling, financial programming and revenue forecasting and provision of software and hardware for MAFU offices to strengthen the performance of MAFU's functions.

5 -5- November 30, 2011 (2) Fiscal Reporting and Fiscal Policy Review. Carrying out of: (i) a complete mapping of all chart of accounts (COA) elements in producing FORs; (ii) a pilot program for the reconciliation of fiscal and monetary accounts within the FORs to progressively include IFMIS data, incorporate FOR data in mid-term reviews and to publish the FORs once data adequacy is established; (iii) a plan to establish financial management and accounting standards for SOEs and allow regular reporting on SOE financial performance and potential. risks to the Recipient's fiscal position, including, inter alia, capacity building and training for SOE staff to enhance performance of their unotions and the preparation of financial reporting guidelines, (3) Enhanced Budget Frameworks. Establishment of an orderly, realistic budget process that includes all central government M&As and counties, through: (i) the development and delivery of training materials and workshops to enhance [he M&As' performance functions; (ii) provision of training on planning, capital project selection, and budgeting to MoF and M&A relevant staff; (iii) the implementation of a road-map for MTBF roll-out; (iv) pilot the preparation of FSEs by M&As and the MoPEA; and (v) carrying out of public consultations and hearings as a formal feature of the budget preparation process. Part 2: Strengthening PFM Legal Framework. Budget Executton, Accounting and Reporting Strengthening of the Recipient's legal public financial management framework to enhance delivery and quality of budget information and allow more informed government decision making, through: (1) Review of PFM Legal Framework. Carrying out of a legal review and drafting of proposed revisions to key legal instruments governing public financial management, including revisions to the Recipient's Public Financial Management Act of 2009, to provide greater consistency with international best practices and on improved legal framework for management and control of public finances. (2) JFMIS Roll-out to M&As. Implementation of the roll-out of the IFMIS to the Recipient's ministries and agencies, through: (i) implementation of software with interlinked budget preparation, execution and fiscal reporting modules; (ii) minor office renovations; (iii) completion of the implementation of the payroll module of said software; and (iv) establishment of e-transcript utilities to interface with county-level systems. (3) Strengthening FinancIal Standards - Accounting and Reporting. (i) Development of guidelines to produce IPSAS compliant consolidated financial statements: (ii) provision of training to CAGD staff on accounting and reporting; (iii) development and design of specifications to automatically produce IPSAS compliant reports; and (iv) carrying out of a review of the current accounting and financial processes and provision of recommendations to improve identified areas to bring these processes in line with best practices.

6 -6- November 30, 2011 (4.1) Treasury and Cash Management. Improvement of efficiency and effectiveness of the Recipient's cash and debt management, through: (i) the preparation of a plan to establish the. TSA; (ii) implementation of banking arrangements and payments processes for TSA sub-accounts; (iii) drafting of principles for donor project bank accounts to be incorporated under TSA; and (iv) establishment of a cash flow forecasting and cash management mechanism. (4.2) Aid Management. Improvement of the predictability and coordination of aid flows and increase in the transparency and accountability of aid management, through: (i) the implementation of a web-based repository of aid data and aid funded programs in the aid management platform; (ii) carrying out of training of AMU staff in aid management and coordination, monitoring and evaluation, and grant negotiation; (iii) provision of hardware, software and equipment; and (iv) carrying out of minor office renovations. (4.3) Debt Management. Improvement of cfliciency and effectiveness of debt management, through: (i) provision of training on debt management systems to debt management staff; (ii) acquisition of periodic CS-DRMS upgrades; and (iii) implementation of a domestic debt management module as an addition to CS-DRMS. (5) Establishment of County Treasuries. Establishment of basic financial management and fiduciary control at county level, through: (i) carrying out of minor renovations of existing county accounting offices; (ii) setting up of a treasury framework, including design and provision of simplified book-keeping and accounting tools; (iii) acquisition of basic furniture for county treasury offices; and (iv) provision of training to county treasury officers on basic county treasury accounting and reporting. (6) Donor Project Financial Management/Use of Country Systems. Increase the use of country.financial management systems and 'aid on accounting' and 'aid on reporting', through: (i) design of budgeting, accounting, and reporting tools within IFMIS; (ii) provision of training of PFMU staff and staff in the CAGD accounting services unit on the implementation of donor-funded project accounting; and (iii) piloting of the transition from stand-alone financial arrangements for donor-funded projects to integrated financial management arrangements. Part 3: Revenue Mobilization and Administration improvement of efficiency and integrity of revenue administration and incrcasu of domestic revenue of central government entities, through: (1) Capacity Development of Customs. Supporting the implementation of customs automation (ASYCUDA) and its roll-out to key collectorate locations. (2) Tax Aulomation (SIGTAS). Strengthening the Recipient's tax administration and collection system, through: (i) minor refurbishment of existing

7 -7- November 30, callectorate sites in rural areas; and (ii) carrying out of training and capacity strengthening to implement SIGTAS roll-out. (3) Establishment of Revenue Authority, Strengthening the Recipient's tax revenue administrative framework to facilitate policy implementation and improve revenue collection, through: (i) development of a human resource performance management policy; (ii) training to revenue staff on change management, and awareness creation on new improved methods and practices of revenue collection; and (iii) carrying out of minor renovation and furnishing of office space and purchase of power generators. Part 4: Enhancing Transparency and Accountability Improvement of the Recipient's public financial management transparency and accountability, through: (1) Strengthening Public Procurement. Improve the public procurement oversight through strengthening the institutional capacity of the PPCC to deliver on its mandate, through: (i) strengthening the institutional capacity of the PPCC to enhance performance of its functions; (ii) training to PPCC staff and outreach to ministries and local government officials to improve monitoring and compliance with procurement guidelines; (iii) carrying out of south-to-south knowledge exchange activities; (iv) supporting the interface with IFMIS procurement model and the online publication of PPCC review reports. (2) [nternal Audits and Controls. Improvement of the internal control environment of M&As to ensure sufficient and timely services, through: (i) the establishment of the Recipient's internal audit governance board and secretariat; (ii) provision of software, hardware and equipment to the governance board; (iii) carrying out of training to internal auditors across M&As; (iv) preparation and implementation of internal audit manuals; (v) the development and implementation of a risk-based audit methodology; and (vi) provision of training on specialized audit, licensing and certifications to internal auditors. (3) External Audit, Strengthening of the oversight role of GAC and improvement of financial compliance, through: (i) carrying out of training to GAC staff on procurement audit, information system audit, revenue audit, public and environmental audit, oil and gas audit; (ii) carrying out of training and certification for GAC staff on modern audit practices; and (iii) strengthening GAC's capacity and carrying out of minor office renovations. (4) Legislative Oversight. Enhancement of the capacity of LBO to apply appropriate standards of public financial accountability to the executive branch, through: (i) provision of training on budget analysis to L30 staff; (ii) implementation of outreach programs for PAC and the Ways and Means Committee through south-south study tours; and (iii) provision of training to the Recipient's legislator.

8 -8- November 30, 2011 (5) Civil Society and Social Accountability. Strengthening the capacity of NSAs as critical watchdogs in ensuring transparency and accountability in the use of public finances, through: (i) the preparation and dissemination of information materials on public spending at national and local levels; (ii) support the administration of Sub-grants by'nsas under this Part D, including the recruitment of a Sub-grants Evaluation Agent; (iii) development of a grant-making program for eligible NSAs and provision of such Sub-grants to eligible NSAs to support demand-driven activities related to transparency and accountability in the use of public resources for (a) analysis and monitoring of the national and local government budgets at various stages of the budget preparation, approval and execution cycle; and (b) support for advocacy activities and dissemination of information on all aspects of public financial management at the national and local government levels; and (iii) media training for journalists on covering government budget and spending matters and related issues. PART 5: Program Coordination & Mana2ement (1) Project Coordination. Strengthening the institutional capacity of the PFM RCU and PEMU in order to fulfill their fiduciary duties under the Project, and liaise with the CSA, PFM Training Program and the PPCC. (2) Institutional and Capacity Building. Strengthening of the institutional basis for public financial management reforms and build national capacityfor enabling new entrants into the civil service, through: (i) provision of stipends to eligible students under the EGIRP Criteria in the public financial management and procurement courses; (ii) review of the procurement and public financial management education curriculum; (iii) provision of compensation to professional lecturers and other academic staff in public financial management and procurement courses; (iv) development of a career path for public financial management and procurement staff; (v) further implementation of the employee biometrics; and (vi) carrying out public financial management training and knowledge sharing to key staff of M&As, (3) Monitoring & Evaluation. Strengthening the institutional capacity of the M&E Unit in order to carry out annual self assessments of the Recipient's public expenditures financial accountability. (4) Fiduciary Strengthening, Strengthening the institutional capacity of the PFM RCU in order to fulfill its fiduciary responsibilities under the Project, and provide technical support to M&As. DEFINITIONS; For purposes of the foregoing description, the following terms have the following meanings: 1. "AMU" means aid management unit of MoF. 2. "ASYCUDA" means the Automated System for Custom Data issued by the United Nations Conference for Trade and Development.

9 -9- Noveniber 30, "CAGD" means the Recipient's Controller and Accountant General's Division. 4. "CSA" means the Recipient's Civil Service Agency. 5. "CS-DRMS" means London-based commonwealth secretariat's debt recording and managernent system. 6. "GIRP Criteria" means the terms and conditions, criteria and procedures for payment -of Stipends under Part 5(2) of the Project (i) which were developed and adopted by the Recipient through a Memorandum of Understanding signed on November 17', 2006 by the MoF, CSA, the University of Liberia, the Liberia Institute of Public Administration, and PPCC as amended from time to time in consultation with the Association and (ii) that are not being simultaneously financed under any other project financed by any development partner and/or by the Association or by the International Bank for Reconstruction and Development or under a project administered or under a project administered by the Association or by the iternational Bank for Reconstruction and Development. 7. "FORs" means IFM IS-generated fiscal operations reports. 8. "FSEs" means forward spending estimates. 9. "GAC" means the Recipient's General Audit Committee. 10. "IFMIS" means the Recipient's integrated financial management information system. 11. "IPSAS" means interniational public sector accounting standards issued by IPSAS Board, an independent organ of the International Federation of Accountants. 12. "LBO" means the Recipient's Legislative Budget Office, 13. "M&As" means collectively the ministries, departments and agencies of the Recipient. 14. "MAFU" means the Macro-Fiscal Analysis Unit within the MoF. 15. "M&E Unit" means the Monitoring and Evaluation Unit of MoF. 16. "MoP" means the Recipient's Ministry of Finance. 17, "MoPEA" means the Recipient's Ministry of Planning and Economic Affairs. 18. "MTBF" means Recipient's medium term budget framework 19, "NSA" means a non-state actor, established and operating under the laws of the Recipient as a not-for-profit legal entity.

10 -10- November 30, "Operating Costs" means the reasonable costs of incremental expenditures incurred by the Recipient in relation to the implementation of the Project, which expenditures would not have been incurred absent the Project, including, iter alia: maintenance of vehicles and equipment, fuel, office supplies, utilities, consumables, bank charges, advertising expenses, travel, per diems, accommodation, salaries of selected support staff, and salaries of consultants but excluding salaries of officials of the Recipient's civil service. 21. "PAC" means the Recipient's Legislative's Public Accounts Committee. 22. "PFM" means public financial management. 23. "PFM RCU" means the Recipient's Public Financial Management Reform Coordination Unit of Mo'. 24. "PFMU" means the Recipient's Project Financial Management Unit within the MoF. 25, "PPCC" means the Public Procurement and Concessions Commission, established and operating pursuant to the Public procurement and Concessions Act of the Recipient, dated September 8, "Recipient" means (he Republic of Liberia. 27. "SIGTAS" means the Standard Integrated Government Tax Administration System, an integrated information system that enables governments to automaic the adininisiration of taxes and licenses. 28. "SOEs" means, collectively, the state-owned enterprises of the Recipient. 29. "Stipends" means the reasonable stipend of approximately one hundred Dollars (US$100) per eligible student under the EGIRP Criteria, and/or any other amount agreed from time to time by the Recipient with the Association, to be paid on a monthly basis to students attending the PFM Training Program, in order to partially cover the living expenses. 30. "Sub-grant" means a grant made or proposed to be made by the Recipient to an NSA out of the proceeds facilitated under the LIPFMRP MDTF for the purpose of financing the reasonable costs of goods or services required by the said NSA for the carrying out of a Sub-project. 31. "Sub-grants Evaluation Agent" means a firm or individuals to be recruited by the Recipient in order to appraise Sub-project proposals in order to provide Sub-grant financing. 32. "Sub-project" means a set of specific activities carried out or to be carried out by an NSA under Part 5(5) above, and financed or proposed to be financed out of the proceeds of the LIPFMRP MDTF through a Sub-grant.

11 -11- November 30, "Training" means the costs associated with the participation of personnel involved in Project supported activities in training activities, study tours and workshops, including travel and subsistence costs for training, study tour and workshop participants, costs associated with securing the services of trainers, rental of training and workshop facilities, preparation and reproduction of training and workshop materials, and other costs directly related to training course, study tour or workshop preparation and implementation. 34. "TSA" means the Recipient's treasury single account. 35. "Ways and Means Committee" means the Ways and Means Committee of the Liberian National Legislature. B. CATEGORIES OF EXPENDITURE For Bank-Executed activities the Contributions may be used to finance (a) staff fees and costs for (i) temporary staff; (ii) short-term consultants; and (iii) extended term consultants; (b) contractual services; workshop costs, including costs associated with presenters, participants, publicity and reporting; (c) travel expenses, including travel expenses for fank staff, short-term and extended term consultants; and (d) associated overhead, including translations, minor expendables, information technology and communication services. For Recipient-Executed activides, the Contributions may be used to finance (a) goods, (b) non-consulting servies, (c) consulting fees, (d) travel expenses, (e) subgrants to NSAs; Stipends (as defined in I(II) above) to PFM training school, (f) compensation to lecturers of PPM training school, (g) Operating Costs (as defined in A(II) above); and (g) Workshops and Training (as defined ina(ii) above). The foregoing categories of expenditures may include the financing of taxes.

12 -12- November 30, 2011 Standard Provisions Applicable to the IPFMR MDTF ANNEX 2 This Annex shall be applicable to and form an integral part of all agreements entered into between the Bank and the Donors that provide Contributions to be administered by the Bank for the Trust Fund. 1. Adminisiration of the Contributions 1.1. The Bank shall be responsible only for performing those functions specifically set forth in this Agreement and shall not be subject to any other duties or responsibilities to the Donors, including, without limitation, any duties or obligations that might otherwise apply to a fiduciary or trustee under general principles of trust or fiduciary law. Nothing in this Agreement shall be considered a waiver of any privileges or immunities of the IBRD and IDA under their Articles of Agreement or any applicable law, all of which are expressly reserved The Contribution shall be administered in accordance with the Bank's applicable policies and procedures, as the same may be amended from time to time, including its framework to prevent and combat fraud and corruption and its screening procedures to prevent the use of Bank resources to finance terrorist activity, in line with the Bank's obligations to give effect to the relevant decisions of the Security Council, taken tinder Chapter VII of the of Charter of the United Nations. The Donor acknowledges that this provision does not create any obligations of the Bank under the anti-terrorist financing and asset control laws, regulations, rules and executive orders of an individual member country that may apply to the Donor, nor shall it be deemed a waiver, express or implied, of any of the privileges and immunities of the Bank. 2. Commingling Exchange and Investment of the Contributions 2.1. The Contributions shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The Contributions may be commingled with other trust fund assets maintained by the Bank The Contributions may be freely exchanged by the Bank into other currencies as may facilitate their disbursement The Bank shall invest and reinvest the Contributions pending their disbursement in accordance with the Bank's policies and procedures for the investment of trust funds administered by the Bank, The Batik shall credit all income from such investment to the Trust Fund to be used for the same purposes as the Contributions. 3. Administrative Cost Recovery

13 -13- November 30, In order to assist in the defrayment of the costs of administration and other expenses incurred by the Bank under this Agreement, the Bank may deduct and retain for its own account an amount equal to two percent (2%) of each Contribution. In addition, costs for program management and administration up to a maximum of three hundred thirty-eight thousand four hundred thirty-seven United States dollars (US$338,437) (1.6% of the overall Contribution) will be charged to the Trust Fund on an actual basis. If the contributions increase beyond what was originally expected at the time of countersignature of the first administration agreement, and the administrative costs increase as a result, the Donors acknowledge that an additional administrative fee may be applied to such new contributions. 4, Grant to Recipient 4.1. The Bank shall, as administrator of the Trust Fund on behalf of the Donors, enter into a grant agreement (the "Grant Agreement") with the Republic of Liberia (the "Recipient") consistent with the purposes of this Agreement and on the terms and conditions set forth in the Grant Agreement. Grant Agreement may be entered into up to the maximum amount of the Contributions that all Donors have agreed to make available under the Administration Agreements between the Bank and the Donors. Upon request by a Donor, the Bank shall furnish a copy of the Grant Agreement to the Donors The Bank shall be responsible for the supervision of the activities financed under the Grant Agreement. Subject to the consent of the Recipient, representatives of the Donors may be invited by the Bank to participate in Bank supervision missions related to the Trust Fund The Bank shall promptly inform the Donors of any significant modification to the terms of any Grant Agreement and of any contractual remedies that are exercised by the Bank tinder any Grant Agreement. To the extent practicable, the Bank shall afford the Donors the opportunity to exchange views before effecting any such modification or exercising any such temedy. 5. Procurement 5.1. For Recipient-executed activities, the Grant Agreement shall provide that the Contributions shall be used by the Recipient to finance expenditures for goods and services, as the case may be, in accordance with the Bank's Guidelines on "Procurement under IBRD Loans and IDA Credits" and the Bank's Guidelines on the "Selection and Employment of Consultants by World Bank Borrowers," as in effect at the date of entry into the respective Grant Agreement For Bank-executed activities, the employment and supervision of any consultants and te procurement of any goods financed by the Contributions shall be the responsibility of (he Bank and shall be carried out in accordance with its applicable policies and procedures.

14 -14- November 30, Accounting and Financial Reporting 6.1 The Bank shall maintain separate records and ledger accounts in respect of the Contributions deposited in the Trust Fund accouht and disbursements made therefrom. 6,2. The Bank shall ffirnish to the Donors current financial information relating to receipts, disbursements and fund balance in the holding currency of the Trust Fund with respect to the Contributions via the World Bank's Trust Funds Donor Center secure websihe. Within six (6) months after all commitments and liabilities under the Trust Fund have been satisfied and the Trust Fund has been closed, the final financial information relating to receipts, disbursements and ftind balance in the holding czirrency of the Trust Fund with respect to the Contributions will be made available to the Donors via the World Bank's Trust Funds Donor Center secure website. 6.3, The Bank shall provide to the Donors, within six (6) months following the end of each Bank fiscal year, an annual single audit report, comprising (1) a management assertion together with an attestation from the Bank's external auditors concerning the adequacy of internal control over cash-based financial reporting for all cash-based trust funds as a whole; and (2) a combined financial statement Cor all cash-based trust funds together with the Bank's external auditor's opinion thereon. The cost of the single audit shall be borne by the Bank If a Donor wishes to request, on an exceptional basis, a financial statement audit by the Bank's external auditors of the Trust Fund, the Donor and the Bank shall first consult as to whether such an external audit is necessary' The Bank and the Donor shall agree on the appropriate scope and terms of reference of such audit. Following agreement on the scope and terms of reference, the Bank shall arrange for such external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be paid by the requesting Donor The Bank shall provide the Donors with copies of all financial statements and auditors' reports received by the Bank from the Recipient pursuant to the Grant Agreement. 7. Progress Reportine 7.1. The Bank shall provide the Donors with an annual report on the progress of activities financed by the Contributions. Within six (6) months of the final disbursement date specified in paragraph 8.2, the Bank shall furnish to the Donors a Final report on the activities financed by the Trust Fund. 7.2 Any Donor may review or evaluate activities financed by the Trust Fund. The Donor and the Bank shall agree on the scope and conduct of such review or evaluation, and the Bank shall provide all relevant information within the limits of its policies and procedures All associated costs shall be borne by the Donor. It is understood that any

15 -15- November 30, 2011 such review or evaluation will not constitute a financial, compliance or other audit of the Trust Fund. 8, Disbursement: Cancellation: Refund 8.I. It is expected that the Contributions will be fully disbursed by the Bank by December 31, The Bank shall only disburse Contributions for the purposes of this Agreement after suclh date with the written approval of the Donors. 8.3 Any Donor or the Bank may, upon three (3) months' prior written notice, cancel all or part of the Donor's pro rata share, of any remaining balance of the Contributions that is not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third parties for the purposes of this Agreement prior to the receipt of such notice, including the Grant Agreement Following the firial disbursement date specified in paragraph 8.2, the Bank shall return any remaining balance of the Contributions to the Donors on a pro rata basis based on the Donors' paid Contributions. In the event of a cancellation the Bank shall promptly return to the relevant Donor or Donors the Donor's pro rate share of uncommitted Contributions in accordance with paragraph Disclosure The Bank will disclose this Agreement and related information on this Trust Fund in accordance with the World Bank Policy on Access to Information. By entering into this Agreement, Donors consent to disclosure of this Agreement and related information on this Trust Fund.