DIRECTORATE OF FOREST GOVT. OF WEST BENGAL FOR IMPLEMENTATION OF MANGROVE PLANTATION COMPONENT UNDER ICZM PROJECT THIS MEMORANDUM
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1 MEMORANDUM OF UNDERSTANDING BETWEEN FOREST PROTECTION COMMITTEE (FPC) and THE DIRECTORATE OF FOREST GOVT. OF WEST BENGAL FOR IMPLEMENTATION OF MANGROVE PLANTATION COMPONENT UNDER ICZM PROJECT THIS MEMORANDUM (hereinafter called the Contract ) is made on the.day of the month of.., 2012, between, on the one hand, the Forest Protection committee(fpc) a society formed unless repugnant to the contrary shall include its successors, administrators, heirs, assigns and nominees (Herein after to be called GRANTEE ) and having its head office at Post Office. P.S Dist. of the one part The Directorate of Forest, Government Of WEST BENGAL or its authorized Officers having its office at ((Herein after to be called GRANTOR ) on the other on the other part. and, WHEREAS (a) (b) (c) The GRANTEE has requested the GRANTOR to provide certain assistance as defined in this Contract (hereinafter called the ASSISTANCE ); The GRANTEE, having represented to the GRANTOR that it has the required basic skill, and personnel and resources, has agreed to avail the grant for adopting an alternative livelihood activity (hereinafter called the ACTIVITY ) on the terms and conditions set forth in this Contract; The GRANTOR has received a grant from the World Bank (hereinafter called the Bank ) through Govt. of India, Govt. of WEST BENGAL and SPMU,ICZMP-WEST BENGAL towards the assistance for the Services and intends to apply a portion of the proceeds of this grant to eligible payments under this Contract, it is being understood (i) that payments by the Bank will be made only at the request of the GRANTOR and upon approval by the Bank (ii) that such payments will be subjected, in all respects, to the terms and conditions of the agreement provided for the grant, and (iii) that no party other than the GRANTOR derive any rights from the agreement provided for the grant NOW THEREFORE the parties hereto hereby agree as follows: 1. The following documents attached hereto shall be deemed to form an integral part of this Contract: (A) (B) The Conditions of Contract; The following Appendices: Appendix A: Description of Targeted Interventions and detailed cost of Work 1
2 2. Cost of Contract Appendix B: Procedure of Operation Appendix C: Reporting Requirements and monitoring The total cost of the works (hereinafter referred to as the total cost ) as Rs., as reflected in Appendix A. The total cost as reflected in Appendix A shall be met out by the GRANTOR. At the end of the Programme, after all the activities have been completed, the difference of the total payment received by FPC and accepted audited expenditures, if any, shall be refunded to the GRANTOR. The acceptable expenditure on any activities shall be the actual expenditures or the Agreement amount whichever is less. 3. The mutual rights and obligations of the GRANTEE and the GRANTOR shall be as set forth in the Contract, in particular: (a) the GRANTEE shall carry out the alternative livelihood activity in accordance with the provisions of the Contract; and (b) the GRANTOR shall make payments to the GRANTEE in accordance with the provisions of the Contract(hereinafter called the GRANTS ). IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be signed in their respective names as of the day and year first above written. For and on behalf of: 1 st Party: Signed by Sri GRANTEE for and on behalf of the GRANTEE, in presence of 1st Witness- Address : Occupation : 2nd Witness- Address : Occupation : 2 nd Party : Signed by Sri in the Department /Office of for and on behalf of The Directorate of Forest, Government of WEST BENGAL, in the presence of 1st Witness- Address : Occupation : 2nd Witness- Address : Occupation : 2
3 (A) The Conditions of Contract; 1.General For the efficient implementation of interventions by the GRANTEE and handing over the same to the community (FPC), at the end of the Project duration and for ensuring that the mode of carrying out activities under the same is through participatory management by the members of GRANTEEs, considering the stakes of all members and non-members the following terms and conditions is agreed to by both the parties: a. The GRANTEE shall carry out the ACTIVITY with due diligence and efficiency and in conformity with appropriate administrative, technical, financial, economic, environmental and social standards and practices, and in accordance with the provisions of Approved Proposal and/or the Implementation Plan and/or the agreed budget. These will be valid or binding unless expressly agreed to in writing by the GRANTEE and the GRANTOR in the form of an Amendment(s). b. The GRANTEE shall hold monthly meetings to take any decision or any procurement/ progress of the work with all the member and representative of the GRANTOR and record all minutes of the meeting in the Resolution Register throughout the period of this AGREEMENT. c. The GRANTEE would have included women folk in the executive committee. d. The GRANTEE would have sensitized the members to mobilize their share of the estimated cost of the civil works as cash/labour which would be used towards the completion of estimated work. e. The hardware facilities developed in course of ICZMP interventions would be handed over after project completion work, which would be checked by the GRANTEE, stakeholders and the 3rd Party monitoring agency, ensuring that required objectives have been achieved. f. The GRANTEE shall collect contributions from its members and retain part of profit to be utilized for further operation of ACTIVITY g. The GRANTEE shall take the responsibility of collecting grants, fees, fines, penalties, donations, subscriptions, profits from enterprises and license fee etc, deposit the same in their account and utilize it for sustained activities. h. The GRANTOR reserves the rights to audit any such funds that it has granted/ contributed to the GRANTEE. i. The GRANTEE shall carry out all procurement required for implementation of the ACTIVITY in accordance of the World Bank s Procurement Guidelines and the subsequent changes thereto. j. The GRANTEE shall maintain financial management system, accurate accounts and records, prepare financial statements ( The Accounts, Records and Financial Statements ) in respect of the ACTIVITY and carry out financial audit, in such form and detail which identifies all expenditures incurred for the ACTIVITY, all in a manner satisfactory to the GRANTOR and the World Bank and in accordance with the Guidelines in force under ICZM Project with scope for changes thereto. The GRANTEE shall furnish the financial statements to the GRANTOR in accordance with these Guidelines. 3
4 k. The GRANTOR or its representatives and/or Auditors appointed by the GRANTOR (Panel of Auditors) and/or the World Bank shall, on giving reasonable notice to the GRANTEE, may review and audit the Accounts and Records including review of the adherence to terms and conditions of this AGREEMENT or to inspect the works, other goods or services procured for the ACTIVITY. The GRANTEE shall :- - co-operate with such teams during the review and inspection. - provide access to the Accounts and Records pertaining to the ACTIVITY whether on computer or in manual form. - provide copies of accounts and records. - provide oral or written explanations of the Accounts and Records as may be reasonably required during the review and audit. l. The GRANTEE shall maintain their books of accounts in compliance with requirements of the Accounting Manual of ICZMP. 2.RIGHTS AND RESPONSIBILITIES OF A.FOREST DIRECTORATE, GOVERNMENT OF WEST BENGAL:-THE GRANTOR (a) The GRANTOR shall assist the GRANTEE with all necessary technical support, supervision, training and advice to carry out the Operation and Maintenance of the infrastructure. (b) The GRANTEE to verify whether or not the agreement is implemented satisfactorily and the maintenance work is being done satisfactorily. (c) A monthly statement of account will be made available by the GRANTEE to the GRANTOR for purpose of transparency on resource availability, utilization and surplus income distribution which will be reviewed by the GRANTOR. B.FPC :-THE GRANTEE: (a) The GRANTEE will assume full responsibility for operation and maintenance of the ACTIVITY as outlined in the memorandum. (b) The GRANTEE shall ensure construction, maintenance and repair of all the physical structures as outlined within the jurisdiction of the GRANTEE as per the procedure of operation outlined. (c) The GRANTEE will protect the entire system covered under it from any damage whatsoever. (d) The GRANTEE will undertake / suggest measures for improvement of planned operation for their sustenance and benefit to be shared among all its members. (e) The GRANTEE shall observe economy and equitability in transacting the procurement processes as per outline community procurement process of the bank, routine trading and other operations. 4
5 (f) The GRANTEE shall notify to the project authorities promptly if there is any damage due to unforeseen natural calamities like earthquake, heavy rains, flood, cyclone etc. (g) The GRANTEE shall collect and retain user charges from the non-members of the association as per the provisions finalized by GB. (h ) The GRANTEE shall maintain books and records as outlined in the Community Financial Manual for the project. 3.TERMINATION OF AGREEMENT: i. Without prejudice to any other remedies, the GRANTOR may, by notice in writing to the GRANTEE, suspend or terminate the right of the GRANTEE to use the ACTIVITY developed out of the grant under this AGREEMENT including termination of this AGREEMENT, upon the happening of any of the following events (a) The GRANTEE shall have failed to carry out the ACTIVITY or any part thereof to the satisfaction of the GRANTOR in accordance with the provisions of this AGREEMENT; or (b) The GRANTEE shall have failed to perform any of its obligations under this AGREEMENT; or (c) The GRANTOR shall have determined on the basis of the review,that the performance of the GRANTEE under this AGREEMENT is not satisfactory; or (d) GRANTEE becomes bankrupt (e) GRANTEE is wound up. (f) GRANTEE is blacklisted by Ministry of Home Affairs or any other government agency and the same is notified. (g) At any point of time during period of implementation of the ACTIVITY it comes to notice of the GRANTOR that the GRANTEE is receiving multiple funding or assistance for ACTIVITY or any part thereof, then the AGREEMENT shall be terminated forthwith without any further notice 4. FRAUD & CORRUPTION It is the World Bank s policy to require that Organizations, Institutions Grantees Borrowers (including beneficiaries of Bank s grants), as well as consultants and their subcontractors under Bank-financed contracts, observe the highest standard of ethics during the selection and execution of such contracts. (a) For the purposes of this, the terms set-forth below are defined as follows: (i) (ii) corrupt practice 1 is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party; fraudulent practice 2 is any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit 1 Another party refers to a public official acting in relation to the selection process or contract execution. In this context, public official includes World Bank staff and employees of other organizations taking or reviewing procurement decisions. 5
6 (iii) (iv) (v) or to avoid an obligation; collusive practice 3 is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party; coercive practice 4 is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party; obstructive practice is (aa) deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a Bank investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation; or (bb) acts intended to materially impede the exercise of the Bank s inspection and audit rights provided for under Clause 3.6. will cancel the portion of the loan/grant allocated to a contract if it determines at any time that representatives of the Borrower/ grantee or of a beneficiary of the loan/grant were engaged in corrupt, fraudulent, collusive or coercive practices during the selection process or the execution of that contract, without the Borrower/grantee having taken timely and appropriate action satisfactory to the Bank to remedy the situation; (b) If the GRANTEE declaring that it is ineligible, either indefinitely or for stated period of time, to be awarded a Bank-financed contract if it at any time determines that the GRANTEE has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive practices in competing for, or in executing, a Bank- financed contract; (c) (d) (e) The GRANTEE shall permit the Bank to inspect their accounts and records and other documents relating to the submission of application/proposals and contract performance and to have them audited by auditors appointed by the Bank. The GRANTOR will require the GRANTEE to disclose any commissions or fees that may have been paid or are to be paid to agents, representatives, or commission agents with respect to the selection process or execution of the contract. The information disclosed must include at least the name and address of the agent, representative, or commission agent, the amount and currency, and the purpose of the commission or fee. If the GRANTOR determines that the GRANTEE has engaged in corrupt, fraudulent, collusive, coercive or obstructive practices, in competing for or in executing the Contract, then the GRANTOR may, terminate immediately the GRANTEE employment under the Contract and cancel the contract. 5.Dispute Resolution i) A Committee comprising of nominees from the Project(To be designated by Project Director, SPMU,ICZMP), will resolve all disputes in respect of various provisions made under this agreement. In case of difficulty in resolving it, matter will be referred to The Project Director, ICZMP and then to the Government in appropriate Department for settlement. 2 A party refers to a public official; the terms benefit and obligation relate to the selection process or contract execution; and the act or omission is intended to influence the selection process or contract execution. 3 Parties refers to participants in the selection process (including public officials) attempting to establish bid prices at artificial, non competitive levels. 4 A party refers to a participant in the selection process or contract execution. 6
7 ii) In case the Government fails to meet any of its responsibilities mentioned and agreed upon in the MoU, the GRANTEE may take the assistance of legal aid. 7
8 Appendix A: Description of Targeted Interventions and detailed cost of Work To be filled up by forest dept Detailed cost of Works Detailed Cost of Work Sub Activity Quantity reqd. Unit costs Cost Cost to be provided by GRANTOR Sub-total Costs Labour No. of Man days Cost per man day Sub-total Cost Costs provided by GRANTEE Unskilled Labour Grand Total 8
9 Appendix B: Procedure of Operation Directorate of Forest shall : - assist the GRANTEE in identifying the specific project activities to be taken up by GRANTEE and preparation of detailed plan. - facilitate necessary funds to the GRANTEEs for construction / procurement for the activities proposed as per provision of the project - provides necessary Technical skill upgradation trainings for implementation of the Program. - arrange to conduct continuous monitoring of the activities for promoting sustainability of the activities. - assist the GRANTEE for timely procurement of inputs, equipments and materials. - interact with the Government department for attending to the issues related to the capacity buildings of FPC. GRANTEE shall 1. Utilize the funds provided by the Department for activities listed in Appendix A. 2. Take up the work and after completion of the work on advance receipt, the same will be measured by a technical person and on utilization certificate of the 70% of the advance, further advance will be given. The details are to be worked out from time to time The slab of advance to be given is as follows for each sub-components, based on the estimate approved;- 1 st Installment - 40% 2 nd Installment 40% 3 rd Installment 20% PROCUREMENT AND FINANCIAL PROCEDURE TO BE ADOPTED : A.PROCUREMENT BY THE GRANTEE The procedures for procurement by the community have been detailed in the community procurement manual and the GRANTEE shall follow the procedures laid down in the manual. B.PROCUREMENT BY THE GRANTOR i)in special cases, where the GRANTOR is of the opinion that,the GRANTEE lack the basic knowledge of the procurement and individually do not have strength to undertake particular procurement activity, the same will be done by GRANTOR in the best interest of the GRANTEE. (In all such special cases, Grantor will take permission from SPMU to carry out Procurement on behalf of Grantee). ii) Alternatively, the GRANTEE may request GRANTOR to perform certain procurement process on their behalf. All such procurement functions shall be carried out in conformity to procedure laid down in the Procurement Manual of the ICZM Project..A simplified copy of the 9
10 Community Procurement manual will be made available to GRANTEE by GRANTOR in local language for reference. (In all such special cases, Grantor will take permission from SPMU to carry out Procurement on behalf of Grantee). C. FINANCE AND ACCOUNTS PROCEDURES TO BE FOLLOWED BY THE GRANTEE The project has a detailed Community financial Manual which is to be followed by the FPC. The manual list outs the fund flow mechanisms, books of accounts to be followed, operation of bank accounts, formats of books of accounts etc. A simplified copy of the Community Financial manual will be made available to GRANTEE by GRANTOR in local language for reference. 10
11 Appendix C: Requirements Reporting and Monitoring i.the GRANTEE shall prepare and furnish to the GRANTOR including the World Bank, reports on progress (physical and financial progress) in implementation of the SERVICES as may be required by the GRANTOR from time to time and in a manner and substance satisfactory to the GRANTOR by way of (a) Exchange views with regard to the progress of carrying out the ACTIVITES and other matters relating to this AGREEMENT; and (b) Furnish all such information related thereto as may reasonably be required by the BANK. ii The GRANTOR may be required to review and monitor annually the performance and progress of the GRANTEE in implementation of the SERVICES using third party monitoring focusing on purchases of goods, works and activities carried. The GRANTEE shall participate in and facilitate such review by the GRANTOR; and iii. The GRANTEE shall take all actions to improve performance and progress in implementation of SERVICES, as may be required by the GRANTOR on the basis of review referred to in (a) above. iv. The GRANTEE shall promptly inform the GRANTOR, of any development(s) which interferes with or threatens to interfere with the progress of its obligations under this AGREEMENT. 11
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