MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE REPUBLIC OF BULGARIA AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
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1 MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE REPUBLIC OF BULGARIA AND THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ON PARTNERSHIP THE AND SUPPORT IN IMPLEMENTATION OF THE EUROPEAN STRUCTURAL AND INVESTMENT FUNDS FOR PERIOD Sofia, Bulgaria, 1 st September 2015
2 Memorandum of Understanding between the Government of the Republic of Bulgaria and the International Bank for Reconstruction and Development on Partnership the and Support in Implementation of the European Structural and Investment Funds for period I. PREAMBLE 1. WHEREAS the Government of the Republic of Bulgaria and the International Bank for Reconstruction and Development (the Bank, jointly referred to as the Parties ) recognise the long standing good collaboration between the Parties in financing infrastructure investments and other development needs of the Republic of Bulgaria (Bulgaria) during its transition period, in the process that led up to joining the European Union; during its first European Funds Programming period and the global economic crisis; 2. WHEREAS the Parties acknowledge the Memorandum of Understanding between the Government of Bulgaria and the Bank Stepping Up Cooperation in the Development of Bulgaria s Infrastructure signed on August 10, 2010, the Memorandum of Understanding on partnership and support in the implementation of the EU Structural Instruments and the European Agricultural Fund for Rural Development signed on January 22, 2012, which laid the foundation for expanded cooperation between Bulgaria and the Bank, including through provision of services for projects financed under the European Structural and Investment Funds (ESIF) and wishing to further such cooperation in the areas outlined in this MoU; 3. WHEREAS the Parties recognise the importance of the relationship between Bulgaria and the European Union (EU); 4. WHEREAS the Parties recognise the great significance of the funding that Bulgaria is scheduled to receive, through the ESIF, namely the European Fund for Regional Development (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF). This funding, for the Programming period of , represents an unparalleled opportunity for Bulgaria to achieve the objectives of smart, sustainable and inclusive growth as defined in the Europe 2020 strategy 1 ; 5. WHEREAS the Government of Bulgaria is determined to increase the rate and quality of absorption of ESIF through better management, leveraging and implementation. To leverage international experience, the Government has asked the Bank to assist in this effort through advising the Government and strengthening its capacity in policy and strategy formulation, analysis, diagnosis, sector and project planning, design and implementation; 1 European Commission, COM(2010) 2020 final 1
3 6. WHEREAS the value of the knowledge and advice that the Bank can provide to Bulgaria is recognized as important and desirable for Bulgaria both to successfully implement the projects to be financed under the Programming period, as well as to prepare Bulgaria well for the future programming period; 7. WHEREAS the Bank is considered to be well qualified to assist Bulgaria in its development and financing needs. NOW THEREFORE the Parties have agreed upon this Memorandum of Understanding as follows: II. AREAS OF SERVICES TO BE PROVIDED 8. To fully support the Government s structural reform agenda and its intent to put the resources in the ESIF programming period to full and effective use in meeting the development needs of Bulgaria, it is anticipated that the Bank support will focus on an indicative number of specific substantive areas set out as follows but not limited to: (i) competitiveness, innovations and SMEs; (ii) environment; (iii) transport; (iv) energy; (v) agriculture and rural development; (vi) forestry; (vii) fisheries; (viii) water sector; (ix) financial instruments; and (x) public administration. III. DELIVERY OF REIMBURSABLE ADVISORY SERVICES 9. The Bank services will be provided to Beneficiaries, pursuant to a Reimbursable Advisory Services Agreement (RASA). The Parties agreed on a template RASA, attached to this MoU (Attachment 1). 10. For the purposes of this MoU, the Beneficiaries are defined as public bodies of Bulgaria, responsible for initiating or initiating and implementing operations, carrying out an individual project and receiving ESIF funds. The Beneficiary, as defined in the respective ESIF Programmes, will be the Bank s counterpart in the Reimbursable Advisory Services Agreements. 11. The Bank advisory services under this Memorandum are financed through resources under the relevant ESIF Programmes in Bulgaria. 12. The Bank will be contracted by the Beneficiaries of ESIF for the stated purposes, following the principles of efficiency, effectiveness, economy and in accordance with the Bank applicable policies. Any procurement carried out by the Bank for the purposes of service provision would be carried out using the Bank s own policies and procedures. 13. The Bank services will be provided as per the Bank fee structure for advisory services based on standard Bank policies. 2
4 IV. WORKING ARRANGEMENTS OF THE PARTIES 14. The Government of Bulgaria, represented by the Deputy Prime Minister for EU Funds and Economic Policies, will take the lead in coordinating the Bank s support. The Bank commits to cooperate with the Government in the coordination effort, provide any information necessary and to be available for periodic coordination meetings. The implementation of this MoU will be monitored through joint coordination meetings, to be chaired by the Deputy Prime Minister for EU Funds and Economic Policies, on a regular basis and at least once a year, unless either Party requests an ad hoc meeting to address a specific issue that arose in the implementation of this MoU. 15. For each Reimbursable Advisory Services Agreement, the Bank, in consistency with its policies and procedures, will provide the Beneficiary with all the necessary information and documentation to allow it to comply with all the sound financial management requirements under ESIF requirements, as specified in the respective Reimbursable Advisory Services Agreement. 16. The Parties hereto intend to make every effort to avoid any duplication with any other projects and/or initiatives. V. VERIFICATION AND AUDITS 17. The Bank will provide, upon request by the Government of Bulgaria and in accordance with the Section on Record Keeping of the RASA, Bank-certified copies of the invoices and all other relevant supporting documentation provided to the Government of Bulgaria pursuant to the respective RASA in order to allow the National Authorities, the European Commission and the European Court of Auditors to verify/audit the use of Community funds by Republic of Bulgaria, including their legality and regularity. 18. The purpose of such verification/audit would be to allow officials of the National Authorities, the European Commission and the Court of Auditors to confirm the veracity of claims submitted by the respective institutions in Republic of Bulgaria. It is understood that such verification will be limited to information on the use of the financing provided by the European Commission from ESIF pursuant to a particular RASA, and would not equate to a verification/an audit of the Bank. 19. If a more extensive review is deemed necessary, an audit request could be formally submitted to the Bank in accordance with the Bank s procedures and policies for cooperation with Supreme Audit Institutions. VI. TIMEFRAME AND TERMINATION 20. This Memorandum shall become effective upon the duly signing by both parties and unless otherwise agreed by the Parties, will terminate on December 31,
5 21. If, at any time prior to the termination date, either Party hereto believes that the purposes of this MoU cannot be effectively or appropriately carried out this MoU can be terminated by giving the other Party three months prior notice. 22. Any bilaterally concluded agreements, referred to in Section III above will not be affected by the termination of this MoU. VII. MISCELLANEOUS 23. (i) This MoU does not constitute a legally binding agreement and does not commit the Bank to provide support for any specific activity or project nor the Beneficiaries to contract the Bank; (ii) Nothing in this MoU shall be construed as creating a joint venture, an agency relationship, or a legal partnership between the Parties; and (iii) Nothing in this MoU is intended to be, or should be construed as a waiver of the privileges and immunities of either Party or its officers and employees, which privileges and immunities are hereby specifically reserved. VIII. AMENDMENT 24. Any amendment or waiver of, or any consent given under, any provision of this Memorandum shall be in writing and, in the case of an amendment, duly signed by the Parties. As witness whereof, the parties have executed this Memorandum in two (2) specimens written in the English language and in two (2) specimens written in the Bulgarian language. In case of conflict in the interpretation of the MoU, the English language version shall prevail. Sofia, 1 st September 2015 Signed for and on behalf of THE GOVERNMENT OF REPUBLIC OF BULGARIA Signed for and on behalf of THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TOMISLAV DONCHEV Deputy Prime Minister for EU Funds and Economic Policies CYRIL MULLER Vice President Europe and Central Asia Region 4
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