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with Republic of Armenia
31 January 2018 | ARM-RS-001
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GRANT N U MBER IARM'RS- o o 1l
GRANT AGREEMENT
THIS GRANT AGREEMENT is made and entered into on this 3Lday of January,20lB,
BETWEEN
ENVIRONMENTAL PROJECT IMPIEMENTATION uNlT,state Agency, possessing the rights of a
rr the laws of the Republic of Armenia and acting
of the Government of the Republic of Armenia of
t t}g A. Armenakyan str., 0047, Yerevan, Republic
rn, Director ["ReciPient")] ; and
THEGREEN CLIMATE FUND, establ ished under the United Nations Framework convention on
Climate Change ["Convention") and designated as an operating enti ty of the- f inancial mechanism
under Art icle 11- of the Convention pursuant to the Governing Instrument for the Green Climate
Fund f, ,Governing Instrument"J, poisessing juridical personali ty in order to operate effect ively
internationally, hlving such legal iapacity is is necessary for the exercise of its functions and the
protection of i ts interests ani having i is headquarters at Songdo, Incheon, Republic of Korea
,..pr.r.nted by Mr. pa ousmanf arju, Di iector, Country Programming Division(the "Fund"J'
WH EREAS
iAl the Recipienthas been selected by the national designated authority referred to in
p"rrg.rp'h 46 of the Governing Instrument for the Green Climate Fund ["NDA"),
represented by Mr. ArtsvikMinasyan,Minister, Ministry of Nature Protection toimplement
the Readiness SuPPort; and
(B) the Fundis wil l ing to make a grant to the Recipient upon the terms and condit ions set forth
here in;
NOW THEREFORE the part ies hereto agree as fol lows:
ARTICTE I
Standard Conditions and Policy on Prohibited Practices; Definitions
Section 1.01. tal The Standard Condit ions and the Policy on Prohibited Practices, both of
which are defined below, consti tute integral parts of this Grant Agreement and are made hereto
with the same force and effect as i f they were ful ly set forth herein.
tb) without l imit ing the foregoing, this Grant Agreement includes al l schedules, appendices,
attachments and annexes to this Grant Agreement. '
Section 1,.02. Wherever used in this Grant Agreement,terms defined in the Standard Condit ions
shall have the respective meanings therein set forth unless modif ied herein or the context
otherwise requires. Addit ional t . .rnr- used in this Grant Agreement shal l have the fol lowing
meanlngs:
ta) , ,Board" means the board of the Fund establ ished pursuant to the provisions of the
Governing Instument;
(b) , ,Confidential Information" means information, however recorded or preserved, disclosed
by either of the parties to the other, relating to the Readiness Support, which is described
and/or marked as "confidential" at the t ime of disclosure;
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Ic) "Disbursement Schedule" means the disbursement schedule or plan set out in the approvedproposal for the Readiness Support dated 27 March Z0h6inAnnex t hereto;"Focal Point" means the individual or authority designated by a developing country party tothe convention to fulfil all functions of an NDA on a temporary basis, until"it has designatedan NDA;
"Grant Term" has the meaning ascribed thereto in Section3.01 of this Grant Agreement;"lnformation Disclosure Policy'' means the information disclosure policyof the Fundadopted by Decision B.12/35, as amended from time to time, and any successor documentthereto;
"NDA" has the meaning ascribed thereto in recital (AJ above;"Procurement Plan" means the_ procurement plan for the Readiness support set out in the.:,pp:outd proposal dated 27 March 2076in Annexl heretoor which trai'neen agreed to bythe Fund subsequently and submitted with the disbursement requests by the Recipient;"Policy on Prohibited Practices" means the Fund's interim policy on prohibited practicesadopted by Decisi onB.LZ/31 by the Board;'Readiness
Support" means the readiness support described in the approved proposaldated 27 March 20l6inAnnex t hereto; and"Standard Conditions" means the Standard Conditions for Readiness and preparatorysupport Grants provided by the Green climate Fund [May 2016).
td)
(e)
(0
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( i)
(i)
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ARTICLE IIThe Grant
Section 2'07' Subject to the terms and conditions of this Grant Agreement, the Fund agrees tomake available to the Recipienttheamount offhree Hundred Thousand Doll".s [$300,000).
ARTICTE IIIEffective Date; Grant Term
Section 3'01' Except as the Fund and the Recipient may otherwise agree and as specified inwriting by the Fund, [aJ the Effective Date of this Crant Agreement shall Ue ttre date upon which theFund dispatchesto the Recipient notice of its acceptan.. of the evidence required by Section r4.0rof the Standard Conditions, and [b) the Grant Term shall be from the Effective Date to ZB February2020.
Section 3'02'Unless as the Fund may otherwise agree, a"date 90 days after the date of this GrantAgreement is specified for effectiveness of this Grint Agreement forihe purposes of Section L4.03of the Standard Conditions. (Termination for Failure to Become EffectiveJ.
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Section 3.03. Notwitlistanding the foregoing this Section 3and B of the Grant Agreement andSections 70,r\, 12, 13, 15, 16, L7, 1.8, rg, 2r or tne Standard Conditions shall be effective from thedate of this Grant Agreement.
Section 3'04'This Grant Agreement and all obligations of the parties hereunder shall terminate onthe date 3 years after the expiry of the Grant Term.
ARTICLE IVUse ofProceeds ofthe Grant
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section 4'07' (a) The Recipientshall (i)appiy the proceeds of the Grant to the financing ofEligible Expenditures in respect of Goods -"na
s..vicesin accordance with the provisions of thisGrant Agreement; [iiJ ensuie that the Grant proceeds are used for their intended purposes inaccordance with the generally accepted principles of economy, efficiency, transparency andaccountability; [iii) cause the Readin-ess support to be carried out in conformity with soundadministrative, technical, financial, business'ind development practices, and [iv)ensure that theReadiness Support activities are carried in accordance with the terms and conditions of this GrantAgreement, including the standard conditions and thepolicy on prohibited practices.tb) The proceeds of the Grant shall be allocated and applied as set forth inAnnex 1to this GrantAgreement' which may be amended from time to time uy ag.eement between the Recipient and theFund.
section 4'02' Except as the Fund may otherwise agree, the Recipient shall procure, or cause to beprocured, all Goods and Services in accordance with the procurement plan.
ARTICLE VPayment of Grant proceeds
Section 5'01' Notwithstanding any other provision of this Grant Agreement, payments to theRecipient shall be made only upon fulfillm'ent by the Recipient ofthe requirements set forth inSection 6.01 of the Standard Conditions to the satisfaction of the Fund.section 5'02' Payment of the Grant proceedsshall be made in accordance with the indicativeDisbursement schedule included in the approved proposal as set forth in Annexlto this GrantAgreement and upon submissign by the Recipient oi appropriate reports, along with Requests forDisbursement, in a form and substance acceptable to the Fund:section 5'03' All disbursements upto the amounts specified in the Disbursement Schedule shall bemade by the Fund following the receipt of a written disbursement request submitted by theRecipient and provided the applicable requirements as regards reporting and information as to thedate of request have been tulitfied. Each disbursement request should include information on theProcurement Plan, the budget and list activities to be implemented for the requested amount.Section 5.04 All payments of thebank account:
Grant proceeds shall be made in usDollars, to the following
ARTICTE VIAudits; Other Covenants
section 6.01. The Recipientshall ti) have Finanauditors whose qualifications, experience and teaccordance with international standards for aud;Fund; [ii) as part of each such audit, have theauditors' opinion on the Financial Statements, use of the Grant proceeds and compliance with thecovenants of this Grant AgreementJ; and (iii) furnish to the Fund , no later thans months after the
This section has been redacted in accordance with the GCF Inforamtion Disclosure Policy
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completion of the Readfness Support, copies of such audited Financial Statements and auditreport, al l in the English language, and such other information concerning these documents and theaudit thereof as the Fundmay from time to time reasonably request.
Section 6,02. For the purposes of Section 7.07 of the Standard Condit ions, the Recipientshallsubmit, or cause to be submitted, to the Fund [i) Readiness Repoits as follows: Two [2) InterimProgress Peportsafter Six (61 and Twelve (12) months from the Effective date; and (ii) theComplet ion Report (sJ no la ter than3 months af ter the complet ion of the Readiness Support .
Sect ion 6.03. In addi t ion to the repor ts and in format ion set for th in Sect ions7.07 and 7.08 of theStandard Condit ions, the Recipientshal l furnish, or cause to be furnished, to the Fund al l suchreports and information as the Fund shal l reasonably request concerning the Readiness Support.
Section 6.04. In implementing the Readiness Support act ivi t ies, the Recipient shal l ensure thatthere are no adverse environmental andf or social r isks and/or impacts within the meaning oftheEnvir.onmental and Social Safeguards. l f , during the course of implementation, such r isks and/orimpacts arise, the Recipient shal l inform the Fund promptly, and comply forthwith with therequirements set forth in the Environmental and Social Safeguards.
ARTICTE VIIMiscellaneous
Section7.01. The Director of Environmental Project Implementation Unit State Agencyisdesignated as the Recipient 's Representative for the purposes of Section 2t.02of the StandardCondi t ions.
Section 7.02. Any notice, requests including disbursement requests, documents, reports or othercommunication required or permitted to be given or made under the Grant Agreement, and anyother agreement between any of the part ies contemplated by this Grant Agreement, shal l be inwrit ing, and furthermore, shal l be del ivered by hand or by facsimile or email to the party to which i tis required or permitted to be given or made to the fol lowing addresses:
For the Recio ient
Meruzhan Galstyan
Director, "Environmental Project Implementation Unit" State Agency
Ministry of Nature Protection
t7,9 A.Armenakyan str. ,
0047, Yerevan, Republic of Armenia
+37 41,0 651631, facsimile numb er +3741,0 650089
For the Fund
Director Country Programming
Green Cl imate Fund
175, Ar t Center-daero
Yeonsu-gu, Incheo n 22004
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Republic of Korea
+82 32 4Sg 6092
ARTICLE VIIIConfidentiality
section B'01' The Parties undertake that no party shall at any time disclose to any person anyconfidential Information except as permitted bi seclion 8.02,.
rployees, officers, representatives, consultants oradvisers to whom it discloses the other Party's confiiential information comply with this section gand the Fund shall ensure that its Board members, alternate Board members or their advisors shallalso comply with this section 8, provided, however, that the Recipient acknowledge and agree thatBoard members, alternate Board members and their advisers may provide confidential Informationto the governments of the countries in their respective constituencies in the course of their officialduties for their respective home country pursuant to the policy on ethics and conflicts of interestfor the Fund's Board, as may be amended from time to time.section B'03' The provisions of this Section 8 shall not apply to any information, includingConfidential I nformation, that:
(a) Is or becomes generally available to the public fother than as a result of its disclosure by thereceiving Party or its representatives in breach of this Section BJ;(b) was available to the receiving Party on a non-confidential basis before disclosure by thedisclosing party;
(c) Was, is or becomes available to the receiving Party on a non-confidEntial basis from aperson who, to the receiving Party's knowledgu, ir noi bound by a confidentiality agreementwith the disclosing party or otherwise prohibited from disclosing the information to thereceiving party;
(d) The receiving Party is required to produce by any court, governmental or regulatory bodyor pursuant to any law, legal process, regulation, or governmental order, decree or rule, orwhich is necessary or desirable for the reproceeding in any court or tribunal or bef<its rights, provided that, prior to disclosin
1 cases, as such has privileges and immunities, andrequests that such court, governmental authority, ..gut"to.y- body or other entityrequesting the disclosure to contact the Recipient or the Fund, as the case may be, directly;[e) The Parties agree in writing is not confidential or may be disclosed; ort0 Is developed by or for the receiving party independently of the information disclosed by thel . I .otsctoslng party.
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section 8'04' No Party shall use the other Party's confidentiar Information for any purpose otherthan to exercise its rights and perform its obiigations under or in connection with this GrantAgreement, without obtaining the prior written consent of the other party.section 8'05' Pursuant to the Information Disclosure policy, the Fund may make publiclyavailable certain information which is not marked confidential dnd update such informationperiodically as required by the Information Disclosure policy
section 8'06' The obligations of confidentiality contained in this section g shall continue for aperiod of two years from the date of disclosure. If requested by the disclosing party, the receivingParty shall return to the disclosing Party all confidential Information in written form or destroy orfto the extent technically practi.tut.l purr"n.ntly erase all confidential Information provided tothe receiving Patty in written or eleitionic form save to the extent that confidential Informationwhich the receiving Party is required to retain by applicable raw, rule or regulation, or if suchinformation is contained in any computer records o. nie, which have been created pursuant to thereceiving Part5/s automatic archiving and back-up procedures, in which case, the confidentialInformation retained shall continu. 6 u.'kept confidential in accordance with the terms of thissection 8 in which case the provision on expiration of the confidentiality obligation shall not apply.
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6. Brief summary ofthe request(200 words)
ANNEXURE 1Approved proposal for the Readiness Support
The Ministry of Nature protectionfollowing issues as the main challenges in its engagement with the Fund:
Weak capacities of the staff;Lack of detai led information avai lable for relevant stakeholders; andNeed of inter- inst i tut iona I coord ination mecha nisms for coord inationon matters related to the Fund. ,
Addit ional ly, there is a clear need to art iculate al l ct imate change legat and pol icydocuments and priori t ize cri t ical investments for the development ofproject/program proposals, identi fying as well relevant stakeholders in thepotential implementation of such projects and national programme.In this context, the support is required in the f irst place to strengthen thecapacit ies of a small team within the NDA to gain expert ise on the Fund,soperations, streamline the procedure for issuance of "no objection lette/, andto support appropriate oversight of Fund activities at the country level.The Armenian Government has shown interest in strengthening the capacit ies ofthe NDA to leverage proactive participation of different stakeholders at nationallevel, including the private sector. The Fund's readiness support wi l t enable to
1. Country submittingthe proposal
Country name: Republic of ArmeniaName of inst i tut ion (representing National Designated Authority or Focaf point):Ministry of Nature protection of the RA
Name of off icial: ArtsvikMinasyan posit ion: MinisterTelephon e: +37 4t1 g1g5 j_3 Emai l : in [email protected] off ice address:RA Ministry of Nature Protection, Government Bui lding 3,Republic Square, yerevan OO1O, Armenia
2. Date of initialsubmission 27/March/2016
3. Last date ofresubmission (if
4. Which entity willimplement theReadiness andPreparatory Supportproject? (Provide thecontoct information ifentity is different fromNDA/focol point)
I National Designated Authority
Name of inst i tut ion: "Environmental project implementation unit, , sA(sAEPIU)under NDA
Name of off icial: MeruzhanGalstyanposit ion: DirectorTefephone: +374L0 65 16 31 Email : [email protected] off ice address:1.29 Armenakyan str. , yerevan, Armenia oo47
5. Title of theReadiness andPreparatory SupportProposal
Establ ishing and Strengthening National Designated Authorit ies (NDAs) andStrategic frameworks for engagement with the Fund, including the preparationof country programmes
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develop the tools ainformation relevant to improve the country's access to international ctimatef inance, particularly the Green Climate Fund.The support wil l also help to establish a clear cl imate change priority investmentframework for identification and preparation of funding proposals to bepresented to the Fund in 2ot7 and 2018 and will help country authoritiesidentify other relevant stakeholders from private sector and civil society toimplement programming priorities of the country and facilitate direct access tothe GCF resources.
7. Total requestedanlount and currency
8. Anticipated duration N ove m be r / ZOIT -tVtaV / 20L9 (1 g mo nths)
g. ls thJ countryreceiving otherReadiness andPreparatory Supportrelated to the GCF?
lf yes, please attach tf,.the scope of supirort provided by other institutions
The Armenia's NDA has issued letter of no objection to UNDp as GCF AccreditedEntity to develop and request assistance for "NationalAdaptation pfan (NAp) toadvance medium and long-term adaptation planning in Armenia ,,project underReadiness and Preparatory support window. The proposal was submitted to GCFin Februa rv 20t7.
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Please explain trow this grantand buifd on institutions, processes or existing work already underway in the country(maximum s00words)
T l r ^ ' . - L
Protection of Armenia is arready appointed as NDA/Focar point to thevever, there is growing demand to get in-depth knowledge of the GCFlns' simultaneously, in order to disseminate key operational procedures'ironmental and social safeguards, gender poricy and ,No_objection,d parties. The Ministry of Nature protection as NDA to GCF requireswefl as faci l i tat ing and inst i tut ional izing stakeholder dialogue and
ll afso encourage national institutions and private sector organizationsf, with the urt imate goar to enhance country ownership and to accessls effectively' Therefore, the NDA aims to develop the capabilities thatimplementing enti t ies and to establ ish the enabfing environments thatoject proposals in consistency with strategic objectives of nationalfer climate change programs. Therlder engagement process, of a couramming priori t ies. These wil l prepain the future.
rerable to cl imate variabi l i ty in recate. The social and economic cost cJricufture productivity, biodiversityrf Nature protection is currently inr Plan, which wil l require cri t ical f i rnitigation and adaptation targets rrivate investment policies towardred objectives in INDC needs strmatters related to the Fund and prprogram proposals, identifying as rprojects and programmes.
rn of different stakeholders at natprevious experience applied while
rolder consultat ions. Fund,s readinte change related planning processd, NDA has theresponsibility to efferus the readiness programme wil l rprovide the platforms for broad dissemination of information relevanlto internationar crimate f inance, part icurarry the Green crimate Fund.
The support will also help to estabfish clear climate change priority iidentification and preparation of funding proposars to be presented toexpected that the support wiil provide a crear framework and wiil rother relevant stakeholders from private sector and civil society to imof the country, including potential to access, disburse and monitorcl imate change as welf assist in ensuring the transparency of al l act ivi tsupport to the country.
Even when the overail impfementation period for this proposar wiil beideration by thr
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4.3. Disbursement scheduleSpecify the proposed
;i,::,i:',;;: ,i:',tr:;;:):::::t';d' iaep to iuftiptes or uso s,ool, and ror periodicity, speciry whether it,s
sA EPlu wil f implement the requested readiness support and wifr read the imptementationof theprogramme under the leadership and guidance of the NDA. Activi t ies wirf be impremented within 1gmonth period.Taking into account the specificities of procurement and consurtant services, as weil as periodicity ofactivities to be implemented, it is proposed that disbursements are made to sA Epru in two tranches:Disbursement Scheduf e:
ft is propo-sed that disbursements are made to Defivery partner in three tranches:
Lst rranche: USD 150'000 (us Dolfar one hundred Fifty thousand onry) the first disbursement wi, bemade upon or after effectiveness of the Grant Agreement and arso upon futf itment of the disbursementconditions specif ied in the Grant Agreement and standard conditions.
2nd Tranche: UsD 100'000 (us Dollar one hundred thousand onry) wii l be transferred upon submission ofan interim progress report and Audited Financial Report and arso upon furfi lment of the disbursementconditions specif ied in the Grant Agreement and standard conditions.
Final Tranche: usD 50'000 (us Dollar Fifty thousand only) wiil be transferred upon submission of a projectcompletion report and final Audit Repori. submission oi a completion and audit report wil l be furnishedno later than three (3) months after the completion of the Readiness support.
4.4. Additional informand functions as NDA to the Green cl imate Fund by potentiarfy strengthening the capacit ies of::Tfl::'',':F::::-31"]:,_"i':'1.d other sirn members of NDA invotved in GCF ma*ers o,r nf Affi: i :JH:l J ?i fi .i:::'fi , ft ,. ;'o :involved in the future activit ies mentioned in the readiness proposar. other equipments are arso intendedto suport the above mentioned purpose. 3 switches are needed to connect the computers to rocat[:.TJj,::J:;"T"H:'*:::].tj.^Y:lli:1. onticg1 switch ,irr .n,ore to connect the rocar network to
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This box provides an opportuniand disbursement schedule' including any details on the assumptions to justify costs presented in thebudget.
Ministry of Nature Protection as NDA through sA Epru wirf directry manage the readiness programme andbe responsible for providing and contractinE ah" services described in triis proposar, as werf as reportingon the progress of this implementation. The procurement will be processed in ...ordance with theffi.JrfiI1tr?:ffi$l.1lor,l#i''"' or the Republic or Armenia in coherence with procurementThe EPlu' will competitively procure services consistent with rures of pubric procurement poriciesestabl ished:
' consuftants wif l be procured on a competitive basis and the terms of reference of consultants wirlbe developed further to include the tasks outl ined in the request summary above. The NDA mayalso add other tasks to the ToRs of the consultants in accordance with the Fund,s defined scope. :jff::"J"::l::::r^lTling
within the resource enverope in this proposal.' For items such as venues and travel for staker,oro.,. il"ililruao"to" organized, a shoppingmethod will be used to procure such services consistent with the EprU,s procurement poricies.ft is envisaged to implement the activities under outcomes i.. country capacity strengthened and 2.stakehofders engaged in consuttative processes by one consurtative organization that wi1 be serected viaopen tender procedure' EPIU wilt develop Terms of Reference for the organization within which theselected organization will impfement all the works. lt will be envisaged in trre ron to develop, discuss andsubmitArmenia's country work Programme to EPlu to share with GCF secretariat once 12 month periodis f inalized.The activities suggested in section 2under outcomes 3.Direct access reafized, 4. Access to finance and 5.ffiffiff,T:'#il'l?i?il1'j....jJ.ectlv-i;ir"'"n..d bv Epru staff.rhe activities are pranned to be
.'J#.lJi l;:HtJil:of Reference for internationat consuftants' sefection, after which internationar
IHj:il:|]|:"J*?-i :11,1:,j:-:::i? documents, as werl as racilitation or international exDerts,carried out by EplU. experts'
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l f the enti ty impiementit h " q u e s t i o n n a i r e a n d s u b m i t i t w i t h t h i s p r o p o s a | .
The Ministry of Nature Protection of the Republic of Armenia (NDA) wiil directly implement the readinessprogramme through its affil iated sA EPlu, tno tirl take responriurtiay for imprementation of the proposedprogramme including fiduciary management. EPlu has relevrna poauntiar, capacity, technicar and fiduciarymanagement procedures in place to carry out Armenian's Readiness proposar in conformity w*h itscharter' operations and Procedures Manuaf, as weil as nationar regisration. For at "
prrpose of this grantseparqte bank account wilf be opened and the fiduciary ;;;;g"rent of this grant wi1 be carried outseperatley as well' EPlu wifl closefy cooperate with NDA in dicision making processes rerated to theffilI]ff:r?: :H*:::ifi::#iiJ::;il,*l-h questionnaire and,,ppo,{ing documents has been
7.2. Other relevant informationThis box provid- rn oppoof the GCF Secretariat, but did not have An r-rnh.r?+r rni+., +^ ̂ -^. .:-, - ! lhe sections above.
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Cover page_ARM-RS-0012018.01.31_Armenia_Grant Agree_ARM-RS-001