The World Bank 1818 H Stre ()('JMENTS '(202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, . . 20433 -Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS AU ,2013 His Excellency Carlos Enrique Cdceres Chavez Minister of Finance Ministry of Finance Boulevard de los H6roes No. 1231, San Salvador Rep6blica de El Salvador Re: TFSCB Grant No.TF014166 El Salvador: Indicators for Educational Opportunities Project Excellency: In response to the request for financial assistance made on behalf of the Republic of El Salvador ("Recipient"), I am pleased to inform you that the International Bank for Reconstruction and Development/International Development Association ("World Bank"), acting as administrator of grant funds provided by Canada, the Netherlands and the United Kingdom of Great Britain and Northern Ireland ("Donor(s)" under the Multi-Donor Trust Fund for Statistical Capacity Building - III, proposes to extend to the Recipient a grant in an amount not to exceed ninety eight thousand six hundred eighty United States Dollars (U.S.$ 98,680) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financing of the project described in the Annex ("Project"). This Grant is funded out of the above mentioned trust fund for which the World Bank receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Project in accordance with the terms and conditions set forth or referred to in this Agreement. Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date of the countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT/INTERNATIONAL DEVELOPMENT ASSOCIATION WFeI4ehJramilld Director Central America Latin America and the Caribbean Region AGREED: REPUBLIC OF SALVADOR \ ut , entative Title I WNISTRO DE HACIENDA Date: 9 de octubre de 2013 Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012 (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2 TFSCB Grant No. TF014166 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated February 15, 2012 ("Standard Conditions") constitute an integral part of this Agreement. 1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions or in this Agreement, and the following terms have the following meanings: (a) "Project Operations Manual" means the Recipient's manual referred to in Section 2.02 of this Agreement and approved by the Bank, as the same may be amended from time to time with the agreement of the Bank. (b) "UACI" means the Recipient's institutional procurement and contracting unit responsible for carrying out of the procurement activities under the Project, including: (i) the preparation and updating as necessary of the Procurement Plan, (ii) the purchasing of goods; and (iii) the hiring of consultants based on the technical specifications provided by the Ministry of Education; Article II Project Execution 2.01. Project Objectives and Description. The objective of the Project is to develop educational indicators and build capabilities to interpret statistics related to compulsory education. The Project consists of the following parts: Part 1. Development of Indicators. (a) Maximizing the use of existing statistical data sources through their revision and integration. (b) Identifying causes that affect children's school enrollment for pre-schools and primary schools. (c) Creating a national data series that includes, inter alia, the disaggregation of sub-national level information. (d) Enhancing the current information system to allow, inter alia, easy accessibility to information. Part 2. Provision of Support for the use of Indicators (a) Carrying out capacity building activities for the Recipient's relevant staff with the purpose of, inter alia, promoting the efficient use and dissemination of the indicators to recognize the bottlenecks for pre-school and primary school enrollment. 3 (b) Identifying complementary education information to disaggregate by, inter alia, gender, educational level, location and service provider, to assess the bottlenecks for pre-school and primary school enrollment. 2.02. Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient, through the Ministry of Education, shall carry out the Project in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 ("Anti- Corruption Guidelines"); (c) this Article II, and (d) the Project Operations Manual approved by the World Bank. 2.03. Institutional and Other Arrangements. (a) The Recipient through the Ministry of Education shall be: (i) responsible for the overall coordination, supervision, monitoring and evaluation of the Project; and (ii) supported until the completion of the Project by key staff in numbers and with experience and qualifications that shall be at all times satisfactory to the World Bank and working under terms of reference satisfactory to the Bank. 2.04. Project Monitoring, Reporting and Evaluation. (a) The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank . Each Project Report shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than 45 days after the end of the period covered by such report. (b) The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six months after the Closing Date. 2.05. Financial Management. (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank not later than 45 days after the end of each calendar semester, covering the semester, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Such audit of the Financial Statements shall cover the entire period during which withdrawals from the Grant Account were made. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the closing date of the Grant. 4 2.06. Procurement (a) General. All goods, non-consulting services and consultants' services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in: (i) Section I of the "Guidelines: Procurement of Goods, Works and Non- consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 ("Procurement Guidelines"), in the case of goods and non-consulting services; (ii) Sections I and IV of the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 ("Consultant Guidelines") in the case of consultants' services; and (iii) the provisions of this Section, as the same shall be elaborated in the procurement plan prepared and updated from time to time by the Recipient for the Project in accordance with paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines ("Procurement Plan"). (b) Definitions. The capitalized terms used in the following paragraphs of this Section to describe particular procurement methods or methods of review by the World Bank of particular contracts, refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be. (c) Particular Methods of Procurement of Goods and Non-consulting Services (i) Except as otherwise provided in sub-paragraph (ii) below, goods and non-consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. (ii) The following methods, other than International Competitive Bidding, may be used for procurement of goods, works and non-consulting services for those contracts which are specified in the Procurement Plan: (A) National Competitive Bidding; (B) Shopping; (C) procurement under Framework Agreements in accordance with procedures which have been found acceptable to the World Bank; and (D) Direct Contracting. (d) Particular Methods of Procurement of Consultants' Services (i) Except as otherwise provided in item (ii) below, consultants' services shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. (ii) The following methods, other than Quality- and Cost-based Selection, may be used for the procurement of consultants' services for those assignments which are specified in the Procurement Plan : (A) Quality-based Selection; (B) Selection under a Fixed Budget; (C) Least Cost Selection; (D) Selection based on Consultants' Qualifications; (E) Single- source Selection of consulting firms; (F) Selection of Individual Consultants; and (G) Single- source procedures for the Selection of Individual Consultants. 5 (e) Review by the World Bank of Procurement Decisions. The Procurement Plan shall set forth those contracts which shall be subject to the World Bank's Prior Review. All other contracts shall be subject to Post Review by the World Bank. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the following table The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Percentage of Amount of the Expenditures to be Grant Allocated financed Category (expressed in US$) (inclusive of Taxes) (1) Consultant Services 96,000 100% (2) Training and 2,680 100% Workshops TOTAL AMOUNT 98,680 For purposes of this Grant Agreement, the term "Training and Workshops" means training and workshops conducted in the territory of the Recipient, including, inter alia: purchase and publication of materials, rental of facilities, course fees, and travel and subsistence of trainees and participants, but excluding salaries of officials of the Recipient's civil service. 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of countersignature of this Agreement by the Recipient. 3.03. Withdrawal Period. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is June 30, 2015. 6 Article IV Recipient's Representative; Addresses 4.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Ministry of Finance. 4.02. Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Boulevard de los H6roes 1231 San Salvador El Salvador Facsimile: (503)22257491 4.03. World Bank's Address. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INTBAFRAD INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI) 7