The Executive Committee and the World Bank signed an agreement on 9 July 1991. Under this agreement:
The World Bank will co-operate with the Executive Committee and assist it in accordance with these arrangements in administering and managing the programme under the authority of the Parties to finance the agreed incremental costs of Parties operating under paragraph 1 of Article 5 of the Protocol. In performing its functions under these arrangements, the World Bank will act through the Ozone Projects Trust Fund (OTF) and will apply only those considerations relevant to effective and economically efficient programmes and projects which are consistent with criteria adopted by the Parties and guidelines adopted by the Executive Committee.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section A: Scope of Co-operation).
The World Bank will prepare a work programme in co-operation with recipient countries, UNEP and UNDP, for its activities under these arrangements, including a budget, for approval by the Executive Committee on an annual basis. The work programme as approved by the Executive Committee will be consistent with the relevant decisions of the parties and guidelines adopted by the Executive Committee regarding project eligibility and the implementation of activities supported by the Fund.
The World Bank will co-operate with the Parties, UNEP, UNDP, and the Executive Committee through the Secretariat of the Fund, to provide information on funding available for relevant projects, to secure the necessary contacts, and to coordinate, when requested by the interested Party, projects financed from other sources with activities financed under the Protocol.
The World Bank will co-operate with the Parties operating under paragraph 1 of Article 5 of the Protocol and assist them, as requested by them and in accordance with the approved work programme referred to in paragraph 2, in developing each Party's country programme (CP) as envisaged in the Terms of Reference of the Fund, as well as projects to facilitate compliance with the Protocol.
The World Bank will review each CP in respect of which it will perform its functions under these arrangements, and submit its views to the Executive Committee. Upon approval of the CP by the Executive Committee, the World Bank will assist the party to implement the projects contained in it. The World Bank will do so by following its rules and procedures and in accordance with the approved work programmes in co-operation with UNEP and UNDP. The World Bank may approve a request for financing by the Party of a project or projects pursuant to the approved CP if the agreed incremental costs are less than US $500,000. Additional financing from the Fund for unforeseen increases in expenditure for any project will be subject to approval by the World Bank, except that if the additional financing would cause the total expenditures for the project to exceed US $500,000, the financing will be subject to approval by the Executive Committee as adjustment to the current, or part of the next, work programme. For projects where the agreed incremental cost exceeds US $500,000 financing by the World Bank is subject to the approval of the Executive Committee as part of a CP.
Any disagreement by a Party operating under paragraph 1 of Article 5 with any decisions taken with regard to a request for financing by that Party of a project or projects where the agreed incremental costs are less than US $500,000 may, at the request of the Party, be referred to the Executive Committee for review.
Pending the preparation of country programmes, the procedures in above two-paragraphs will apply also as appropriate to projects consistent with the ozone layer protection policies of Parties operating under paragraph 1 of Article 5 of the Protocol, which the Executive Committee finds in compliance with the control measures of the Protocol.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section B: Operational Procedures).
The Bank will hold and administer funds provided to the Bank pursuant to this agreement in trust, together with any other assets and receipts of the OTF, for the benefit of the Parties in accordance with the decision by the World Bank to provide for the establishment of the OTF and these arrangements.
The Executive Committee will arrange for the transfer of funds contributed by the Parties and allocated by the Executive Committee to the OTF for expenses incurred or to be incurred by the World Bank for the activities it undertakes pursuant to these arrangements and for the implementation of approved country programmes and projects, as soon as the funds become available. The transfer will be made in cash in United States dollars or at the request of the Executive Committee by the deposit of notes or similar obligations denominated in United States dollars and issued by the government of a Party or the depository designed by such Party, which shall be non-negotiable, non-interest bearing and payable in United States dollars at their par value on demand to the OTF or in accordance with a schedule of encashment agreed by the World Bank, provided that in exceptional cases and as administratively feasible on the basis of appropriate arrangements, as determined by the World Bank, contributions may be made also in other currencies.
Funds held in the OTF will be invested pending disbursement in accordance with the regular practice of the Bank, and the income of investment will be added to the resources of the OTF.
The World Bank will be reimbursed annually in full for the expenses incurred by it for the activities it undertakes pursuant to these arrangements. The reimbursement will be made on the basis of estimated costs, subject to adjustment as of the end of the Bank's financial year, and will be charged against the resources of the OTF.
The World Bank will present to the Executive Committee detailed annual financial statements expressed in United States dollars, externally audited, as part of its annual report.
The World Bank will make no commitments for financing under these arrangements in advance of the receipt of financing in the OTF to finance the commitments.
The Executive Committee will notify the World Bank through the Secretariat if a shortfall in resources for the approved work programme is anticipated or if the work programme needs to be adjusted for this reason.
The World Bank may agree to co-financing arrangements with Parties and others for the purpose of these arrangements.
The World Bank will provide financing from the OTF in the form of grants denominated in United States dollars.
The World Bank will continue to hold all unutilized resources in the OTF until all commitments and liabilities under these arrangements have been satisfied, project activities have been brought to an orderly conclusion and reimbursement under paragraph 11 has been made, after which any remaining resources will be transferred as the Executive Committee may determine. If the unutilized resources prove insufficient to meet such commitments, liabilities and reimbursement, the World Bank will consult with the Executive Committee on the manner in which such commitments, liabilities and reimbursement may be satisfied.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section C: Financial Provisions).
The President of the World Bank, or his representative, will participate in meetings of the Executive Committee in order to report and consult on the World Bank's activities under these arrangements.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section D: Participation in Meetings).
The World Bank will provide to the Executive Committee through the Secretariat semi-annual progress reports and an annual report on implementation by the World Bank of previously approved work programmes and activities related to country programmes and projects, including coordination with UNEP and UNDP under these arrangements. The financial statements will be attached to the annual report.
The reports will include proposals if necessary to revise the current year's budget; provide for the work programme, including a budget, for the following year, and describe any disagreement by a Party operating under paragraph 1 of Article 5 of the Protocol with any decision taken by the World Bank with regard to a request for financing by that Party of a project or projects where the agreed incremental costs are less than US $500,000. After the OTF shall have been fully used, the World Bank will present a final report on the operations financed under these arrangements.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section E: Reporting by the World Bank).
These arrangements may be amended by agreement of the Executive Committee and the World Bank in writing at any time.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section F: Amendment).
These arrangements will terminate thirty days after either the Executive Committee or the World Bank may have given notice in writing to the other party of its decision to terminate them, in which event the World Bank will take all necessary action for the expeditious and orderly winding up of its activities under these arrangements pursuant to paragraph 17.
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section G: Termination).
This Agreement entered into force on 9 July 1991 (date of its signature).
(UNEP/OzL.Pro/ExCom/5/Inf.2, Section H: Effective Date of Agreement).