ECO-IDB Project Document 

Multimodal Transport

Technical Assistance Agreement (GRANT)

 TECHNICAL ASSISTANCE AGREEMENT (GRANT)

 BETWEEN

 THE ISLAMIC DEVELOPMENT BANK (IDB)

 AND

 ECONOMIC CO-OPERATION ORGANIZATION (ECO)

C O N C E R N I NG

INTRODUCTION OF MULTIMODAL TRANSPORT OPERATION IN THE ECO REGION

LDSMD166/A:04.DOC/PI-10/Rl

TECHNICAL ASSISTANCE AGREEMENT (GRANT)

AGREEMENT dated 1^st Jamathani, 1420H  corresponding to  11^th September 1999, between the Islamic Development Bank (hereinafter called the "Bank") and Economic Cooperation Organization (hereinafter referred to as "ECO"). 

WHEREAS, ECO has requested the Bank to provide Technical Assistance to finance the Introduction of Multimodal Transport Operation in the ECO Region, described in the Appendix to this Agreement (hereinafter called "the 8tudy"); 

WHEREAS,    the Bank has agreed to provide the Technical- .Assistance upon the terms and conditions hereinafter se". forth; 

NOW, THEREFORE, the parties hereto hereby agree as follows: 

ARTICLE-I 

THE GRANT AMOUNT

Section-1.01 

The Bank shall make available from the Wakf Fund to ECO a Technical Assistance Grant in an amount not exceeding I.D.200,000/- (Islamic   Dinars Two Hundred Thousand) only, approximately equivalent to U.S.$272,000/- (United States Dollars Two Hundred and Seventy-two Thousand). 

ARTICLE-II

WITEDRANAL AND USE OF THE PROCEEDS OF THE GRANT AMOUNT

Section-2.01

The Grant amount shall be withdrawn in conformity with the Disbursement Procedures of the Bank. 

Section-2.02 

The proceeds of the Grant shall be used solely to cover the foreign cost of the Study. 

Section-2.03   Date of Requesting First Disbursement. 

If prior to 31/03/2000, or such later date as shall- be agreed between ECO and the-Bank, ECO has not submitted a request to the Bank to make the first disbursement, the Bank may terminate this Agreement upon due notice thereof to ECO. 

Section-2.04             Closing Date  

If any. part of the   Grant amount is not withdrawn by 31/03/2CO2 or such later date as shall be agreed upon between   the   Bank and ECO, the Bank may, after consultation with ECO, cancel the part which has not been withdrawn. 

ARTICLE-III 

EXECUTION OF THE STUDY

Section-3.01 

In order to assist ECO in carrying out the Study, ECO, in consultation with the Bank, shall, in accordance with the procedures   of the Bank, select and contract the services of a Consultant. 

Section-3.02 

The Consultant shall have such terms of reference as may be agreed upon in writing between the Bank and ECC) prior to    the   invitation of proposals from the Consultants. The  terms of reference may be amended by written agreement between the Bank and ECO. 

Section-3-03 

ECO shall  associate the Bank in the negotiations with the selected Consultant, the outcome of which shall be sub4tect to the final approval of the Bank and ECO. 

ARTICLE-IV

OBLIGATIONS OF ECO

Section-4.01 

ECO shall co-operate with the Bank and the Consultant to ensure that the Study is carried out promptly and efficiently in conformity with appropriate financial and administrative practices, and, for that purpose, shall make available to the Consultant all existing information relating to the Study. 

Section-4.02 

For the purpose of the Study ECO will provide the Consultant, free of charge, with such staff, equipment and other services or facilities required for the execution thereof as will more specifically be set forth in the terms of reference. 

Section-4.03 

ECO  shall   cause to be provided qualified local counterpart staff in the ECO Region on full-time basis to  co-operate with and assist the Consultant in carrying out the Study. 

Section-4.04

ECO shall make arrangements  for obtaining the funds needed to meet the local currency cost of the Study and for financing any cost overruns that may occur during the execution of the Study. 

Section-4.05 

ECO shall cause the Consultant to furnish to the Bank copies of the documents prepared by them for the Study, including reports and    drafts thereof, plans,. designs, specifications, work    schedules and estimates of costs and. other relevant information in such number and form as the Bank shall reasonably request. 

Section-4.06 

ECO undertakes to ensure free access to the accredited representatives of the Bank to all land and structures connected with the execution of the Study. 

Section-4.07 

ECO shall maintain, or cause to be maintained, accounts and records adequate to show the use of the proceeds of the Grant and the progress of the Study (including the cost thereof). 

Section-4.08 

ECO shall furnish the Bank with quarterly reports detailing progress made, problems encountered, action taken, and other details as the Bank may from time to time request. 

Section-4.09 

ECO shall submit to the Bank within 180 (One Hundred and Eighty) days of the Consultant’s final report, a report evaluating the results of the Technical Assistance provided by the Bank in accordance with this Agreement and the extent to which the objective of the Study has been accomplished.

Section-4.10 

ECO shall promptly inform the Bank of any condition which interferes,    or threatens to interfere, with t-i-- accomplishment of the purposes of the Study, the maintenance of the service thereof or the performance of its obligations under this Agreement.

Section-4.11 

a)   Any taxes or duties which may be levied on the Consultant shall be imputed to the local cost of the Project and shall be financed by the Governments of the ECO Region.

b)   ECO undertakes to inform the Consultant prior to submission of    his financial proposal of all taxes and duties which may be levied in the ECO Region. 

Section-4.12 

            ECO undertakes to ensure: 

a)   that the Consultant shall be exempt from taxes, customs and other duties on any equipment, materials or supplies brought into the territories of the ECO Region for the purpose of carrying out the Study and which, after having been brought into such territories, will subsequently be withdrawn therefrom; 

b)   facilitation of prompt clearance through customs of any equipment, materials and supplies required for the Study and of the personal effects of the Consultant and his personnel; 

c)   that the Consultant and his personnel are promptly provided with any necessary entry and exit visas, residence permits, foreign exchange permits and travel documents- required for their stay in the ECO Region; and 

d)   issuance of all necessary permits and authorisations for the carrying out of the Study. 

ARTICLE-V

REPORTS AND OTHER MALTTERS

Section-5.01 

ECO and the Bank shall, from time to time, at the request of either party, exchange views on the Technical Assistance, and consult on any report prepared  by the Consultant and the implementation of any recommendations made in any report. 

Section-5.02

The Bank may use any reports prepared by the Consultant for any purpose which the Bank may consider appropriate but those reports may not be made public except by agreement between the Bank and ECO.

Section-5.03 

The provision of assistance by the Bank under this Agreement does not commit the Bank to extend financial or further technical assistance to ECO, or to any of its Member Governments, with respect to the implementation of any recommendations of the Consultant. 

A.RTICLE-VI

CO-ORDINATION

ECO hereby appoints the Deputy Secretary General, ECO to deal with the Consultant and the Bank and to directly responsible for fulfilling the obligations incumbent on ECO by virtue of this Agreement. 

ARTICLE-VII

NOTIFICATION

Any notification in writing from one of the parties to another   will   be    deemed   to have been properly communicated if it has been conveyed by hand or transmitted by cable, mail, telex or fax to one of      the following addresses: 

For the Islamic Development Bank:

For the Economic Co-operation Organization (ECO):

IN WITNESS WHEREOF, the authorized representatives of the Parties hereto have signed this Agreement on the date indicated in its Preamble.

APPENDIX- I

  DESCRIPTION OF THE STUDY/TRAINING

Introduction of  Multimodal Transport Operations in the ECO Region will have two main components: 

The first component will relate to undertaking a Multimodal Transport Study with the following Terms of Reference: 

a)   Commodity study through analyzing import/export balance of major commodities, estimate their future trade flows by direction and establishing multimodal transport capacity requirements along the designated corridors; 

b)   Determining the condition of existing transport infrastructure facilities in the corridors including interface points as well as investigate the quality and quantity of transport means and operational as well as maintenance  procedures (road/rail/inland waterways/air); 

c)   Investigating existing documentary procedures and collate examples of export and import documents, their number and purpose, document content, format and layouts; 

d)   Investigating the present status of freight forwarding and multimodal transport operations and existing trade and transport facilities measures including the international transport regulatory measures; 

e)   Identifying infrastructure and non-physical impediments to the smooth flow of transport in the selected corridors as well as best practice operations which could -form the basis of technical assistance; and based on the above, the study will, 

f)    Recommend improvements requiring pre-investment studies, operational and institutional solutions which will over come transport bottlenecks, and thereby introduce a most cost effective Multimodal Transport Operation in the ECO region. 

The second component will relate to the Introduction of Multimodal Transport Operations (MTO) having two parts (A&B): 

A - Regional Training Seminar Introduction MTO.  

        i.  Following from the study, a Regional-level Seminar will be convened for introduction of MTO in two segments. The first, seminar segment, to create awareness of multimodal transport principles and the second segment to consider the findings of the consolidated region- wide  multimodal study report and recommendations including investment, operational and institutional solutions to existing and foreseen impediments to the smooth flow of transport. Prior to convening of the seminar all training material will be translated into the Russian language to facilitate presentation and understanding and as a regional resource which will be used in the delivery of the national workshops discussed below. 

      ii.   The seminar will be held over a period of five days in Tehran. It will include coverage of the following topics: Multimodal Transport in the context of ECO Countries; Economic and Commercial Advantages of MT; Customs Conventions, Simplification of Documentation; Hamburg Rules, Hague/Visby, WARSAW, CIM, CMR, and Multimodal Transport Conventions, Contracting Parties; National Promotional Activities to introduce MT; Regulatory Measures and MTO Qualification Requirements; Electronic Data Interchange and UN/EDIFACT; MT Operations; and National Strategy for MT Development. Each of the topics will deal with specific issues related to multimodal transport development in the ECO region and the specific issues raised in the multimodal transport study report. The project will sponsor the attendance of four officials from each of the ECO member countries, additional participation from ECO member countries at “own cost” will be facilitated and no fees charged.

    iii.     The second seminar seamen will relate to considering the specific findings and recommendations emanating from the multimodal study. This segment of the meeting will deal with infrastructure requirements, operational issues and institutional problems. 

B - National Multimodal Transport Training Workshops 

      i.          A series of country-level multimodal transport workshops will be delivered in six selected ECO member countries   (Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan). The workshops, will cover the material presented at the regional seminar mentioned above. At each location at least 30 participants -drawn from the public and private sectors will be trained in multimodal transport operations to ensure that a significant body of people in each country have a clear understanding of the requirements for multimodal transport. 

LDSND166/A:04.DOC/Pl-12/RI/NHK