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PART I: PROJECT AGREEMENT

1. Within the framework of its agreement with the Government of ............... (the Donor Government) and upon request from the Governments of Albania, Bulgaria, Czech Republic,

Hungary, Romania, Slovakia, Slovenia (the Government), the Food and Agriculture Organization of the United Nations (FAO) will supply assistance for the execution of the following project once it is accepted by the Donor Government.

Project Title:Strengthening of Private and Community Forestry in Selected Countries of Central and Eastern Europe

Estimated Costs(Detailed Plan of Expenditure given in the Project Description)

Donor Government

Contribution: US$ 4,936,250


Counterpart Contribution (in kind):

A detailed description of project design, including background, purpose and workplan, is provided in Part II of the present document (attached).

FAO OBLIGATIONS:

2. FAO shall be responsible for the recruitment, international travel, salaries and emoluments of the international staff (except volunteers) shown in Part II (I.B). Appointments of international staff shall be submitted to the Government for clearance. All staff will work under the direction of the Project manager who, on behalf of FAO, is responsible for the technical execution of the project.

3. FAO will provide the equipment and supplies shown in Part II (I.) (detailed in Annex II). The equipment will remain the property of FAO for the duration of the project. Its ultimate destination shall be decided by FAO in consultation with the Government.

4. FAO will arrange for yearly supervisory travel visit to the project, to be financed from project costs as shown in Part I.

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5. All FAO's obligations arising under this Project Agreement shall be subject to (i) the decisions of its governing bodies and to its constitutional, financial and budgetary provisions, and (ii) the receipt of the necessary contribution from the Donor Government. Any obligations assumed by FAO may, at any time, be taken over by the Donor Government.

6. FAO may, in consultation with the Government, execute part or all of the project by sub-contract. The selection of the sub-contractors shall be made, after consultation with the Government, in accordance with FAO's procedures.

GOVERNMENT OBLIGATIONS

7. The Government shall take all necessary measures to facilitate the execution of the project and to assist the FAO staff in obtaining such services and facilities as they may require to fulfil their tasks. The Government shall apply to FAO, its property, funds and assets, its officials and to the persons performing services on its behalf, in connection with the project, the provisions of the Convention on Privileges and Immunities of the Specialized Agencies; the currency exchange rate established with the United Nations.

8. The Government shall deal with any claims brought by third parties against FAO, its personnel or other persons performing services on its behalf in connection with the project, except when it is agreed by FAO and the Government that such claims arise from gross negligence or wilful misconduct of such persons.

9. The Government shall be responsible for the recruitment, salaries and social security measures of the national staff. The Government shall also provide the facilities and supplies shown in Part II (E), as and when required for the project.

10. The Government shall grant to the staff of FAO and of the Donor Government and to persons acting on their behalf, access to the Project site and to any material or documentation relating to the Project and shall provide any relevant information to such staff or persons.

11. The Government is responsible for the cost of import and customs clearance of project equipment, its transportation, handling, storage, and related expenses within the country; its safe custody, maintenance, insurance and replacement, if necessary, after delivery to the project site.

REPORTING

12. FAO will report on the project to the Donor and recipient Governments as detailed in Part II (H).

13. The Government shall agree to the dissemination of information like descriptions of the project and of its objectives and results, for the purpose of educating public opinion.

AMENDMENTS AND TERMINATION

14. This Project Agreement may be amended or terminated by mutual consent. Termination shall also take effect sixty days after receipt by either party of written notice from the other party. In the event of termination, the obligations already assumed by the Government shall remain in force to the extent necessary to permit orderly withdrawal of the funds and assets of FAO and of personnel performing services on its behalf.

15. This Project Agreement shall enter into force upon signature by both parties.

For the Government of ...............

For the Food and Agriculture organization of the United Nations ...............

Date: ...............

Date: ...............

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