Attachment_J.7-Development_Objective_Agreement.pdf

Development Objective Agreement

USAID Development Objective Agreement No. 278-CDCS-ES-OO

DEVELOPMENT OBJECTIVE AGREEMENT

BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF

AMERICA

AND

THE HASHEMITE KINGDOM OF JORDAN

FOR

ESSENTIAL SERVICES TO THE PUBLIC IMPROVED

'3 O SEP 16'3

Certified to be a true copy of the original signed by:

Dr. Ibrahim Saif, Minister of Planning, & Ms. Beth S. Paige, USAID Mission Director/Jordan

AifAss/~,J Mohammad Yassien

Acting Director, Office of Program Management September 30, 2013

Table of Contents

Article 1. Purpose 3

Article 2. Development Objective and Intermediate Results 3 Section 2 .1. Development Objective 3 Section 2.2. Intermediate Results 4 Section 2 .3. Program Areas and Elements: Annex 1, Amplified Description 5

Article 3. USAID Contribution 4

Article 4. Completion Date 5

Article 5. Conditions Precedent to Disbursement 5 Section 5.1. First Disbursement 5 Section 5.2. Notification 6 Section 5.3. Terminal Dates for Conditions Precedent 6

Article 6. Covenants 6

Article 7. Special Uses 7 Section 7 .1. Prohibited Uses 7 Section 7 .2. Subcommitting, Suboligating and Disbursing the Grant 7

Article 8. Miscellaneous 8 Section 8.1. Authorized Representatives 8 Section 8.2. Communications 9 Section 8.3. Amendments 9 Section 8.4. Standard Provisions Annex 9 Section 8.5. Implementation Letters 9 Section 8.6. Suspensions and Terminations 10 Section 8.7. Consultations 10 Section 8.8. Effective Date 10

Annex 1. Amplified Description

Annex 2. Standard Provisions

ESSENTIAL SERVICES TO THE PUBLIC IMPROVED

DEVELOPMENT OBJECTIVE AGREEMENT

Dated: September 30, 2013

Between

The United States of America, acting through the United States Agency for International Development ("USAID")

And

The Hashemite Kingdom of Jordan, acting through the Ministry of Planning and International Cooperation ("Grantee"}, together "the Parties".

Article 1. Purpose

The purpose of this Assistance Agreement (the "Agreement") is to set out the understanding of the parties named above in connection with the Development Objective described below. This Agreement supports the Government of Jordan's (GOJ) effort to strengthen the delivery of quality basic essential services, specifically those related to Family Planning and Reproductive Health, Education, and Water in accordance with the USAID approved Country Development Cooperation Strategy (CDCS) for funds obligated for U.S.

Government Fiscal Years 2013-2017.

Article 2. Development Objective and Intermediate Results

Section 2.1. Development Objective. The Parties hereto agree to work together to achieve the shared Development Objective, articulated in USAID's 2013 CDCS, of "Essential Services to the Public Improved."

The program is supported with funds allocated under the foreign assistance functional objective of Investing in People articulated by the Government of the United States under the "Strategic Framework for United States Foreign Assistance. The following Program Areas of the Strategic Framework are relevant under the Framework's functional objective of "Investing in People."

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(a) Heath - Family Planning and Reproductive Health

(b) Health - Maternal and Child Health

(c) Health - Water Supply and Sanitation

(d) Education - Basic Education

The following Program Areas of the Strategic Framework is relevant under the Framework's functional objective of "Economic Growth:"

(e) Agriculture - Land and Water Management

(f) Environment - Natural Resource Policy and Governance, Sustainable Natural Resource Management and Production

All sub-obligations of funding and USAID reporting made under this Development Objective Agreement will be made in a way consistent with this allocation.

Section 2.2. Intermediate Results. In order to achieve the Development Objective, the Parties agree to work together on the following intermediate results:

(a) Use of Integrated Family Planning and Reproductive Health Services Increased

(b) Quality of Education Services Improved

(c) Accountable, Sustainable Management of Water Resources Increased

Section 2.3. Program Areas: Annex 1, Amplified Description.

Annex 1, attached, amplifies the above Development Objective and Program Areas, Program Elements, and intended Intermediate Results to be achieved with funds obligated under this Agreement, and may be changed by written agreement of the authorized representatives of the Parties.

Article 3. USAID Contribution:

(a) To help achieve the Development Objective set forth in this Agreement, USAID, pursuant to the Foreign Assistance Act of 1961 , as amended, hereby grants to the Grantee under the terms of the Agreement an amount not to exceed Ninety Nine Million Four Hundred Fifty Two Thousand Six Hundred Eighty Four United States ("U.S.") Dollars ($99,452,684) (the "Grant").

(b) USAID's total estimated contribution to achievement of the Development Objective will be Five Hundred and Fifty Million United States ("U.S.") Dollars ($550,000,000), which will be provided in increments. Any subsequent increments will be subject to the availability of funds to USAID for this purpose and the mutual agreement of the Parties, at the time of each subsequent increment, to proceed.

(c) If at any time USAID determines that its contribution under Section

3.1 (a) exceeds the amount which reasonably can be committed for achieving the Development Objective during the current or next U.S. fiscal year, USAID may, upon written notice to the Grantee, withdraw the excess amount, thereby reducing the amount of the Grant as set forth in Section

3.1 (a).

Article 4. Completion Date:

(a) The Completion Date, which is September 30, 2018, or such other date as the Parties may agree to in writing, is the date by which the Parties estimate that all the activities necessary to achieve the Development Objective and results will be completed .

(b) Except as USAID may otherwise agree to in writing, USAID will not issue or approve documentation that would authorize disbursement of the Grant for services performed or goods furnished after the Completion Date.

(c) Requests for disbursement, accompanied by necessary supporting documentation prescribed in Implementation Letters (lls), are to be received by USAID no later than nine (9) months following the Completion Date, or such other period as USAID agrees to in writing before or after such period. After such period USAID, at any time or times, may give notice in writing to the Grantee and reduce the amount of the Grant by all or any part thereof for which requests for disbursement, accompanied by necessary supporting documentation prescribed in lls, were not received before the expiration of such period.

Article 5. Conditions Precedent to Disbursement.

Section 5.1. First Disbursement. Prior to the first disbursement under the Grant, or to the issuance by USAID of documentation pursuant to which disbursement will be made, the Grantee will, except as the Parties may otherwise agree in writing, furnish to USAID in form and substance satisfactory to USAID:

(a) An opinion of counsel acceptable to USAID that (1) this Agreement has been duly authorized or ratified by, and executed on behalf of the Grantee, (2) this Agreement constitutes a valid and legally binding obligation of the Grantee in accordance with all of its terms, and (3) all internal actions and approvals necessary to give effect to this Agreement have been obtained by or on behalf of the Grantee.

(b) A statement of names of the persons holding offices specified in Section 8.1 , and of any additional representatives, together with specimen signatures of each person so designated.

Section 5.2. Notification. USAID will promptly notify the Grantee when USAID has determined that a Condition Precedent has been met.

Section 5.3. Terminal Dates for Conditions Precedent:

(a) The terminal date for meeting the conditions specified in Section 5.1 is 120 days from the date of this Agreement or such later date as USAID may agree to in writing before or after the above terminal date. If the Conditions Precedent in Section 5.1 have not been met by the above terminal date, USAID, at any time, may terminate this Agreement by written notice to the Grantee.

Article 6. Covenants

The Grantee hereby covenants and agrees to issue, renew and/or extend free of charge and in a timely manner all official permits, visas, exemptions and any other permissions (including all approvals as may be required from time to time to ensure full access to information, project sites and relevant offices) for the Applicable Persons (as defined below) carrying out activities financed by USAID under this Agreement (collectively, the "Required Documents"). For purposes of this provision, Applicable Persons are defined as: (1) employees and consultants of any contractors, grantees and other organizations carrying out activities financed by USAID under this Agreement; (2) members of such employees' and consultants' households. Any renewals or extensions of such Required Documents that are required, or become required, in order for such employees, consultants and dependent family members to legally reside in Jordan and undertake activities contemplated by and financed under this Agreement shall also be issued free of charge; and (3) The Grantee agrees to accept specific covenants which will establish its roles and responsibilities in the implementation, maintenance, and on-going upkeep of projects funded by this Agreement. These covenants will be incorporated into this Agreement by IL.

Article 7. Special Uses

Section 7 .1. Prohibited Uses:

Development Objective Agreement Page 7of10

(a) Both the Grantee and USAID are firmly committed to the international fight against terrorism, and in particular, against the financing of terrorism. It is the policy of USAID and the Grantee to take all possible measures to ensure that none of the Grant is used to provide support to any individual or organization that advocates, plans, sponsors, engages in, or has engaged in or is associated with terrorism, armed hostilities or other acts of violence, any entity effectively controlled by such individual or organization.

(b) The Grant may not be used to finance military, paramilitary, or police requirements of any kind, including the procurement of commodities or services for military, paramilitary, or police purposes; for the servicing of loans or credits that originally financed such requirements; for surveillance equipment, and/or for any uses or activities other than those authorized.

(c) In addition the Grant may not be used in a manner which would contribute to a violation of internationally recognized rights of workers or, unless specifically authorized by USAID, any activity that involves investment promotion, assistance or prisons, or other law enforcement forces, or for any uses or activities other than those authorized pursuant to Section 2. 1 .

Section 7.2. Subcommitting, Subobligating and Disbursing the Grant. With respect to disbursements made under this Agreement, after satisfaction by the Grantee of the Conditions Precedent set forth in this Agreement, the Grantee hereby agrees that USAID may subcommit, subobligate and disburse Grant funds available under the Grant, without any further approval or concurrence from the Grantee for implementation at any level or tier by international or local organizations.

USAID may make such subcommittments, subobligations, or disbursements whether such use covers Foreign Exchange or Local Currency Costs or Other Forms of Disbursement, as described in Annex 2 ("Standard Provisions") hereof, so long as such actions and disbursements are consistent with the terms and conditions of Annex 1 ("Amplified Description"). USAID shall periodically inform the Grantee of all disbursements made directly by USAID under this Agreement, providing the Grantee with general information about the amount(s) and purpose(s) of such disbursement(s). Prior approval of the Grantee, however, shall be required, for all disbursements of Grant funds made

Page 8of10 directly to the Grantee for, by way of example and not limitation, financing host country contracts let by the Grantee. Discussion will be routinely held between the Parties concerning notification of activities and programs under this Agreement.

Article 8. Miscellaneous

Section 8.1. Authorized Representatives.

(a) For all purposes relevant to this Agreement, the Grantee will be represented by the individual holding or acting in the Office of Minister of Planning and International Cooperation, and USAID will be represented by the individual holding or acting in the Office of Mission Director, each of whom, by written notice, may designate additional representatives for limited purposes. Effective implementation under this agreement necessitates close coordination and collaboration with line ministries in order to promote transparency, to document agreements related to implementation, and to support oversight by the Office of Minister of Planning and International Cooperation. USAID will, as appropriate, execute lls with line ministries, to clarify technical aspects of implementation. Copies of the I Ls shall not amend in any way this Agreement. This Agreement shall prevail in the event of any conflicts this Assistance Agreement and lls.

(b) The names and titles of the representatives and any additional representatives of the Grantee, with specimen signatures, will be provided pursuant to Section 5.1(b) to USAID, which may accept as duly authorized any instrument signed by such representatives (or any individuals subsequently holding or acting in the office of such representatives) in accordance with this Section 7 .1., until receipt of written notice of revocation of their authority. In coordination with the Ministry of Planning and International Cooperation, the individuals holding or acting in the following capacities shall be an additional authorized representative of the Grantee for all purposes related to implementation activities hereunder involving their respective Ministry:

1. Minister of Water and Irrigation

2. Minister of Health

3. Minister of Education

4. Minister of House and Public Works

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Section 8.2. Communications . Any notice, request, document, or other communication submitted by either Party to the other under this Agreement will be in writing and transmitted by either hand delivery, mail, or telefax, and will be deemed duly given or sent when delivered to such Party at the addresses listed below.

To the Government of Jordan:

Mail Address:

Ministry of Planning and International Cooperation P.O. Box 555 Amman, 1118, Jordan

Mail Address:

United States Agency for International Development P.O . Box 354 Amman, 1118, Jordan

All such communications will be in English, unless the Parties otherwise agree in writing. Other addresses may be substituted for the above upon the giving of notice.

Section 8.3 Amendments. Amendments to Annex 1 made in accordance with Article 2 hereof may be made by the mutual agreement of the representative of USAID and the representative of the Grantee.

The representative of the Grantee will ensure the concurrence of the relevant additional representative whenever such concurrence is appropriate. Amendments to Annex 1 are not necessary in instances in which the representatives of USAID and the Grantee or, alternatively, the additional representatives agree otherwise in writing to changes which do not result in the funding of any line item of the Financial Plan included in Annex 1 being revised by more fifteen percent (15%).

Section 8.4. Standard Provisions Annex. A "Standard Provisions Annex" (Annex 2) is attached to and forms part of this Agreement.

Section 8.5 Implementation Letters {lls). To assist the Grantee in the implementation of the Agreement, USAID from time to time, will issue I Ls that will furnish additional information about matters stated in this Agreement. The Parties may also issue jointly agreed upon I Ls to confirm and record their mutual understanding on aspects of implementation of this Agreement. lls can also be issued to record revisions or exceptions which are permitted by the Agreement.

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Section 8.6. Suspension and Terminations. Either party may suspend or terminate this Agreement in whole or in party upon thirty (30) days of written notice to the other Party.

Section 8.7. Consultation. The Parties will cooperate to ensure that the purpose of this Agreement is accomplished . To this end, the Parties, at the request of the other, will exchange views on the progress of the Agreement, and other matters relating to the Agreement.

Section 8.8. Effective Date. This Agreement shall enter into force upon signature by both of the Parties.

IN WITNESS WHEREOF, the United States of America and the Grantee, each acting through its duly authorized representatives, have caused this Agreement to be signed in their names and delivered as of the day and year first above written.

THE HASHEMITE KINGDOM OF

JORDAN

By:~

H.E. Dr. Ibrahim Saif Minister of Planning and International Cooperation

UNITED STATES OF AMERICA

By &,Ln & Vtt·/_i/_J Ms. Beth S. Paige Director, USAID

ANNEX 1

Improved Essential Services Objective

AMPLIFIED DESCRIPTION

I. Introduction

This annex describes the program to be undertaken and the progress and achievements to be made with the funds obligated under this Agreement. Nothing in this Annex 1 shall be construed as amending any of the definitions or terms of the Agreement.

The program described is consistent with the program described in USAID/Jordan's 2013 to 2017 "Country Development Cooperation Strategy," which was prepared with input from the Government of Jordan (GOJ) and other key Jordanian stakeholders and finalized in consultation with the GOJ.

The program is supported with funds allocated to USAID under the Government of the United States of America's "Strategic Framework for United States Foreign Assistance."

The following Program Areas of the Strategic Framework are relevant under the Framework's functional objective of "Investing in People:"

• Health (Family Planning and Reproductive Health)

• Health (Maternal and Child Health)

• Health (Water Supply and Water Sanitation)

• Education

The following Program Areas of the Strategic Framework are relevant under the Framework's functional objective of "Economic Growth:"

• Agriculture (Land and Water Management)

• Environment (Natural Resource Policy and Governance, Sustainable Natural

Resource Management and Production)

All sub-obligations of funding and USAID reporting made under this Development Assistance Agreement will be made in a way consistent with this allocation.

II. Background

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USAID will reinforce Jordanian efforts to improve essential services in three areas:

family planning and reproductive health, education, and water management. Family planning and water management were chosen because of the existential threats population growth and water scarcities pose threats to the country's future if they continue on their current trajectories. Education was chosen because it is the scaffolding upon which a "knowledge" economy, generating broad-based economic growth is built.

Family Planning and Reproductive Health: Rapid population growth continues to pose a major challenge for Jordan's development. Between 1979 and 2012, the population grew from 2.1 million to over 6 million, and at the current growth rate of 2.2 percent, the population of Jordan is expected to double in about 30 years. The GOJ recognizes that this is a prospect it can ill afford, given that unabated population growth adversely affects Jordan's ability to achieve its economic progress and reduce poverty and unemployment levels. It also places a tremendous strain on social services and the country's scarce resources, especially water and energy. Additionally, high population growth complicates governance and security efforts, especially in a highly urbanized society like Jordan.

Maternal and Child Health: Jordan has experienced tremendous progress in its health status over the past few decades, with significant reductions in infant and under-five mortality levels (at 17 and 21per1 ,000 live births respectively). However, mortality rates can be further reduced by focusing on neonatal health , which represents approximately two-thirds of the infant mortality rate.

Jordan's goal is to reach its family planning and fertility goals of smaller family size and replacement fertility by 2030 and to reach under five, infant and maternal mortality of 13/1000, 11/1000 and 12/100,000 live births respectively by 2015. A right recognized in the National Population Strategy and critical to Jordan's family planning approach is "right of families to produce an appropriate number of children and to have access to information and family planning methods in order to make their decisions freely in line with religious and cultural values."

Education: In line with its international Millennium Development Goals (MDGs), Jordan has made steady progress in raising primary education completion rates and eliminating gender disparities in education. The latest statistics from the U.N. Children's Fund (UNICEF) report that in 2010 primary net enrollment rates were 97 percent (for both males and females) while secondary net enrollment rates were 80 percent for males and 83 percent for females.

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Although access to education is relatively high, challenges within schools remain. A recent USAID-funded early grade reading assessment found that the majority of students are not reading with fluency and lack strength in the foundational literacy skills normally taught in first grade. The MOE's capacity to plan and implement meaningful reforms and to hold the education system accountable is growing but would benefit from additional support.

Water: At present, Jordan provides high quality and reasonable volumes of water for human and commercial needs. However, this is at the cost of rapidly depleting its groundwater reserves. Research conducted by the U.S. Geological Survey estimates that Jordan will deplete over a third of its groundwater reserves in the next two decades.

Recent USAID assessments concur with GOJ opinion that desalination will be essential in meeting human needs within the next few decades.

Water-intensive highland crops, such as maize, barley, wheat, and irrigated olives produce modest or even negative returns. A rough estimate is that amounts of water which are equivalent to a third of Amman's total use produce no crop value for the farmers or their communities.

Water scarcity and leakage issues also cause fiscal strains on the GOJ. The water sector already carries a debt of $1.4 billion. In 2013 the GOJ will begin to pay additional obligations of up to $120 million per year to a private consortium for water pumped to Amman from the Disi area in southern Jordan.

USAID and the GOJ have jointly agreed that USAID assistance should be focused on the Development Objective of improving essential services to the public. USAID, in partnership with the GOJ, will achieve the Development Objective through a focus on the following intended results:

A. Use of family planning and reproductive health services increased

8. Quality of education services improved C. Accountable, sustainable management of water resources increased.

Key measures of success toward achievement of the shared Development Objective will include:

• Contraceptive prevalence rate

• Percent change in student scores on the PISA international test

• Number of people with improved water security or improved sanitation services as a direct result of USAID interventions.

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Ill. Results and Illustrative Activities

A. Result One: Use of Integrated Family Planning and Reproductive Health Services Increased

While Jordanians generally enjoy good access to health services, women still have limited access to high-quality family planning and reproductive health services and information. This results from a variety of factors including: lack of knowledge of where to obtain services; lack of counseling or limited privacy for counseling that discourages discussion of family planning and reproductive health needs; overcrowding or limited hours; doctors and nurses who provide biased, incorrect, or conflicting information; lack of medical staff in remote facilities; and limited availability of contraceptive method options.

To promote the increased use of integrated family planning and reproductive health services, USAID will fund the following illustrative activities:

• Support to strengthen the sustainability of family planning and reproductive health services as well as selected maternal and neonatal health services;

• Support to the Higher Population Council to carry out its mandate as a policy and coordination body, including assistance in advocacy, strategic planning, data collection and outreach;

• Support for behavioral change interventions that encourage smaller families, including mass media campaigns, face-to-face communications and other communication strategies;

• Evidence-based training for physicians and other health workers in counseling and contraceptive technology;

• Support for dialogue platforms, advocacy and other activities that will expand the national dialogue on population topics beyond the health sector and help the GOJ better identify and address links between population challenges on the one hand and resource managemenVservice delivery on the other.

B. Result Two: Quality of Education Services Improved

Fundamental to national development is a government's ability to fulfill its citizens' right to quality basic public education. Jordanians can be proud of what the country has achieved with regard to making education available to both boys and girls. With access rates high, the country can now focus on: improving the quality of education, particularly w ith regard to reading and math among primary students; addressing the high rates of absenteeism and drop-out, particularly among boys; and providing

A-4 students with life skills they require to become productive citizens beyond their school years.

To reinforce the GOJ's efforts to improve the quality of education, USAID will fund the following illustrative activities:

• Specialized support to improve primary grade reading and math skills in the early grades, including support for teacher training and supplemental materials;

• Improved parental and community involvement in supporting student learning through the support of out-of-school activities and events;

• Increased institutional capacity building of the Ministry of Education for policy making and service delivery to better support student learning.

• Strengthened pre-service professional development and teacher preparation programs at select universities in Jordan complemented with support on policy reform;

• Support for the development of school-based programming and/or interventions to improve the psychosocial learning environment, taking into consideration gender, psycho-social, and community-specific disparities. Continued support to the improvement of the physical learning environment through the construction of new schools, expansion and rehabilitation of existing schools; and

• Provide and improve constructive learning opportunities for at-risk youth outside of schools through the provision of second chance programs, youth friendly safe spaces, and capacity building to concerned government and non-governmental entities to meet the needs of vulnerable youth.

C. Result Three: Accountable. Sustainable Management of Water Resources Increased

Jordan's water security is vital to the country's stability. In a water-scarce country, the GOJ has built one of the best water treatment and delivery systems in the region, providing more than 98 percent of Jordanians with safe water. Annual per capita water availability has declined from 3,600 m3 in 1946 to less than 150 m3 today. If supply remains constant, per capita domestic consumption is projected to fall to approximately 90 m3 per person per year by 2025 and the water deficit for all uses will grow to 490 MCM by the year 2025, putting Jordan in the category of having an absolute water shortage.

To help the GOJ meet the water security challenges ahead, and increase the accountable, sustainable management of water resources, USAID will fund the following illustrative activities:

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• Support for the GOJ to build the management capacity, physical improvements and public behavioral change necessary to reduce non-revenue water (defined as water lost to leaks or not paid for) and encourage sound choices about the use of Jordan's limited water resources;

• Support for the creation of an independent utility regulator and strengthening the independence of Jordan's regional water utilities;

• Support for improved groundwater management through improved monitoring, increased efficiency of water use (especially in the agricultural sector), and capacity to develop and implement stronger enforcement measures;

• Support for public awareness campaigns that will increase water conservation and promote water profitability;

• Assistance to research aquifer recharge systems and rangeland restoration programs that can both improve aquifer recharge and incomes for the rural poor;

• Assistance in adopting and promoting new tariff, allocation and enforcement policies;

• Assistance in improving the fairness and effectiveness of policies and institutions in the urban and agricultural water sectors;

• Capacity building and empowerment of agencies responsible for environmental management;

• Support for the planning, design, construction, construction management operation and maintenance of water and wastewater infrastructure;

• Support for private-public partnerships relevant to reduce non-revenue water, decrease the cost of extracting and pumping water, and allow new water resources to benefit the people of Amman and other cities;

• Support for large-scale field tests of promising technologies.

IV. Roles and Responsibilities of the Parties.

Resources obligated to this Development Objective Agreement will be spent in support of activities that will contribute to this mutually agreed-upon Development Objective, and the intended Results described herein. Except in instances in which USAID directly finances a GOJ activity, USAID will sub-obligate resources in regular consultation with the GOJ. More detailed agreement on roles and responsibilities for particular activities described in this Agreement will be reached by USAID and the GOJ Ministry or Agency appropriate to the activity via Implementation Letters.

V. Monitoring and Evaluation USAID/Jordan will monitor or provide for the monitoring of all activities supported under this Development Objective Agreement. Monitoring will track progress toward achieving specific results and targets, inform project decision-making, and help to capture best practices and lessons learned. All monitoring information with be shared with GOJ

A-6 counterparts so that progress and issues can be jointly reviewed and, where appropriate, corrective action decided upon, including designation of the implementing agencies responsible for taking corrective actions and setting timetables for such actions.

To further track progress, deepen understanding of program impact and benefit from the observations, analysis and recommendations that emanate from more comprehensive program reviews, USAID will conduct or provide for the conduct of program, project and activity evaluations. GOJ counterparts will be involved, as appropriate, during the development of evaluation terms of reference, the conduct of evaluations, reviews of evaluation results and decision-making relevant to evaluation recommendations.

VI . Financial Plan

The Financial Plan, set forth on Attachment 1 to this Annex 1, entitled Illustrative Objective Budget, may be revised in accordance with Sections 2.1 and 8.3 of the Agreement without formal amendment to this Agreement. Changes may be made to the financial plan by representatives of the Parties through formal amendment to the Agreement, if such changes do not cause USAID's contribution to exceed the amount specified in Article 3(b) of the Agreements

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ANNEX1 , ATTACHMENT1

ILLUSTRATIVE OBJECTIVE BUDGET

USAID Development Objective Agreement No. 278-CDCS-ES-OO Improved Essential Services Objective

Amplified Description {US$)

PROGRAM AREA AND OBLIGATIONS TO DATE ESTIMATED LIFE OF

ELEMENT AGREEMENT FUNDING

INITIAL FUNDING TOTAL

Health-Maternal and Child 9,949,694 9,949,694 50,000,000

Health

Health-Family Planning and 14,658,270 14,658,270 75,000,000 Reproductive Health

Health-Water Supply and 22,237,405 22,237,405 150,000,000 Sanitation

Education- Basic 46,986,315 46,986,315 235,000,000 Education

Environment-Clean 1,000,000 1,000,000 15,000,000 Productive Environment

Program Support 4,621 ,000 4,621 ,000 25,000,000

TOTAL 99,452,684 99,452,684 550,000,000

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ANNEX 2

Essential Services to the Public Improved

STANDARD PROVISIONS

Table of Contents

Article A: Definitions and Implementation Letters.

Section A.1. Definitions.

Section A.2. Implementation Letters.

Article B: General Covenants.

Section B.1. Consultation.

Section 8 .2. Execution of Agreement.

Section 8.3. Utilization of Goods and Services.

Section B.4. Taxation.

Section 8 .5. Reports and Information, Agreement Books and Records, Audits, and Inspections.

Section B.6. Completeness of Information.

Section 8 .7. Other Payments.

Section 8.8. Information and Marking.

Article C: Procurement Provisions.

Section C.1. Source and Origin.

Section C.2. Eligibility Date.

Section C.3. Plans, Specifications and Contracts.

Section C.4. Reasonable Price.

Section C.5. Notification to Potential Suppliers.

Section C.6. Transportation.

Section C.7. Insurance.

Section C.8. U.S. Government-Owned Excess Property.

Article D: Disbursements.

Section D.1. Disbursement for Foreign Exchange Costs.

Section D.2. Disbursement for Local Currency Costs.

Section D.3. Other Forms of Disbursement.

Section D.4. Rate of Exchange.

Article E: Termination; Remedies.

Section E.1 . Suspension and Termination.

Section E.2. Refunds.

Section E.3. Non-waiver of Remedies.

Section E.4. Assignment.

Article F: Miscellaneous.

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*Section F.1 . Investment Promotion.

* Section F.2. Voluntary Family Planning.

Section F.3. Prohibition on Assistance to Drug Traffickers.

* Section F .4. Workers' Rights.

Section F.5 Terrorist Financing.

Section F.6 Prohibition on Funding Foreign Government Delegations to International

Conferences.

* Include this section as applicable.

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Standard Provisions

Article A: Definitions and Implementation Letters.

Section A.1. Definitions. As used in this Annex, the "Agreement" refers to the Assistance Agreement to which this Annex is attached and of which this Annex forms a part. Terms used in this Annex have the same meaning or reference as in the Agreement.

Section A.2. Implementation Letters. To assist the GoJ in the implementation of the Agreement, USAID, from time to time, will issue implementation letters ("Implementation Letters") that will furnish additional information about matters stated in this Agreement. The Parties may also issue jointly agreed-upon Implementation Letters to confirm and record their mutual understanding on aspects of the implementation of this Agreement. Implementation Letters can also be issued to record revisions or exceptions which are permitted by the Agreement.

Article B: General Covenants.

Section B.1. Consultation. The Parties will cooperate to assure that the Development Objective and Intermediate Results of this Agreement will be accomplished. To this end, the Parties, at the request of either, will exchange views on progress toward the Development Objective and Intermediate Results, the performance of obligations under this Agreement, the performance of any consultants, contractors, or suppliers engaged under the Agreement, and other matters relating to the Agreement.

Section B.2. Execution of Agreement. The GoJ will:

(a) Carry out the Agreement and the activities required to be undertaken directly (or caused to be undertaken) by the GoJ, or cause the Agreement and such activities to be carried out with due diligence and efficiency, in conformity with sound technical , financial , and management practices, and in conformity with those documents, plans, specifications, contracts, schedules, or other arrangements, and with any modifications therein, approved by USAID pursuant to this Agreement; and

(b) Provide qualified and experienced management for, and train such staff as may be appropriate for the maintenance and operation of activities financed under the Agreement, and, as applicable for continuing activities, cause those activities to be operated and maintained in such manner as to assure the continuing and successful achievement of the Development Objective and Intermediate Results under the Agreement.

Section B.3. Utilization of Goods and Services.

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Any goods and services financed under this Agreement, unless otherwise agreed in writing by USAID, will be devoted to the Agreement until the completion or termination of the Agreement, and thereafter (as well as during any period of suspension of the Agreement) will be used to further the Development Objective of the Agreement or as USAID may direct in Implementation Letters.

Section 8.4. Taxation. [See ADS 350 or http://www.state.gov/m/rm/c10443.htm for more information on taxation.]

(a) General Exemption. The Agreement and the assistance thereunder are free from any taxes imposed under laws in effect in the territory of the GoJ.

(b) Except as provided otherwise in this provision, the General Exemption in subsection (a) applies to, but is not limited to (1) any activity, contract, grant or other implementing agreement financed by USAID under this Agreement; (2) any transaction or supplies, equipment, materials, property or other goods (hereinafter collectively "goods") under (1) above;

(3) any contractor, grantee or other organization carrying out activities financed by USAID under this Agreement; (4) any employee of such organizations; and (5) any individual contractor or grantee carrying out activities financed by USAID under this Agreement.

(c) Except as provided otherwise in this provision, the General Exemption in subsection (a) applies to, but is not limited to, the following taxes:

(1) Exemption 1. Customs duties, tariffs, import taxes, or other levies on the importation, use and re-exportation of goods or the personal belongings and effects (including personally-owned automobiles) for the personal use of non-national individuals or their family members. Exemption 1 includes, but is not limited to, all charges based on the value of such imported goods, but does not include service charges directly related to services performed to transfer goods or cargo.

(2) Exemption 2. Taxes on the income, profits or property of all (i) non-national organizations of any type, (ii) non-national employees of national and non national organizations, or (iii) non-national individual contractors and grantees. Exemption 2 includes income and social security taxes of all types and all taxes on the property, personal or real, owned by such non national organizations or persons. The term "national" refers to organizations established under the laws of the GoJ and citizens of the GoJ, other than permanent resident aliens in the United States.

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(3) Exemption 3. Taxes levied on the last transaction for the purchase of goods or services financed by USAID under this Agreement, including sales taxes, value-added taxes (VAT), or taxes on purchases or rentals of real or personal property. The term "last transaction" refers to the last transaction by which the goods or services were purchased for use in the activities financed by USAID under this Agreement.

(d) If a tax has been levied and paid contrary to the provisions of an exemption, USAID may, in its discretion, (1) require the GoJ to refund to USAID or to others as USAID may direct the amount of such tax with funds other than those provided under the Agreement, or (2) offset the amount of such tax from amounts to be disbursed under this or any other agreement between the Parties.

(e) In the event of a disagreement about the application of an exemption, the Parties agree to promptly meet and resolve such matters, guided by the principle that the assistance furnished by USAID is free from direct taxation, so that all of the assistance furnished by USAID will contribute directly to the economic development of Jordan.

Section 8.5. Reports and Information, Agreement Books and Records, Audits, and Inspections.

(a) Reports and Information. The GoJ shall furnish USAID accounting records and such other information and reports relating to the Agreement as USAID may reasonably request.

(b) GoJ Agreement Books and Records. The GoJ shall maintain accounting books, records, documents and other evidence relating to the Agreement, adequate to show, without limitation, all costs incurred directly by the GoJ under the Agreement, the receipt and use of goods and services acquired by the GoJ under the Agreement, agreed-upon cost sharing requirements, the nature and extent of solicitations of prospective suppliers of goods and services acquired by the GoJ, the basis of award of contracts and orders made directly by the GoJ, and the overall progress of the Agreement toward completion ("Agreement books and records") . The GoJ shall maintain Agreement books and records in accordance with generally accepted accounting principles prevailing in the United States, or at the GoJ's option, with approval by USAID, other accounting principles, such as those (1) prescribed by the International Accounting Standards Committee (an affiliate of the International Federation of Accountants) or

(2) prevailing in Jordan. Agreement books and records shall be maintained for at least three years after the date of last disbursement by USAID or for such longer period, if any, required to resolve any litigation, claims or audit findings. For the avoidance of doubt, this Section B.5(b) applies solely to Grant funds expended directly by the GoJ.

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(c) GoJ Audit. If $300,000 or more of USAID funds are expended directly by the GoJ in its fiscal year under the Agreement, the GoJ shall have financial audits made of the expenditures in accordance with the following terms, except as the Parties may otherwise agree in writing:

(1) With USAID approval, the GoJ shall use its Supreme Audit Institution or select an independent auditor in accordance with the "Guidelines for Financial Audits Contracted by Foreign Recipients" issued by the USAID Inspector General ("Guidelines"), and the audits shall be performed in accordance with the "Guidelines"; and

(2) The audit shall determine whether the receipt and expenditure of the funds provided under the Agreement are presented in accordance with generally accepted accounting principles agreed to in subsection (b) above and whether the GoJ has complied with the terms of the Agreement. Each audit shall be completed no later than nine months after the close of the GoJ's year under audit.

(d) Sub-recipient Audits. The GoJ, except as the Parties may otherwise agree in writing, shall submit to USAID, in form and substance satisfactory to USAID, a plan for the audit of the expenditures of "covered" sub recipients, as defined below, that receive funds in connection with a direct contract or agreement entered into directly with the GoJ pursuant to the activities contemplated by this Agreement.

(1) A "covered" sub-recipient is one who expends $300,000 or more in its fiscal year in "USAID awards" (i.e., as sub-recipients under USAID Development Objective and other grant agreements with foreign governments).

(2) The plan shall describe the methodology to be used by the GoJ to satisfy its audit responsibilities for covered sub-recipients. The GoJ may satisfy such audit responsibilities by relying on independent audits of the sub-recipients; expanding the scope of the independent financial audit of the GoJ to encompass testing of sub recipients' accounts; or a combination of these procedures.

(3) The plan shall identify the funds made available to covered sub recipients that will be covered by audits conducted in accordance with other audit provisions that would satisfy the GoJ's audit responsibilities. (A nonprofit organization organized in the United States is required to arrange for its own audits. A for-profit contractor organized in the United States that has a direct contract with USAID is audited by the cognizant U.S. Government Agency.

A private voluntary organization organized outside the United

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States with a direct grant from USAID is required to arrange for its own audits. A host-country contractor should be audited by the GoJ's auditing agency.)

(4) The GoJ shall ensure that covered sub-recipients under direct contracts or agreements with the GoJ take appropriate and timely corrective actions; consider whether sub-recipients' audits necessitate adjustment of its own records; and require each such sub-recipient to permit independent auditors to have access to records and financial statements as necessary.

(e) Audit Reports. The GoJ shall furnish or cause to be furnished to USAID an audit report for each audit arranged for by the GoJ in accordance with this Section within 30 days after completion of the audit and no later than nine months after the end of the period under audit.

(f) Other Covered Sub-recipients. For "covered" sub-recipients who receive funds under the Agreement pursuant to direct contracts or agreements with USAID, USAID will include appropriate audit requirements in such contracts or agreements and will , on behalf of the GoJ, conduct the follow up activities with regard to the audit reports furnished pursuant to such requirements.

(g) Cost of Audits. Subject to USAID approval in writing , costs of audits performed in accordance with the terms of this Section may be charged to the Agreement.

(h) Audit by USAID. USAID retains the right to perform the audits required under this Agreement on behalf of the GoJ by utilizing funds under the Agreement or other resources available to USAID for this purpose, conduct a financial review, or otherwise ensure accountability of organizations expending USAID funds regardless of the audit requirement.

(i) Opportunity to Audit or Inspect. The GoJ shall afford authorized representatives of USAID the opportunity at all reasonable times to audit or inspect activities financed under the Agreement, the utilization of goods and services financed by USAID, and books, records and other documents relating to the Agreement.

0) Sub-recipient Books and Records. The GoJ will incorporate paragraphs (a), (b), (d), (e), (g), (h) and (i) of this provision into all sub-agreements with non-U.S. organizations which meet the $300,000 threshold of paragraph (c) of this provision. Sub-agreements with non-U.S.

organizations, which do not meet the $300,000 threshold , shall, at a minimum, incorporate paragraphs (h) and (i) of this provision . Sub-

A2-7 agreements with U.S. organizations shall state that the U.S. organization is subject to the audit requirements contained in OMS Circular A-133.

Section 8 .6. Completeness of Information. The GoJ confirms:

(a) that the facts and circumstances of which it has informed USAID, or caused USAID to be informed, in the course of reaching agreement with USAID on the Agreement, are accurate and complete, and include all facts and circumstances that might materially affect the Agreement and the discharge of responsibilities under this Agreement; and

(b) that it will inform USAID in timely fashion of any subsequent facts and circumstances that might materially affect, or that it is reasonable to believe might so affect, the Agreement or the discharge of responsibilities under this Agreement.

Section B. 7. Other Payments. GoJ affirms that no payments have been or will be received by any official of the GoJ in connection with the procurement of goods or services financed under the Agreement, except fees, taxes, or similar payments legally established in the country of the GoJ.

Section 8.8. Information and Marking. The GoJ will give appropriate publicity to the Agreement as a program to which the United States has contributed, identify Agreement activity sites, and mark goods financed by USAID, as described in Implementation Letters.

Article C: Procurement Provisions.

Section C.1. Source and Origin.

C.1 . Source and Origin.

[If the authorized Geographic Code for foreign exchange procurement is Code 000, insert the following paragraph (a):

(a) Except as noted herein, or in a sub-agreement issued by USAID, Grant funds will be used to finance the cost of goods and services having their source and origin, and with respect to suppliers of goods and services, their nationality, in the United States. Exceptions to this requirement include local procurement transactions in accordance with USAID policy or procurements made after obtaining source, origin, and nationality waivers from USAID in writing. [If host country contracting is contemplated by the Agreement, include the following language: "USAID will provide the details of its source, origin and nationality rules, including its local procurement policy, in an Implementation Letter."1

1 Implementation Letter to be prepared by USAID Mission, with RLA and RCO clearance.

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[Alternatively, if the authorized Geographic Code for foreign exchange procurement is other than Code 000, insert the following paragraph (a):

(a) Except as noted herein, or in a sub-agreement issued by USAID, Grant funds will be used to finance the cost of goods and services having their source and origin, and with respect to suppliers of goods and services, the nationality, in countries included in Geographic Code _ as in effect at the time orders are placed or contracts entered into for such goods or services.

Exceptions to this requirement include local procurement transactions in accordance with USAID policy or procurements made after obtaining source, origin, and nationality waivers from USAID in…