Memorandum of Understanding between Lebanon and the United States Agency for International Development ratified by Decree No. 819 of 10 October 2007

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J t ,. • l\ i;d..)~' ~,..)\i,..J\ , ~,~, ~ l.+.:a.,J.Ji..J\ ~'"i\ ~, ~ ~ t~ .,~, ·r jMl->31 u-a MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF LEBANON REPRESENTED BY THE MINISTRY OF ENERGY AND WATER AND THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT WHEREAS, the Ministry of Energy and Water and the United States Agency for International Development (the "Parties") have entered into certain previous Memoranda of Understanding on September 10, 2002, and November 29, 2004, relating to strengthening Lebanon's policies in the water sector: WHEREAS, the Parties have achieved certain accomplishments and goals under the previous Memoranda of Understanding through successful mutual cooperation; and WHEREAS, the Parties wish to extend their cooperation through pursuing· additional goals and objective for the Lebanon water sector; NOW. THEREFORE, this Memorandum of Understanding (MOU) sets forth the following mutual intentions of the Parties with respect to strengthening Lebanon's water sector policies. Article 1 - Purpose The Parties will exercise joint efforts to pursue the following specific activities : ■ Assist the Water Establishments in implementing Public Private Partnership and efficiency model for costing water; ■ Assist the South Lebanon Water Establishment (SLWE) in more accurate accounting for water produced; ■ Encourage local-level participation in water management and promote water accountability through facilitated agreements and public outreach; ■. Assist the GOL in creating consensus for the most suitable approaches for public private partnerships and related water sector reforms; • Support the sustainability of the SLWE by integrating improved planning tools and management systems into its standard operations: ■ Strengthen the capabilities of SLWE's technical and management staff through participation in program activities and on-the-job training: and ■ Increase the likelihood of external investment in South Lebanon water systems through the development of strategies and assessments to attract donor and private sector funds. Article 2 - Understandings of the Parties USAID intends to finance assistance in the form of technical support and training, from· February 1, 2007 to September 15, 2008 as described below. In collaboration with the Ministry of Energy and Water, a technical team provided by a Contractor will conduct water policy initiatives through policy committees .and technical working groups, frequent consultations and seminars, explorations of lessons learned from the best practices for application in Lebanon, and other collaborative planning interventions. In order to achieve the program's goals, the te.chnical team will work from offices in the Ministry· of Energy and Water. The Program Director and the Program Manager, in conjunction with the US-based Chief of Party, will oversee implementation for the duration of the program, including establishing all procedures and maintaining close communication with all key stakeholders. Article 3 - Overall Scope of Work In accordance with the attached task order, the technical team will carry out program activities to support the development of a strategic water vision with the participation of stakeholders concerned, which will include: 1. Expanding the current SLWE financial accounting system to introduce international standards and better management tools: 2. Assisting SLWE to assess its water infrastructure; and 3. Assisting SLWE in the proper accounting for water produced and distributed. In particular the team will endeavor to do the following: • Expand the SLWE financial accounting system to include Personnel and Payroll mOdules. • Assess the water infrastructure in South Lebanon ■ Train SLWE Staff to update the business plan and the financial model • ExpJore options for customer metering in South Lebanon • Supply and install zone meters in South Lebanon Article 4 - Roles and Responsibilities of the Parties To ensure the success of the program, the Ministry of Energy and Water and the United States Agency for International Development will each provide the services delineated below. The United States Agency for International Development Intends to: • Provide funding for carrying out the program's technical assistance, workshops, equipment purchases, and other services or inputs, as agreed upon by the Parties; • Provide office computer equipment and office networking, maintenance contracts, and insurance during the life of the program; • Cover international and local transportation costs of the team and for program participation, based on approved activities; · • Reimburse for international, program-related te1ephone calls and Internet link and any other program-related communication: • Cover the costs of office supplies; and • Monitor the efforts of the team, including approval of the work plans, to ensure it meets the terms of this Memo of Understanding. The Ministry of Energy and Water-intends to: . • Designate key Ministry representatives to guide program implementation and approve work plans and other deliverables, chaired by the Minister or his designee, which will ensure close communication with the Ministry of Finance and other: bodies that may be involved in the program; • Facilitate the designation of SLWE staff to work with the LWPP team on the different activities of the program in order to ensure the sustainability of the work by integra~ng improved planning tools and management systems into the SLWE's ~tandard operations; • Provide dedicated office space in the Ministry of Energy and Water's main building on Comiche du Fleuve; • Supply basic furniture to the program office, to be supplemented by USAIO; • Provide photocopier, fax machine, telephone lines and units, and electrical power in the program office; • Assist in the maintenance of the program's computer network and standard troubleshooting; • Arrange exemptions from all obligatory taxes, including social security taxes for salary and compensation paid for the employees and consultants hired by the Contractor for the Implementation of this project as well as all Value-Added Tax (VAT); and • Arrange exemption from any and all national and local customs duties and fees on equipment and vehicles purchased for this project, including the minimum required taxes Article 5 - General Provisions This MOU may be amended or modified with the written consent of both Parties. Either party may terminate or suspend this memorandum by giving 60 (sixty) days written notice. Termination of this MOU will annul any responsibility of the parties. All understandings of USAID pursuant to this MOU are subject to the availability of funds. USAID shall obligate, commit. and expend funds and carry out operations pursuant to this MOU in accordance with applicable laws and regulations of the United States. This MOU is not intended to effect an obligation of funds by USAID. In witness whereof, the Parties, acting through their duly authorized representative, have caused this MOU to be signed in their names below. FOR THE GOVERNMENT OF LEBANON ~~ ~;.. H.E. Mohammad Al Safadi Minister of Energy and Water Date: 3 / 13 / :?-,ocp 9: · I/ .. FOR THE US AGENCY FOR INTERNATIONAL DEVELOPMENT Date: f / 3 . ( c, 7