Dear  Mr. Shrestha:

Subject: Technical Assistance Letter of Agreement for the Subregional Environmental Monitoring and Information System (SEMIS) Phase II

1.The Asian Development Bank ("ADB") is implementing a Technical Assistance for the Subregional Environmental Monitoring and Information Systems (SEMIS) Phase 11 (the "Technical Assistance") in collaboration with the United Nations Environment Programme Regional Resource Center for Environmental Assessment (UN EP).

2.The Technical Assistance is expected to be completed in 2 months, commencing in January 2000 and ending in December 2001.

3.ADB proposes the following understandings in implementing the Technical Assistance with UNEP.

Undertakings of ADB

4.(a) ADB in consultation with UNEP will engage and finance an international consultant (4 person months) and 3 domestic consultants (2 person-months each) to provide support to the SEMIS Team.
(b) ADB will finance two full-time administrative/research assistants hired by UNEP as part of the SEMIS Team, who will support the coordinator in carrying out day-to-day Technical Assistance activities
(c) ADB will finance the participation of the GMS counterpart team members in a one-month intemship-cum-training.  Costs of participation include travel, per diem and miscellaneous travel allowance.

Financing Arrangements:

5.Payments in respect of the services of the two assistants.  Payment will be made in advance in:two (2) instalments (together, "Advance Payment 1"), as follows:

(i)  Within fourteen (14) days after ADB's receipt of your confirmation of this Agreement, curriculum vitae of the assistants, their appointment papers and monthly rates, ADB will transfer 50% of $50,000 to UNEP through a designated project account.  The second installment of $25,000 will be remitted not later than the third month of the second year of project implementation.
(ii) UNEP will submit to ADB not later than 60 days after completion of the services of the two assistants a Certified Statement of Expenditures showing the utilization of the funds provided as Advance Payment1.  ADB reserves the right to verify the documentation (invoices and receipts) supporting the Statement of Expenditures.
(iii) Except as ADB may otherwise agree, any remaining balance of Advance Payment 1 upon completion of the services of the two assistants shall be reimbursed by UNEP within thirty (30) days after receipt by UNEP of demand thereof.

6.Payments in respect of the Internship will be made as follows:

(i) Within fourteen (14) days after ADB's receipt of your confirmation of this Agreement and the cost estimates of the travel, per diem and miscellaneous travel allowance of the participants, ADB will pay an advance payment (Advance Payment 2) corresponding to the estimated costs of the Internship.
(ii) UNEP will submit to ADB not later than 60 days after completion of the Internship, a Certified Statement of Expenditures showing the utilization of the funds provided as Advance Payment 2. ADB reserves the right to verify the documentation (invoices and receipts) supporting the Statement of Expenditures.
(iii) Except as ADB may otherwise agree, any remaining balance of Advance Payment 2 upon completion of the services of the two assistants shall be reimbursed by UNEP within thirty (30) days after receipt by UNEP of demand thereof.

Undertakings of UNEP:

7. (a) UNEP will administer its Technical Assistance contribution of $150,000 equivalent.
(b) UNEP will hire and finance a full-time SEMIS coordinator who will be responsible for overall coordination of SEMIS 11 activities.  Two full-time administrative/research assistants financed by ADB will also be hired by UNEP.
(c) UNEP, through the SEMIS team will prepare a detailed work program for approval by ADB.  It will undertake other initial activities to prepare for regional Technical Assistance implementation.
(d)  UNEP will convene a subregional consultative meeting in the beginning of the fourth month of Technical Assistance implementation, and prepare an inception report taking into consideration recommendations from the subregional consultative meeting.
(e) Without limiting the generality of the foregoing, UNEP will:

(i) organize a one-month training-cum-internship program for at least six participants from GMS countries, and provide the training facilities and trainers.
(ii) Furnish to ADB all such information concerning the Internship, and submit a final report within a month after the completion of the Internship.

(f) Through the SEMIS team, undertake data acquisition, data analysis and mapping in selected GMS areas.
(g) Prepare an interim report to be submitted to ADB during the 4th month of project implementation.  Other reports to be submitted to ADB are the final report, quarterly progress reports; and meeting proceedings.

8.Implementation Coordination and M8. ADB will coordinate the implementation of the Technical Assistance at the subregional level, in consultation with UNEP.  ADB will monitor and periodically review the progress of Technical Assistance implementation through

(i) quarterly progress reports; and
(ii) at least three review missions, particularly to review the inception, interim and draft final reports of the study.

Procurement

9.ADB will be responsible for procurement of equipment and materials required under the Technical Assistance.  However, at the request of ADB, UNEP will carry out procurement in accordance with ADB's Guidelines for Procurement and arrangement satisfactory to ADB.  Equipment to be procured included computers and software, satellite imagery and field verification equipment.

10.On behalf of ADB, Ms. Chantale Wong, Environment Policy Specialist, Environment Division of the Office of Environment and Social Development, will act as the authorized representative of the Bank with respect to the Technical Assistance.  Mr. Surendra Shrestha, Regional Coordinator will act as the authorized representative of UNEP.

11.Please indicate your agreement to the terms of this letter by signing and dating the form of confirmation on each of the enclosed counterparts of this Letter.  One counterpart should then be returned to ADB; you may retain the other for your records.

Sincerely yours
ANITA KELLES-VIITANEN
OIC, Office of environment
And Social Development

Confirmed:United Nations Environment Programme- Regional Resource Center Environmental Assessment                                     

BY :--------------------------

Authorized Signature
Date: