Grant Agreement between the Government of the United States of America, acting through the U.S. Trade and Development Agency (TDA), and Tomsk Oblast (Grantee). TDA agrees to provide the Grantee under the terms of this Grant Agreement not to exceed U.S. dollars $850,000 to assist in funding the cost of a feasibility study on the TEC­3 project in Tomsk.

It is further agreed between TDA and the Grantee that:

1. Terms of Reference

The terms of reference for the study are attached as Annex I to this Grant Agreement. The study will examine the technical, financial, and environmental aspects of the proposed project.

2. U.S. Dollar/Local Currency Funding

The funding to be provided under this Grant Agreement shall be used to fund U.S. dollar and local currency costs for professional and technical services as required by the terms of reference, and performed by a U.S. firm (the contractor) in preparing the study. The funds provided under this Grant Agreement are the only funds that will be made available to Grantee by TDA for the study, unless otherwise agreed in writing.

3. Additional Funding

TDA shall not provide any funds in addition to those provided under this Grant Agreement which may be required to fund components of the study other than those specified in the terms of reference.

The Grantee shall provide necessary administrative support, including office space, consulting expertise, and secretarial support for the contractor performing the study.

4. Most Favorable Conversion Rate

The funds provided under this Grant Agreement for the purposes of carrying out the obligations hereunder shall be convertible into local currency at the highest rate which is lawful in the Russian Federation at the time the conversion is made.
 
 
 

5. Effective Date and Completion Date

This Agreement shall take effect upon signature by both parties. The completion date for the study, which is twelve months from the effective date of this Grant Agreement, is the date by which the parties estimate that all services funded under this Grant Agreement will have been furnished.

6. Prohibition Against Funding Before Effective Date and After Completion Date

No funds may be disbursed under this Grant Agreement for services which are provided under orders and contracts entered into prior to the effective date of this Grant Agreement, except as the parties may otherwise agree in writing. TDA will not issue or approve documentation which would authorize disbursement of grant funds for services performed subsequent to the completion date of this Grant Agreement, except as TDA may otherwise agree in writing.

7. Taxes

Funds provided under this Grant Agreement shall not be used to pay any taxes, tariffs, duties, or other levies imposed under laws in effect in the territory of Grantee. To the extent that any contractor funded by this Grant Agreement, including any consulting firm or any personnel of such contractor, and any property or transaction relating to such contract funded under this Grant Agreement are not exempt from taxes, tariffs, duties or other levies imposed under laws in effect in the territory of Grantee, the contractor funded by this Grant Agreement will pay the same with funds other than those provided under this Grant Agreement. Neither the Grantee nor the contractor will seek reimbursement from TDA for such taxes, tariffs, duties, or other levies.

8. Disbursement Procedures

The Grantee may obtain disbursement of funds under this Grant Agreement for the costs of services required under the terms of this Grant Agreement by submitting to TDA requests for disbursement for such services. Such requests shall consist of the following:

(1) A contractor's invoice. The invoice shall include a signed statement by the contractor that the amounts involved do not include taxes or fees imposed under the laws of the Russian Federation; and

(2) Grantee's approval of the contractor's invoice, certifying that the services for which disbursement is requested have been performed satisfactorily, and are in compliance with the terms of this Grant Agreement.

A copy of the signed contract outlining the services for which payment is requested must accompany the initial request for disbursement of funds.
 

Requests for payment shall be submitted by courier or mail to:

U.S. Trade and Development Agency

FM/CMP/DCB

Room 700, SA­2

515 22nd Street, N.W.

Washington, D.C. 20522­0209

9. Time Limitation on Disbursement

Final disbursement of funds provided under this Grant Agreement for services performed will be made within six months after the completion date or such other period as TDA agrees to in writing.

10. Use of U.S. Air Carriers

Transportation by air of persons or property funded under this Grant Agreement shall be on U.S. flag carriers in accordance with the Fly America Act, 49 U.S.C. 1517, to the extent service by such carriers is available, as provided under U.S. Government regulations.

11. Nationality, Source and Origin

All goods and services provided under this Grant Agreement shall have their nationality, source, and origin in the United States or in the Russian Federation. In no case shall goods and services having their nationality, source, and origin in the Russian Federation exceed 20 percent of the amount of the funding provided by TDA.

12. Selection of Contractor

Contracting for professional and technical services shall be carried out by the Grantee according to acceptable procedures for the competitive selection of Contractors, subject to prior approval of those procedures by TDA. Pursuant to these procedures, the Grantee shall have the authority to carry out all aspects of the procurement, including the ranking and selection of firms based on technical qualifications; price shall not be a factor in evaluation or selection.

At TDA's request, the Grantee shall furnish to TDA for its approval any specifications, terms or reference or documents related to the prequalification of Contractors, and to the solicitation of bids or proposals for services to be funded under this Agreement.

13. TDA Prior Approval of Contracts and Contractors

It is understood by the parties that TDA has reserved certain rights such as, but not limited to, the right to approve the terms of the contract and any subcontracts thereunder or amendments thereto, the selection of all contractors and subcontractors, the terms of reference, and any or all documents related to any contract funded under this Grant Agreement. The parties hereto further understand and agree that TDA, in reserving any or all of the foregoing approval rights, has acted solely as a financing entity to assure the proper use of United States Government funds, and that any decision by TDA to exercise or refrain from exercising these approval rights shall be made as a financier in the course of financing this effort and shall not be construed as making TDA a party to the contract. The parties to this Grant Agreement understand and agree that TDA may, from time to time, exercise the foregoing approval rights, or discuss matters related to these rights and the project with the parties to the contract, jointly or separately, without thereby incurring any responsibility or liability to the parties to the contract or to any one of them. Any approval or failure to approve by TDA shall not bar the Grantee or TDA from asserting any right, or relieve the contractor of any liability which the contractor might otherwise have to the Grantee.

14. Mandatory Contract Clauses

Contracts, subcontracts, contractors, and subcontractors funded under the Grant Agreement for the provision of professional and technical services, and any amendments thereto, including any changes in the terms of reference, must be agreed to by TDA in writing before execution or amendment of the contracts or subcontracts. All such contracts and subcontracts shall include the following mandatory clauses:

"A. It is understood by the parties that TDA has reserved certain rights such as, but not limited to, the right to approve the terms of the contract and any subcontracts thereunder or amendments thereto, the selection of all contractors and subcontractors, the terms of reference, and any and all documents related to this contract or any subcontracts funded under the Grant Agreement dated

1994. The parties hereto further understand and agree that TDA, in reserving any or all of the foregoing approval rights, has acted solely as a financing entity to assure the proper use of United States Government funds and that any decision by TDA to exercise or refrain from exercising these approval rights shall be made as a financier in the course of financing this effort and shall not be construed as making TDA a party to the contract. The parties hereto understand and agree that TDA may, from time to time, exercise the foregoing approval rights, or discuss matters related to these rights and the project with the parties to the contract or related subcontracts, jointly or separately, without thereby incurring any responsibility or liability to the parties to the contract or related subcontracts or to any one of them. Any approval or failure to approve by TDA shall not bar the Grantee or TDA from asserting any right, or relieve the contractor of any liability which the contractor might otherwise have to the Grantee.

"B. All goods and services provided by the contractor or any subcontractor shall have their nationality, source and origin in the United States or the Russian Federation. In no case shall goods and services having their nationality, source, and origin in the Russian Federation exceed 20 percent of the amount of the funding provided by TDA.

"C. The feasibility study report, while aiming at optimum specifications and characteristics for the project, shall identify the availability of U.S. sources of supply so as to maximize their use in implementation of the project.

"D. The contractors funded under the Grant Agreement shall maintain books, records, documents, and other evidence, and shall apply generally accepted accounting principles and practices sufficient to reflect properly all transactions under or in connection with the contract. The foregoing constitutes "records" for purposes of this clause.

(1) Such records shall be maintained during the contract term and for a period of three years after final disbursement by TDA.

(2) All records maintained by the contractor shall be subject to inspection and audit by TDA, or its authorized agents, at all reasonable times. The contractor shall afford TDA proper facilities for such inspection and audit.

"E. Transportation by air of persons or property funded under this Grant Agreement shall be on U.S. flag carriers in accordance with the Fly America Act, 49 U.S.C. 1517, to the extent service by such carriers is available, as provided under U.S. Government regulations.

"F. The contractor shall provide adequate Workman's Compensation Insurance coverage under service contracts funded by TDA.

"G. After completion of the contract, the contractor shall advise TDA by letter at six month intervals, for a period of two years, as to the disposition of the follow on work resulting from the TDA­funded feasibility study. If, at any time, the contractor receives follow­on project work from the Grantee, the contractor shall so notify TDA, and

1 ) designate the contractor's contact point including name, telephone, and fax number; and

2) agree with TDA upon a method for TDA to receive from the contractor timely and accurate procurement information about the project.

"H. The contractor shall provide 3 copies of the final report, in English, to TDA for its use and public distribution. The final report must be paginated."

15. Cooperation Between Parties and Follow­Up

The parties shall cooperate to assure that the purpose of this Grant Agreement will be accomplished. To this end, the parties, at the request of either, will exchange views on the progress of the study, the performance of obligations under this Grant Agreement, the performance of any consultant or contractor engaged in the study, and other matters relating to the study. Furthermore, for five years following completion of the final report, the Grantee or its representative agrees to respond to an annual questionnaire from TDA about the status of the project.
 

In accordance with this Agreement, both parties will take all possible measures, while the feasibility study is under way, to attract financial institutions to finance construction of the TEC­3 project in Tomsk.

16. Implementation Letters

To assist the Grantee in the implementation of this Grant Agreement, TDA may, from time to time, issue implementation letters that will provide additional information about matters covered in this Grant Agreement. Both parties may also use jointly agreed upon implementation letters to confirm and record their mutual understanding of the implementation of this Grant Agreement.

17. Books and Records

The Grantee agrees to maintain, in accordance with consistently applied accounting principles and practices, books, records, and documents relating to the study and this Grant Agreement adequate to show, without limitation, the receipt and use of services acquired under this Grant Agreement. Such books and records shall be maintained for three years after the date of the final disbursement by TDA. The Grantee shall afford TDA or its authorized representatives the opportunity at reasonable times to review books, records, and other documentation relating to the feasibility study and this Grant Agreement.

18. Representation of Parties

For all purposes relevant to the Grant Agreement, the Grantee will be represented by its Governor and the United States Government will be represented by the United States Ambassador in Moscow, each of whom may, by written notice, designate additional representatives for all purposes under this Grant Agreement.

19. Addresses of Record for Parties

Any notice, request, document, or other communication submitted by either party to the other under this Grant Agreement shall be in writing or through a wire or electronic medium which produces a tangible record of the transmission, such as a telegram, cable or facsimile, and shall be deemed duly given or sent when delivered to such party at the following:

To: Administration of Tomsk Oblast

6 Lenin Ave.

Tomsk

634032 Russian

Tel: 22­24­44

Fax: (382) 22­48­84
 
 

To: U.S. Trade and Development Agency

SA­16, Room 309

Washington, D.C. 20523­1602

Telephone: (703) 875­4357

Fax: (703) 875­4009

All such communications shall be in English, unless the parties otherwise agree in writing. In addition, the Grantee shall provide the Commercial Section of the U.S. Embassy a copy of each communication sent to TDA.

Any communication relating to this Grant Agreement shall include the following fiscal data:

Appropriation No.: 11X1001

Budget Plan: 2TDX­95­71004­DG71

Project No.: 94­816B

Obligation No.: 5713040

TDA No.: TDA­4816­G­00­5070­00

20. Termination Clause

Either party may terminate this Grant Agreement by giving the other party 30 days advance written notice. The termination of the Grant Agreement will end any obligations of the parties to provide financial or other resources for the study, except for payments which they are committed to make pursuant to noncancellable commitments entered into with third parties prior to the written notice to terminate.

21. Non­waiver of Rights and Remedies

No delay in exercising any right or remedy accruing to either party in connection with this Grant Agreement shall be construed as a waiver of such right or remedy.

22. Statement by Grantee

In recognition of TDA's efforts on behalf of the United States Government in funding the feasibility study, the Grantee shall, under otherwise equal conditions, give priority to U.S. suppliers in procuring the technology and equipment needed for the project.
 
 
 
 
 
 
 

IN WITNESS WHEREOF, the Government of the United States of America and Tomsk Oblast, each acting through its duly authorized representative, have caused this Grant Agreement to be signed in the English language in their names and delivered as of the day and year written below.

For the Government of

the United States of America
 

Signed By J. Joseph Grandmaison
 

For Tomsk Oblast
 

Signed By Y. Yegorov

Dated: ____________________

.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The Grant Agreement, dated December 16, 1994, between the Government of the United States of America, acting through the U.S. Trade and Development Agency, and the Tomsk Oblast is hereby amended to increase the amount of TDA funding by $210,000 to a total of $1,060,000. The additional $210,000 shall be used to fund the feasibility study on the Seversk TETS in Tomsk­7, as set forth in Annex 1A. The remaining portion of the costs required to complete the terms of reference in Annex IA, which is not less than $95,000, shall be provided by Gilbert/Commonwealth, the U.S. firm which has been selected as the contractor for the study. The feasibility study on the Seversk TETS shall be carried out by Gilbert/Commonwealth under a contract with the Siberian Group of Chemical Enterprises.

The opening paragraph of the Grant Agreement is amended by adding at the end of the second sentence: "and not to exceed $210,000 to assist in funding the cost of a feasibility study on the Seversk TETS in Tomsk­7."

Clause 1 of the Grant Agreement is amended to read as follows: "The terms of reference for the two studies are attached as Annex I and Annex IA to this Grant Agreement. The studies will examine the technical, financial, and environmental aspects of the two proposed projects."

Clause 2 of the Grant Agreement is amended to read as follows: "The funding to be provided under this Grant Agreement shall be used to fund U.S. dollar and local currency costs for professional and technical services as required by the terms of reference, and performed by Gilbert/Commonwealth (the contractor) in preparing the study. The remaining costs required to complete the terms of reference, which are not less than $127,500 for the terms of reference in Annex I and $95,000 for the terms of referenced Annex IA, shall be provided by the contractor. The funds provided under this Grant Agreement are the only funds that will be made available to Grantee by TDA for the two studies, unless otherwise agreed in writing."

Clause 14 is amended to include paragraph 1., which states the following: "It is understood and agreed by the Parties that the contractor will certify that it has provided funding totaling no less than $127,500 and $95,000 in completing the terms of reference in Annex I and Annex IA, respectively."

Source: URL: http://www.eia.doe.gov/gorec/gcc12.html

Comments or questions? Contact Cristina Chuen at MIIS CNS: Cristina.ChuenATmiis.edu

This material is produced independently for NTI by the Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2002 by MIIS.

HOME  |  CONTACT US  |  SITE MAP