In an endeavour to strengthen the friendly relations existing between the Republic of Uzbekistan and the Swiss Confederation, respect for democratic principles and fundamental human rights — as set out in particular in the Universal Declaration of Human Rights inspiring the internal and external policies of the two Parties and constituting an essential element on an equal footing with the objectives of the present Agreement,

In pursuance and in application of the Agreement between the Government of the Republic of Uzbekistan and the Swiss Federal Council concerning technical and financial co-operation and humanitarian aid, signed on 20th September, 2002 (hereinafter referred to as the Agreement of 2002), the Government of the Republic of Uzbekistan represented by the Ministry of Water Resources and the Government of Switzerland represented by the Swiss Agency for Development and Cooperation have agreed on the following:

Wherever used in this Agreement, unless the context otherwise requires, the subsequent terms have the following meaning:

a) «Parties» means the Government of the Republic of Uzbekistan and the Government of Switzerland;

b) The «Project» means the National Water Resources Management Project in Uzbekistan financed by the Government of Switzerland, designed by the Swiss Agency for Development and Cooperation and defined in the Project Document, which is an integral part of this Agreement;

c) «SDC» means the Swiss Agency for Development and Cooperation;

d) «Swiss Embassy» means the Swiss Embassy in Uzbekistan;

e) «MoWR» means the Ministry of Water Resources of the Republic of Uzbekistan;

f) «PSC» means the Project Steering Committee which is established in order to ensure the overall supervision and co-ordination of the Project as well as to address strategic issues;

g) «GEF Agency» means the Agency of International Fund for Saving the Aral Sea for Implementation of the Aral Sea Basin and GEF Projects;

h) «Implementing Agency» means GEF Agency and International Team Leader that are mandated by the SDC for the implementation of the Project;

i) «IWRM» means Integrated Water Resources Management.

1. The overall goal of the second phase of the project is to improve the rural populationʼs livelihoods through integrated water resource management in Uzbekistan.

2. The main outcomes of the Project are:

Outcome 1. The Ministry of Water Resources implements a comprehensive strategic and regulatory framework based on IWRM principles.

Outcome 2. Farmers and water management organizations use water resources efficiently and sustainably.

1. The Agreement shall cover the activities taking place in the Republic of Uzbekistan and described in the attached Project Document, which forms an integral part of this Agreement.

2. The Swiss Embassy on behalf of the SDC shall closely interact with the MoWR during the Project implementation. Interaction with the other interested ministries and agencies shall be carried out through the MoWR.

1. The MoWR shall be in charge of the implementation of this Agreement and the Project on behalf of the Government of the Republic of Uzbekistan.

2. The SDC shall be an Executive Authority for the application of the Agreement and the implementation of the Project on behalf of the Government of Switzerland. The Swiss Embassy represents the SDC in Uzbekistan and shall be in charge of the implementation and coordination of the Project.

3. Based on a common decision of the Parties, the SDC shall entrust the Implementing Agency (GEF Agency and International Team Leader) with the implementation of the Project, as defined in the Project Document.

The Government of the Republic of Uzbekistan shall:

a) grant the Swiss Embassy and its staff the same privileges and immunities stipulated in Paragraphs 6.2 and 6.8 of Article 6 of the Agreement of 2002 as those usually granted to a diplomatic mission according to the Vienna Convention of 18 April, 1961 on Diplomatic Relations;

b) upon request by the Swiss Embassy, provide the personnel participating in the Project temporary entry and exit visas without levy of consular and other charges as specified in Paragraph 6.4 of Article 6 of the Agreement of 2002;

c) exempt the goods imported within the framework of the Project from customs duties. The goods, works and services, obtained in Uzbekistan within the framework of the Project, shall be exempted from value-added tax and obligatory deductions for state targeted funds;

d) in accordance with the existing currency transfer regulations, facilitate in creating favorable conditions for the procedures of international transfers in foreign currency caused by project needs or expatriate personnel;

e) assist foreign and local experts to implement their tasks and provide them with all necessary authorisations, documentation and information, required for the successful implementation of the Project in accordance with the legislation of the Republic of Uzbekistan.

1. The SDC shall finance the Project through contribution of up to a maximum amount of 4 600 000 USD (four million six hundred thousand US Dollars).

2. The funds of the Project shall be administered by the SDC through the Swiss Embassy.

1. The MoWR shall ensure an appropriate coordination and support to the Project in order to guarantee full coherence and implementation of the Project objectives, inter alia facilitating participation of representatives of the Government of the Republic of Uzbekistan at relevant meetings organized by the Project.

2. The MoWR shall commit itself to promptly provide the Swiss Embassy and the GEF Agency upon written request, with all necessary information and authorisations, in order to enable them to perform their task in the most efficient and accurate manner for the successful implementation of the Рroject. This information shall be used solely for the purposes of the Project. Any other use shall be submitted to the prior written consent of the MoWR.

3. The MoWR shall commit to ensure an appropriate coordination between the activities financed by the Government of Switzerland and those financed by other donors in order to guarantee full coherence. Regular consultations between all involved actors shall be facilitated by the MoWR.

4. The MoWR shall take joint measures for the secure storage and maintenance of the goods or equipment financed from the funds of the Government of Switzerland within the Project as well as ensure appropriate hand-over processes of the said goods or equipment according to the laws and regulations of the Republic of Uzbekistan at the end of the Project.

1. The Project is a joint initiative between the MoWR and SDC.

2. On the Uzbek side, the MoWR:

a) takes all the necessary measures to facilitate the implementation of the agreed Project activities;

b) participates in the Project Steering Committee;

c) coordinates the activities of the Project with involved ministries and agencies and other national institutions of the Republic of Uzbekistan.

3. On the Swiss side, the Swiss Embassy:

a) monitors the overall implementation of the Project;

b) can mandate foreign and local long-term and short-term experts to support the implementation of the Project;

c) can mandate other individuals and local or international organisations for the implementation of specific parts of the Project.

1. PSC meetings shall be held twice a year. The PSC shall have a quorum only when the representatives of the Parties are present and decisions are reached by consensus.

2. The PSC shall be composed of the following members:

a) a representative of the MoWR;

b) the Head of the Swiss Embassy in Uzbekistan.

The following members shall have the status of observers (without voting rights) in the PSC:

c) Representatives of the Ministry of Finance, Ministry of Investment and Foreign Trade, Ministry of Agriculture, Ministry of Economy and Poverty Reduction, Ministry of Higher and Secondary Special Education of the Republic of Uzbekistan;

d) Representatives of other agencies/institutions involved in the Project according to topics discussed;

e) Representatives of other donors involved in the Project.

The GEF Agency functions as the Secretariat of the PSC and is in charge of preparing agenda, sending out invitations, and writing minutes of meeting for approval of the PSC members.

3. The PSC shall perform the following tasks:

a) discuss and decide on strategic issues relevant for the Project steering;

b) review on a regular basis achievements of the Project and approve Projectʼs annual progress reports and financial reports; such reports shall be handed-over in advance to the MoWR and SDC allowing them to make an informed decision;

c) approve yearly plan of operations and budgets of the Project;

d) support the Project and provide guidance in finding solutions to important implementation problems;

e) settle possible divergences that may appear during the Project implementation;

f) discuss and exchange of information on policy or other relevant issues;

g) ensure a good governance of the project.

4. Meetings are convened by the Secretariat after consultation with the Parties. Ad hoc meetings may be called upon at request of one of the members of the PSC.

1. Progress reports and financial statements of accounts with evidence of all expenditures related to the activities financed within the Project shall be prepared by the GEF Agency and submitted to the MoWR and Swiss Embassy every six months as agreed in the contract between the Swiss Embassy and the GEF Agency.

Once a year, the GEF Agencyʼs accounts and financial statements as well as the Internal Control System are audited by an independent audit firm.

2. The Parties shall promptly inform each other in writing of any situation arising, which might have a bearing on the implementation of the Project.

1. The internal monitoring of the Project activities is to be undertaken by the GEF Agency.

2. The MoWR on behalf of the Uzbek side and the Swiss Embassy on behalf of the Swiss side shall monitor the Project activities. This will include technical meetings to discuss concepts and design details, to analyse drawbacks and means to overcome them, and to adapt planning and schedules as required.

3. The Swiss Embassy and Project personnel may visit Project sites, either independently or jointly with representatives of respective Uzbek ministries and agencies.

4. The MoWR, upon agreement from the Government of the Republic of Uzbekistan, agrees that the SDC may, at its own costs, undertake independent review missions, organize ex-post evaluations and periodic project supervision missions to ensure efficient carrying out of the Project.

5. An evaluation of the Projectʼs achievements shall be conducted in 2023. The review shall focus on the results and any factors favourable to or hindering the Projectʼs progress. The evaluation shall be conducted by a third independent party mandated by the SDC. Full access to relevant information shall be granted to the evaluation team. The evaluation report shall be submitted to the Parties.

6. Based on performance of the Project and on outcome of a joint external evaluation, the two Parties shall decide on whether and in which form to continue the co-operation beyond 2023.

1. Goods and services to be financed by the Government of Switzerland shall be procured in accordance with Swiss rules.

2. For the duration of the Project, goods provided with funds of the SDC for use in the Project shall remain at the unrestricted disposal of the SDC and shall not be diverted from the Project without prior written approval of the Swiss Embassy. This includes also goods purchased under phase 1 of the present project.

3. If for any reason the Project should have to be discontinued, the use of the goods provided with the contribution of the SDC shall be decided upon in writing by the Parties. In such a case, the SDC shall assume no liability whatsoever in connection with the said goods.

4. At the end of the Project, the Parties shall agree in written form on the property and use of the goods procured with the funds of the Project.

1. Either Party shall have the right to terminate the present Agreement by giving three monthsʼ written notice of termination.

2. If either Party considers that the aims of the present Agreement can no longer be achieved or that the second Party is not meeting its obligations, the other Party shall have the right to suspend or terminate the present Agreement by giving one monthʼs written notice. Notwithstanding the preceding, either Party can terminate the present Agreement with immediate effect in case of substantial breach of the Agreement. Substantial breach means serious breach of one of the essential objectives of the present Agreement.

3. If events resulting from force majeure (natural disaster, etc.) prevent the execution of the Agreement, either Party may terminate the Agreement with effect from the moment when it becomes impossible to carry it out.

4. In case of premature termination of the present Agreement or upon completion of the Project, any unspent funds provided within the frame of the Project shall be returned to the SDC.

1. Any modifications or amendments to the present Agreement shall be made in writing with the consent of the Parties.

2. Any disputes arising from the interpretation or application of the provisions of the present Agreement shall amicably be settled through diplomatic negotiations and consultations between the Parties.

Within the framework of this Agreement, the Parties shall neither directly nor indirectly propose benefits of any nature whatsoever. They shall not accept any such proposals. Any corrupt or illegal behaviour signifies a substantial breech of the present Agreement and justifies its termination as well as/or the recourse to supplementary corrective measures in accordance with applicable legislation.

The Project Document with its annexes forms an integral part of this Agreement and is provided in English only.

The Agreement covers the period from January 1, 2020 to December 31, 2023. It shall enter into force upon signing by the Parties and is valid until the Parties have fulfilled all their contractual obligations.

Signed at Tashkent on «16» of June 2020, in two original copies in the Uzbek and English languages, being equally authentic, each copy for each of the Parties.

In case of differences in the interpretation of the provisions of this Agreement, the English version shall prevail.