Período de 1940 en adelante Los Tratados de Derecho

The Bulgaria TTFSE Project, as part of the Regional TTFSE Program, seeks two development objectives: (i) to reduce non-tariff costs to trade and transport; and

(ii) to reduce smuggling and corruption at border crossings

These development objectives are achieved by: (i) supporting Customs reform; (ii) strengthening the mechanisms of interaction between border control agencies and trading community; (iii) disseminating information and providing training to the private sector; (iv) financing infrastructure at selected border crossings; and (v) implementing, at pilot sites, an integrated set of new Customs procedures, information technology, human resource management techniques, supporting infrastructure and cooperation mechanism for agencies at border crossings. The financing of infrastructure was dependent upon the successful implementation of the reforms, including the application of targeting and selectivity techniques.

2. Project Components and Subcomponents (see Attachment 1 for details)

The Bulgaria TTFSE Project consists of the following five components: (i) Customs Administration Institutional Reform;

(ii) Trade Facilitation Development;

(iii) Improvement of Bulgarian Integrated Customs Information System (BICIS); (iv) Improvement of Border Crossing Facilities; and

(v) Program and Project Implementation

3. Financing Plan (including taxes in US$ million)

(The amounts are shown as defined in the PAD - Exchange rate effective April 7, 2000)

Source Local Foreign Total

IBRD 0.0 7.4 7.4

Government of Bulgaria 3.6 0.0 3.6

USA 0.0 1.5 1.5

Total 3.6 8.9 12.5

4. Legal Agreements and Subsequent Amendments

The Loan Agreement between the Republic of Bulgaria and the International Bank for Reconstruction and Development (IBRD) for the loan 4553 BUL amounting to 7,73 million Euro was signed on June 21, 2000 and was ratified by the National Assembly of the Republic of Bulgaria on October 25, 2000. The TTFSE Loan Agreement became effective on November 29, 2000.

In the course of the TTFSE Project implementation three amendments to the Loan Agreement have been made at the request of the Borrower and with the approval of the World Bank.

The first Amendmentto the Loan Agreement was for a 12 months’ extension of the Loan Closing Date till December 31, 2004. The extension was requested by the Borrower on July 11, 2003, following the conclusions of the sixth World Bank supervision mission on the Bulgaria TTFSE Project. As agreed during the Mission, the requested extension was needed to allow successful completion of the project activities in terms of: (i) further progress in the BCA institutional reform; (ii) improved performance of the BCA and other border agencies; (iii) sustainable increase of collected revenues; (iv) positive effects on private trade community and freight forwarders and good regional cooperation; and (v) entire completion of the construction works for the infrastructure improvements envisaged under the Project. The World Bank response was issued on July 23, 2003 and thus the date December 31, 2004 was established as the later date for the purposes of Section 2.03 of the Loan Agreement.

From December 8 to 9, 2003, a World Bank mission visited Bulgaria for the seventh supervision mission of the TTFSE Project for the country. Main conclusion of the Mission was that the Project continued to make good progress and all components would be implemented as foreseen. On the other hand, it was considered that some savings in the Loan proceeds were expected and the latter could be used for additional activities, consistent with the Project objectives. Based on the agreement reached during the mission, on February 24, 2004 the Ministry of Finance submitted to the World Bank a request for reallocation of Loan savings. A rationale attached to the request described the proposed usage of Loan savings, in particular for: (i)

“Development of Advanced Submission of Customs Declarations Module to the Bulgarian Integrated Customs Information System (BICIS)” and (ii) execution of additional construction works at Kapitan Andreevo border crossing point. On March 29, 2004 the World Bank sent to the Borrower its written approval to the proposed reallocation being the second Amendment to the Loan Agreement. Schedule 1 “Withdrawal of the Proceeds of the Loan” was revised as follows:

Category

Amount of the Loan Allocated (Expressed in Euro)*

Amended Amount of the Loan Allocated

% of Expenditures to be Financed (1) Works 6,120,000 (US$7,344,000) 6,200,000 (US$7,440,000) 65% (2) Consultants’ services and training 730,000 (US$876,000) 730,000 (US$876,000) 100% (3) Incremental Operating Cost 130,000 (US$156,000) 140,000 (US$168,000) 90% until June 30, 2001; 70% thereafter (4) Fee 77,300 (US$92,760) 77,300 (US$92,760)

Amount due under Section 2.04 of the Loan Agreement (5) Unallocated 672,700 (US$807,240) 582,700 (US$699,240) TOTAL 7,730,000 (US$9,276,000) 7,730,000 (US$9,276,000)

*All equivalent amounts in US$ are estimated based on Exchange Rate 1 EUR = 1.20 US$ as of 30 September 2005 (Loan Closing Date), WB Client Connection)

The third Amendment to the Loan Agreement comprised extension of the Loan Closing Date from December 31, 2004 to September 30, 2005 and was made at the Borrower’s written request, sent to the World Bank on November 25, 2004. The request was based on the conclusions of the World Bank audit of TTFSE Project, held within the Bulgaria Limited Portfolio Review, as well as on the agreement reached between the World Bank and the Ministry of Finance on the good implementation progress and development impact under the Project. The requested nine-month extension was to provide for the needed time for completion of the last three construction sites and thus a full utilization of the sizeable amounts of the Loan proceeds committed under the respective signed contracts for works. On December 17, 2004, after considering the request, the World Bank issued a letter in favor of the above extension and the Borrower was notified that September 30, 2005 had been established as the later date for the purposes of Section 2.03 of the Loan Agreement.

With a letter, dated August 22, 2005, the World Bank advised the Borrower that a four-month period had been granted for further disbursements from the TTFSE Loan. In accordance with the current practice of the World Bank the above disbursements were designated only for withdrawal applications received by the World Bank by close of business on January 31, 2006 and in respect of eligible expenditures made before the Loan Closing Date, September 30, 2005.

PROJECT MANAGEMENT AND COORDINATION