Agreement Between the Government of the United States of America and the Government of Bolivia Concerning the Establishment of an Enterprise for the Americas Environmental Account at the National Fund for the Environment, Washington, 1991 Done at Washington 26 November 1991 Entered into force 26 November 1991 Primary source citation: Copy of text provided by the AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF BOLIVIA CONCERNING THE ESTABLISHMENT OF AN ENTERPRISE FOR THE AMERICAS ENVIRONMENTAL ACCOUNT AT THE NATIONAL FUND FOR THE ENVIRONMENT The Government of the United States of America and the Government of Bolivia ("the Parties"), Seeking to implement the Enterprise for the Americas Initiative, Desiring to enhance the friendship and spirit of cooperation between these two countries, Desiring to promote environmentally sound and sustainable economic development, Recognizing that environmental protection, conservation, and sustainable natural resource management are key elements in building an ecologically and economically sound future for all countries in the Western Hemisphere, Wishing to follow upon the Agreement between the Parties Regarding the Reduction of Certain Debts Owed to the United States Government and its Agencies (the "Debt Reduction Agreement"), of August 22, 1991, which reduces certain debt owed by the Government of Bolivia to the Government of the United States of America, through the exchange of old obligations for a new obligation (“New EAI Obligation”), Have agreed as follows: Article I The purpose of this Agreement is to provide for the establishment of an Enterprise for the Americas Environmental Account ("the Account") and its Administrative Council ("the Council") at the National Fund for the Environment ("FONAMA”), in order to preserve, protect or manage the natural and biological resources of Bolivia in an environmentally sound and sustainable manner. Article II ENVIRONMENTAL ACCOUNT 1. The Government of Bolivia shall establish an environmental account at FONAMA in accordance with the decrees and laws of Bolivia. Any monies credited to the Account, or grants made from the assets of the Account, shall be free from any taxation, levies, fees or other charges imposed by the Parties to the extent permissible by law. 2. Subject to Article IV of the Debt Reduction Agreement, the Government of Bolivia shall ensure that the entire amount of interest owed on the New EAI Obligation falling due on or after the date of entry into force of this Agreement shall be credited to the Account and deposited in local currency in an Operating Account at the Central Bank of Bolivia in accordance with the payment schedule at Appendix B of the Debt Reduction Agreement. FONAMA shall promptly notify the Council in writing when the Government of Bolivia makes a deposit in the Operating Account pursuant to this paragraph. Any interest which becomes due on the New EAI Obligation prior to the date of entry into force of this Agreement, or subsequent to the termination of this Agreement pursuant to Article X, shall not be credited to the Account, but shall be deposited in U.S. dollars in the appropriate U.S. Government account. 3. Monies from other sources, including public and private creditors of the Government of Bolivia, in the form of local currency or other currencies, may be credited to the Account and deposited in the Operating Account with the mutual agreement of the Parties and prospective donors. Once credited to the Account, these monies shall be subject to the requirements and conditions agreed to between the donor(s) of such monies and the Parties, so long as these terms are consistent with this Agreement. 4. Deposits credited to the Account shall be the property of FONAMA until they are disbursed pursuant to the procedures set forth in Article VII. 5. The Government of Bolivia, in consultation with the Government of the United States, shall select an investment agent, who shall establish an Investment Account to which payments deposited in the Operating Account shall be transferred as directed by FONAMA, and remain there pending approval of disbursements by the Council pursuant to Article VII. Upon the Council's approval of such disbursements, FONAMA shall direct that funds necessary for such disbursements be transferred from the Investment Account to the Operating Account. The investment agent shall be charged by FONAMA with the investment of the monies in the Investment Account. Returns on investment shall be deposited by the investment agent in the Investment Account and remain there until transferred as directed by FONAMA to the Operating Account. 6. The investment agent shall be required to make every effort to ensure that such investments yield a positive real rate of return in terms of U.S. dollars. To the extent that prudent investment practices are not accomplishing this goal, FONAMA shall promptly bring this matter to the attention of the Council and the Parties for consideration by the Parties with a view toward identifying appropriate corrective measures. Article III ESTABLISHMENT AND COMPOSITION OF THE ADMINISTRATIVE COUNCIL 1. The Government of Bolivia shall ensure that the Enterprise for the Americas Administrative Council is established for the Account. (1) the Secretary General of the Environment of Bolivia, as head of the Bolivian representation and chairman of the Council; B. One representative appointed by the Government of the United States of America. 3. C. Four representatives from a broad range of Bolivian environmental and local community development nongovernmental organizations, and scientific and academic bodies, proposed by the Government of Bolivia in consultation with these groups. These representatives shall be approved jointly by the Parties, appointed by the Government of Bolivia, and shall constitute a majority of the members of the Council. Council members representing each Party shall serve at the discretion of that Party. Council members described in paragraph 2(c) above shall serve for a period of three years and may be removed by the Government of Bolivia only to the extent permissible under Bolivian laws and decrees. Consecutive terms of service shall be permitted. 4. A Council member may not participate in the discussion or approval of any proposed grant which, if approved, would result in a financial benefit for the member, any member of his family, or an organization in which the member or any member of his family has a direct financial interest. Further, a Council member may not participate in the discussion or approval of any proposed grant to an organization which the member represents. 1. Article IV FUNCTIONS OF THE ADMINISTRATIVE COUNCIL The Council shall be responsible for overseeing and directing the administration of grant activities funded pursuant to this Agreement. The Parties shall ensure that the Council has the necessary authority to carry out the functions assigned to it in this Agreement. A. B. C. D. Instruct FONAMA to issue and widely disseminate a public announcement of the call for grant proposals which states the criteria for the selection of projects eligible for grant assistance, and the qualifications of organizations eligible to receive grant awards. Review all proposals for grant assistance submitted to FONAMA or submitted to the Council and referred to FONAMA by entities described in Article VI.2 of this Agreement, and as appropriate, approve grants to such entities for the activities enumerated in Article VI.1 of this Agreement. Such review shall include approval of work plans and disbursement schedules for approved projects. Instruct FONAMA to announce publicly grants approved by the Council. Receive and certify FONAMA's programmatic and financial evaluations of each project funded by the Account. E. Determine if independent evaluations and audits of individual projects are needed. F. (1) Present to the Parties annually: a proposed annual program, by October 1, covering the following Bolivian fiscal year (January 1 - December 31); and, in addition, a report on the proposed activities of the Council covering the period following the entry into force of this Agreement through December 31, 1992, to be submitted by May 1, 1992; |