Co-Financing Agreement

„Procurement of Agricultural Machinery“

January 2019
 Co-Financing Agreement

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Co-Financing Agreement

Agreement
on Cofinancing of Procurement of Agricultural Equipment for Šamac „Batkuša“
Women Association (hereinafter referred to as „the Project“)

Signed in Banja Luka between

Ministry of Agriculture, Forestry and Water Management of Republic of Srpska
Agriculture Projects Coordination Unit
Trg Republike Srpske 1, Banja Luka,
Represented by Mr. Stefan Mitrović, Director,
(Hereinafter referred to as “the APCU”)
and
Šamac Municipality
Represented by Mr. Đorđe Milićević, Municipality Mayor,
(Hereinafter referred to as “the Municipality”)
and
“Batkuša” Women Association, Šamac
Represented by Mrs. Nada Simić, the President,
(Hereinafter referred to as “the WA”)
(Hereinafter referred to as “the Parties”)

The Parties hereto have agreed the following terms:

Article 1 – Subject
1.1 The purpose of the agreement is to formalize the collaboration with regards to the
implementation of the Project.
1.2 The Republic of Srpska has received a loan from the International Fund for Agriculture
Development to support agricultural producers' organizations. The APCU intends to
apply a portion of the proceeds of this loan to pay a part of the costs for procurement of
agricultural equipment (hereinafter referred to as “the Equipment”) for the purpose of
the WA. The list of the Equipment is in Annex I of this Agreement.
1.3 The Municipality agrees to make a contribution to the project as laid down in Article 3
of the Agreement;
1.4 The WA agrees to make a contribution to the project as laid down in Article 4 of the
Agreement.
Article 2 – Obligations of the APCU
2.1 By the APCU a contract will be concluded with a Supplier of the equipment for the
purpose of the WA.
2.2 By the APCU a representative will be appointed for implementation and supervision of
the Project.
2.3 The Contract will be concluded with a company selected after a procurement procedure
conducted by APCU.
2.4 The APCU has opened a separate bank account on which the Mncp and the WA will
transfer their cash contribution.
2.5 The Contract with the Supplier will be signed after the APCU has received the financial
contribution from the Municipality and the WA for realization of the Contract.
2.6 Payments to the Supplier will be made by the APCU based on confirmations of
delivered Equipment signed by APCU representative, Municipality representative and
the President of the WA.

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Article 3 – Obligations of the Municipality

3.1 By the Municipality a contribution to financing of the Project will be made as laid
down in Article 5 of the Agreement.
3.2 By the Municipality the financial contribution in amount of BAM 270.07 for realization
of the Contract will be payed to the Account No.194-106-49465091-28 in Pro Credit
bank, Banja Luka established by the APCU.
3.3 By the Municipality an authorized representative will be appointed. Overall
implementation of the Project shall be oversighted by the authorized representative.
Costs for this service will be covered by the Municipality and/or the WA.
Article 4 – Obligations of the WA
4.1 By the WA a contribution to financing of the Project will be made as laid down in
Article 5 of the Agreement.
4.2 By the WA the financial contribution in amount of BAM 1,350.37 for realization of the
Contract will be payed to the Account No.194-106-49465091-28 in Pro Credit bank,
Banja Luka established by the APCU.
4.3 The President of the WA shall oversight the overall implementation of the Project.
4.4 The WA will overtake all responsibilities and obligations concerning the ownership and
managing of the Equipment as well as further maintenance of the Equipment after its
delivery.
4.5 By the management of the WA a rule book on terms and conditions of use of
Equipment shall be introduced fifteen (15) days after signature of the Agreement.
4.6 The Association has an obligation of submission of data on a status and use of
equipment in requested time period to the Ministry of Agriculture, Forestry and Water
Management of RS, Extension Services Department (Hereinafter referred to as “the
Department”), or the APCU, and as per a request by the Department or the APCU.
Article 5 – Financing the Project
5.1 Anticipated amount of the Contract on delivery of the Equipment (a part related to the
WA) is BAM 5,401.47 (with no Value Added Tax (hereinafter “the VAT”) included)
i.e. BAM 6,319.72 (with VAT included).
5.2 The APCU undertakes to provide a minimum of BAM 3,781.03, equal to 70.00%
towards the cost of the Equipment (the price of the Equipment with no VAT included),
and VAT contribution BAM 918,25, equal to 17.00% towards the cost of the
Equipment (the price of the Equipment with no VAT included), which is in total BAM
4,699.28, equal 74.36% towards the total Project costs (the price of the Equipment with
VAT included), all specified in the Table which makes an integral part of this
Agreement.
5.3 The Municipality undertakes to provide a minimum of BAM 1,350.37 in Cash, equal to
25.00% towards the cost of the Equipment (the price of the Equipment with no VAT
included), equal to 21.37% towards the total Project costs (the price of the Equipment
with VAT included), all specified in the Table which makes an integral part of this
Agreement.
5.4 The WA undertakes to provide a minimum of BAM 270.07 in Cash, equal to 5.00%
towards the cost of the Equipment (the price of the Equipment with no VAT included),
equal to 4.27% towards the total Project costs (the price of the Equipment with VAT
included), all specified in the Table which makes an integral part of this Agreement.
5.5 The Municipality and WA will make a cash contribution within fifteen (15) days from
the Agreement signing as well as any other contribution defined in the Table.
5.6 Additional and unforeseen deliveries of the Equipment will be payed completely by the
Mncp and the WA.

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Article 6 – Duration of the Project

6.1 This Agreement will come into force on the date the Parties have signed the
Agreement.
6.2 The Contract with the Supplier shall be signed within seven (7) days after the WA have
transferred its cash contribution to the Account specified by the APCU.
6.3 The term of delivery is sixty (60) days after the date of order but not later than March
31st, 2019.
Article 7 – Acceptance
7.1 Upon completion of the Contract by the Supplier a Committee comprising of
representatives of the APCU and Municipality as well as the President of the WA shall
certify the completion of the project.
7.2 After the issuing the certificate of delivery of the Equipment the WA takes over the
Equipment, including all responsibilities and duties related to ownership on the
Equipment, including inter alia: maintenance, management, insurance and liability.
7.3 The APCU grants to the Municipality any guarantees made by the Supplier that defects
in the quality of the Equipment, which occur within the period agreed, will be rectified.
7.4 The APCU keeps right to take back the Equipment if it is not used according to the
clauses of the Agreement and in accordance with clauses of Rule-book on use of
equipment.
Article 8 – Settlement of Disputes
8.1 The contracting parties shall make every effort to settle amicable any disputes which
may arise between them.
8.2 Any disputes arising out of the Agreement, which cannot be amicably settled between
the Parties, shall be referred to the Basic Court of Banja Luka.
Article 9 – Calculation of Project Costs and Contributions
APCU/06/A/029-1
Agreement with Municipality Šamac
APCU/06/A/029-2
Amount in
Percents
KM
1 Project Costs
A Cost of the Equipment 5,401.47 100.00% set at % of A
B Taxes (PVD 17%) 918.25 17.00% set at % of A
C Total Cost of the Equipment 6,319.72 117.00% set at % of A
2 Contributions:
Contribution of the APCU
D For the Equipment 3,781.03 70.00% set at % of A
E For Taxes (PDV) 918.25 100.00% set at % of B
F Total Contribution of the APCU 4,699.28 74.36% set at % of E
Contribution of the Municipality
G In Cash for the Equipment 270.07 5.00% set at % of A
H Total Contribution of the 4.27% set at % of E
Municipality
Contribution of the WA
G In Cash for the Equipment 1,350.37 25.00% set at % of A
H Total Contribution of the WA 1,350.37 21.37% set at % of E

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 Co-Financing Agreement

Prot. No.: Prot. No.:

Date: Date:
Signed on behalf of Signed on behalf of
The APCU Šamac Municipality

Mr. Stefan Mitrović Mr. Đorđe Milićević

Director Municipality Mayor

Prot. No.:
Date:
Signed on behalf of
“Batkuša” Women
Association, Šamac

Mrs. Nada Simić

President of the WA

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Annex I: The List of the Equipment

Item Description Meassure Quantity Unit Price Amount

1. Tractor Mounted Sprayer pcs 1 1,139.10 1,139.10
2. Tiller for Digging pcs 7 589.74 4,128.18
3. Engine Powered Trimmer pcs 1 134.19 134.19
1.4kW
Total 5,401.47
Value Added Tax (VAT – 17%) 918.25
TOTAL (BAM) 6,319.72

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