1. JICA Pv system introduction project(The Project for clean energy promotion using solar pv system)

3. Japan to provide Grant Aid of 530MYen

4. For the Project to promote clean energy using Solar PV System in FSM

5. Grant to be executed by JICA thru “Grant Agreement (G/A)”

6. Project to be executed by Crown Agents thru “Agent Agreement (A/A)”

7. Committee to be established to discuss all necessary matters

8. Project scope: Introduction of 160 kW grid-connected PV system in Palikir

9. 20kW at President’s Office

10. Battery installation for power-outage backup

12. Chaired by representative of Authority

13. Members: Representatives from Authority and JICA

14. Advisor: Representative from Agent

15. First meeting to be held immediately after Agent Agreement

16. Committee to discuss all matters related to the Project such as;

17. Implementation schedule

18. Determination and/or modification of the Components

19. Modification of the Project

20. Others related to Projects, etc.JICA PV System Introduction Project

21. Project schedule (Original) JICA PV System Introduction Project (Preparation) (Production) (Frame/Wiring) (Equipment) (1.0 Mos) (1.25 Mos) (0.75 Mos) (1.0 Mos)

22. Agreement Procedures JICA PV System Introduction Project (Preparatory Survey) Exchange of Notes (E/N) Dec. 8, 2009 within 7 days after B/A Grant Agreement (G/A) Feb. 1, 2010 Notification of Opening of the Account and Request for the Payment (NOA, RP) to JICA Banking Arrangement (B/A) Apr. 28, 2010 Congress Approval May. 30, 2010 530MYen Paid from JICA to FSM Account Jully 8, 2010 Agent Agreement (A/A) Nov. 22, 2010 Crown Agents to visit FSM (1st Committee) (Immediately after A/A) Consultant Agreement (Tender) Procurement/Construction Completion

24. “Account” to be opened within 14 days after G/A

25. Notify JICA of opening of the “Account” within 7days

26. Funds need to be completely disbursed within 12 months after execution of the Grant

27. Disbursement Procedures

28. Agent to make funds transfer request to Bank with;

29. Detailed estimates of expenses and JICA’s approval on A/A

30. Bank to notify Authority of the request made by Agent

31. Bank to make payments to Agent if no opposition from Authority within 10 working days

32. Agent to make payments to suppliers/service providers using the above advanced funds

33. Authority to present, thru Agent, a report to JICA on those transactions

34. Reimbursement/Refund Procedures

35. When remaining amount is less than 3%, Authority can make reimbursement request to Agent and use it for payments already made by Authority for the Project

36. Agent to request bank to transfer fund and make reimbursement to Authority

38. Ensure prompt unloading and customs clearance at ports

39. Ensure exemption of customs duties, internal taxes and other fiscal levies

40. Accord project-related persons’ entry into FSM

41. Ensure proper maintenance and use of the Components

42. Give due environmental and social considerations

43. Provide necessary information to JICA upon request

45. JICA PV System Introduction Project Layout plan (com – fsm)

46. JICA PV System Introduction Project System Design (President’s Office) 20 kWp Solar Array on Presidents Office Automatic disconnect unit PUC public grid (PV) kWh meter By-directional kWh meter 110 V / AC President office