In the lat of 2016, Ministry of Agriculture and Land Reclamation, Egypt (MoALR) and CIHEAM-Bari, Italy agree to start and jointly coordinating to implement the activities of the program titled: "Sustainable Agricultural Mechanization System Improvement in Minia and Fayoum Governorates", as duly detailed in the approved proposal exclusively through the allocated financial resource only.

Program Objectives and Components

The general objective is:

"Contributing to reaching the Millennium Development Goal 01 T1 -which foresees to half poverty within 2015- through support to sustainable agricultural mechanization, capacity building at research, agricultural cooperative associations, mechanization centers and agricultural extension level".

The specific objective is:

"Contributing to increase Agricultural Sustainability through Supporting and Enhancing Agricultural Mechanization in Minia and Fayoum."
The Programme aims at contributing to the economic growth of rural communities towards sustainable development in two Egyptian governorates;
Minia and Fayoum through the provision of the following components:
Component 1): Euro 7.920.390, 10
a) Civil works and supply of equipment.
Component 2): Euro 1.980.600, 00
This component shall finance CIHEAM Bari technical and scientific support:
Capacity Building (through strengthening and delivery of appropriate competences to the employees of the relevant local Institutions involved) and shall be directly managed by CIHEAM Bari according to its own financial regulation and administrative rules (selection, payscale and contracting of personnel, services and supplies)

The Program shall be entrusted to the following institutions:
1) Implementing Agency: the Intergovernmental Organization CIHEAM-Bari shall provide technical-scientific support and administrative assistance both in Italy and in Egypt to MALR; exclusively through the program funds (Art.Ill) and in conformity the activities related to Component 2 and shall provide technical and administrative assistance and training to MoALR particular CIHEAM Bari will be in charge of:
* Programme co-management;
* Administrative support and assistance via dedicated committed human resources in Italy and in Egypt to MALR for all tender management;
* Organizing training courses in Italy and in Egypt including tutoring and coaching;
* Short term experts missions in Egypt for preliminary assessments technical support and training;
* Internal monitoring and evaluation activities;
* Visibility activities.

CIHEAM Bari shall manage the financial contribution related to Component 2 including the overheads calculated at 7%, in accordance with its applicable regulations, procedures, financial rules and administrative instructions or directives. Accordingly, internal and/or external personnel shall be selected, engaged, paid and administered, services purchased, cost statements issued, supplies and works acquired. Purchase of the supplies/works/services related to Component 1 shall be carried out according to Financial Agreement. No disbursements or expenditures for purposes which are neither specified in the program approved proposal nor in the approved Work Plans can be made.
Inception phase activities - necessary to prepare the overall and first year work plans- shall start before the Steering Committee meeting. In no case the CIHEAM-Bari will advance payments with its own financial resources to cover lately release of the Programme funds. All purchases will be exempted from sales taxesNAT, local taxes and import duties (Ref.: Financial Agreement- Art.3.3).
2) MoALR and its National Implementing Agencies MoALR will act as national institution supervising the programme's implementation, supported by the following National Implementing Agencies:
The Agricultural Research Center (ARC), Agriculture Engineering Research Institute (AEnRI), the Agriculture Mechanization Sector.
* The Central Administration of Agricultural Cooperative Associations
* The Central Administration of Agricultural Extension
In particular, MoALR will be committed to the following:
* Fulfilling all obligations deriving from the Loan Agreement and executing the programme accordingly;
* Ensuring availability and timely provision of financial resources to meet Programme investment costs not covered by the soft loan (coordination office in Cairo, Minia and Fayoum, availability of installation sites, service infrastructures, personnel , works, preparatory surveys, work implementation and related running costs in conformity with Annex I;
* Nominate officially the National Coordinator to be appointed for the Programme the National Coordinator to be appointed for (PMU);
* Make the national implementation Agencies nominate their representatives for the Programme to support PMU;
* Appoint officially technical national Specialists (whereas required conformity to Annex I);
* Provide logistics, administrative assistance and staff to ensure proper implementation of the programme activities and facilitate cooperation with the involved Egyptian Institutions as well as with local beneficiaries;
* Launch the bid for financial audit services in conformity with the Loan Agreement
* Provide necessary funds to implement and finance works in conformity
* Launch the bids in conformity with the Loan Agreement and the FinancialAgreement procedures;
* Provide offices for PMU at MALR premises (Cairo, Minia, Fayoum);
* Guarantee the Programme sustainability beyond the implementation phase;
* Ensuring that no taxes are paid in Egypt for anything related to this Agreement (VAT, Local taxes, Import duties).

Amendments, Entering into force, Duration, Extension and Termination
The duration of the Programme is three years (3 years) (Annex I) starting from the first day when the two preconditions above are both fulfilled. This agreement shall have the same duration of the Programme, including extensions, if any]. d) Justified extensions may be approved by the Steering Committee and communicated for approval/endorsement to the MAECl-DGCS and to the Ministry of International Cooperation. The extension request must be presented within the extension work plan at least three months before the end of the project. The Programme extension shall be well justified and supported with solid technical reasons that explain the cause of the extension and detail those activities requiring an extension for their achievement, (in example: contracts follow up, final evaluation, etc). In no case soft loan amount shall be increased without previous necessary authorizations whereas foreseen both in the Loan Agreement and in the Financial Agreement. e) This Agreement shall terminate when all expenditures incurred by CIHEAM Bari have been satisfied and in conformity with Article 7.10 of the Financing Agreement. Upon submission of a final audit financial report, any surplus eventually remaining in the CIHEAM Bari account can be used for technical actions coherent with the Programme objectives/activities, previously approved by the Steering Committee also through exchange of letters. This Agreement may also be terminated unilaterally by either party in 30 days written notice to the other party even during eventual extension period.