OFFICIALDOCUMENTS

EUROPEAN COMMISSION A,

: DIRECTORATE-GENERAL WORLD BANK* REGIONAL AND URBAN POLICY

Closure, Major Projects and Programmes Implementation III '

AMENDMENT NO 4 (No 2018.CE.16.BAT.057)

to the Administration Agreementfor Part II Europe 2020 Programmatic

Single-Donor Trust Fund (No. TF072592)(EC Contract No 2016.CE. 16.BAT.050)

1. The European Union, represented by the European Commission (the Donor'), which isrepresented for purposes of signing this amendment by Erich Unterwurzacher, Director, DirectorateGeneral for Regional and Urban Policy, Directorate Closure, Major Projects and ProgrammingImplementation III of the one part, and

2. The International Bank for Reconstruction and Development

(the Bank'), which is represented for purposes of signing this amendment by Arup Banerji,Regional Director for Operations European Union Countries

on the other part.

Having regard to the abovementioned Administration Agreement signed on June 17, 2016, as lastamended by Amendment No 3 signed on May 16, 2018,

Whereas the Donor and the Bank have agreed on their intention to amend the above-mentionedAdministration Agreement for the following reason: the need to adjust some of the activities, addnew activities and expand one activity, to be performed by the Bank at the national level and thusrevising amount of the Contribution and indicative budget, indicative table of outputs andindicative table ofresult indicators

HAVE AGREED AS FOLLOWS:

Article 1

1.1 Paragraph 1 of the Administration Agreement is replaced by the following Article:

"1. The International Bank for Reconstruction and Development (the "Bank") acknowledgesthat the European Commission (the "Donor ", and together with the Bank, the "Parties" andeach a "Party") agrees to provide the sum of three million eight hundred thousand Euro(e3,800,000) (the "Contribution') for the Part II Europe 2020 Programmatic Single-DonorTrust Fund, No. 072592 (the "Trust Fund") in accordance with the terms of thisAdministration Agreement.

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The estimated total budget of the Trust Fund is Euro three million eight hundred thousand(e3,800,000). The indicative budget set out in Annex 5 shall be used for monitoring purposesonly and shall not be binding."

1.2. Paragraph 3 of the Administration Agreement is replaced by the following Article:

"3. The Donor shall deposit the Contribution in accordance with the following schedule andin the currency specified in Section 1 above ("Contribution Currency") into such bankaccount designated by the Bank (each amount deposited hereinafter referred to as an"Instalment") upon submission of a payment request by the Bank.

(A) Promptly following countersignature - F500,000(B) 6300,000 subject to the disbursement of 70% of the preceding instalment(C) 6200,000 subject to the disbursement of 70% of the preceding instalment(D) O500, 000 subject to the disbursement of 70% of the preceding instalment(E) 6550,000 subject to the disbursement of 70% of the preceding instalment(F) e1, 000,000 subject to the disbursement of 70% ofthe preceding instalment(G) C500,000 subject to the disbursement of 70% of the preceding instalment(H) C250,000 subject to the disbursement of 70% of the preceding instalment

The period for payment offurther instalments shall be 60 days.The period for payment of the balance shall be 90 days."

Article 2

Annex 1 'Description' to the Administration Agreement is replaced by the Annex 1 attached to thisAdministration Agreement Amendment No 4.

Article 3

Annex 4 Indicative Results Indicators' to the Administration Agreement is replaced by the Annex4 attached to this Administration Agreement Amendment No 4.

Article 4

Annex 5 'Indicative Budget' to the Administration Agreement is replaced by the Annex 5 attachedto this Administration Agreement Amendment No 4.

Article 5

All the other provisions of the Administration Agreement shall remain unchanged.

Article 6

The present Amendment No 4 shall form an integral part of the Administration Agreement. It shallenter into force on the date on which it is signed by the last party.

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SIGNATURES

For the Bank, For the Donor,

Arup Banerji Erich UnterwurzacherRegional Director for Operations European DirectorUnion Countries

Signature: Signature:

Done at .. r . ?4 on Done at .den

In duplicate in English.

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ANNEX 1

Part II Europe 2020 Programmatic Single-Donor Trust Fund Description

This Annex shall be applicable to and form an integral part of the Administration Agreement forthe Trust Fund between the Bank and the Donor.

1. Objectives

The objectives of the Trust Fund are:

The European Commission and the Bank share a common objective of building competitive andsustainable economies and reducing poverty and social exclusion - goals of the Europe 2020Agenda which is built on three pillars of smart, sustainable and inclusive growth. The EuropeanCommission and the Bank concur that direct interaction is beneficial to both institutions andthrough them to the beneficiary countries. This applies particularly to the provision of analytical,advisory and knowledge services and technical assistance.

The European Commission has expressed an interest in ensuring that the Bank continues to providetechnical assistance in the framework of the Trust Fund in furtherance of the common objective setforth above.

2. Activities

The sub-objectives and description of activities are:

2.1 The European Commission, particularly the Directorate General for Regional and UrbanPolicy (DG REGIO) supports the regional economic development goals of its Member States inthis case Poland. European Structural and Investment Funds (ESIF) address development goals ina result oriented manner and in achieving structural change. DG REGIO requested the Bank'sassistance in order to enhance implementation of ESIF.

The activities (which may be described as "components" of activities) to be financed by the TrustFund, in support of the sub-objectives are the following Bank-executed activities, for which theBank has implementation responsibility:

"Poland Catching-up Regions": Supporting the European Commission's lagging behind regioninitiative (the Initiative) in pilot regions in Poland that are selected by the Government of Poland.

The Initiative is carried out by regional and national authorities as well as the EuropeanCommission and follows up on the findings of the 6 Cohesion Report of the EuropeanCommission (2014) that highlighted the development challenges of 'low income regions', the GDPof which is currently on the rise, but it remains below 50 percent of the EU average. With this groupof regions, two types of concerns exist: about the long-term sustainability of their growth and theneed to avoid the development trajectory of the low growth regions. Low-income regions areclustered in the Eastern periphery of the European Union. The second phase of the initiative maytest the methodology developed in the first phase also in more developed Polish regions.

Under the Initiative, the stakeholders identify relevant actions which will be jointly followed up toincrease the uptake and growth relevance of ESIF investments. The actions will be pilots addressingstructural reform with a view of multiplying them to the whole of Poland.

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At the request of DG REGIO, the Bank will provide assistance in helping the regional authoritiesselected by the Government of Poland identify and improve implementation in the followingactivities:

(i) Activity 1: Improving the commercialization of Research and Development (R&D) resultsgenerated by public research facilities and enabling better utilization of existing technologytransfer centers in the Podkarpackie region.

(ii) Activity 2: Activating entrepreneurship in deprived areas in the Podkarpackie andSwietokrzyskie regions.

(iii) Activity 3: Identifying ways to improve conditions for starting a business in thePodkarpackie and Swietokrzyskie regions.

(iv) Activity 4: Supporting the creation of in-house financial instruments in the Podkarpackieregion.

(v) Activity 5: Strengthening the vocational education and training system in theSwietokrzyskie region, using best practice examples from around the world and tailoringthem to the regional context.

(vi) Activity 6: Enhancing technology transfer in the Podkarpackie region: PodkarpackieCenter for Innovation (PCI).

(vii) Activity 7: Identifying conditions required to improve spatial planning in the Podkarpackieand Swietokrzyskie regions.

(viii) Activity 8: Enhancing energy efficiency to improve the air quality in the Malopolskie andSlqskie regions.

(ix) Activity 9: Improving inspection practices related to food safety and food quality in theLubelskie and Podkarpackie regions.

(x) Activity 10: Expand and scale up the energy efficiency initiative to improve air quality inthe Malopolskie and Slqskie regions and at the national level.

(xi) Activity 11: Optimization of services in an aging society: health care services in theKujawsko-Pomorskie region.

(xii) Activity 12: Optimization of services in an aging society: public transport in theZachodniopomorskie region.

(xiii) Activity 13: Strengthening entrepreneurship within sectors with growth potential indeclining areas in the Kujawsko-Pomorskie region.

(xiv) Activity 14: Capacity building and training activities in selected Regions (other than in thePodkarpackie, Swietokrzyskie, Malopolskie, §iskie and Zachodniopomorskie regions) inthe following areas:

- Improving the commercialization of R&D results generated by public research facilitiesand enabling better utilization of existing technology transfer centers (Dolnoslaskie,Lodzkie and Podlaskie regions).

- Supporting the enhancement of financial instruments utilization (Podlaskie and Slaskieregions).

- Identifying conditions required to improve spatial planning (Kujawsko-Pomorskie region).

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Methodology: The activities carried out by the Bank are centered along three reporting stages(inception, interim and final) that are separate for Activities 1-5 and Activities 6-9. An inceptionreport detailing actions and timing of the Bank's activities in the framework of this initiative, aninterim report analyzing progress of actions and a final implementation report for disseminationdescribing and analyzing the actions taken and their potential to increase relevant investments. Anextended summary of the final report will be provided. Due to a consultative and bottom-up processof the activity selection, the inception report finalizes the exploration stage of the program andprovides details of actions and output(s) to be achieved in each activity. The final implementationreport shall include PowerPoint presentations on the outcome of the initiative for each activity.Moreover, the Bank will provide regular information on implementation progress before and at themeetings of the steering committee. All reports shall be drafted in English, except for the finalimplementation report, which is due in English and Polish. The Bank will also be in charge oforganizing meetings of the steering committee every six weeks according to its Rules ofProcedures, meetings of working groups for each action and a number of workshops anddissemination events under relevant sub-actions as well as the final conference in Poland where theoutcome of the" Catching-up Regions Poland" initiative will be presented. The Bank will ensureactive participation of relevant experts in all aforementioned events.

The Bank shall prepare, by not later than January 31, 2019, or such later date as may be agreed bythe European Commission and the Bank, a mid-term report which will be reviewed by the EuropeanCommission, the Bank and other interested stakeholders as part of a mid-term review meeting totake stock on the status of implementation of the activities, and activities that will remain to becarried out as part of this Agreement. It is expected that as a result of the mid-term review, theindicative results indicators, indicative budget and indicative timeline of outputs may be revised.

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Indicative Outputs and Milestones and Timeline

Outputs and Milestones IndicativeTimeline

Inception Report for activities 1 through 5: prepared by the Bank highlighting methodology June 2016to be used in the completion of the individual activities

Inception Report for activities 6 through 9: prepared by the Bank highlighting the June 2017methodology to be used in the individual activitiesInception Report for activities 10 through 14: prepared by the Bank highlighting the September 2018methodology to be used in the individual activitiesInterim Report for activities 1 through 5: a short report prepared by the Bank informing Sept 2016about the progress of the project in both regionsInterim Report for activities 6 through 9: a short report prepared by the Bank summarizing November 2017the progress achieved and remaining major difficulties within all activities

Interim Report for activities 10 through 14: a short report prepared by the Bank January 2019summarizing the progress achieved and remaining major difficulties within all activitiesFinal Implementation Report for activities 1 through 5 prepared by the Bank summarizing March 2017performed activities, achieved results and recommendations for further actionFinal Implementation Report for activities 6 through 9: prepared by the Bank May 2018summarizing the tasks performed on all activities, achieved results and recommendations forfurther actionsFinal Implementation Report for activities 10 through 14: prepared by the Bank May 2019summarizing the tasks performed on all activities, achieved results and recommendations forfurther actionsMonthly progress reports for activities 1 through 5: short reports prepared by the Bank June 2016 -summarizing implementation progress and difficulties encountered under each sub-action February 2017Progress reports for activities 6 through 9: short reports prepared by the Bank every six June 2017 -weeks summarizing implementation progress and difficulties encountered under each May 2018activity, to be submitted for all Steering Committee meetings.Progress reports for activities 10 through 14: short reports prepared by the Bank every six June 2018 -weeks summarizing implementation progress and difficulties encountered under each May 2019activity, to be submitted for all Steering Committee meetings.First conference for activities 1 through 5: organized by the Bank in Poland highlighting May 2017the final outcome of the initiativeSecond conference for activities 6 through 9: organized by the Bank in Poland, highlighting June 2018the final outcomes of the workThird conference for activities 10 through 14: organized by the Bank in Poland, June 2019highlighting the final outcomes of the work

Activity 1: Improving the commercialization ofResearch & Development (R&D) results generated by publicresearch facilities and enabling better utilization of existing technology transfer centers

(Podkarpackie region)

Advice provided to the University of Rzeszow and the Rzeszow University of Technology for June 2016the R&D stock-taking exercise. This activity will entail a stock-taking of existing R&Dinfrastructure purchased and services offered, with particular focus on the R&D generated bythe University of Rzeszow and the Rzeszow University of Technology. This activity will have,as a distinct output, an Inventory report. The review work will be carried out by the Universityof Rzeszow and the Rzeszow University of Technology, with inputs and advice from the Bank.

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Report with mapping of R&D needs in the Podkarpackie Region. This activity will presuppose August 2016the identification of the needs of the private sector with respect to R&D and proposingsolutions on how these needs could be met through existing public R&D centers. The activitywill have, as a distinct output, a short report prepared by the Bank with a mapping of businessneeds.Study visit organized by the Bank to explore potential transferability of good practices in September 2016business-science collaboration from the Aalto Design Factory to the Podkarpackie region.Proposal for a technology transfer office model. This activity will entail the development of a February 2017model for a technology transfer office using best practices from around the world, andidentifying ways of operationalizing such an office in the University of Rzeszow and theRzeszow University of Technology. The activity will have, as a distinct output, a practical

rer prepared by the Bank fon techaracgtrsiand nfied. fS nth orslceIdentifying, by the Podkarpackie and the Swietokrzyskie Marshal Offices, with the support of May 2016the Bank, two powiats in each region and setting up a working group by the Marshal Officeswith all relevant stakeholders.Short analysis of SMEs' characteristics in selected areas based on available quantitative data September 2016as well as gathered qualitative information. This activity will have, as a distinct output, a shortreport prepared by the Bank on the characteristics and needs of SMIEs in the four selectedpowiats located in Swietokrzyskie and Podkarpackie.Analysis of the qualitative information gathered from a sample of SMEs in the region on September 2016entrepreneurial readiness and identification of measures to increase access to services toactivate/enhance entrepreneurship in SMEs. This activity will have, as a distinct output, ashort report prepared by the Bank identifying key barriers to entrepreneurial activity and withrecommendations for enhancing entrepreneurial activity in the four selected powiats.Developing and implementing a system to stimulate uptake of services in SMEs. This activity December 2016will have, as a distinct output, a report prepared by the Bank with proposals for how SMEscould better take advantage of services offered by public institutions in the selected powiatsand recommendations regarding adjusting services provided to SMEs by the BSIs in the

Report with list of doing-business best-practices from Poland and abroad. This activity will June 2016focus on reviewing the Bank's Sub-national Doing Business report to identify best-practicesfrom Poland and other countries and propose ways to apply these best-practices in Rzeszowand Kielce (the regional capitals). This activity will have, as a distinct output, a short reportprepared by the Bank with good practices regarding the analyzed indicator.Proposal of actionable and feasible solutions for improving the business environment in the September 2016Podkarpackie and Swietokrzyskie regions. This activity will focus on proposing a catalog offeasible and actionable solutions that could improve the business environment in the region.This activity will have, as a distinct output, a short report prepared by the Bank with practicalrecommendations on improving the starting the business conditions in the region.Knowledge exchange activities on how to improve the business environment in the region. September 2016This activity will focus on knowledge exchange activities pertaining to the improvement of - February 2017the business environment in the two regions. This activity will have, as a distinctive output, at (rollingleast two workshops organized by the Bank where the intermediary and final results of this schedule)activity will be disseminated.

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. .;Acivi(p 4- Stuppording the croa&n of.in afdnancial ntMW0def&(Podkaipirekkim

Provision of just-in time advice by the Bank to the Marshal Office in relation to the change of June 2016

the ownership structure of the Podkarpackie Guarantee Fund (PFPK) (acquiring shares from

the National Fund for Environmental Protection and Water Management and BGK) in order

to allow the PFPK to function as an in-house financial instrument entity.

Study visit organized by the Bank to explore the best practices of in-house financial September 2016

instruments.Provision of just-in time advice by the Bank to the Marshal Office in relation to the design of November 2016

a set of financial instruments tailored to regional needs proposed by the Marshal office.

Provision of just-in time advice by the Bank to the Marshal Office to support the January 2017

implementation byprepard byfthe o the new financial instruments during their start-up

imasemetdi.weor ke

Report on work-based learning global best-practices. This activity will focus on analyzing July 2016global best-practices on dual training systems and identifying ways in which such best-

practices could be applied in Swietokrzyskie, with particular focus on the metallurgy sector.This activity will have, as a distinct output, a short report prepared by the Bank with an

overview of work-based learning global best-practices and their transferability to the regionof Swietokrzyskie.Pilot proposal for work-based learning system between schools and companies, including January 2017concrete advice on how to implement it. This activity will have, as a distinct output, a set of

recommendations prepared by the Bank on the work-based learning system, which could be

implemented in Swietokrzyskie.Knowledge exchange and dissemination activities on work-based learning bt bes . This September 2016

activity will focus on the dissemination of (MO)vi t prepartioncept of work-based - February 2017learning amongst private companies and regional schools. This activity will have, as a distinct (rolling

output, at least two workshops organized and moderated by the Bank where the intermediary schedule)and final results of this activity will be disseminated.

Organization by the Bank of a study visit to explore work-based learning models. September 2016

Recommendations provided by the Bank for adjusting ESF measure on vocational education February 2017training under operational program of Swietokrzyskie.

Aci 6Enhavelng technology transfer Podkarpatkie Centerfor Innove don (PC(Podkarpackle region)

1. Provision of assistance by the Bank in organizing a follow-on study visit to best-practice April/May

design/prototyping facilities (e.g., Leuven, ADF). 2017

2. Support to the Podkarpackie Marshal Office (MO) in the preparation of the amendment to April - Maythe Regional Operational Program (ROP). 2017

3. Technical Assistance to the MO staff in performing ongoing preparation and oversight of April -

the PCI program (once launched). Support in preparing key documents and activities: December 2017

" A term sheet specifying the PCI's rules of engagement with the MO;o Service level agreement (SLA) templates for collaboration between the PCI and

universities are prepared;0 SLA templates for collaboration between the Universities and their Special Purpose

Companies (SPCs) are prepared;

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o Operational guidelines for the use of freed up R&D equipment have been tested andrefined; and

" Guidelines for the preparation of PCI's functioning operation manual.

4. Platform 1: R&D Project Valorization: April -o Support in preparing a pipeline of proposed R&D projects (candidates for valorization); September

and 2017o Assistance in the preparation of one collaborative R&D project proposal between a

university and a company, resulting in filing an application to programs such asNCRD's "Fast Track" or Horizon 2020.

5. Platform 2: Structured Contract Research (standardized offer for contract research): April -o A sample structured contract research offer is prepared for one of the universities' labs. September

20176. Platform 3: ProtoLab: April -

o Technical support in the selection process of the ProtoLab operator and facility. December 20177. Inputs to universities' monitoring system for the utilization of the "20% capacity" that is April -

to be freed-up. September2017

8. Support in the PCI's management team selection: July - Octobero Assistance in establishing a long list of candidates; 2017o Participation in a road-show for potential candidates for the PCI management team and

organization of auxiliary activities organized (i.e., meetings with teams with relevanttrack record and experience); and

o Technical requirements and recommendations during the selection process of the PCIteam in collaboration with the local stakeholders.

Activity 7: Idendfying condidons required to improve spatial planning(Podkarpackie and Swletokryskle regions)

1. Identify, analyze, and summarize all relevant documents (development strategies, July 2017operational programs, zonal urban plans, laws, and policies) to better understand the arrayof issues associated with spatial planning in the regions. The output will be a short reportprepared by the Bank conveying major enablers and constraints related to the introductionof a well-functioning spatial planning system in the targeted area.Separately, the Bank will compile:

(a) a comprehensive list of projects proposed for the targeted area;(b) a list of potential development restrictions (e.g. protected areas, military zones, airport

buffer areas); and(c) existing zoning proposals.

This step will be concluded with a workshop organized by the Bank presenting the abovematerial, launching a prioritization process, and presenting the future scope of work underthis activity.

2. The Bank will conduct a review of all existing topographical, cadaster, and GIS September(geographic information system) databases in the targeted area to determine the existing 2017extent of coverage. The output prepared by the Bank will include a summary of thefindings, identifying gaps, and estimating time and cost for their completion.

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3. Convene relevant stakeholders (civil society, public administration, and private sector) for December 2017a series of meetings to discuss and elaborate key priorities, interventions, and investmentswith territorial impacts on the targeted area. The purpose of these meetings will be to buildconsensus for future interventions, informing the spatial plans (infrastructure investments,new housing developments, new industrial zones, etc.). The outcome/output of thesemeetings will enable the Bank to produce a list of realistic list of priorities feeding into thefinal spatial planning terms of reference (ToR).

4. The Bank will prepare the ToRs for the elaboration of a spatial plan for the targeted areas. February 2018Subsequently, consulting services to elaborate the spatial plans for the targeted areas willbe procured by the regional/local administration.

5. At least two training activities will be provided by the Bank providing relevant stakeholders Throughout thewith key tools and instruments for efficient and effective spatial planning. activity

Activity 8. Wnhancing energy efficiency t improve the air quall(MaopoLskie and glqskie regions)

1. Inception Report will include an outline of activities and workplan for developing the June 2017Energy Efficiency (EE) technical assistance project for scaling up improvements in SingleFamily Building (SFB) sector in Poland, with a focus on two regions. The scope of thereport will outline the tasks and work plan to achieve the final objective of designingfinancial incentive instruments and delivery mechanisms of thermo- modernization in SFBand the development of more efficient boilers, for obtaining EE and air qualityimprovements. The scheme will be designed in the Malopolskie and Slqskie regions.

2. Sub-activity 8.1: Diagnostic Assessment and Analysis of Energy Efficiency SeptemberOpportunities and Strate2ies in Single-Family Buildings 2017

Diagnostics and Overview Report prepared by the Bank for assessing the existingopportunities, regulations, strategies, barriers, institutional frameworks, andimplementation programs in the area of EE improvements in SFB. The Report willcover:(i) Review of existing technical measures and alternatives for thermal rehabilitation of

SFB and replacement of boilers;(ii) Overview and analysis of existing EE and air pollution/anti-smog regulatory

mandates, implementation instruments and awareness schemes, including financialincentive schemes, available at the central, regional, and city levels;

(iii) Assessment of needs and estimation of demand by region, demographics, broadbuilding characteristics, income levels, and clusters;

(iv) Analysis of costs and benefits (financial and economic, including benefits of airpollution and GHG emissions reduction) of the alternative options by regions,demographics, broad building characteristics, income levels, and clusters;

(v) Assessment of domestic financial institutional framework, their role and availableschemes in the EE investments targeted to the housing sector; and

(vi) Review of readiness factors in the EE market, in terms of availability of energyauditors and ESCOs, use of transaction tools such as energy savings performanceand shared savings contracts, etc.

3. Sub- activity 8.2: Development of Implementation Scale-Up Options and Schemes for March 2018Financing of EE Improvements in SFB:

Draft Implementation Scale-Up and Financing Mechanisms Report prepared by the Bankidentifying alternative models, and selection of available financial incentive instruments

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and delivery schemes for thermal rehabilitation of SFB and replacement of their boilers.The thermo-modernization implementation plan presented in the Report will cover sectorcharacteristics and identify ways of addressing potential barriers for the scheme'simplementation. The Report will include:

(i) details by region, demographics, building characteristics, income levels, and clusters;and

(ii) details by type of instrument used, based on subsidies, grants, concessional loans,hybrid packages, PPPs, etc., their feasibility and financing needs vis-a-vis financingsources.

Special emphasis will be provided to low-income energy poor single-family households.The Report will: (i) prioritize the choice of financial incentive instrument based on thefeasibility of their implementation readiness, financial costs and benefits, and potentialreduction of air pollution and GHG emissions; (ii) elaborate the details of the selectedimplementation scheme and develop its operational design elements, to enable the rolloutof a pilot program in the two regions; and (iii) provide a roadmap for rolling out the schemeby assessing the feasibility of replicating and scaling up the recommended schemes to thenational level (or multi-regions) along with the financing needs vis-a-vis financingsources.

A Multi-stakeholder consultation workshop will be organized by the Bank for scaling upenergy efficiency implementation in SFB after the Draft Report is prepared. The workshopwill bring regions, cities, Ministry of Economic Development (MoED), financial sector,European Commission and other stakeholders and present the proposed financial incentiveinstruments and delivery schemes, incorporating feedback and suggestions. Therecommendations provided by the Bank will be used by the Government to fine-tune andrefine the design of the instruments and schemes.

The Implementation Scale-Up and Financing Mechanisms Report will be finalized by theBank based on the previous reports, interactions, and comments received fromstakeholders during the workshop.

Activity 9: Improving inspection praceices related to food safety and food quality(Lubelskie and Podkarpack e regions)

1. Stock-taking of local inspection practices (through in-depth interviews with firms and local January 2018inspectorates as well as document review) and benchmarking to international bestpractices, resulting in a short report with recommendations on changes in inspections topromote better business and safer food

2. Preparing new tools for inspectors and firms based on international best practices, adapting June 2018them to local conditions, and piloting them in the engaged regions. Tools to be elaboratedwill include risk-based methodology for planning inspections and at least one instruction(check-list) for inspectors and at least one guidance document for firms.

3. At least three knowledge-exchange activities carried out by the Bank on risk-based Throughout theplanning of inspections and other regulatory delivery tools activity

Activity 10: Expanding and scaling up energy efficiency initiatives to improve air quality(national level and Malopolskie and Slaskie regions)

Targeted assistance to the National Fund for Environment Protection and Water Management June 2019in setting up country-wide financial incentive instruments and delivery schemes for the thermal

A£

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rehabilitation of single-family buildings and replacement of their boilers on the basis ofrecommendations developed for the regions of Malopolskie and Sl4skie under Activity 8. Adetailed description of the activity will be presented in the inception report in September 2018.

Activity 11: Opthmization of services in an ageing society: health care services(Kujawsko-Pomorskie igion)

Targeted assistance to the Kujawsko-Pomorskie region for an analysis of the potential of health June 2019care services in an aging society. This may include an analysis of the hospital in the City ofGrudziadz and an assessment of social and health sector needs of the elderly and potentialinvestment requirements in these areas. A detailed description of the activity will be presentedin the inception report in September 2018.

Activity 12: Optimization ofservices in an aging society: public transpor(Zachodniopomorskie region)

Targeted assistance to the Zachodniopomorskie region concerning optimization of services in June 2019an aging society, in particular regarding public transport and, with a focus on the CentralFunctional Zone (CFZ). The output will be a report with an analysis of the current transportinfrastructure, potential gaps in the transport sector, and investments needed to better interlinkkey cities of the CFZ. A detailed description of the activity will be presented in the inceptionreport in September 2018.

Activity 13: Strengthening entrepreneurship within IVMoclawek functional urban area(Kujawsko-Pomorskie region)

Targeted assistance to the Kujawsko-Pomorskie region on strengthening entrepreneurship June 2019within Wloclawek functional urban area. The output will be a brief report summarizing i) theeffectiveness of Wloclawek entrepreneurs in applying for the EU funds, ii) investment needsand growth potential of a sample of SMEs, and iii) guidance regarding setting up a platformfor stakeholders' discussion about entrepreneurship development. A detailed description of theactivity will be presented in the inception report in September 2018.

ActiWiy04:. CapacityRBuilding and Training a*cOd es for selected Regons

Based on experience and lessons learned in Activities 1 through 9 (other than 5) described May 2019above, the Bank will carry out capacity building and training activities in the following selectedareas:

- Improving the commercialization of R&D results generated by public research facilitiesand enabling better utilization of existing technology transfer centers (Dolnoslaskie,Lodzkie, Podlaskie regions).

- Supporting the enhanced utilization of regionally managed financial instruments(Podlaskie, Slaskie regions).

Identifying conditions and building capacity of municipal staff from the Wloclawek FunctionalUrban Area required to improve spatial planning (Kujawsko-Pomorskie region). The selectedregions that will benefit from capacity building and training activities will be jointly selectedby the European Commission, the Government of Poland, and the World Bank. A detaileddescription of these activities will be presented in the inception report in September 2018.

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3. Eligible Expenditures

3.1 For Bank-executed activities, the Trust Fund funds may be used to finance:

(a) Staff and individual consultant services;(b) Cost of travel;(c) Cost of training and workshop for counterparts; and(d) Other services including translation.

4. Taxes

4.1 The foregoing activities and categories of expenditures may include the financing of taxesin accordance with the Bank's applicable policies and procedures.

5. Proram Criteria

5.1 Activities are to be financed in accordance with the following program criteria:

The Trust Fund is established to enable the European Commission and the Bank to continue tocollaborate and exchange experience and expertise on a number of themes under all three pillars ofthe Europe 2020 Agenda - of smart, sustainable and inclusive growth. The express purpose of thisTrust Fund is to allow the European Commission to avail itself of the Bank's technical assistanceand analytical and policy capacity for the purpose of pursuing the goals of Europe 2020. The threepillars of Europe 2020 are broadly in line with the objectives and strategies adopted in the Europeand Central Asia Region of the World Bank Group. All activities that are in pursuance of thesethree pillars are eligible to be financed and implemented under this Trust Fund.

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ANNEX 4

INDICATIVE RESULTS INDICATORS FOR THE ACTIVITIES SET FORTH IN

SECTION 2.1 OF ANNEX 1 TO THIS ADMINISTRATION AGREEMENT

General project indicators

Input Output Result

* Expert work * Inception report * Result indicators are action* Working group meetings, inputs * Interim report specific

from the regions, MoED and the * Monthly progress reportsEC * Final report

* Interviews * Final conference* Desk research

research facilities and enabling better utilization of existing technology transfer centers (Podkarpackieregion)

Input Output Result

* Expert work * Inventory report of purchased R&D * Improved understanding of* Working group meetings, inputs infrastructure and offered services possible models of TTO

from the regions, MoED and the (performed by universities with inputs design andEC from the Bank) commercialization-related

* Interviews * Report with mapping of R&D needs in solutions that could be* Desk research the Podkarpackie Region applied in Podkarpackie

* Proposal for a technology transfer office * Recommendations on keymodel mechanisms to put in place to

* Learning / Study visit improve the level of theR&D efforts funded bothfrom the public and privatesourcesSupport to increase theutilization of the R&Dinfrastructure

Activity 2: Activating entrepreneurship in deprived areas(Podkarpackie and Swietokrzyskie regions)

Input Output Result

* Expert work * Selection of two powiats in each region * Short outline of 5-10* Working group meetings, inputs * Short report on characteristics and needs standard services to be

from the regions, MoED and the of SMEs in the four selected powiats delivered by BSIs to SMEs toEC * Short report on key barriers to be supported within the

* Interviews entrepreneurial activity and with voucher scheme* Desk research recommendations for enhancing * Design of the voucher

entrepreneurial activity in the four scheme for selected BSIselected powiats services to be implemented

* Report with recommendations on within the Podkarpackie ROPadjusting services provided by the BSIs and the Swietokrzyskie ROPin the two regions

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Activity 3: Identifying ways to improve conditions for starting a business(Podkarpackie and Swietokrzyskie regions)

Input Output Result* Expert work a Short report with list of doing-business * Improved ease of starting a* Working group meetings, inputs best-practices from Poland and abroad business in Podkarpackie and

from the regions, MoED and the with regard to the analyzed indicator SwietokrzyskieEC * Short report with practical

* Interviews recommendations on improving the* Desk research business environment in the two regions

with regard to the analyzed indicator* Two workshops disseminating

information acquired during the Activity

Activity 4: Supporting the creation of in-house financial instruments(Podkarpackie region)

Input Output Result* Expert work * A set of financial instruments tailored to * Financial instruments* Working group meetings, inputs regional needs proposed by the Marshal adjusted to the regional needs

from the regions, MoED and the office and well distributed acrossEC * Just-in-time advice by the Bank experts the region

* Interviews to the Podkarpackie Guarantee Fund * Improved effectiveness of* Desk research during the implementation start-up phase financial instruments in the

of the new financial instruments region* Learning / Study visit organized by the * Improved ability of the

EC (TAIEX REGIO) Podkarpackie GuaranteeFund

examples from around the world and tailoring them to the regional context.__........_(Swietokrzyskie region)

Input Output Result* Expert work * Short report with an overview of work- * Support in preparing a call* Working group meetings, inputs based learning global best-practices and for proposal for the ESF that

from the regions, MoED and the their transferability to the region of takes into accountEC Swietokrzyskie recommendation of the

* Interviews * Recommendations on the work-based project* Desk research learning system, which could be * A group of schools and firms

implemented in Swietokrzyskie prepared for implementation* Two workshops aiming at dissemination of the recommended

of the intermediary and final results of approach of work-basedthis activity learning

* Recommendations for adjusting ESF * Improved understanding ofmeasure on vocational education training other solutions and modelsunder operational program of among the technical teamSwietokrzyskie

* Learning / Study visit

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Input Output Result* Expert work * Inception report * Result indicators are action* Working group meetings, inputs * Interim report specific

from the regions, MoED and the * Monthly progress reportsEC * Final report

* Interviews * Final conference* Desk research

Activity 6: Enhancing technology transfer: Podkarpackie Center for Innovation (PCI)(Podkarpackie region)

Input Output Result* Expert work * Organized follow-on study visit to best- * Enhanced interest of local* Inputs from the Marshal Office, practice design/prototyping facilities companies in R&D

MoED and the EC (e.g., Leuven, ADF) collaboration* Desk research * Technical Assistance to the MO * Enhanced structured contract* Study visits personnel for performing ongoing research activities* Series of meetings with potential preparation and oversight of the PCI * Creation of a platform for

PCI operator candidates (Road- program (when launched) collaboration and interactionshow) * Support to the MO in amending the ROP between the academic

* Consultations with companies, * Support in preparing key documents: researchers, students andbusiness associations, clusters, o A term sheet specifying the PCI's local business communityuniversities' staff, and innovation rules of engagement with the MO Regional Operationalagencies (regional and national) o SLA templates for collaboration Program supportive of local

between the PCI and universities innovation activities and

o SLA templates for collaboration collaboration between

between the Universities and their academia and business

SPCso Operational guidelines on the use of

freed up R&D equipmento Guidelines for the PCI operational

manual* A pipeline of R&D projects (candidates

for valorization) has been prepared* Assistance in the preparation of one

collaborative R&D project proposalbetween a university and a company tofile an application to programs such asNCRD's "Fast Track" or Horizon 2020

* A sample structured contract researchoffer is prepared for one of theuniversities' labs

* Technical support in the preparation ofthe selection process guidelines of theProtoLab operator and facility

* Support in the PCI management teamselection:o A road-show for potential candidates

for the PCI management team isprepared and organized (i.e.,meetings with approximately 10

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teams with relevant track record andexperience)

o Requirements for the PCI team andrecommendations for the selectionprocess developed in collaborationwith the local stakeholders

* The best candidate for PCI operator isselected (subject to the MO decision)

Activity 7: Identifying conditions required to improve spatial planning(Podkarpackie and Swietokrzyskie regions)

Input Output Result

* Expert work * Two short reports conveying major * Improved understanding of* Working group meetings, inputs enablers and constraints to the availability of input

from the regions, MoED and the introduction of a well-functioning spatial information required forEC planning system in the targeted area. preparing a spatial plan for

* Interviews * Summary report on the extent and the target area.* Desk research quality of coverage with cadaster and * Improved understanding on

topographical information for the the estimated cost and timetargeted areas. horizon for the elaboration of

* A ToR for the elaboration of a spatial a spatial plan.plan for the targeted area. * Enabled commencement of

* Training activities, the tendering procedure forthe elaboration of a spatialplan for the target areas.Strengthened capacity toelaborate, implement, andmonitor spatial planning inthe target areas.

Activity 8: Enhancing energy efficiency to improve the air quality(Malopolskie and Slaskie region)

Input Output Result* Global and Local Expert support * Inception report * Better understanding of the* Working group meetings, inputs regional and national

from the regions, MoED, EC circumstances and definition* Desk research of the bottlenecks* Field Visits and Assessments* Interviews, consultations and

meetings with differentstakeholders

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Sub-Activity 8.1: Diagnostic Assessment and Analysis ofEnergy Efficiency Opportunities and Strategies inSingle-Family Buildings

* Global and Local Expert support * Diagnostics and Overview Report for * Improved understanding of* Working group meetings, inputs assessing the existing opportunities, status, potential, barriers,

from the regions, MoED, EC regulations, strategies, barriers, technical options and* Desk research institutional frameworks, and opportunities for* Field Visits and Assessments implementation programs in the area of improvement of EE in SFB.* Interviews, consultations and EE improvements in SFB.

meetings with differentstakeholdersSub-Activity 8.2: Development ofImplementation Scale-Up Options and Schemes for Financing ofEnergy

Efficiency: Improvements in Single-Family Housing* Global and local expert support * Draft Implementation Scale-Up and * The recommended choice of* Working group meetings, inputs Financing Mechanisms Report financial incentive

from the regions, MoED, EC * Multi-stakeholder Consultation instrument, including for* Desk research Workshop low-income energy poor* Field visits and assessments * Final Implementation Scale-Up and single family households,* Interviews, consultations and Financing Mechanisms Report determined by the feasibility,

meetings with different implementation readiness,stakeholders (including that financial costs and benefits,obtained through Multi- and potential for reducing airstakeholder consultation pollution and GHGworkshop) emissions.

* Enhanced knowledge aboutthe details of the selectedimplementation scheme andoperational design elementsof a pilot program in the tworegions, ready forimplementation, and whichcould later be scaled up tonational level (or multi-regions) along with thefinancing needs vis-a-visfinancing sources.

Activity 9: Improving inspection practices related to food safety and food quality(Lubelskie and Podkarpackie regions)

Input Output Result* Interviews * Report with recommendations on "safer * International best practices on* Desk research food, better business" inspection how to conduct inspections* Document review practices adapted to and piloted in* International and local experts * New tools for inspectors (e.g., working Poland, contributing to* Working group meetings, agreement between inspectorates, risk- reduced inspection burden, in

consultations with inspectorates, based planning methodology, inspection particular for low-riskMoED, MoA, and the EC check-lists, based on international best establishments

practices and adapted to local context)

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* New tools for firms (e.g. clear guidance,based on international best practice andadapted to local context)

* At least three knowledge exchangeactivities

Input Output Result

* Expert work * Inception report * Result indicators are action* Working group meetings, inputs * Interim report specific

from the regions, MoED and the * Monthly progress reportsEC * Final report

* Interviews * Final conference* Desk research

Activity 10: Expand energy efficiency initiatives to improve air quality(national level and Malopolskie and Slaskie regions)

Input Output Result

* Global and Local Expert support * Models for expanding energy efficiency Improved understanding of* Working group meetings, inputs in single-family buildings to improve air status, potential, barriers,

from the regions, MolED, EC quality. technical options and

e Desk research opportunities forimprovement of EE in SFB.

* Field Visits and Assessments* Interviews, consultations and

meetings with differentstakeholders

Activity 11: Optimization of services in aging environment: health care services in aging society (Kujawsko-Pomorskie region)

Input Output Result

* Expert work * Report on the potential of health care * Optimized social and health* Working group meetings, inputs services in an aging society. services for the elderly in

from the regions, MoIED and the * Report on the social and health sector Kujawsko-Pomorskie.EC needs of the elderly and on the

investment needs in the area.

Input Output Result

* Expert work * Report on how public transport * Optimized social and health* Inputs from the Marshal Office, improvements could better respond to services for the elderly in

MoIED and the EC the needs of the elderly in the Central Zachodniopomorskie.* Consultations with companies, Functional Zone of the

business associations, clusters, Zachodniopomorskie region.universities' staff, and innovationagencies (regional and national)

Activity 13: Strengthening entrepreneurship within sector with growth potential in declining areas(Kujawsko-Pomorskie region)

Input Output Result

* Expert work * Report on the SMEs' efficiency in * Enhance entrepreneurship* Working group meetings, inputs applying for the EU funds and an level in Kujawsko-

from the regions, MoIED and the analysis of investment needs and growth Pomorskie.EC

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potential of a sample of SMEs in theregion.

Input Output Result* Expert work * Training and capacity building activities. * Results and* Working group meetings, inputs recommendations of

from the regions, MolED and the Activities 1-9 (except forEC Activity 5 on VET)

* Interviews implemented in other regions* Desk research in Poland.

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ANNEX 5

INDICATIVE BUDGETFOR THE ACTIVITIES SET FORTH IN SECTION 2.1 OF ANNEX 1 TO THIS

ADMINISTRATION AGREEMENT

Expenditure Category Amount in Euro

Staff and individual consultant services 2,660,000

Cost of travel 760,000

Cost of training and workshop for 114,000counterparts (including final conferenceand other meetings organized by the Bank)

Other services including translation 7,0

Administration fee (5%) 190,000

The amount estimated for personnel is calculated taking into account different levels of expertise

estimated to be required for carrying out the activities described in Annex 1.

The World Bank Group entity may transfer amounts between categories of the indicative budget.

This does not require an amendment of the Administration Agreement if the Action is carried out

as described in Annex I.