The Government of the Republic of China (Taiwan) (“ Taiwan ” )
and the Central American Bank for Economic Integration (“ CABEI
” - “ the Bank ” ), individually a “ Party ”, together the
“ Parties ”;

WHEREAS, the Bank is a multilateral development financial
institution, of an international nature, with legal personality,
the purpose of which is to promote the economic integration and
the balanced economic and social development of the Central
American region, which includes the founding countries and the
non-founding regional countries, attending and aligning itself
with the interests of all its member countries.

WHEREAS, Taiwan wishes to make funds available to the Bank for
the benefit of its developing member countries and its
cooperation with the Central American region, including a
contribution of Five Million United States Dollars
($5,000,000.00) (the “ Contribution ” )for the Taiwan-CABEI
Partnership Trust Fund (the “ Trust Fund ” ); and

WHEREAS, the Bank is in its capacities to accept the funds,
including the administration of such;

HAVE agreed as follows:

ARTICLE 1
ESTABLISHMENT OF THE TAIWAN-CABEI PARTNERSHIP TRUST FUND
1. The purpose of this Agreement is to provide for the
administration of non-reimbursable funds provided by Taiwan,
through the Ministry of Foreign Affairs (“ MOFA ” ), to the
Bank for the benefit of CABEI to support its objectives to
promote the economic integration and the balanced economic
and social development of the Central American Region for the
preparation and implementation of projects in sectors in
which Taiwan may have opportunities to share its expertise
and experience.
2. The Contribution from Taiwan to the Trust Fund will be Five
Million United States Dollars ($5,000,000.00) in total and
paid in five annual instalments of One Million United States
Dollars ($1,000,000.00). The Trust Fund will be established
within Ninety (90) Days from the entry into force of this
Agreement with the first instalment. Each year MOFA will pay
one instalment upon receipt of a request for payment from the
Bank. The Trust Fund will be administered by the Bank
pursuant to the Bank ’ s own policies and procedures as well
as the terms of this Agreement.
3. Any contribution and payment schedule are subject to the
budget approval by the Legislative Yuan of Taiwan for the
fiscal year in which the instalment is to be paid.

ARTICLE 2
USE OF THE FUND’S RESOURCES
1. The objectives of the Trust Fund are to support CABEI and its
recipient member countries in achieving sustainable economic,
social, and inclusive development. The eligible CABEI ’ s
recipient member countries are specified in Annex 1, which
may be updated at the discretion of MOFA.
2. The activities to be financed by the Trust Fund include:
(a) The provision of technical assistance, training, and
advisory services;
(b) The execution of consultancies as well as finance of
travel and other related costs and expenses contracted by
CABEI in the preparation and implementation of
CABEI-financed projects and programs; and/or
(c) The CABEI-executed activities for which the Bank has
implementation responsibility in order to develop and
generate development plans at the member-country and
regional levels, including studies, reports, conferences,
workshops, seminars, as well as research, scientific
development and analytical work;
(d) The assistance to CABEI-sponsored capacity building
programs, project preparation and/or implementation that
are beneficial to the promotion of its mission.
3. The funds may also be used for other activities agreed
between MOFA and CABEI for the benefit of the Bank and the
developing member countries specified in Annex 1.
4. The sectors in which the funds will be executed are the
following: Green Energy, Health, Sustainable Agriculture,
Information and Communication Technologies (ICT), Trade and
Commerce and any other sector agreed by MOFA and the Bank.
5. The Trust Fund will not be used to finance salaries, benefits
of public officials/civil servants of the recipient member
countries nor vehicles of any type.
6. The budget per operation submitted for approval shall be
established on a case by case basis considering the project
that will be carried out, however in no event should the
budget exceed One Million United States Dollars
($1,000,000.00) per year.
7. Any taxes included in the execution of activities and
expenditures that are eligible to be funded according to the
agreement may be financed by the Trust Fund in accordance
with the Bank ’ s applicable polices and guidelines.
8. To leverage Taiwan ’ s expertise and development experience
in the projects and activities executed by the Bank, at least
Fifty Percent (50%) of the Contribution shall be used to
finance:
(a) any consultant or natural person who holds Taiwanese
nationality, or any consulting firm, goods or services
supplier, juridical person, organization or group
established or registered pursuant to pertinent laws of
Taiwan; or
(b) any person described in subparagraph (a) in consortium or
partnership with companies established or registered
pursuant to pertinent laws of either
i. Central American Region; or
ii. any other Countries.

ARTICLE 3
GOVERNANCE STRUCTURE AND ADMINISTRATION
1. For the adequate administration of the Trust Fund the
responsible offices shall be:
(a) the funding activities will be managed by the Country
Office of CABEI in Taiwan; and
(b) the use of the Fund ’ s resources will be managed by the
Public Sector Division, through the Department of Project
Formulation (FOPROY).
Such office will be in permanent consultation with MOFA and
supported by other internal areas at CABEI.
2. The Bank ’ s responsible office will contribute by
streamlining the Bank ’ s own processes for accessing Trust
Fund resources, ensure compliance with the Bank ’ s
priorities, enable accurate and timely reporting, and
facilitate MOFA consultations.
3. CABEI will commit fund resources in consultation with MOFA on
a case-by-case basis and will submit projects and activities
to be financed by the Trust Fund resources with a Project
Concept Paper that specifies the project description,
objectives, proposed budget, and expected outcomes, among
other items. MOFA shall inform the Bank of its decision on
funding the submitted project or activity within Six (6)
Weeks from the date of submission.
4. The Bank will coordinate with MOFA on activities to promote
visibility of the Trust Fund, including the use of social
media, while conducting the projects.

ARTICLE 4
FINANCIAL ASPECTS
1. The currency in which the funds in the Trust Fund shall be
held is United States Dollars (the “ Holding Currency ” ).
2. The Bank shall maintain separate records and ledger accounts
in regard to the funds deposited in the Trust Fund and the
disbursements made therefrom. MOFA will deposit the
Contribution into the account designated and notified by the
Bank.
3. The uncommitted funds or unused proportion of funds received
by the Bank may be temporarily invested according to the Bank
’ s own policies and procedures. Any return on investment
received shall be deposited in the Trust Fund ’ s own
account.

ARTICLE 5
FUND MANAGEMENT
The Bank shall deduct a Management Fee from the Trust Fund to
support the activities of administration of the Trust Fund
carried out by the responsible office of the Trust Fund. The
Management Fee shall be an amount equal to Five Percent (5%) of
the total contribution of Five Million United States Dollars
($5,000,000.00). The Five Percent (5%) Management Fee will be
deducted per each contribution received by the Bank.

ARTICLE 6
REPORTING, MONITORING AND CONSULTATION
1. The Bank shall prepare semiannual financial reports related
to disbursements, fund balance, and receipts in the Holding
Currency. Within Three (3) Months after each fiscal half year
has ended, such financial report shall be made available to
MOFA.
2. The Bank shall provide to MOFA, within Six (6) Months
following the end of each fiscal year, an annual single audit
report, comprising a management assertion together with an
attestation from the Bank ’ s external auditors concerning
the adequacy of internal control over cash-based trust fund
together with the Bank ’ s external auditor ’ s opinion
thereon. The cost of such single audit shall be borne by the
Bank.
3. The Bank shall be responsible for the supervision of the
activities financed under the Trust Fund and may invite MOFA
to participate in Bank supervision missions related to the
Trust Fund.
4. After the closure of each project or activity financed by the
Trust Fund, the Bank shall submit to MOFA a Project
Completion Report describing the outcome of the project or
activity. This Report may be provided together with the
financial report demanded by the Section 1 of this Article.
5. MOFA and the Bank will meet at least once on an annual basis
to discuss the overall execution and guidance of the Trust
Fund and any other matters related agreed by the Parties. The
meetings will be held between the Bank ’ s responsible
offices and MOFA.

ARTICLE 7
COMMUNICATIONS
1. When making a deposit, MOFA shall instruct its bank to
include the following information in its deposit details
information (remittance advice) field of the SWIFT deposit
message (the “ Deposit Instructions ” ): the total amount
deposited, THE TAIWAN-CABEI PARTNERSHIP TRUST FUND as the
recipient of the deposit by MOFA, and the date of the
deposit. MOFA shall provide a copy of the Deposit
Instructions to the Bank ’ s Accounting Trust Fund Division
by e-mail to 00000000000@0000.000 or by facsimile to
+000-0000-0000 on the same day the deposit is made.
2. Except in the case of the Deposit Instructions, any notice
request or other communications to be given or made under
this Agreement shall be in writing and delivered by mail,
facsimile or e-mail to the respective Party ’ s address
specified below, or at such other address that a Party
notifies in writing to other Party:

For Taiwan (“Taiwan Contact”):
Department of International Organizations
Ministry of Foreign Affairs (MOFA)
Address: 2, Ketagalan Blvd., Zhongzheng Dist., Taipei City
100202, Taiwan
Tel: +000-0-0000-0000,
Fax: +000-0-0000-0000,
E-mail: 000000@0000.000.00

For the Bank (the “Bank Contact”):
000000 000000
Manager, Public Sector Division
Central American Bank for Economic Integration (CABEI)
Tegucigalpa, Honduras.
Tel.: +000-0000-0000,
Fax: +000-0000-0000,
E-mail: 0000000@0000.000

ARTICLE 8
GENERAL, ENTRY INTO FORCE AND AMENDMENTS
1. The Bank shall be responsible only for performing those
functions specifically set forth in this Agreement and shall
not be subject to any other duties or responsibilities to
MOFA, including without limitation, any duties or obligations
that might otherwise apply to a fiduciary or trustee under
general principles of trust or fiduciary law. Nothing in this
Agreement shall be considered a waiver of privileges or
immunities of the Bank under its Constitutive Agreement or
any applicable law, all of which are expressly reserved.
2. This Agreement may be modified or amended only by written
amendment agreed upon by the Parties.
3. Once this Agreement ceases to be in force, the Bank shall
return and transfer in the Holding Currency any uncommitted
balance of the Trust Fund to the account designated and
notified by MOFA, unless otherwise agreed upon by the
Parties.
4. This Agreement shall enter into force upon the reception of
the first instalment by the Bank and shall remain in force
for Five (5) Years.
5. Either Party may terminate this Agreement by giving One (1)
Year prior written notice to the other Party.

Done in duplicate in the English language.


FOR THE GOVERNMENT OF FOR THE CENTRAL AMERICAN BANK
THE REPUBLIC OF CHINA FOR ECONOMIC INTEGRATION
(TAIWAN) (CABEI)
_________________________ _________________________
H.E. Jaushieh Joseph Wu Dante Ariel Mossi Reyes
Minister of Foreign Affairs Executive President

Date: Nov. 18, 2021 Date: Nov. 17, 2021
Place: Taipei Place: Tegucigalpa