2008. Article

Such estimate is made by taking into account the unaudited figures currently available for 2007, and it is understood that the actual EIF Standard Cost Rate applicable for 2008 shall result from the audited accounts for 2008, as soon as the latter will be available. Staff Category Expected EIF JEREMIE Employees (first 3 years) EUR/man-month Administrative Staff 0.5 18,900 Professional Staff 3 33,000 Annex 2 to Costs Appendix Form of Costs Payment Statement -------------------------------------------------------------------------------------------------------- To: [•] From: European Investment Fund Luxembourg, date JER-003 Dear Sir, Madam, Pursuant to the funding agreement between the Republic of Latvia and the European Investment Fund ("EIF") dated 16 July, 2008 ("Funding Agreement"), and Clause 13 of the costs appendix to the Funding Agreement ("Costs Appendix"), EIF provides you with the Cost Payment Statement (as defined in the Costs Appendix). Capitalised terms and expressions defined in the Funding Agreement and in the Costs Appendix shall have the same meaning when used herein, unless otherwise defined or the context otherwise requires. We kindly request you to provide us within 1month with your approval of the below costs for the year 200[•]: Costs Annual Budget or adjusted Actual Variation EIF Direct Cost EIF Standard Costs rate month / JEREMIE Staff EIF Travel Costs EIF Local Office Costs Associated Expenses costs related to consultants costs related to tenders costs related to secondments costs related to translations costs related to termination costs related to bank accounts costs related to external audit costs related to litigation costs related to marketing and campaigning other costs In accordance with Clause 11(b) of the Costs Appendix, on the 1st of May of [•] or, should that day not be a Business Day, on the first successive Business Day, the amount of EUR [•] will be [in case of positive amount: debited to the EIF Direct Costs Bank Account and credited in favour of EIF] [in case of negative amount: set-off against the quarterly amount of EIF Direct Costs Advance due on the same date]. Annex 3 to Costs Appendix This Annex 3 to the Costs Appendix details the estimated costs expected to be incurred by the EIF in the first three years of operation of the JEREMIE Holding Fund. This estimation is provided only as a non-binding guideline, and is subject to change in consultation with the Project Steering Committee. A contingency factor equal to 12.5% of non-EIF Standard Cost Rate has been applied. ESTIMATED COSTS BUDGET PHASE ONE Year 1 Year 2 Year 3 Av. % Mandate Size 183,000,000 183,000,000 183,000,000 EIF Prof. Resources in Latvia 2 2 2 EIF Admin Resources in Latvia 0.5 0.5 0.5 EIF Prof. Resources from Luxembourg 1 1 1 Seconded Resources in Latvia 3 3 3 EIF COSTS Units EIF Full Cost Rate Pro Staff EUR/month 3 1,188,000 1,235,520 1,284,941 EIF Full Cost Rate Admin Staff EUR/month 0.5 118,800 123,552 128,494 Total Annual Staff Costs 1,306,800 1,359,072 1,413,435 Travel Costs EUR/mission/staff 36 54,000 58,860 64,157 Cost of Latvia Office EUR/month 12 60,000 65,400 71,286 Sub-total 1,420,800 1,483,332 1,548,878 0.78% 0.81% 0.85% 0.81% ASSOCIATED EXPENSES Consultancy Fees EUR/day 60 63,000 68,670 74,850 Legal Advice EUR/operation p.a. 7 175,000 190,750 207,918 Cost of Conducting Calls for Expression of Interest EUR/call 6 45,000 49,050 53,465 Secondment Costs EUR/pp/pa 3 120,000 130,800 142,572 Cost of Legal Translation EUR/page 250 12,500 13,625 14,851 Cost of Termination/Transition EUR/termination 0 25,000 25,000 100,000 Auditor Costs EUR/year 1 30,000 32,700 35,643 Capability Audit EUR/case 0 105,000 0 155,000 Reserve for Inv. Board Meetings EUR/year 4 4,000 4,360 4,752 Cost of Marketing EUR/campaign 3 45,000 49,050 53,465 Contingency at 12.5% 12.5% per annum 92,313 86,033 122,245 TOTAL ANNUAL COSTS 2,137,613 2,133,370 2,513,639 Av. % ANNUAL PERCENTAGE 1.17% 1.17% 1.37% 1.24% EIF Prof. Staff Rate 2008 (approx. figure based on 2007 agreement with EC) 33,000 34,320 35,693 EIF Admin. Staff Rate 2008 19,800 20,592 21,416 Annual Increase (EIF rates) 4.00% Anticipated annual change Latvian Inflation 9.00% Anticipated average inflation rate Riga, Latvia, 16 July, 2008. For the Government of the Republic of Latvia Minister of Economics For the European Investment Fund Chief Executive _____________________________________ / Kaspars Gerhards/ ___________________________________ /Richard Pelly / Ministru kabineta 2008.gada 10.jūlija noteikumi Nr.534 "Par Latvijas Republikas valdības un Eiropas Investīciju fonda līgumu par Eiropas Savienības struktūrfondu ieguldījumu fonda ieviešanu" publicēti laikrakstā "Latvijas Vēstnesis" 01.08.2008., 118.nr. - "LV" red.