CREDIT NUMBER 7470-KG Project Agreement (Second Additional Financing for Sustainable Rural Water Supply and Sanitation Development Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and COMMUNITY DEVELOPMENT AND INVESTMENT AGENCY CREDIT NUMBER 7470-KG PROJECT AGREEMENT Agreement between INTERNATIONAL DEVELOPMENT ASSOCIATION (“Association”) and COMMUNITY DEVELOPMENT AND INVESTMENT AGENCY (“Project Implementing Entity”) (“Project Agreement”) in connection with the Financing Agreement (“Financing Agreement”) of same date between the Kyrgyz Republic (“Recipient) and the Association concerning Credit no 7470-KG. The Association and the Project Implementing Entity hereby agree as follows: ARTICLE I — GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to the Financing Agreement) constitute an integral part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Financing Agreement or the General Conditions. ARTICLE II — PROJECT 2.01. The Project Implementing Entity declares its commitment to the objectives of the Project. To this end, the Project Implementing Entity shall carry out the Project in accordance with the provisions of Article V of the General Conditions and the Schedule to this agreement, and shall provide promptly as needed, the funds, facilities, services and other resources required for the Project. ARTICLE III — TERMINATION 3.01. For purposes of Section 10.05 (c) of the General Conditions, the date on which the provisions of this Agreement shall terminate is twenty (20) years after the date of this Agreement. ARTICLE IV — REPRESENTATIVE; ADDRESSES 4.01. The Project Implementing Entity’s Representative is its Executive Director. 4.02. For purposes of Section 11.01 of the General Conditions: (a) the Association’s address is: International Development Association 1818 H Street, NW -2- Washington, DC 20433 United States of America; and (b) the Association’s Electronic Address is: Telex: Facsimile: 248423(MCI) or 1-202-477-63914.03. 4.03. For purposes of Section 11.01 of the General Conditions: (a) the Project Implementing Entity’s address is: Community Development and Investment Agency 102, Bokonbaeva Street Bishkek Kyrgyz Republic; and (b) the Project Implementing Entity’s Electronic Address is: Facsimile: 996-312-624-748 -3- AGREED as of the later of the two dates written below. INTERNATIONAL DEVELOPMENT ASSOCIATION By _____________________________________/s1/ Authorized Representative Tatiana Proskuryakova Name: __________________________ /n1/ /t1/ Asia Country Director for Central Title: __________________________ 16-Apr-2024 Date: __________________________/d1/ COMMUNITY DEVELOPMENT AND INVESTMENT AGENCY By _____________________________________/s1/ Authorized Representative Mars Naspekov Name: __________________________/n1/ excutive director Title: __________________________/t1/ 16-Apr-2024 Date: __________________________/d1/ -4- SCHEDULE Execution of the Project Section I. Implementation Arrangements A. Institutional Arrangements 1. The Project Implementing Entity shall: (a) maintain, throughout implementation of the Project, staff (including management staff) with experience, qualifications, responsibilities and resources satisfactory to the Association and adequate for successful implementation of the Project; (b) liaise with DDWSWDD to receive policy guidance and to coordinate Project management, monitoring and evaluation activities; and ensure that DDWSWDD is represented on the tender committees of the Project; and (c) liaise with the Recipient’s Ministry of Finance to review and approve Annual Work Plans and Budgets for the Project. B. Annual Work Plan and Budget 1. The Project Implementing Entity shall prepare, in accordance with the terms of reference acceptable to the Association, and furnish to the Association not later than December 1st of each calendar year during the implementation of the Project, a work plan and budget containing all activities proposed for inclusion in the Project for the next calendar year, including: (a) a detailed timetable for the sequencing and implementation of proposed Project activities; (b) the types of expenditures required for such activities and a proposed financing plan (including the necessary funds and resources to be provided by the Recipient for such expenditures); and (c) each Supplemental Social and Environmental Safeguard Instrument applicable to said activities in accordance with the provisions of Section I.E of this Schedule 2 and the measures proposed to be carried out under each of said Supplemental Social and Environmental Safeguard Instrument, during the relevant year). 2. The Project Implementing Entity shall afford the Association a reasonable opportunity to exchange views with the Recipient on each such proposed work plan and budget; and, thereafter ensure that the Project is implemented with due diligence during said following calendar year in accordance with such work plan and budget as shall have been approved by the Association (“Annual Work Plan and Budget”). -5- 3. The Project Implementing Entity shall not make or allow to be made any material change to the approved Annual Work Plan and Budget without prior approval in writing by the Association. C. Project Manuals 1. The Project Implementing Entity shall implement the Project in accordance with the Project Manuals satisfactory to the Association. The Project Operational Manual shall set forth rules, methods, guidelines and procedures for the carrying out of the Project, including, inter alia: (a) detailed description of the Project and institutional arrangements for its implementation; (b) monitoring, evaluation, reporting, and governance procedures for the Project; (c) disbursement, financial management, auditing and safeguards procedures for the Project; (d) procurement rules, procedures, and standard bidding documents for the Project. The Manual for Household Result-Based Sanitation Incentives for Parts 2 (g) of the Project, shall set forth, inter alia: (a) eligibility criteria, detailed rules and procedures for identification, registration and selection of Eligible Beneficiaries; (b) modalities for documentation and information management; and (c) criteria for verification, in form and substance acceptable to the Association. 2. In the event that any provision of the Project Manuals shall conflict with any provision of the Financing Agreement, the provisions of the Financing Agreement shall prevail. The Project Implementing Entity shall not amend the Project Manuals without the Association’s prior written approval. D. Sub-grants - Results-based Incentives 1. The Project Implementing Entity shall ensure, that: (a) No Eligible Beneficiary shall be eligible to receive a Sub-grant for a Results-based Incentive, unless said Eligible Beneficiary has met the following requirements, and such further requirements as elaborated in the Manual for Household Result-Based Sanitation Incentives: (i) the Eligible Beneficiary is a resident in a Participating Rural Community; (ii) the Eligible Beneficiary has presented a valid identification card; and (b) the selection, registration and identification of Eligible Beneficiaries are conducted in an open and transparent manner, all in accordance with the provisions of the Financing Agreement and the Manual for Household Result-Based Sanitation Incentives. -6- E. Safeguards 1. The Project Implementing Entity shall implement the Project in accordance with the relevant Safeguards Instruments, and, to that end, shall: (a) if any activity under the Project would require the adoption of any Supplemental Social and Environmental Safeguard Instrument: (i) (A) prepare such Supplemental Social and Environmental Safeguard Instrument in accordance with ESMF and RPF; (B) furnish such Supplemental Social and Environmental Safeguard Instrument to the Association for review and approval; and (C) thereafter adopt such Supplemental Social and Environmental Safeguard Instrument, acceptable to the Association, prior to implementation of the activity; and (ii) thereafter take such measures as shall be necessary or appropriate to ensure full compliance with the requirements of such Supplemental Social and Environmental Safeguard Instrument; and (b) if any activity under the Project would involve Affected Persons, ensure that no displacement (including restriction of access to legally designated parks and protected areas) shall occur before resettlement measures under the respective Supplemental Social and Environmental Safeguard Instrument, including, in the case of displacement, full payment to Affected Persons of compensation and of other assistance required for relocation, have been implemented. 2. Without limitation to the provisions of paragraph 1 above, prior to contracting of works for each proposed site within the Participating Rural Communities, the Project Implementing Entity shall: (a) submit to the Association for its prior approval: (i) the proposed design and site for said works and, where required by the respective Safeguard Instrument or local legislation, as applicable, any related environmental licenses and permits; and (ii) the proposed contract for said works to ensure that the provisions of the respective Supplemental Social and Environmental Safeguard Instrument are adequately included in said contract; and (b) ensure that such works are carried out in accordance with the respective Safeguard Instrument. 3. The Project Implementing Entity shall ensure that no works on a specific site within the Participating Rural Communities requiring resettlement and/or land acquisition are commenced until the respective Supplemental Social and Environmental Safeguard Instrument for said site is fully implemented. -7- Section II. Project Monitoring, Reporting and Evaluation A. Project Reports 1. The Project Implementing Entity shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 5.08 (b) of the General Conditions and on the basis of the indicators acceptable to the Association. Each such Project Report shall cover the period of one calendar semester and shall be furnished to the Recipient not later than one month after the end of the period covered by such report for incorporation and forwarding by the Recipient to the Association of the overall Project Report. 2. The Project Implementing Entity shall provide to the Recipient not later than 4 months, for incorporation in the report referred to in Section 5.08 (c) of the General Conditions all such information as the Recipient or the Association shall reasonably request for the purposes of such Section.