CREDIT NUMBER 7534-MR (PBA) IDA CREDIT NUMBER 7535-MR (WHR) IDA GRANT NUMBER E314 (WHR) Amendment to the Financing Agreement for Grant no. D5680-MR Financing Agreement (as part of the Second Additional Financing for the Second Social Safety Net System Project) between ISLAMIC REPUBLIC OF MAURITANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between ISLAMIC REPUBLIC OF MAURITANIA (“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION (“Association”) for the purpose of assisting in filing a financing gap and scaling up activities of the Original Project. The Association has decided to provide this financing on the basis, among other things, of the existence of an adequate refugee protection framework. WHEREAS (A) the Recipient has requested a financing from the Association as a second additional financing for the purpose of assisting in filing a financing gap and scaling up activities of the Second Social Safety Net System Project; (B) the Association has proposed that such second additional financing be provided: (i) in part as a grant from the Sahel Adaptive Social Protection Program Multi- Donor Trust Fund on the basis of terms and conditions included in the financing agreement entered into or about to be entered into for such purpose (the “ SASPP TF Grant Agreement”); and (ii) in part through a financing from the Association from various windows; and (C) the Association and the Recipient have agreed to amend the legal agreements previously entered into for the financing of the Project to, among other things, reflect a change in the design selected by the Recipient to establish the FNRCAN (referred to as the CFV in those agreements). NOW, THEREFORE, the Recipient and the Association hereby agree as follows: ARTICLE I — GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to this Agreement) apply to and form 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 General Conditions or in the Appendix to this Agreement. ARTICLE II — FINANCING 2.01. The Association agrees to extend to the Recipient a financing (“Financing”), which is deemed as Concessional Financing for purposes of the General Conditions, to assist in financing the project described in Schedule 1 to this Agreement (“Project”), in an amount equivalent to nineteen million and seven hundred thousand Special Drawing Rights (SDR19,700,000) in the aggregate, which includes: -2- (a) a credit in an amount equivalent to twelve million and one hundred thousand Special Drawing Rights (SDR 12,100,000) (“Credit A/PBA”), (b) a credit in an amount equivalent to three million and eight hundred thousand Special Drawing Rights (SDR 3,800,000) (“Credit B/WHR”), and (c) a grant in an amount equivalent to three million and eight hundred thousand Special Drawing Rights (SDR 3,800,000) (“Grant/WHR”). 2.02. The Recipient may withdraw the proceeds of the Financing in accordance with Section III of Schedule 2 to this Agreement. 2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.04. The Service Charge, accruing on Credit A/PBA and Credit B/WHR only, is three- fourths of one percent (3/4 of 1%) per annum on the Withdrawn Credit Balance of Credit A and Credit B. 2.05. The Interest Charge, accruing on Credit A/PBA and Credit B/WHR only, is one and a quarter percent (1.25%) per annum on the Withdrawn Credit Balance of Credit A and Credit B. 2.06. The Payment Dates are May15 and November 15 in each year. 2.07. The principal amount of Credit A/PBA and Credit B/WHR shall be repaid in accordance with the repayment schedule set forth in Schedule 3 to this Agreement. 2.08. The Payment Currency is Dollar. ARTICLE III — PROJECT 3.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient shall carry out the Project through the Taazour General Delegation in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV — REMEDIES OF THE ASSOCIATION 4.01. The Additional Event of Suspension, which is applicable to the funds of Credit B/WHR and the Grant/WHR only, consists of the following, namely, that the Recipient no longer has an adequate refugee protection framework. -3- ARTICLE V — EFFECTIVENESS; TERMINATION 5.01. The Additional Conditions of Effectiveness consist of the following: (a) the SASPP TF Grant Agreement has been executed and delivered and all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled; (b) the Subsidiary Agreement has been signed by both parties in accordance with Section I.B.2 of Schedule 2 to this Agreement; and (c) the Association is satisfied that the Recipient has an adequate refugee protection framework. 5.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 5.03. For purposes of Section 10.05 (b) of the General Conditions, the date on which the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is twenty (20) years after the Signature Date. ARTICLE VI — REPRESENTATIVE; ADDRESSES 6.01. The Recipient’s Representative is its Minister responsible for economy. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient’s address is: Ministry of Economy and Sustainable Development Avenue Nelson Mandela BP 238 Nouakchott Mauritania; and (b) the Recipient’s Electronic Address is: Facsimile: 222-45-25-33-35  6.03. For purposes of Section 11.01 of the General Conditions: (a) the Association’s address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Association’s Electronic Address is: Telex: Facsimile: 248423 (MCI) 1-202-477-6391 -4- AGREED as of the Signature Date. ISLAMIC REPUBLIC OF MAURITANIA By _____________________________________/s1/ Authorized Representative M. Abdessalam Ould Mohamed Saleh Name: __________________________/n1/ MINISTRE ECONOMY Title: __________________________/t1/ 22-May-2024 Date: __________________________/d1/ INTERNATIONAL DEVELOPMENT ASSOCIATION By _____________________________________/s2/ Authorized Representative Keiko Miwa Name: __________________________/n2/ Country Director Title: __________________________/t2/ 30-Apr-2024 Date: __________________________/d2/ -5- SCHEDULE 1 Project Description The objective of the Project is to increase the effectiveness and efficiency of the nationwide adaptive social safety net system and its coverage of poor and vulnerable households with targeted social transfers, including in refugee and host communities. The Project consists of the following parts: Part 1: Updating and Enhancing the Social Registry 1.1 Updating and expanding the Social Registry to selected households and refugees throughout the Recipient’s territory, through: (a) community targeting; (b) the collection of related socio-economic data; and (c) quality control. 1.2. Promoting the operational and strategic use of the Social Registry through: (a) the pilot and possibly scaled-up introduction of household identification cards; (b) communication and outreach activities; (c) studies, training and related capacity-building for the promotion of the Social Registry as a social program coordination tool; and (d) evaluation of the registry methodology. 1.3 Developing and piloting a strategy for the dynamization of the Social Registry through the continuous update of the registry data, also accounting for new refugee arrivals, in the camps and in the communities. Part 2: Enhancing the Socio-Economic Inclusion of Poor Households and Refugees 2.1 Scaling-up the National Social Transfer Program through: (a) the provision of (i) cash transfers, and (ii) accompanying social measures; and (b) the administration and operation of the cash transfer program. 2.2 (a) Re-certifying and developing an exit strategy from the National Social Transfer Program for selected beneficiaries through: (i) the provision of technical assistance to beneficiaries for the development, implementation and monitoring of income generating activities, through training and coaching; and (ii) the provision of micro-grants to exiting beneficiaries for subsistence or to support the exiting beneficiary’s livelihood when launching an income generating activity; and (b) the evaluation of the economic inclusion activities carried out for the implementation of the exit strategy. 2.3 Supporting ANRPTS for the civil registration of the beneficiaries of the National Social Transfer Program, through: (a) logistic support; (b) community outreach, and (c) coordination among stakeholders. -6- Part 3: Strengthening the Shock Response System for Households Vulnerable to Climate Shocks 3.1 Enhancing the Early Warning System and the Shock Response Programs coordination by: (a) strengthening the capacity of the Food Security Office through: (i) regular data collection and analysis; (ii) development of a communication platform and related dissemination activities; and (iii) capacity- building activities; and (b) establishing the Shock Response Programs coordination mechanism, through: (i) a review of the institutional and regulatory framework; and (ii) the operationalization of said mechanism through the provision of training and logistical support for its operations. 3.2 Supporting the implementation of shock-responsive safety net programs (the Shock Response Programs) in cases of climate-related shocks through: (a) the strengthening of its management information system and the establishment and operation of a grievance mechanism; (b) (i) the payment of cash transfers; and (ii) the administration of the cash transfer program; and (c) the provision of training and incentives to foster the use, by actors involved in the Shock Response Program, of the common electronic payment platform developed for the National Social Transfer Program. 3.3 Designing a financing strategy to respond to shocks leading to food and nutrition insecurity through: (a) the development of a financing strategy related to shocks affecting food and nutrition security; and (b) the establishment of a non-organic vehicle dedicated to the financing of the response to shocks, food and nutrition insecurity. 3.4 Contingency Emergency Response to provide immediate response to an Eligible Crisis or Emergency, as needed. 3.5 Supporting the operationalization of the FNRCAN, including through: (a) the provision of equipment, capacity building and technical assistance to strengthen its policies and procedures and the accounting departments working on its funding (including the accounting department of the fund manager); and the implementation of awareness raising and communication activities; as well as; (b) the provision of cash transfers as part of its food security activities. Part 4: Project Coordination and Management Supporting Project management and implementation, including for fiduciary matters, environmental and social standards, procurement, communication, planning, audits, monitoring and evaluation, training and day to day operation of the Recipient’s committees and the Project Implementing Entity for the provision of Project management support. -7- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. 1. General The Recipient shall vest overall responsibility for the implementation of the Project in its Ministry responsible for economy and shall maintain the implementation arrangement described in this Agreement throughout the implementation of the Project. 2. National Social Protection Strategy Steering Committee (a) The Recipient shall vest responsibility for strategic guidance and oversight of the Project’s implementation in the National Social Protection Strategy Steering Committee (CP-SNPS) with terms of reference, composition and resources satisfactory to the Association. (b) The CP-SNPS shall be co-presided by the Recipient’s General Secretaries (Secrétaires Généraux) of its ministry responsible for social affairs, child and family (Ministère des Affaires Sociales, de l’Enfance et de la Famille, MASEF) and its ministry responsible for economy. (c) The CP-SNPS shall include representatives from, inter alia, MASEF; and the Recipient’s ministries responsible for economy; health (national education; employment; justice; civil service, labor; as well as the Recipient’s Food Security Office (Commissariat à la Sécurité Alimentaire, CSA)); Commission on Human Rights and Humanitarian (Commissariat aux Droits de l’Homme, l’Action Humanitaire et aux Relations avec la Société Civile - CDHARSC); the Taazour General Delegation; civil society. (d) The CP-SNPS shall be responsible for approving technical documents and tools for social safety nets; mobilizing resources for the implementation of the National Social Protection Strategy (SNPS); ensuring the coordination and the collaborative implementation of all actors involved in the implementation of social safety nets; validating and monitoring activities, budgets and the monitoring and evaluation plans for the Social Registry Direction of the Taazour General Delegation, and support sectoral actors in their contributions to social protection. -8- 3. National Social Protection Strategy Technical Committee (a) The Recipient shall, at all times during Project implementation, maintain its National Social Protection Strategy Technical Committee (CT-SPS) with terms of reference, composition and resources satisfactory to the Association. (b) The CT-SPS shall provide regular technical oversight to the CP-SNPS for the effective implementation of the National Social Protection Strategy, and shall be responsible for, inter alia: (i) the preparation of the policy options; (ii) the elaboration of technical tools for the SNPS implementation; (iii) the design of financing mechanisms for the social sector; (iv) the coordination of activities; (v) the supervision of evaluation studies; and (vi) the coordination of social sector actors. 4. Project Steering and Monitoring Committee (a) The Recipient shall, at all times during Project implementation, maintain its Project Steering and Monitoring Committee (“PSMC”) under the presidency of the General Secretary of the Taazour General Delegation, with terms of reference, composition and resources satisfactory to the Association. (b) The PSMC shall be responsible for the oversight, operational planning and monitoring of the Project, and shall be responsible for validating the Social Registry Manual, the Shock Response Programs Manual, the FNRCAN Cash Transfer Manual, and the National Social Transfer Program Manual, and the Annual Work Plans and Budget, and monitoring the implementation of the Project. (c) The PSMC shall regularly report to the CP-SNPS on progress in Project implementation and shall seek CP-SNPS guidance on core strategic decisions. 5. Taazour General Delegation (a) The Taazour General Delegation shall be responsible for the overall coordination, fiduciary and environmental and social aspects, and day-to- day implementation of the Project in close coordination with key sectoral actors responsible for the definition of the package of promotion services to be provided by the Project in accordance with the Project Manuals. (b) The Taazour General Delegation shall, at all times during Project implementation, retain the following key staff: a national project coordinator, a social and gender specialist, at least one focal point on refugees in Bassikounou, a procurement specialist, an internal auditor and, -9- once recruited in accordance with paragraph (c) immediately below, a financial and accounting officer, each with terms of reference, qualifications and experience acceptable to the Association. (c) No later than one (1) month after the Effective Date, or any other later date agreed upon in writing with the Association, the Taazour General Delegation shall recruit for the Project a financial and accounting officer with terms of reference, qualifications and experience acceptable to the Association. B. Subsidiary Agreement. 1. (a) To facilitate the carrying out of the Project, the Recipient shall make the proceeds of the Financing, except those allocated from time to time to Category (5) of the table set forth in Section III.1 of this Schedule, available to the Taazour General Delegation in the form of a grant under a subsidiary agreement between the Recipient and the Taazour General Delegation, under terms and conditions approved by the Association, which shall include the provisions listed in Paragraph 2 immediately below (“Subsidiary Agreement”). (b) To facilitate the carrying out of Cash Transfers on behalf of FNRCAN under Part 3.5(b) of the Project, enter into a contractual arrangement which shall include the following: (i) the Recipient shall make the proceeds of the Grant allocated from time to time to Category (5) of the disbursement table set forth in Section III.A.2 of this Schedule available to the FNRCAN administered by the CSA in the form of a budget allocation; and (ii) the CSA shall enter into an agreement with the Taazour General Delegation for the exclusive use of the funds allocated to the FNRCAN in accordance with paragraph (a) above, by the Taazour General Delegation for the implementation of Cash Transfers on behalf of FNRCAN under Part 3.5(b) of the Project (with corresponding dedicated bank account and delegation of authorized signature to the Taazour General Delegation), all under terms and conditions approved by the Association (the “FNRCAN Arrangement”). 2. (a) The Recipient shall, and shall ensure that CSA, acting in its capacity as administrator of the FNRCAN shall, each obtains rights adequate to protect its interests and those of the Association, under the Subsidiary Agreement and the FNRCAN Arrangement, including the right to: (i) suspend or terminate the right of the Taazour General Delegation to use -10- the proceeds made available to it, or obtain a refund of all or any part of the amount of made available to it and then withdrawn, upon the Taazour General Delegation’s failure to perform any of its obligations under the Subsidiary Agreement or the FNRCAN Arrangement, as the case may be; and (ii) require the Taazour General Delegation to: (A) provide Cash Transfers to Eligible Beneficiaries identified in accordance with eligibility criteria, guidance on the determination of amounts of the Cash Transfers, and payment modalities and procedures further detailed in the FNRCAN Cash Transfer Manual and in the Shock Response Programs Manual and carry out its other activities under the Project in accordance with the Administrative, Financial Management, Procurement and Project Implementation Manual; (B) carry out its activities under the Project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient; (C) provide, promptly as needed, the resources required for the purpose; (D) procure the goods, works and services to be financed out of the funds made available to it under the Subsidiary Agreement in accordance with the provisions of this Agreement; (E) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Project and the achievement of its objectives; (F) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (G) enable the Recipient and the Association to inspect the Project, its operation and any relevant records and documents; and (H) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. (b) Notwithstanding the provisions of the immediately preceding paragraphs, in the event of a conflict between the FNRCAN Arrangement (including its budgetary policies and procedures and its contractual and banking arrangements) or the Subsidiary Agreement and the provisions of this Agreement, including such additional instructions as the Association shall have specified in the Disbursement and Financial Information Letter, the provisions of this Agreement, including said additional instructions, shall govern. -11- 3. The Recipient shall exercise its rights under the Subsidiary Agreement and the FNRCAN Arrangement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any of its provisions. C. Project Manuals 1. The Recipient shall carry out the Project in accordance with the provisions of the Project Manuals which shall at all times throughout the implementation of the Project be in form and substance satisfactory to the Association, and shall include details of all aspects of Project implementation, fiduciary functions and requirements, organization and human resource management; environmental and social standards, procurement, financial management, accounting and disbursements; inventory management; monitoring, evaluation and internal audits. 2. Without limitation to the generality of paragraph 1 immediately above, the National Social Transfer Program Manual shall contain detailed arrangements and procedures for: (a) eligibility criteria, detailed rules and procedures for identification, registration and selection of Eligible Beneficiaries; (b) requirements to be fulfilled by Eligible Beneficiaries as conditions for the provision of Cash Transfers under Part 2 of the Project; (c) privacy safeguards for the processing of personal data collected from Eligible Beneficiaries through the Social Registry or during Project implementation; (d) the mechanisms for verification of compliance with Cash Transfers conditions, including spot checks and external verification; (e) rules and procedures governing a redress mechanism for Cash Transfers; and (f) mechanisms for the transfer of funds to the Taazour General Delegation, the selection and contracting of Payment Service Providers and the payment mechanism to transfer the Cash Transfer amount to the Eligible Beneficiaries. 3. Without limitation to the generality of paragraph 1 above, the Shock Response Programs Manual shall contain detailed arrangements and procedures for: (a) the description of the Early Warning System, mechanisms, institutional arrangements, protocols and triggers; (b) eligibility criteria, detailed rules and procedures for identification, registration and selection of Eligible Beneficiaries; (c) privacy safeguards for the processing of personal data collected from Eligible Beneficiaries through the Social Registry or during Project implementation; (d) procedures for implementing Cash Transfers under Part 3.2 of the Project, including spot checks and external verification mechanisms; and (e) mechanisms for the transfer of funds to the Taazour General Delegation, the selection and contracting of Payment Service Providers and the payment mechanism to transfer the Cash Transfer amount to the Eligible Beneficiaries. 4. Without limitation to the generality of paragraph 1 immediately above, the Recipient shall, no later than one (1) month after the Effective Date, update the -12- FNRCAN Cash Transfer Manual, in form and substance acceptable to the Association. Without limitation to the immediately foregoing provision, the updated FNRCAN Cash Transfer Manual shall contain detailed arrangements and procedures for: (a) eligibility criteria, detailed rules and procedures for identification, registration and selection of Eligible Beneficiaries; (b) requirements to be fulfilled by Eligible Beneficiaries as conditions for the provision of Cash Transfers under Part 3.5(b) of the Project; (c) privacy safeguards for the processing of personal data collected from Eligible Beneficiaries through the Social Registry or during Project implementation; (d) the mechanisms for verification of compliance with Cash Transfers conditions, including spot checks and external verification; (e) rules and procedures governing a redress mechanism for Cash Transfers; and (f) mechanisms for the transfer of funds from the FNRCAN to the Taazour General Delegation, the selection and contracting of Payment Service Providers and the payment mechanism to transfer the Cash Transfer amount to the Eligible Beneficiaries. 5. The Recipient shall not amend, abrogate, waive or permit to be amended, abrogated or waived, the Project Manuals, or any provision thereof, without the prior written consent of the Association. 6. In the event of any inconsistency between this Agreement and the Project Manuals the provisions of this Agreement shall prevail. D. Cash Transfers 1. For the implementation of Parts 2.1(a)(i), 3.2(b)(i) and Part 3.5(b) of the Project, the Recipient shall provide Cash Transfers to Eligible Beneficiaries identified in accordance with eligibility criteria and procedures acceptable to the Association and further detailed in the National Social Transfer Program Manual and the Shock Response Programs Manual and the FNRCAN Cash Transfer Manual. 2. Said eligibility criteria shall include, inter alia, that: (a) with regard to the National Social Transfer Program: (i) the Eligible Beneficiary shall have been identified as a poor or extremely poor household or refugee in the Social Registry; and (ii) said household or refugee shall comply with the conditionality of participating in the National Social Transfer Program; and (b) with regard to the Shock Response Programs that the Eligible Beneficiary shall have been identified as a vulnerable household or refugee in the Social Registry. 3. The amount of each Cash Transfer shall be determined in accordance with the provisions of the Project Manuals. Without limitation to the foregoing provision, Cash Transfers shall be in an amount determined in a manner which reflects the reasonable cost of decreasing the Eligible Beneficiary level of poverty while promoting investment in human capital, as defined in the Project Manuals. -13- 4. The Recipient shall ensure that the amount of each Cash Transfer is paid to its intended Eligible Beneficiary. 5. The Recipient shall conclude and thereafter implement until it has expired in accordance with its terms, an agreement for the payment of Cash Transfers to Eligible Beneficiaries, in form and substance satisfactory to the Association and in accordance with criteria and procedures set forth in the National Social Transfer Program Manual, with one or more Payment Service Providers, selected on the basis of terms of reference, qualifications and experience satisfactory to the Association, (each a “Payment Agreement”). The Recipient shall ensure that each Payment Agreement is: (a) submitted to the Association for its review and approval prior to its signature between the Recipient and a Payment Service Provider; (b) signed and effective before any proceeds of the Financing are transferred to the Payment Service Provider; and (c) carried out with due diligence and efficiency and in accordance with sound technical, financial, and managerial standards and practices acceptable to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to the recipients of the Cash Transfers proceeds other than the Recipient. E. Annual Work Plans and Budgets 1. The Recipient shall, not later than one (1) month after the Effective Date, for the Fiscal Year in which this Agreement shall become effective, and November 30 of each subsequent Fiscal Year, consolidate and furnish to the Association for the Association’s no objection, a consolidated annual program of activities proposed for implementation under the Project during the following Fiscal Year, together with a proposed budget which shall include the funds from the Financing and the grant referred to in the preamble, the counterpart financing to be provided by the Recipient, if any, as well as any other funds which may become available for the implementation of the Project. 2. Without limitation to the provision of Section I.E.1 of this Schedule, each annual work plan and budget prepared under Section I.E.1 of this Schedule shall set forth: (a) a detailed description of the planned activities, including any proposed conferences and training, under the Project for the period covered by the plan; (b) the sources and proposed use of funds for such activities; (c) procurement and environmental and social arrangements to assess and mitigate the impacts of such activities, as applicable, and; (d) responsibility for the execution of said activities, budgets, start and completion dates, outputs and monitoring indicators to track progress of each activity. 3. The Recipient shall exchange views with the Association on each such proposed consolidated annual work plan and budget and take into account comments which the Association may have before finalizing its annual work plan and budget not -14- later than one (1) month after the date referred to in Section I.E.1 of this Schedule (once finalized, an “Annual Work Plan and Budget”). 4. The Recipient shall carry out the activities included in each of the Annual Work Plans and Budgets or cause them to be carried out during the Fiscal Year to which they relate. Annual Work Plans and Budgets may be revised during the Fiscal Year to which they relate, with the prior written agreement of the Association. F. Environmental and Social Standards. 1. The Recipient shall, and shall cause the Taazour General Delegation to, ensure that the Project is carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Association. 2. Without limitation upon Paragraph 1 above, the Recipient shall, and shall cause the Taazour General Delegation to, ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan (“ESCP”), in a manner acceptable to the Association. To this end, the Recipient shall, and shall cause the Taazour General Delegation to, ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, as provided in the ESCP; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies and procedures are maintained, and qualified and experienced staff in adequate numbers are retained to implement the ESCP, as provided in the ESCP; and (d) the ESCP, or any provision thereof, is not amended, repealed, suspended or waived, except as the Association shall otherwise agree in writing, as specified in the ESCP, and ensure that the revised ESCP is disclosed promptly thereafter. 3. In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions of this Agreement shall prevail. 4. The Recipient shall, and shall cause the Taazour General Delegation to, ensure that: (a) all measures necessary are taken to collect, compile, and furnish to the Association through regular reports, with the frequency specified in the ESCP, and promptly in a separate report or reports, if so requested by the Association, information on the status of compliance with the ESCP and the environmental and social instruments referred to therein, all such reports in form and substance acceptable to the Association, setting out, -15- inter alia: (i) the status of implementation of the ESCP; (ii) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (iii) corrective and preventive measures taken or required to be taken to address such conditions; and (b) the Association is promptly notified of any incident or accident related to or having an impact on the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers in accordance with the ESCP, the environmental and social instruments referenced therein and the Environmental and Social Standards. 5. The Recipient shall, and shall cause the Taazour General Delegation to, establish, publicize, maintain and operate an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances of Project-affected people, and take all measures necessary and appropriate to resolve, or facilitate the resolution of, such concerns and grievances, in a manner acceptable to the Association. Section II. Project Monitoring, Reporting and Evaluation The Recipient shall furnish to the Association each Project Report not later than one month after the end of each calendar semester, covering the calendar semester. Section III. Withdrawal of the Proceeds of the Financing A. General Without limitation upon the provisions of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures; in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: -16- Category Amount of the Amount of the Amount of the Percentage of Credit A/PBA Credit Grant/WHR Expenditures Allocated B/WHR Allocated to be (expressed in Allocated (expressed in Financed SDR) (expressed in SDR) (inclusive of SDR) Taxes) (1) Goods, works, non- 1,037,000 0 0 Up to 100%, consulting services, as stated in consulting services, and the Annual Training for Part 1of the Work Plan Project and Budget (2) Goods, works, non- 4,965,000 394,000 394,000 Up to 100%, consulting services, as stated in consulting services, Training the Annual and Incremental Operating Work Plan Costs for Part 2.1, 2.3, 3, 4, and Budget but expressly excluding Cash Transfers under Parts 2.1(a)(i), 3.2(b)(i) and 3.5(b) of the Project and Emergency Expenditures under Part 3.4 of the Project (3) Cash Transfers under 4,443,000 3,406,000 3,406,000 Up to 100%, Parts 2.1(a)(i) of the Project as stated in the Annual Work Plan and Budget (4) Cash Transfers under Part 378,000 0 0 100% 3.2(b)(i) of the Project (5) Cash Transfers under Part 1,277,000 0 0 Up to 100%, 3.5(b) of the Project as stated in the Annual Work Plan and Budget TOTAL AMOUNT 12,100,000 3,800,000 3,800,000 -17- B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for payments made: (a) prior to the Signature Date, except that: (i) withdrawals up to an aggregate amount not to exceed SDR2,240,000 may be made under Credit A/PBA for payments made prior to this date but on or after April 1, 2024, for Eligible Expenditures under Categories (1), (2), (3) and (5); (ii) withdrawals up to an aggregate amount not to exceed SDR760.000 may be made under Credit B/WHR for payments made prior to this date but on or after April 1, 2024, for Eligible Expenditures Categories (2) and (3); (iii) withdrawals up to an aggregate amount not to exceed SDR760,000 may be made under the Grant/WHR for payments made prior to this date but on or after April 1, 2024, for Eligible Expenditures Categories (2) and (3); (b) under Categories (3) and (4), in each case until the Association has notified the Recipient that it accepts the documents provided by the Recipient to document the satisfaction of the following condition: (i) the Recipient has entered into, or caused to be entered into, a Payment Agreement in form and substance acceptable to the Association with a payment service provider selected on the basis of terms of reference, qualifications and experience acceptable to the Association for the purpose of making payments to Eligible Beneficiaries for the implementation of Cash Transfers under Part 2.1(a)(i) of the Project; or (c) under Category (5) until the Association has notified the Recipient that it accepts the documents provided by the Recipient to document the satisfaction of the following conditions: (i) the FNRCAN Arrangement has been established and is operational in accordance with the provisions of Sections I.B.1(b) and I.B.2 of Schedule 2 to this Agreement; (ii) the FNRCAN Cash Transfer Manual has been updated by the CSA and the Taazour General Delegation, in form and substance -18- acceptable to the Association in accordance with the provisions of Section I.C.1 of Schedule 2 to this Agreement; and (iii) the Recipient has entered into, or caused to be entered into, a Payment Agreement in form and substance acceptable to the Association with a payment service provider selected on the basis of terms of reference, qualifications and experience acceptable to the Association for the purpose of making payments to Eligible Beneficiaries for the implementation of Cash Transfers under Part 3.5(b) of the Project. 2. The Closing Date is June 30, 2026. Section IV. Amendment to the Original Financing Agreement for Grant no. D5680-MR The following modifications are made in the Original Financing Agreement for the provision of Grant no. D5680-MR: 1. Common Financial Vehicle. (a) Schedule 1 to the Original Financing Agreement is deleted in its entirety and replaced by a new Schedule 1, strictly identical to Schedule 1 to this Agreement. (b) In Schedule 2 to the Original Financing Agreement, Section I, Part F (Establishment of a Common Financial Vehicle (CFV)) is deleted in its entirety and the lettering of the subsequent parts is revised accordingly. In the Appendix to the Original Financing Agreement all cross references to the provisions of the Original Financing Agreement whose lettering have been revised are revised accordingly. (c) In the Appendix to the Original Financing Agreement the following definitions are deleted in their entirety and the following definitions are renumbered accordingly: (i) Definition 5. “CFV Operational Guidelines”; (ii) Definition 6. “Common Financial Vehicle” or “CFV”; and (iii) Definition 17. “Financial Sector Laws.” 2. Institutional Arrangement (a) In Section I.A.2 (National Social Protection Strategy Steering Committee) paragraph (c), of Schedule 2 to the Original Financing Agreement, the -19- words “; and other key technical and financial partners” at the end of the provision, are deleted. 3. Closing Date (a) Section III.B.2 (Closing Date) of Schedule 2 to the Original Financing Agreement is deleted in its entirety and replaced by the following new Section III.B.2 (Closing Date): “2. The Closing Date is June 30, 2026.” -20- SCHEDULE 3 Credit A/PBA and Credit B/WHR Repayment Schedule Principal Amount of the Credits Date Payment Due repayable (expressed as a percentage)* On each May 15 and November 15: commencing May 15, 2029 to and including 1.65% November 15, 2048 commencing May 15, 2049 to and including 3.40% November 15, 2053 * The percentages represent the percentage of the principal amount of the Credit to be repaid, except as the Association may otherwise specify pursuant to Section 3.05 (b) of the General Conditions. -21- APPENDIX Definitions 1. “Administrative, Financial Management, Procurement and Project Implementation Manual” means the Recipient’s document entitled “Manuel des Procedures du Projet d’Appui aux Filets Sociaux” dated April 2020, comprising 6 volumes which describe, respectively, the organization and the administrative, financial, accounting, procurement and information technologies procedures and guidelines for the implementation of the Project activities. 2. “Annual Work Plans and Budget” means a plan of Project activities to be carried out during the next Fiscal Year and its budget both prepared and found acceptable by the Association in accordance with the provisions of Section I.E.1, 2 and 3 of Schedule 2 to this Agreement. 3. “ANRPTS” means “Agence Nationale pour le Registre des Populations et les Titres Sécurisés”, the Recipient’s national agency for people’s registration and identification documentation, established in 2021. 4. “Anti-Corruption Guidelines” means, for purposes of paragraph 5 of the Appendix to the General Conditions, the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006, and revised in January 2011 and as of July 1, 2016. 5. “Bassikounou” means the city named Bassikounou located in the south east part of the Recipient’s territory. 6. “Cash Transfers” means cash transfers provided under Part 2.1(a)(i), Part 3.2(b)(i), or Part 3.5(b) of the Project. 7. “Category” means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 8. “Early Warning System” means the Recipient’s system which monitors the evolution of key indicators related to shocks, as well as economic and social indicators which can trigger emergency plans. 9. “Eligible Beneficiaries” means persons, including refugees and people from host communities, who meet the eligibility criteria stipulated in the Project Manuals to participate in the National Social Transfer Program, the Shock Response Programs, or the activities carried out on behalf of the FNRCAN; each an “Eligible Beneficiary”. -22- 10. “Eligible Crisis or Emergency” means an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact to the Recipient, associated with a natural or man-made crisis or disaster. 11. “Emergency Expenditure” means any of the eligible expenditures set forth in the CERC Manual in accordance with the provisions of Section I.H. of Schedule 2 to this Agreement and required for the CERC. 12. “Environmental and Social Commitment Plan” or “ESCP” means the environmental and social commitment plan for the Project, dated March 11, 2024, as the same may be amended from time to time in accordance with the provisions thereof, which sets out the material measures and actions that the Recipient shall carry out or cause to be carried out to address the potential environmental and social risks and impacts of the Project, including the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any environmental and social instruments to be prepared thereunder. 13. “Environmental and Social Standards” or “ESSs” means, collectively: (i) “Environmental and Social Standard 1: Assessment and Management of Environmental and Social Risks and Impacts”; (ii) “Environmental and Social Standard 2: Labor and Working Conditions”; (iii) “Environmental and Social Standard 3: Resource Efficiency and Pollution Prevention and Management”; (iv) “Environmental and Social Standard 4: Community Health and Safety”; (v) “Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement”; (vi) “Environmental and Social Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources”; (vii) “Environmental and Social Standard 7: Indigenous Peoples/Sub- Saharan African Historically Underserved Traditional Local Communities”; (viii) “Environmental and Social Standard 8: Cultural Heritage”; (ix) “Environmental and Social Standard 9: Financial Intermediaries”; (x) “Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure”; effective on October 1, 2018, as published by the Association. 14. “First Additional Financing Agreement” means the agreement entered into between the Recipient and the Association, acting as administrator of the Sahel Adaptative Social Protection Program Multi Donor Trust Fund, with a Signature Date of May 28, 2021, for the provision of grant no. TF0B5069 as an additional financing for the Social Safety Net System Project II. 15. “Fiscal Year” means the Recipient’s fiscal year commencing on January 1 and ending on December 31 of the same year. 16. “FNRCAN” means the Recipient’s Fond National d’Alerte Précoce et de Réponse aux Crises Alimentaires et Nutritionnelles, established through a budgetary -23- allocation provided pursuant to the Recipient’s decree no. 2022-068 dated May 11, 2022. 17. “FNRCAN Arrangement” means the arrangement to be put in place by the Recipient for the use of the funds allocated from time to time to Category (5) in accordance with the provisions of Section I.B.1(b) and I.B.2 of Schedule 2 to this Agreement. 18. “FNRCAN Cash Transfer Manual” means the Recipient’s manual entitled “Manuel des procedures opérationnelles du Fond National de Réponse aux Crises Alimentaires et Nutritionnelles en Maurtianie – FNRCAN” dated May 2023, which contains guidelines on the modalities applicable to the amounts allocated to FNRCAN, the responsibilities of the stakeholders involved in their implementation, and the controls of compliance with such modalities. 19. “Food Security Office” or “CSA” means “Commissariat à la Sécurité Alimentaire”, the Recipient’s entity responsible for the general policy on food security established by the Recipient’s decree no. 90-82 dated September 22, 1982, and governed by Decree no. 058/2001 dated March 22, 2001, on the redefinition of the mission, organization and operation of the Commissariat à la Sécurité Alimentaire. 20. “General Conditions” means the “International Development Association General Conditions for IDA Financing, Investment Project Financing”, dated December 14, 2018 (Last revised on July 15, 2023). 21. “Incremental Operating Costs” means the reasonable incremental operating expenses of the Taazour General Delegation shall, recorded in the Annual Work Plan and Budget to which the relate, incurred by or on behalf of the Recipient on account of the Project implementation, management and monitoring, including operation and maintenance costs of office, vehicles and office equipment; water and electricity utilities, telephone, office supplies, bank charges, public awareness- related media expenditures, travel and supervision costs, per diem, additional staff costs, but excluding the salaries, indemnities and meeting allowances, other sitting allowances, salary top ups and all honoraria of officials and public servants of the Recipient. 22. “National Social Protection Strategy” or “SNPS” means the Recipient’s social protection national strategy adopted by its government in June 2013. 23. “National Social Protection Strategy Technical Committee” or “CT-SPS” means the Recipient’s technical committee established by joint arrêté no. 094/MAED/MASEF/2013 dated January 8, 2014, for the establishment of the institutional arrangement for the implementation of the social protection national strategy. -24- 24. “National Social Protection Strategy Steering Committee” or “CP-SNPS” means the Recipient’s steering committee established by joint arrêté no. 094/MAED/MASEF/2013 dated January 8, 2014, for the establishment of the institutional arrangement for the implementation of the social protection national strategy. 25. “National Social Transfer Program” means the Recipient’s Tekavoul Program, which targets the poorest households in the territory of the Recipient, provides them with Cash Transfers and carries out promotion activities, in order to provide basic support in the medium-term and promote investments in the human capital of their children and women. 26. “National Social Transfer Program Manual” means the Recipient’s manual referred to as the “Tekavoul Manual” which provides details on the objectives of the National Social Transfer Program, its methodology, and the procedures to be followed for its implementation, including institutional coordination and day-to- day execution of the Project, as well as monitoring, evaluation, reporting and communication. 27. “Original Financing Agreement” means, collectively, the two agreements entered on April 1, 2020, to finance the Social Safety Net System Project II: the agreement between the Recipient and the Association, for the provision of grant no. D5680- MR, and the agreement between the Recipient and the Association, acting as administrator of the Sahel Adaptative Social Protection Program Multi Donor Trust Fund, for the provision of grant no. TF0B2030. 28. “Original Project” means the Project described in Schedule 1 to the Original Financing Agreement as amended in accordance with the First Additional Financing Agreement. 29. “Procurement Regulations” means, for purposes of paragraph 85 of the Appendix to the General Conditions, the “World Bank Procurement Regulations for IPF Borrowers”, dated September 2023. 30. “Project Implementing Entity”, as used in the General Conditions means the Taazour General Delegation. 31. “Project Manuals” means, collectively, (a) the Administrative and Financial Management, Procurement, and Project Implementation Manual; (b) the Social Registry Manual; (c) the National Social Transfer Program Manual; and (d) the Shock Response Programs Manual. 32. “Project Steering and Monitoring Committee” or (“PSMC”) means the Recipient’s monitoring committee established by Decision no. 012/2020/Taazour, on the -25- establishment of Comité de Politage et de Suivi du Projet d’appui au system de filets sociaux II (PASyFIS2). 33. “SASPP TF Grant Agreement” means the agreement to be entered on or about the Signature Date, between the Recipient and the Association and International Bank for Reconstruction and Development, acting collectively as administrator of the Sahel Adaptative Social Protection Program Multi Donor Trust Fund, for the provision of a grant in an amount of $10,000,000, to contribute to the financing of the Project. 34. “Shock Response Programs” means the Recipient’s Elmaouna Program which target the vulnerable households affected by covariate shocks and provides them with cash transfers to mitigate impact on the household welfare. 35. “Shock Response Programs Manual” means the Recipient manual referred to as the “Elmaouna Manual”, which provides details on the objectives of the Shock Response Programs, its methodology, and the procedures to be followed for its implementation, including institutional coordination and day-to-day execution of the Project, as well as monitoring, evaluation, reporting and communication. 36. “Signature Date” means the later of the two dates on which the Recipient and the Association signed this Agreement and such definition applies to all references to “the date of the Financing Agreement” in the General Conditions. 37. “Social Registry” means the national registry established by the Recipient’s social resgistry’s directorate as part of its mandate pursuant to the Recipient’s Decree No. 029-2016 dated March 2, 2016, and anchored in the Taazour General Delegation. 38. “Social Registry Manual” means the Recipient’s manual which provides details on the objectives of the Social Registry, its methodology, and the procedures to be followed for its implementation, including rules and procedures governing a redress mechanism for the Social Registry, as well as institutional coordination and day-to-day execution of the Project, as well as monitoring, evaluation, reporting and communication. 39. “Taazour General Delegation” means the entity established by the Recipient’s Presidential Decree no. 385-2019 for the establishment of an administration of public mission named Delegation Générale à la Solidarité Nationale et à la Lutte contre l’Exclusion “Taazour” and setting the rules for its organi zation and operation. 40. “Training” means the reasonable cost of training under the Project, recorded in the Annual Work Plan and Budget to which they relate, including costs associated with seminars, workshops, conference and study tours, travel and subsistence costs for training participants, services of trainers, rental of training facilities, preparation -26- and reproduction of training materials and other activities directly related to course preparation and implementation.