IDA GRANT NUMBER E3370-BI Financing Agreement (Additional Financing for Cash for Jobs Project) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION IDA GRANT NUMBER E3370-BI FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF BURUNDI (“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION (“Association”) for the purpose of assisting in financing the project described in Schedule 1 to this Agreement (“Project”). The Association has decided to provide this financing on the basis, among other things, of the existence of an adequate refugee protection framework. 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 grant, which is deemed as Concessional Financing for purposes of the General Conditions, in an amount equivalent to thirty-eight million Special Drawing Rights (SDR 38,000,000) (“Financing”), to assist in financing the project described in Schedule 1 to this Agreement (“Project”). 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 Payment Dates are April 15 and October 15 in each year. 2.05. The Payment Currency is Dollar. -2- ARTICLE III — PROJECT 3.01. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project 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 Events of Suspension consist of the following: (a) the Recipient no longer has an adequate refugee protection framework; and (b) a situation has arisen which makes it improbable that the Social Protection Strategy or a substantial part thereof shall be implemented by the Recipient. ARTICLE V — EFFECTIVENESS; TERMINATION 5.01. The Additional Conditions of Effectiveness consist of the following: (a) the Recipient has updated the Project Implementation Manual pursuant to Section I.B.2(a) of Schedule 2 to this Agreement; and (b) 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 in charge of finance, budget, and economic planning. 6.02. For purposes of Section 11.01 of the General Conditions: -3- (a) the Recipient’s address is: Minister of Finance, Budget and Economic Planning Ministry of Finance, Budget and Economic Planning Bujumbura, Republic of Burundi; and (b) the Recipient's Electronic Address is: Telex: E-mail: MINIFINBDI finances@finances.gov.bi 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: E-mail: 248423 (MCI) 1-202-477-6391 burundiwb@worldbank.org -4- AGREED as of the Signature Date. REPUBLIC OF BURUNDI By _____________________________________ Authorized Representative H.E. Audace NIYONZIMA Name: ______________________________ Minister of Finance, Budget and Economic Planning Title: _______________________________ 06-Jun-2024 Date: ______________________________ INTERNATIONAL DEVELOPMENT ASSOCIATION By _____________________________________ Authorized Representative Hawa Wagué Name: ______________________________ Country Manager Title: _______________________________ 05-Jun-2024 Date: ______________________________ -5- SCHEDULE 1 Project Description The objective of the Project is to strengthen management capacity, scale up safety net programs, and promote productive inclusion and access to jobs; and to provide immediate and effective response to an Eligible Crisis or Emergency. The Project consists of the following parts: Part 1: Scaling-up Safety Nets to the National Territory 1.1 Cash Transfers for Shock Emergency Response Support households economically affected climate-related shocks, food security shocks, or by COVID-19, through: (i) Emergency Cash Transfers; and (ii) implementation of innovative delivery systems, including targeting, and e-payments; M&E, GRM. 1.2 Scaling-up Cash Transfers Deliver electronic Cash Transfers to at least 100,000 extremely poor households during a maximum period of 30 months in all 18 provinces of the Recipient’s territory while ensuring transparency, accountability and digital inclusion in the delivery. 1.3 Behavior Change for Investments in Human Capital Implement: (i) accompanying measures to promote household foundational human capital investments, in particular in women and children through information, education and communication campaigns for: (a) the adoption of positive behavioral changes towards maternal and child health, pre-natal consultations, nutrition, family planning and early childhood development and vaccinations; (b) the participation and retention of school age children in school; (c) prevention, mitigation and legal literacy on gender-based violence and child marriage; and (d) prevention of COVID-19 and referral of cases to health centers; and (ii) other key interventions, including: (a) the development of training modules and other operational documents; (b) the training of project staff and community facilitators; (c) the sensitization of beneficiaries on training modules; (d) technical assistance and quality control to the program including the review of modules, trainings, coaching and monitoring and evaluation; (e) home visits and; (f) handling complains from beneficiaries and non-beneficiaries. -6- Part 2: Productive Inclusion and Access to Jobs 2.1 Productive Inclusion in Rural Settings Support the implementation of productive investments by beneficiaries, especially women, including: (i) coaching sessions to identify and resolve financial constraints faced by beneficiaries; (ii) facilitation of savings groups for beneficiaries using the VSLA Model; (iii) life skills training to further help address psycho-social barriers faced by beneficiaries, such as self-confidence, personal initiative, aspirations, social norms and relationships between genders; (iv) micro- entrepreneurship training for basic accounting and management principles and market research; (v) provision of Small Grants as start-up capital for rural beneficiaries to begin an economic activity; (vi) extension services and technical assistance during the implementation of the activity; (vii) facilitation of access to inputs and markets; and (viii) support to cooperatives among Small Grant Beneficiaries. Part 3: Development of Social Protection Delivery Systems 3.1 Scaling-up Basic Delivery Mechanisms of a Basic Safety Nets System Support the Recipient’s: (i) upgrading of the existing delivery systems to allow for a scale-up of Cash Transfers and accompanying measures at national level; (ii) development of new features for the existing management information system to support the implementation and monitoring of new activities under the Project; and (iii) development of adaptive delivery systems for emergency social protection interventions, including for COVID-19. 3.2 Development of a National Social Registry Support, in close coordination with Project Partners, the development of a National Social Registry to serve as a national instrument for outreach, intake, registration, and determination of potential eligibility for all social programs and as a core element of the Social Protection Strategy by: (i) conceptualizing the National Social Registry; (ii) developing adequate legislation for its institutionalization; (iii) defining institutional arrangements for its operationalization; (iv) developing adequate tools for data collection; (iv) developing adequate software for its operationalization; (v) supporting operational and management costs; and (vi) financing adequate equipment for its roll out. -7- Part 4: Integration of Refugee and Host Communities into National Social Protection Systems Support, in close coordination with the Recipient’s ministry in charge of interior, ONPRA and UNHCR, activities directed to refugees and host communities, including: (i) their integration into national social protection systems by promoting adequate policy development and providing human resources, technical assistance, equipment and operational assistance, including the development of a new Social Protection Strategy that is inclusive of refugees and host communities including through the National Social Registry or through the development of adequate policies to close identified policy gaps related to refugees and host communities; (ii) the provision of Cash Transfers; (iii) the provision of Small Grants as start-up capital; (iv) the implementation of accompanying measures to promote household foundational human capital investments and other key interventions described under Part 1.3 of the Project; and (v) the promotion of cooperatives. Part 5: Project Management and Implementation 5.1 Support to the new Social Protection Strategy and Coordination of the Social Protection Sector Support the development of the new Social Protection Strategy and implementation of specific activities under the new Social Protection Strategy, including the preparation of a workplan to support selected activities, reinforcement of existing coordination mechanisms, focusing on the Project Technical Committee and on the CNPS/SEP, in their capacity as coordinators and regulators for social protection through training, technical assistance and basic analytical services. 5.2 Monitoring, Evaluation and Capacity Building Support strong monitoring practices to ensure the scaling up of safety nets interventions and the expansion of coverage and delivery of payments under the Project, including social accountability and citizen engagement mechanisms with the support of local-level institutions and stakeholders by installing mechanisms to prevent errors, fraud, and corruption in delivery through monitoring and validation of payments, process assessment and evaluations; Iterative Beneficiary Monitoring and collection of real time data on the evolving vulnerability context; capacity-building activities including a range of training modules on technical and operational aspects required for the implementation of the safety nets and productive inclusion interventions. -8- 5.3 Project Implementation Support the PIU, the Project Steering Committee, the Project Technical Committee, the CERC Technical Committee, the CNPS/SEP, the ONPRA, the Project Partners, and other relevant institutions of the Beneficiary, in order to implement the Project in an effective and efficient manner through technical assistance, Training and Operating Costs. Part 6: CERC 6.1 Provision of eligible Emergency Expenditures as set out in the First CER Manual and Emergency Action Plan, including the provision of (i) Food Security Cash Transfers and (ii) Agricultural Inputs, to Eligible Beneficiaries in the Affected Provinces. 6.2 Provision of immediate response to an Eligible Crisis or Emergency, as needed. -9- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements 1. Project Steering Committee (a) The Recipient shall maintain, at all times during the implementation of the Project, a Project steering committee with a mandate, composition and resources satisfactory to the Association (“Project Steering Committee”). (b) Without limitation upon the provisions of paragraph (a) of Section I.A.1 of this Schedule 2, the Project Steering Committee shall be chaired by the permanent secretary of the Recipient’s ministry at the time responsible for national solidarity with the permanent secretary of the Recipient’s ministry at the time responsible for finance as vice-chair and the Project coordinator as secretary, and shall be comprised of, inter alia, permanent secretaries of the Recipient’s ministries in charge of public health, interior, community development, foreign affairs, national education, agriculture and livestock, employment as well as a representative of the Burundi Red Cross. (c) The Project Steering Committee shall meet at least once every semester and shall be responsible for Project oversight, including inter alia: (i) reviewing the proposed Annual Work Plans and Budgets for the Project, reviewing the draft annual implementation and audit reports, as well as the Procurement Plan prepared by the Project Implementation Unit; (ii) overseeing overall implementation and performance of the Project and providing policy guidance; and (iii) identifying necessary Project adjustments based on monitoring and evaluation results. 2. Project Technical Committee (a) The Recipient shall maintain, at all times during the implementation of the Project, a technical committee with a mandate, composition and resources satisfactory to the Association (“Project Technical Committee”). (b) Without limitation upon the provisions of paragraph (a) of Section I.A.2 of this Schedule 2, the Project Technical Committee shall be chaired by the National Director General for National Solidarity and Social Assistance, with a representative of the Recipient’s ministry at the time responsible for finance as vice-chair and shall be comprised of, inter alia, -10- representatives of the relevant Recipient’s ministries participating in the Project Steering Committee. (c) The Project Technical Committee shall be responsible for the technical oversight of the Project, including the approval of technical documents for the Project. 3. Project Implementation Unit (a) The Recipient shall maintain, at all times during Project implementation, a Project implementation unit, under the administrative authority of MNSSAHRG, with composition, terms of reference and resources satisfactory to the Association (“Project Implementation Unit”). (b) Without limitation upon the provisions of Paragraph (a) of Section I.A.3 of this Schedule 2, the Project Implementation Unit shall at all times: (i) be comprised of qualified and experienced personnel in adequate numbers, and to this end, the Recipient shall maintain, in accordance with the provisions of Section III of this Schedule 2, a project coordinator, a monitoring and evaluation specialist, a social specialist, a financial management specialist, two accountants and two procurement specialists; an environmental specialist, an expert on accompanying measures for human capital development, a productive inclusion specialist, a refugee support specialist and a human resources specialist; all with qualifications, experience, and terms of reference acceptable to the Association; and (ii) be responsible for day-to-day Project coordination and implementation, including, inter alia: (A) preparing proposed annual work plans of activities for inclusion in the Project, and updating the procurement plan and related budgets and consolidating Project Reports for the Project Steering Committee’s review; (B) carrying out all Project financial management, procurement activities and contract execution; and (C) monitoring and evaluating the Project. 4. Service Agreement (a) To facilitate the carrying out of the Project, the Recipient shall enter into service agreements with service providers (“Service Providers”), selected on the basis of terms of reference, qualifications and experience satisfactory to the Association, such Service Providers to be responsible for, inter alia: (i) development of modules and other operational documents, training of project staff and community facilitators, sensitization of beneficiaries on training modules, supervision and coaching, and home visits, under Part 1.3 of the Project; and (ii) all activities under Part 2.1 of the Project with the exception of Cash Grants as start-up capital for rural beneficiaries to begin an economic activity; all -11- under terms and conditions approved by the Association (“Service Agreements”). (b) The Recipient shall obtain rights adequate to protect the interests of the Recipient and the Association, including the right to require the Service Provider to: (i) 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, without limitation to the generality of the foregoing, in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of Financing proceeds other than the Recipient, and the Project Implementation Manual; (ii) maintain policies and procedures, adequate to enable the Service Providers to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the activities carried out under the Project and the achievement of its objectives; (iii) (A) 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 activities carried out by the Service Provider under the Project; and (B) 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 furnish promptly to the Recipient and the Association the financial statements as so audited; (iv) enable the Recipient and the Association to inspect the activities carried out by the Service Provider under the Project, their operation and any relevant records and documents; and 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; and (v) refund any or all part of the amount of the Financing then withdrawn, upon the Recipient’s determination that such Service Provider has failed to perform any of the Service Provider’s obligations under the Service Agreement. -12- (c) The Recipient shall exercise its rights and carry out its obligations under the Service Agreements 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 any of the Service Agreements or any provisions therein. 5. Payment Agents To facilitate Emergency Cash Transfers to Emergency Cash Transfer Beneficiaries under Part 1.1 of the Project, Cash Transfers to Cash Transfer Beneficiaries under Parts 1.2 and 4 (ii) of the Project and Small Grants to Small Grant Beneficiaries under Parts 2.1 (v) and 4 (iii) of the Project, in a timely manner, the Recipient shall hire payment agents (“Payment Agents”) in accordance with the provisions of Section III of this Schedule, whose terms of reference, qualifications and experience and terms and conditions of employment shall be satisfactory to the Association. 6. CERC Technical Committee (a) The Recipient shall maintain, at all times during the implementation of the Project, a technical committee with a mandate, composition and resources satisfactory to the Association responsible for the technical oversight of Part 6.1 of the Project (“CERC Technical Committee”). (b) Without limitation upon the provisions of paragraph (a) of Section I.A.6 of this Schedule 2, the CERC Technical Committee shall be co-chaired by the National Director General for National Solidarity and Social Assistance and the National Director General of Agriculture of the Ministry of Agriculture. B. Project Implementation Manual 1. The Recipient shall update, in accordance with terms of reference acceptable to the Association, the Project Implementation Manual, containing detailed arrangements and procedures for: (a) institutional coordination and day-to-day execution of the Project; (b) Project budgeting, disbursement and financial management; (c) procurement; (d) monitoring, evaluation, reporting and communication; (e) environmental and social management; and (f) such other administrative, financial, technical, institutional and organizational arrangements and procedures as shall be required for the Project. 2. The Recipient shall afford the Association a reasonable opportunity to review and approve such manual, and shall thereafter adopt: (a) such manual as it applies to the Project overall implementation; (b) technical aspects of the manual as it applies -13- to Emergency Cash Transfers under Part 1.1 of the Project, including detailed information on the beneficiary eligibility criteria, selection, payment methods and relevant verification mechanisms; (c) technical aspects of the manual as it applies to Cash Transfers under Parts 1.2 and 4 (ii) of the Project, including detailed information on the beneficiary eligibility criteria, selection, payment methods and relevant verification mechanisms; and (d) technical aspects of the manual as it applies to Small Grants under Parts 2.1 (v)and 4 (iii) of the Project, including detailed information on the Small Grant Beneficiaries’ eligibility criteria, selection, payment methods and relevant verification mechanisms, as shall have been approved by the Association (“Project Implementation Manual”). 3. The Recipient shall carry out the Project in accordance with the Project Implementation Manual and shall, not amend, abrogate, waive, or permit to be amended, abrogated, or waived, the aforementioned, or any provision of either one thereof, without the prior written consent of the Association. 4. In the event of any conflict between the provisions of the Project Implementation Manual and those of this Agreement, the provisions of this Agreement shall prevail. C. Emergency Cash Transfers 1 Each Emergency Cash Transfer Beneficiary under Part 1.1 of the Project shall receive emergency cash transfers over a period not exceeding four (4) months, allowing beneficiaries to recover economically from the impact of climate-related shocks, food security shocks, or COVID-19, as identified in the Project Implementation Manual. 2. The Recipient shall ensure that Emergency Cash Transfer Beneficiaries have been identified through a targeting process acceptable to the Association as set forth in the Project Implementation Manual. 3. The Recipient shall ensure that Emergency Cash Transfer Beneficiaries have been identified through a targeting process acceptable to the Association as set forth in the Project Implementation Manual. D. Cash Transfers 1 Each Cash Transfer Beneficiary under Part 1.2 and 4 (ii) of the Project shall receive, every month, one (1) cash transfer over a period not exceeding thirty (30) months. 2. The Recipient shall ensure that Cash Transfer Beneficiaries have been identified through a targeting process acceptable to the Association as set forth in the Project Implementation Manual. -14- E. Small Grants 1. To facilitate the carrying out of Parts 2.1 (v) and 4 (iii) of the Project, the Recipient shall make the proceeds of the Financing allocated to Category (3) available to selected eligible Small Grant Beneficiaries under an agreement (“Small Grant Agreement”) to be entered into between the Recipient and said Small Grant Beneficiaries, under terms and conditions approved by the Association and in accordance with the Project Implementation Manual. 2. The Recipient shall cause Small Grant Beneficiaries to exercise their rights and carry out their obligations under the Small Grant Agreements in such a manner as to protect the interests of the Recipient and the Association in order to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall cause Small Grant Beneficiaries not to amend, assign, abrogate, suspend, terminate, waive or fail to enforce the Small Grant Agreements or any of their provisions. F. Annual Work Plans 1. Without limitation to the obligations set forth in Section I.B above, the Recipient shall carry out the Project in accordance with Annual Work Plans to be prepared and furnished to the Association not later than April 30 of each year during the implementation of the Project (the first such Annual Work Plan being due one month after the Effective Date), or any later date as agreed upon with the Association, and containing all activities proposed for inclusion in the Project for the next calendar year, including: (a) detailed timetables for the sequencing and implementation of proposed Project activities; (b) types of expenditures required for such activities and a proposed financing plan; and (c) any Operating Costs or Training that may be required under the Project. 2. The Recipient shall afford the Association a reasonable opportunity to exchange views on each such proposed Annual Work Plan; and thereafter ensure that the Project is implemented with due diligence during said following year in accordance with such Annual Work Plan as shall have been approved by the Association. 3. The Annual Work Plans may only be amended from time to time in consultation with, and after approval of, the Association. In case of any conflict between the terms of the Annual Work Plans and those of this Agreement, the terms of this Agreement shall prevail. G. Contingent Emergency Response 1. In order to ensure the proper implementation of contingent emergency response activities under Part 6 of the Project (“Emergency Response Part”), the Recipient shall: -15- (a) prepare and furnish to the Association for its review and approval, a Contingency Emergency Response Manual (“CER Manual”) which shall set forth detailed implementation arrangements for the Emergency Response Part, including: (i) any additional institutional structures or arrangements for coordinating and implementing the Emergency Response Part; (ii) specific activities which may be included in the Emergency Response Part, Eligible Expenditures required therefor (“Emergency Expenditures”), and any procedures for such inclusion; (iii) financial management arrangements for the Emergency Response Part; (iv) procurement methods and procedures for the Emergency Response Part; (v) documentation required for withdrawals of Emergency Expenditures; (vi) environmental and social management arrangements and instruments for the Emergency Response Part adopted in accordance with the Environmental and Social Standards of Section I.H of this Schedule 2; and (vii) any other arrangements necessary to ensure proper coordination and implementation of the Emergency Response Part; (b) afford the Association a reasonable opportunity to review the proposed CER Manual; (c) promptly adopt the CER Manual for the Emergency Response Part as shall have been approved by the Association and integrate it as an annex to the Project Implementation Manual; (d) ensure that the Emergency Response Part is carried out in accordance with the CER Manual; provided, however, that in the event of any inconsistency between the provisions of the CER Manual and this Agreement, the provisions of this Agreement shall prevail; and (e) not amend, suspend, abrogate, repeal or waive any provision of the CER Manual without the prior written approval by the Association. 2. The Recipient shall, throughout the implementation of the Emergency Response Part, maintain the institutional structures and arrangements established in accordance with the CER Manual, with adequate staff and resources satisfactory to the Association. 3. The Recipient shall undertake no activities under the Emergency Response Part unless and until the following conditions have been met in respect of said activities: (a) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the Emergency Response Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such -16- determination, accepted said request and notified the Recipient thereof; and (b) the Recipient has ensured the preparation and disclosure of all environmental and social instruments as may be required for said activities in accordance with the CER Manual, the Association has approved all said instruments, and the Recipient has ensured the implementation of any actions which are required to be taken under said instruments. H. Environmental and Social Standards 1. The Recipient shall 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 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 ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, and 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 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, 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 -17- 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 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. I. Cooperation Agreements 1. To facilitate the carrying out of the Project, the Recipient may during the implementation of the Project, enter into Cooperation Agreements with Project Partners, and thereafter maintain said Cooperation Agreements during the implementation of the Project, on terms and conditions acceptable to the Association, including, inter alia, the Recipient’s obligation to make parts of the proceeds of the Financing allocated to Category (4) available to Project Partners in order to assist the Recipient in the carrying out of the Project in accordance with the Anti-Corruption Guidelines, the Procurement Regulations, the ESCP and the Project Implementation Manual. 2. The Recipient shall exercise its rights or carry out its obligations under the Cooperation Agreements 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, waive, terminate or fail to enforce the Cooperation Agreements, or any of their provisions. J. Output Agreement with WFP 1. For purposes of implementing Part 6.1(i) of the Project, the Recipient, through the PIU, shall enter into an output agreement (the “WFP Output Agreement”) with the World Food Program (“WFP”), in a manner and substance satisfactory to the Association, in order to: (a) raise awareness among the Recipient and Eligible Beneficiaries on selection criteria and the purpose of the assistance under Part 6.1(i); (b) conduct geographical and community-based targeting to determine the lists of Eligible Beneficiaries ; (c) conduct the biometric registration and distribute registration cards to Eligible Beneficiaries; (d) distribute Food Security Cash -18- Transfers to the Eligible Beneficiaries; (e) coordinate the distribution of Food Security Cash Transfers to Eligible Beneficiaries simultaneously with the distribution of Agricultural Inputs by FAO; (f) strengthen the capacity of the National Agency for Strategic Food Stock Management to manage the strategic food reserve; and (g) monitor and evaluate the distribution of Food Security Cash Transfers. 2. For the purpose of conducting the biometric registration related to Part 6.1(i), the Recipient shall cause WFP to ensure that its staff and any third party contracted for the purpose, follow adequate data protection standards and protocols, in accordance with applicable national law and good international practice and acceptable to the Association, as such standards and protocols shall be incorporated in the First CER Manual and, where appropriate, the applicable terms of reference. 3. The Recipient shall exercise its rights under the WFP Output Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Output Agreement or any provision contained therein (whether in whole or in part). 4. In the event of any conflict between the provisions of the Output Agreement and those of this Agreement the provisions of this Agreement shall prevail. K. Output Agreement with FAO 1. For purposes of implementing Part 6.1(ii) of the Project, the Recipient, through the PIU, shall enter into an output agreement (the “FAO Output Agreement”) with the Food and Agriculture Organization (“FAO”), in a manner and substance satisfactory to the Association, in order to: (a) launch the procurement process for Agricultural Inputs; (b) organize and supervise Eligible Beneficiaries in land pooling groups; (c) provide Training and awareness-raising for Eligible Beneficiaries on good agricultural practices and resilience to climate shocks; (d) conduct input analysis and quality control of the Agricultural Inputs; (e) distribute Agricultural Inputs to Eligible Beneficiaries and coordinate the transport and delivery; and (f) organize the post-distribution follow-up. 2. The Recipient shall exercise its rights under the FAO Output Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the FAO Output Agreement or any provision contained therein (whether in whole or in part). 3. In the event of any conflict between the provisions of the FAO Output Agreement and those of this Agreement the provisions of this Agreement shall prevail. -19- Section II. Project Monitoring, Reporting and Evaluation The Recipient shall furnish to the Association each Project Report not later than forty-five (45) days after the end of each semester, covering the 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 Expenditure; in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Category Amount of the Percentage of Financing Expenditures to be Allocated Financed (expressed in (inclusive of Taxes) SDR) (1) Emergency Cash Transfers under Part 100% after Category 1 of 1.1(i) of the Project 7,600,000 Grant D9440 is fully disbursed (2) Cash Transfers under Part 1.2 of the 100% after Category 7(a) of Project 18,513,600 Grant D9440 is fully disbursed (3) Small Grants under Parts 2.1(v) of the 100% after Category 3 of Project 3,420,000 Grant D9440 is fully disbursed (4) Goods, non-consulting services, 100% consulting services, Training and 8,466,400 Operating Costs under Part 1.1 (ii); 1.3; Part 2.1 (i), (ii), (iii), (iv), (vi), (vii) and (viii); and Part 5.3 of the Project (5) Emergency Expenditures under Part 0 100% 6.2 of the Project (CER Part) Total Amount 38,000,000 -20- B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A above, no withdrawal shall be made: (a) for payments made prior to the Signature Date; or (b) for Emergency Expenditures under Category (5), unless and until the Association is satisfied, and notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said expenditures: (i) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include the proposed activities in the Emergency Response Part in order to respond to said crisis or emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has ensured that all safeguard instruments required for said activities have been prepared and disclosed, and the Recipient has ensured that any actions which are required to be taken under said instruments have been implemented, all in accordance with the provisions of Section I.G.3(b) of this Schedule; (iii) the entities in charge of coordinating and implementing the Emergency Response Part have adequate staff and resources, in accordance with the provisions of Section I.G.2 of this Schedule, for the purposes of said activities; and (iv) the Recipient has adopted the CER Manual, in form and substance acceptable to the Association, and the provisions of the CER Manual remain in accordance with the provisions of Section I.G.1(a) of this Schedule so as to be appropriate for the inclusion and implementation of said activities under the Emergency Response Part. 2. The Closing Date is December 31, 2027. -21- APPENDIX Definitions 1. “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. 2. “Affected Provinces” means the provinces of Bubanza, Bujumbura Rural, Cibitoke, Kirundo, Ngozi and Rumonge. 3. “Agricultural Input” or “Agricultural Inputs” means seeds and fertilizers to be acquired for Eligible Beneficiaries out of the proceeds of the Financing for the purposes of Part 6.1(i) of the Project, under terms and conditions acceptable by the Association and indicated in the First CER Manual. 4. “Burundi Red Cross” means the Burundi branch of the Red Cross established through the Recipient’s Arrêté Ministériel n°100/184 dated April 5, 1963, as modified through the Presidential Decree n°1/211 dated November 18, 1968. 5. “Cash Transfer” or “Cash Transfers” means one or all cash transfers made by the Recipient to Cash Transfer Beneficiaries out of the proceeds of the Financing for the purposes of Parts 1.2 and 4 (ii) of the Project. 6. “Cash Transfer Beneficiaries” means an eligible extremely poor person or vulnerable household as determined by the criteria set forth in the Project Implementation Manual, to whom the Recipient proposes to make a Cash Transfer under Parts 1.2 and 4 (ii) of the Project. 7. “Category” means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 8. “CNPS/SEP” means Secretariat Exécutif Permanent de la Commission Nationale de la Protection Sociale, the Recipient’s permanent executive secretariat of the commission for social protection, as established and operating under the Recipient’s Decree No 100/84 dated March 19, 2013, and any successor thereof acceptable to the Association. 9. “Contingency Emergency Response Manual” and the acronym “CER Manual” means the manual referred to in Section I.G.1(a) of Schedule 2 to this Agreement, to be adopted by the Recipient for the Emergency Response Part (Part 6) in form and substance satisfactory to the Association. 10. “COVID-19” means the coronavirus disease caused by the 2019 novel coronavirus (SARS-CoV-2). -22- 11. “Eligible Beneficiaries” means an eligible food insecure household as determined by the criteria set forth in the First CER Manual to receive Food Security Cash Transfers and Agricultural Inputs for the purposes of Part 6.1 of the Project. 12. “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. 13. Emergency Cash Transfer” or “Emergency Cash Transfers” means one or all cash transfers made by the Recipient to Emergency Cash Transfer Beneficiaries with the aim to support households economically affected by COVID-19 pandemic, climate-related shocks or food security shocks as identified in the Project Implementation Manual, out of the proceeds of the Financing for the purposes of Part 1.1 of the Project. “Emergency Cash Transfer Beneficiaries” means eligible households living in the Recipient’s identified as most hit by the COVID-19 pandemic, climate-related shocks or food security shocks as determined by the criteria set forth in the Project Implementation Manual, to whom the Recipient proposes to make an Emergency Cash Transfer referred to under Part 1.1 of the Project. 14. “Emergency Expenditure” means any of the eligible expenditures set forth in the CER Manual in accordance with the provisions of Section I.G.1(a)(ii) of Schedule 2 to this Agreement and required for the Emergency Response Part. 15. “Emergency Response Part” means Part 6 of the Project, as further described in Section I.G of Schedule 2 to this Agreement. 16. “Environmental and Social Commitment Plan” or “ESCP” means the environmental and social commitment plan for the Project, dated May 10, 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. 17. “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 -23- Resources”; (vii) “Environmental and Social Standard 7: Indigenous Peoples/Sub- Saharan Historically Underserved Traditional Local Communities”; (viii) “Environmental and Social Standard 8: Cultural Heritage”; (ix) “Environmental and Social Standard 9: Financial Intermediaries”; and (x) “Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure”; effective on October 1, 2018, as published by the Association. 18. “FAO” means the Food and Agriculture Organization, the UN agency established in 1945. 19. “First CER Manual and Emergency Action Plan” means the manual and action plan elaborated by the Recipient and dated September 4, 2023 and July 10, 2023, respectively, for purposes of the first activation of Part 6 of the Project under the Financing Agreement. 20. “Food Security Cash Transfer” or “Food Security Cash Transfers” means one or all cash transfers made to Eligible Beneficiaries out of the proceeds of the Financing for the purposes of Part 6.1(ii) of the Project. under terms and conditions acceptable by the Association and indicated in the First CER Manual. 21. “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). 22. “General Directorate for National Solidarity and Social Assistance” means the Recipient’s directorate responsible for developing and coordinating mobilization strategies for relief in the event of natural disasters in collaboration with the other services concerned. 23. “GRM” means grievance redress mechanism. 24. “Iterative Beneficiary Monitoring” means an approach to project monitoring designed as a light, low-cost, independent, rapid, and iterative feedback loop that collects information directly from beneficiaries and produces short reports on challenges that can be addressed by project teams. 25. “LMP” means, the Labor Management Procedures to be prepared and adopted by the Recipient, and deemed satisfactory to the Association, identifying labor requirements and setting out the procedures for addressing labor conditions and risks associated with the Project activities, which is intended to help the Project identify the resources necessary to address Project labor issues. The LMP is enshrined within the context of the World Bank Environmental and Social Standards (ESS) 2: Labor and Working Conditions. -24- 26. “M&E” means monitoring and evaluation. 27. “MNSSAHRG” means the Recipient’s ministry in charge of national solidarity, social affairs, human rights and gender, or any successor thereto. 28. “National Director for Social Assistance and National Solidarity” means the head of the General Directorate for National Solidarity and Social Assistance within MNSSAHRG. 29. “National Social Protection Commission” or “CNPS” means the commission established pursuant to the Recipient’s Décret No. 100/237 du 22 août 2012 portant création, organisation, composition, missions et fonctionnement de la commission nationale de protection sociale. 30. “National Social Registry” means information systems that support outreach, intake, registration, and determination of potential eligibility for one or more social programs at national level to be developed under Part 3.2 of the Project. 31. “ONPRA” means the National Office for the Protection of Refugees and Stateless Persons, a technical branch under the Recipient's Ministry of Interior, Community Development and Public Security. 32. “Operating Costs” means the reasonable incremental expenses incurred in connection with Project implementation for PIU, the Project Technical Committee, the CNPS/SEP, the General Directorate for National Solidarity and Social Assistance, and the ONPRA, Project Partners and other relevant institutions of the Beneficiary, including consumable materials and supplies, utilities, fuel and oil, communications, administrative fees, surveys and census costs, scholarships and stipends, mass media and printing services, vehicle rental, operation and maintenance, charges for the opening and operation of bank accounts required for the Project, travel, lodging and per diems, but excluding salaries of officials of the Recipient's civil service and Training. 33. “Procurement Regulations” means, for purposes of paragraph 87 of the Appendix to the General Conditions, the “World Bank Procurement Regulations for IPF Borrowers”, dated September 2023. 34. “Project Implementation Manual” means the manual referred to in Section I.B of Schedule 2 to this Agreement, as may be revised from time to time with the Association’s prior and written approval. 35. “Project Implementation Unit” means the Project’s coordination unit within the administrative authority of MNSSAHRG, established under the Social Safety Net Project (Merankabandi) (Grant No. D154-BI), and referred to in Section I.A.3 of Schedule 2 to this Agreement, or any successor thereof acceptable to the Association. -25- 36. “Project Partner” or “Project Partners” means any or all legal entities established in the territory of the Beneficiary or abroad with which the Recipient may sign a Cooperation Agreement for the implementation of the Project. 37. “Project Steering Committee” means Comité de pilotage, the Recipient’s committee established and operating in accordance with the Project Implementation Manual and referred to in Section I.A.1(a) of Schedule 2 to this Agreement, or any successor thereto acceptable to the Association. 38. “Project Technical Committee” means Comité technique de mise en oeuvre du Projet, an operational committee in charge of the technical supervision of the Project, as further detailed in the Project Implementation Manual. 39. “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. 40. “Small Grant” or “Small Grants” means one or all unconditional lump-sum cash grants allocated to Small Grant Beneficiaries of productive inclusion, under Parts 2.1 (v)and 4 (iii) of the Project, upon approval of their business plan. 41. “Small Grant Agreement” or “Small Grant Agreements” means one or all agreements signed or proposed to be signed with Small Grant Beneficiaries for the financing of Small Grants as further detailed in the Project Implementation Manual. 42. “Small Grant Beneficiaries” means eligible individuals determined by the criteria set forth in the Project Implementation Manual, to whom the Recipient proposes to make a small grant under Parts 2.1 (v), and 4 (iii) of the Project. 43. “Social Protection Strategy” means the new policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people's exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income to be developed under Part 5.1 of the Project. 44. “Training” means expenditures incurred by the Recipient in connection with carrying out training activities under the Project (excluding consulting services), including travel costs and per diem for local trainees, study tours, workshops, conferences, rental of facilities and equipment and training materials and related supplies. 45. “UNHCR” means United Nations High Commissioner for Refugees , a United Nations agency, dedicated to saving lives, protecting rights and building a better future for refugees, forcibly displaced communities and stateless people. -26- 46. “VSLA Model” means Village Savings and Loans Association Model, designed to reduce poverty by financially and socially empowering poor and vulnerable people through community savings and loans. 47. “WFP” means World Food Program, the UN agency established in 1961.