GRANT NUMBER E2240-CF Financing Agreement (Local Governance and Community Resilience Project (É KPÉNGBA)) between CENTRAL AFRICAN REPUBLIC and INTERNATIONAL DEVELOPMENT ASSOCIATION GRANT NUMBER E2240-CF FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between CENTRAL AFRICAN REPUBLIC (“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION (“Association”). 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 sixty-seven million seven hundred Special Drawing Rights (SDR 67,700,000) (“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 May 15 and November 15 in each year. 2.05. The Payment Currency is Euro. 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 in accordance with the provisions of Article V of the General Conditions. ARTICLE IV — EFFECTIVENESS; TERMINATION 4.01. The Additional Conditions of Effectiveness consist of the following: -2- (a) The PIU has been established, with resources, terms of reference, and staff, including: (i) a Project manager; (ii) a governance specialist; (iii) a community development specialist; (iv) a disarmament, demobilization, reintegration and repatriation specialist; (v) a procurement specialist; (vi) a financial management specialist; (vii) an environmental safeguards specialist; (viii) a social safeguards specialist; (ix) a security specialist; (x) a gender and gender-based violence specialist; and (xi) a monitoring and evaluation specialist, all in form and manner satisfactory to the Association. (b) The Project Operations Manual has been prepared and adopted in form and manner satisfactory to the Association. 4.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 4.03. 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 V — REPRESENTATIVE; ADDRESSES 5.01. Except as provided in Section 2.02 of this Agreement, the Recipient’s Representative is its Minister responsible of economy. 5.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient’s address is: Ministry of Economy, Planning and International Cooperation Rue Martin Luther King BP 696, Bangui Central African Republic; and (b) the Recipient’s Electronic Address: E-mail: dircabmepci22@gmail.com 5.03. 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 -3- AGREED as of the Signature Date. CENTRAL AFRICAN REPUBLIC By _____________________________________/s1/ Authorized Representative Félix MOLOUA Name: __________________________/n1/ Ministre de l'Economie, du Plan et de la Co Title: __________________________/t1/ 25-sept.-2023 Date: __________________________/d1/ INTERNATIONAL DEVELOPMENT ASSOCIATION By _____________________________________/s2/ Authorized Representative Cheick Fantamady Kante Name: __________________________/n2/ Country Director Title: __________________________/t2/ 22-Sep-2023 Date: __________________________/d2/ -4- SCHEDULE 1 Project Description The objective of the Project is to build state and citizen capacity for local service delivery, improve access to basic socio-economic climate adaptive infrastructure, and provide socio- economic support to the reintegration of Ex-Combatants. The Project consists of the following parts: Part 1: Strengthening Central Systems Underpinning Decentralization and Enhancing Local Capacity for Service Delivery Improving local service delivery and inclusive and effective local governance through: 1.1 Operationalization of the multi-level governance framework and system to enable local development. Providing technical assistance to strengthen the Recipient’s central government’s institutions, legal framework, financial management systems and human resources that enable local governance through: (a) Providing technical assistance to operationalize and develop complementary regulations and institutional arrangements to support the implementation of the Recipient’s Decentralization Law and Deconcentration Law. (b) Strengthening existing financial management system for the transfer of resources and treasury flow outside of Bangui and providing technical assistance and capacity building to Supreme Audit Institution, ACCT, and the MATDDL to support the oversight capabilities of the Recipient’s central government over the municipalities. (c) Developing and operationalizing a training program delivered to civil servants on local governance and providing technical assistance and capacity building to develop local municipalities’ human resources organizational charts. 1.2 Enhancing the capacity of local authorities to perform their functions. Strengthening local governments on planning, resources mobilization and management, procurement, and service delivery through: (a) Providing training and capacity building to municipalities and developing systems to improve the performance of core public sector and governance functions (financial management, procurement, human resources management, monitoring -5- and evaluation, civil registration, climate resilience, own-source revenue mobilization, public accountability, and grievance redress). (b) Carrying out the development, construction and equipment of municipal and sub- prefecture infrastructure including inter alia town halls and offices. (c) Designing and developing of template and methodology for municipal planning documents including inter alia budget, investment plans, and local development plans. 1.3 Enhancing citizen capacity and the citizen-state interface for local development Strengthening citizen’s possibilities and capacity to participate in local governance and hold local governments accountable through: (a) Carrying out sensibilization and awareness campaign on the decentralization process and the roles of local authorities and citizens in that process and capacity building of existing channels of communication between citizens and their local government, such as local leaders, community-based organization, and the media. (b) Providing support to local non-governmental organization at the central level to build coalitions aimed and promoting awareness for decentralization. (c) Enhancing management and adaptive management for central ministries and agencies to support the deconcentration of services through: (i) providing capacity building of the public sector to manage intergovernmental fiscal framework, monitor, and support local authorities in revenue administration and climate change/disaster risk assessment; (ii) providing support to MFB, MATDDL, MEPCI, and selected agencies to design and develop an integrated platform and networks for local services delivery. Part 2: Community Resilience Increasing the resilience of the local communities, increasing social cohesion, and enhancing transparency and accountability through: 2.1 Small Scale Infrastructure Sub-Projects. (a) Developing and carrying out a selection process for Small-Scale Infrastructure Sub-Projects in areas selected in accordance with criteria set forth in the Project Operations Manual, and support to develop participatory local development plans. (b) Carrying out construction and rehabilitation of local infrastructures through Small- Scale Infrastructure Sub-Projects, focusing on productive investments and tackling climate adaptation and mitigation measures including inter alia markets, facilities -6- for small-scale traders, water holes, maintenance or rehabilitation of feeder roads and platforms for drying agricultural products. (c) Establishing feed-back loops on local development plans and local infrastructure under the Project through carrying out training and capacity building on social accountability mechanisms to local non-governmental organizations 2.2 Labor-Intensive Public Works Carrying out a Labor-Intensive Public Works Program (LIPWP) designed to generate temporary employment opportunities to LIPWP Beneficiaries in eligible households with labor capacity to carry out, inter alia, the following activities: (a) rehabilitation and maintenance of rural feeder roads and associated investments, adhering to climate-proofed infrastructure design standards such as effective road drainage systems for heavy rainfalls; and (b) construction of Small-Scale Infrastructure Sub-Projects like dikes and drainage systems, designed to handle increased run-off from climate-induced floods. 2.3 Socioeconomic resilience of both farmers and pastoralists to promote their peaceful co-existence in transhumance Providing support to community-based approaches to decrease tensions linked to seasonal movement of herds through: (a) the demarcation of animal roads; (b) construction and rehabilitation of water points; (c) the strengthening of mediation efforts at the community level. Part 3: Socioeconomic reintegration of Ex-Combatants Providing socio-economic support to Ex-Combatants to facilitate re-integration into communities of return through the DDRR Program through: 3.1 Small-Scale Infrastructure Sub-Projects to support Ex-Combatants re-integration. Support for the improvement of socio-economic infrastructure through Small-Scale Infrastructure Subprojects selected through a community participatory process set forth in the Project Operations Manual, comprising activities including inter alia: (a) rehabilitation of small scale connective infrastructure; (b) access to basic social services such as the rehabilitation of schools and dispensaries; and (c) access to economic opportunities such as rehabilitation of markets and harvest storage facilities, rehabilitation of training and drop in support centers, facilitation of linkages to micro-finance institutions and rehabilitation of water sources. 3.2 Civic education, vocational training and formation of income generating groups (a) Providing of a foundational skill, civic education, and vocational training set to Ex-Combatants to facilitate a transition to civilian life including inter alia: (i) basic literacy and numeracy training; (ii) relevant and targeted life skills training; -7- (iii) peace, reconciliation and conflict resolution training; (iv) human rights, gender sensitization, civic education and citizenship training; (v) health awareness trainings; (vi), psycho-social support; (vii) livelihoods counseling; (viii) climate change awareness. (b) Providing livelihood and career guidance and counselling to create a pathway towards an individual livelihood/career plan. (c) Providing vocational training to selected Ex-Combatant on a specific skill related to, for example, agricultural, pastoralist activities, welding or carpentry. (d) Providing start up support kits corresponding to the vocational skills training provided to Ex-Combatants and pursuant to criteria set forth in the POM. (e) Providing technical and material support to selected Ex-Combatants to establish small businesses for trade or services. 3.3: Participation of Ex-Combatants in cash-for-work through LIPWP Enhancing the socio-economic reintegration process and improving the relationship between Ex-Combatants and community members through carrying out a Labor-Intensive Public Works Program (LIPWB) designed to generate temporary employment opportunities for Ex-Combatants, including at women Ex-Combatants, to conduct works including inter alia planning and construction of Small-Scale Infrastructure Sub-Projects. Part 4: Project Management Carrying out the following activities to support Project management: (a) implementation and technical oversight of Project activities, (b) sensitization and communication; (c) environmental and social risks management; (d) financial management; and (e) monitoring and evaluation. Part 5: Contingent Emergency Response Provision to the Recipient of immediate response to an Eligible Crisis or Emergency, as needed. -8- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. 1. The Recipient shall carry out the Project through the MEPCI. 2. Project Steering Committee (PSC) By no later than sixty (60) days after the Effective Date, the Recipient shall establish and thereafter maintain during the implementation of the Project a Project Steering Committee (PSC), with the composition, functions, staffing and resources satisfactory to the Association, and responsible for providing oversight and policy guidance to the Project. The PSC shall be chaired by MEPCI and comprised of representative of MATDDL, MDDRR, the MFB and representatives from other line ministries of the Recipient, as relevant. 3. PIU (a) The Recipient shall establish and maintain a PIU within MEPCI with mandate, composition and resources acceptable to the Association. In particular, the Recipient shall maintain at all times sufficient staff, each with adequate terms of reference, qualifications and experience for the Project. (b) The PIU shall be responsible for the day-to-day management of the Project and all technical aspects of Project activities, including preparation and costing of components, implementation and coordination of individual Project activities, establishing and maintaining links with the relevant government departments and other entities, including international partners as well as monitoring and evaluation. (c) The PIU shall include, inter alia: (i) a Project manager; (ii) a governance specialist; (iii) a community development specialist; (iv) a disarmament, demobilization, reintegration and repatriation specialist; (v) a procurement specialist; (vi) a financial management specialist; (vii) an environmental safeguards specialist; (viii) a social safeguards specialist; (ix) a security specialist; (x) a gender and gender-based violence specialist; and (xi) a monitoring and evaluation specialist. (d) Not later than three (3) months after the Effective Date, the Recipient shall have acquired, installed and customized a computerized accounting software, satisfactory to the Association. -9- B. Project Operations Manual 1. The Recipient shall: (a) prepare and adopt in accordance with terms of reference acceptable to the Association, a manual, which contains Project arrangements and procedures for: (i) institutional coordination and day-to-day implementation of the Project; (ii) the roles and responsibilities of all involvement stakeholders; (iii) monitoring, evaluation, reporting and communication; (iv) the performance indicators; (v) Project budgeting, disbursement and financial management; (vi) the reporting requirements on Project progress implementation including the timeline for reporting on any significant incident/accident in accordance with the ESCP; (vii) arrangements for preventing, detecting, reporting, investigation, remediation and otherwise addressing fraud and corruption, including compliance with the Anti-Corruption Guidelines (which shall be annexed thereto); (viii) criteria, procedures and selection process of communities small infrastructure sub-projects under the Project; (ix) criteria, procedures and responsibilities for Training activities; (x) criteria for selection and modality for the management of the LIPWP; (xi) eligibility criteria and procedures to be applied for selection of LIPWP Beneficiaries and Ex-Combatants participating in LIPWP activities through a public lottery program; (xii) the form Temporary Employment Agreement for LIPWP Beneficiaries and Ex-Combatants participating in LIPWP activities; (xiii) the operating procedures governing Small Scale Infrastructure Sub-Projects including, inter alia, specific criteria for the selection of the infrastructure activities and locations to be eligible for financing under the Project; and (xiv) the list of Excluded Activities; (b) (i) carry out the Project in accordance with the POM that has been approved by the Association and adopted by the Recipient; and (ii) not amend, abrogate, or waive said POM or any part thereof without the prior written approval of the Association. 2. In the event of any inconsistency between this Agreement and the POM, the provisions of this Agreement shall prevail. -10- C. Small Scale Infrastructure Sub-Projects 1. The Recipient shall appraise, review, approve, and supervise each Small-Scale Infrastructure Sub-Project, including construction and rehabilitation activities, in accordance with the criteria, procedures and requirements set out in the POM, including, inter alia, the following criteria for a proposed Small Scale Infrastructure Sub-Project to be eligible for financing under the Project: (a) the proposed Small Scale Infrastructure Sub-Project shall be identified and prioritized pursuant to a selection process set forth under Part 2.1(a) or Part 3.1 of the Project, as applicable; (b) the proposed Small Scale Infrastructure Sub-Project is in compliance with the environmental standards, and with all applicable laws and regulations of the Recipient relating to environmental protection; (i) an environmental screening has been carried out for the proposed community small scale sub-project in accordance with principles set forth in the ESCP; and (ii) if said environmental screening has concluded that an ESMP satisfactory to the Association is required, said ESMP has been prepared by the Recipient; and (c) if the proposed Small Scale Infrastructure Sub-Project involves involuntary acquisition of land, or involuntary restriction of access to legally designated parks and protected areas, a RAP has been prepared in accordance with the principles set out in the RPF and said RAP has been approved by the Association, in accordance with requirements under Section I.C of this Schedule 2, for implementing the proposed Small Scale Infrastructure Sub-Project. 2. Every year during the Project implementation period the Recipient shall prepare and furnish to the Association for its review and approval an Annual Small Scale Infrastructure Sub-Project Plan which shall include the list of Small Scale Infrastructure Sub-Projects proposed to be financed during the respective annual period. Such plan shall be furnished to the Association not later than one (1) month prior to commencing the first selected Small Scale Infrastructure Sub-Project in the respective annual period. D. Temporary Employment Agreements under the Labor Intensive Public Works (LIPW) Program for the carrying out of Small Scale Infrastructure Sub-Projects under Part 2.2 and Part 3.3 of the Project. 1. To carry our activities under Parts of the Project, the Recipient shall enter into a Temporary Employment Agreement with each LIPWP Beneficiary, LIPWP Ex- Combatant, which shall include the following minimum conditions, and other such terms and conditions as may be specified in the POM: -11- (a) each LIPWP Beneficiary or LIPWP Ex-Combatant shall be a minimum of 18 years of age; (b) each LIPWP Beneficiary or LIPWP Ex-Combatant shall receive a Stipend of 2,500 FCFA per day; worked; (c) each LIPWP Beneficiary or LIPWP Ex-Combatant shall be permitted to work a maximum of forty (40) days over approximately two (2) months; (d) each LIPWP Beneficiary or LIPWP Ex-Combatant shall be capable of working, according to the conditions stipulated in the POM; (e) Each LIPWP Beneficiary or LIPWP Ex-Combatant shall agree to abide by and comply with the Project’s LIPW Code of Conduct. 2. The Recipient shall ensure that each Temporary Employment Agreement is entered into in the same form and substance of a template included in the POM. 3. The Recipient shall ensure that each such Temporary Employment Agreement is 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 Temporary Employment Agreement. 4. The Recipient shall ensure that payment under each Temporary Employment Agreement is subject to a Verification Process satisfactory to the Association. E. Annual Work Plan and Budget 1. The Recipient shall, not later than December 15 in each calendar year during Project implementation, prepare and furnish to the Association, a program of Project activities proposed for implementation in the following calendar year, including: (a) a detailed timetable for the sequencing and implementation of said activities; and (b) the types of expenditures required for such activities, a proposed financing plan and a budget (“Annual Work Plan and Budget” or “AWPB”). 2. The Recipient shall afford the Association a reasonable opportunity to exchange views with the Recipient on such proposed annual work plan and budget and thereafter ensure that the Project is implemented in accordance with such annual work plan and budget as shall have been approved by the Association. 3. The Recipient shall ensure that the Project is implemented in accordance with the AWPB (provided, however, that in the event of any conflict between the AWPB and the provisions of this Agreement, the provisions of this Agreement shall prevail). -12- F. 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, 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 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 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. -13- 5. The Recipient shall 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. 6. The Recipient shall ensure that all bidding documents and contracts for civil works under the Project include the obligation of contractors to: (a) comply with the relevant aspects of ESCP and the environmental and social instruments referred to therein; and (b) adopt and enforce codes of conduct that should be provided to and signed by all workers, detailing measures to address environmental, social, health and safety risks, and the risks of sexual exploitation and abuse, sexual harassment and violence against children, all as applicable to such civil works commissioned or carried out pursuant to said contracts. G. Contingent Emergency Response 1. In order to ensure the proper implementation of contingent emergency response activities under Part 5 of the Project (“Contingent Emergency Response Part”), the Recipient shall ensure that: (a) a manual (“CERC Manual”) is prepared and adopted in form and substance acceptable to the Association, which shall set forth detailed implementation arrangements for the Contingent Emergency Response Part, including: (i) any structures or institutional arrangements for coordinating and implementing the Contingent Emergency Response Part; (ii) specific activities which may be included in the Contingent Emergency Response Part, Eligible Expenditures required therefor (“Emergency Expenditures”), and any procedures for such inclusion; (iii) financial management arrangements for the Contingent Emergency Response Part; (iv) procurement methods and procedures for the Contingent Emergency Response Part; (v) documentation required for withdrawals of Financing amounts to finance Emergency Expenditures; (vi) a description of the environmental and social assessment and management arrangements for the Contingent Emergency Response Part; and (vii) a template Emergency Action Plan; (b) the Emergency Action Plan is prepared and adopted in form and substance acceptable to the Association; (c) the Emergency Response Part is carried out in accordance with the CERC Manual and the Emergency Action Plan; provided, however, that in the event of any inconsistency between the provisions of the CERC Manual or the Emergency Action Plan and this Agreement, the provisions of this Agreement shall prevail; and -14- (d) neither the CERC Manual or the Emergency Action Plan is amended, suspended, abrogated, repealed or waived without the prior written approval by the Association. 2. The Recipient shall ensure that the structures and arrangements referred to in the CERC Manual are maintained throughout the implementation of the Contingent Emergency Response Part, with adequate staff and resources satisfactory to Association. 3. The Recipient shall ensure that: (a) the environmental and social instruments required for the Contingent Emergency Response Part are prepared, disclosed and adopted in accordance with the CERC Manual and the ESCP, and in form and substance acceptable to the Association; and (b) the Contingent Emergency Response Part is carried out in accordance with the environmental and social instruments in a manner acceptable to the Association. 4. Activities under the Contingency Emergency Response Part shall be undertaken only after an Eligible Crisis or Emergency has occurred. 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 calendar quarter, covering the calendar quarter. 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: (a) finance Eligible Expenditures; and (b) repay the Preparation Advance in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: -15- Category Amount of the Grant Percentage of Allocated (expressed Expenditures to be in SDR) Financed (inclusive of Taxes) (1) Goods, works, non- 58,402,365 100% consulting services, consulting services, Training and Operating Costs for the Project (2) Stipends under Parts 2.2 8,275,000 100% and 3.3of the Project (3) Emergency Expenditures 0 100% under Part 5 of the Project (4) Refund of Preparation 1,022,635 Amount payable Advance pursuant to Section 2.07 (a) of the General Conditions TOTAL AMOUNT 67,700,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for (a) payments made prior to the Signature Date. (b) for Emergency Expenditures under Category (3), unless and until all of the following conditions have been met in respect of said expenditures: (i) (A) the Recipient has determined that an Eligible Crisis or Emergency has occurred, and has furnished to the Association a request to withdraw Financing amounts under Category (3); and (B) the Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (ii) the Recipient has adopted the CERC Manual and Emergency Action Plan, in form and substance acceptable to the Association. 2. The Closing Date is August 31, 2028. -16- APPENDIX Definitions 1. “ACCT” means Agence Comptable Central du Trésor the Recipient’s agency established and operating under the MFB pursuant to Decree No. 19.149 dated May 21, 2019 2. “Annual Small Scale Infrastructure Sub-Project Plan” the plan of referred to in Section I.C.2. of Schedule 2 to this Agreement 3. “Annual Work Plan and Budget” or “AWPB” means the program of Project activities and budget referred to in Section I.E of Schedule 2 to this Agreement. 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. “Category” means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 6. “CERC Manual” means the manual referred to in Section I.G of Schedule 2 to this Agreement, as such manual may be updated from time to time with the agreement of the Association, and which is an integral part of the Project Operations Manual. 7. “Contingent Emergency Response Part” means any activity or activities to be carried out under Part 5 of the Project to respond to an Eligible Crisis or Emergency. 8. “DDRR” means disarmament, demobilization, reintegration and repatriation. 9. “DDRR Program” means the Recipient’s program on disarmament, demobilization reintegration and repatriation established pursuant to decree no 17- 087 dated March 4, 2017. 10. “Decentralization Law” means Loi No. 20.008 du 17 septembre 2020 Portant Organisation et Fonctionnement des Collectivités Territoriales, the Recipient’s Law No20.008, dated September 17, 2020. 11. “Deconcentration Law” means Loi No. 21-001 Relative aux Circonscriptions Administratives, the Recipient’s Law No21-001 dated January 21, 2021. 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. -17- 13. “Emergency Action Plan” means the plan referred to in Section I.G of Schedule 2 to this Agreement, detailing the activities, budget, implementation plan, and monitoring and evaluation arrangements, to respond to the Eligible Crisis or Emergency. 14. “Emergency Expenditures” means any of the eligible expenditures set forth in the CERC Manual referred to in Section I.G of Schedule 2 to this Agreement and required for the Contingent Emergency Response Part. 15. “Environmental and Social Commitment Plan” or “ESCP” means the environmental and social commitment plan for the Project, dated July 19, 2023, 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. 16. “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. 17. “Ex-Combatant” means any person who has laid down or surrendered his/her arms with a view to entering DDRR process, consistent with Article 43(2) of the Protocols Additional to the Geneva Conventions of 12 August 1949, and who have been registered by the Recipient as eligible for the DDRR Program. 18. “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). -18- 19. “Labor-Intensive Public Works Program” or “LIPWP” means a program to be set forth in the POM supporting the carrying out of Parts 2.2 and 3.3 of the Project. 20. “Labor-Intensive Public Works Program Code of Conduct” or “LIPWP Code of Conduct” means the code of conduct applicable to LIPWP Beneficiaries hired for Labor Intensive Public Works under the Project, detailing standards and procedures relevant to work sites, including expected behaviors, as well as information on the Project Grievance Mechanism. 21. “LIPWP Beneficiary” means an individual selected in accordance with criteria set forth in the POM to participate in a LIPWP under Part 2.2 of the Project under a Temporary Employment Agreement. 22. “LIPWP Ex-Combatant” means an Ex-Combatant selected in accordance with criteria set forth in the POM to participate in a LIPWP under Part 3.3 of the Project under a Temporary Employment Agreement. 23. “Operating Costs” means the necessary and reasonable incremental expenses based on annual budgets approved by the Bank included in the AWPBs, incurred by the Recipient on account of Project implementation, management, and monitoring, including office supplies and consumables; communication costs; operation and maintenance of office, vehicles and equipment; per diem and national and international travel costs and accommodations for Project staff; reasonable bank charges; and allowances and salaries of the Project’s contractual staff (but excluding the salaries of the Recipient’s civil/public servants). 24. “MATDDL” means Ministère de l’Administration Territoriale, Décentralisation, et Développement Local, the Recipient’s ministry in charge of territorial administration, decentralization and local development, or any successor thereto. 25. “MDDRR” means Ministère du Désarmement, de la Démobilisation, de la Réintégration, du Rapatriement, et du Suivi de l’Accord Politique pour la Paix et la Réconciliation, the Recipient’s ministry in charge of disarmament, demobilization, reintegration, repatriation, and the monitoring of the political agreement for peace, or any successor thereto. 26. “MEPCI” means Ministère de l’Économie, Plan, et Cooperation Internationale, the Recipient’s ministry in charge of economy, planning, and international cooperation, or any successor thereto. 27. “MFB” means Ministère de Finances et du Budget, the Recipient’s ministry in charge of finance and budget, or any successor thereto. -19- 28. “Procurement Regulations” means, for purposes of paragraph 85 of the Appendix to the General Conditions, the “World Bank Procurement Regulations for IPF Borrowers”, dated November 2020. 29. “Project Operations Manual” or “POM” means the manual referred to in Section I.B of Schedule 2 to this Agreement. 30. “Project Steering Committee” or “PSC” means the committee referred to in Section I.A.2 of Schedule 2 to this Agreement. 31. “RAP” means a resettlement action plan prepared, disclosed, consulted upon, adopted, and implemented pursuant to the ESCP. 32. “RPF” means a resettlement policy framework prepared, disclosed, consulted upon, and adopted pursuant to the ESCP. 33. “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. 34. “Small-Scale Infrastructure Sub-Project” means a sub-project. 35. “Stipend” means the monetary remuneration paid by the Recipient to a LIPWP Beneficiary or a LIPWP Ex-Combatant. 36. “Supreme Audit Institution” means Cours des Comptes the Recipient’s institution established and operating pursuant to Law No. 096.001 dated January 3, 1996, as amended by Law 97-003 dated May 12, 1997. 37. “Temporary Employment Agreement” means an employment contract executed between the Recipient and a LIPWP Beneficiary or a LIPWP Ex-Combatant governing the terms of employment under Part 2.2 or 3.3 of the Project, respectively, pursuant to a form to be included in the POM. 38. “Training” means the reasonable costs of training under the Project approved by the Association under the AWPBs, and attributable to seminars, workshops, and study tours, along with travel and subsistence allowances for training participants, services of trainers, rental of training facilities, preparation and reproduction of training materials, and other activities directly related to course preparation and implementation. 39. “Verification Process” means the process satisfactory to the Association by which the Recipient shall verify that a LIPWP Beneficiary or LIPWP Ex-Combatant has completed a worked day and has been paid his or her Stipend in accordance with the terms of the Temporary Employment Agreement.