OFFICIAL DOCUMENTS CREDIT NUMBER 6801-BD Financing Agreement (Additional Financing for the Reaching Out-of-School Children Project) between PEOPLE'S REPUBLIC OF BANGLADESH and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER 6801-BD FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between PEOPLE'S REPUBLIC OF BANGLADESH ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing additional financing for activities related to the Original Project (as defined in the Appendix to this Agreement). 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 or the Original Financing Agreement. ARTICLE II - FINANCING 2.01. The Association agrees to extend to the Recipient a credit, which is deemed as Concessional Financing for purposes of the General Conditions, in an amount equivalent to four million seven hundred thousand Special Drawing Rights (SDR 4,700,000) (variously, "Credit" and "Financing"), to assist in financing the project described in Schedule I 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Unwithdrawn Financing Balance. 2.04, The Service Charge is three-fourths of one percent (3/4 of 1%) per annum on the Withdrawn Credit Balance. 2.05. The Interest Charge is one and a quarter percent (1.25%) per annum on the Withdrawn Credit Balance. 2.06. The Payment Dates are May I and November 1 in each year. -2- 2.07. The principal amount of the Credit shall be repaid in accordance with the repayment schedule set forth in Schedule 3 to this Agreement. 2.08. The Payment Currency is Dollar. ARTICLE III - PROJECT 3.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient, through its Directorate of Primary Education of the Ministry of Primary and Mass Education, 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 - EFFECTIVENESS; TERMINATION 4.01. The Additional Conditions of Effectiveness consist of the following, namely that the Association is satisfied that the following agreements relating to the implementation of Part 5 of the Project have been updated to include relevant provisions on revised work plan, including disbursement schedule, and COVID-19 safety measures: (i) the agreement between the Recipient and UNICEF; and (ii) the agreement between the Recipient and Save the Children. 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, The Recipient's Representative is the Senior Secretary/Secretary, any Additional Secretary, Joint Secretary, Joint Chief, Deputy Secretary, Deputy Chief, Senior Assistant Secretary, Senior Assistant Chief, Assistant Secretary or Assistant Chief of the Economic Relations Division of the Ministry of Finance. 5.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Economic Relations Division Ministry of Finance Government of the People's Republic of Bangladesh Sher-E-Bangla Nagar 1207 Dhaka, Bangladesh; and -3- (b) the Recipient's Electronic Address is: Facsimile: E-mail: +88029180788 / +88029180671 seccIarlacrtJ ov.bd 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: Facsimile: 1-202-477-6391 AGREED as of the Signature Date. -4- INTERNATIONAL DEVELOPMENT ASSOCIATION By Authorized Representative Name: Mercy Tembon Title: Country Director for Bangladesh and Bhutan Date: January 18, 2021 PEOPLE'S REPUBLIC OF BANGLADESH By Authorized Representative Name: Fatima Yasmin Secretary Economic Relations Division Ministry of Finance Title: at tho Peoples Replc s a Date:, ] .2 -5- SCHEDULE 1 Project Description The objective of the Project is to improve equitable access, retention and completion in quality primary education for out-of-school children in selected under-served areas of the Recipient's territory. The Project consists of the Original Project. -6- SCHEDULE 2 Project Execution Section 1. Implementation Arranvement 1 (a) The institutional and other arrangements described in Section I(A-F) of Schedule 2 to the Original Financing Agreement are hereby incorporated by reference in this Section with the modifications set forth below, unless the context otherwise requires, and shall apply, mutatis mutandis, to the Financing, and the Recipient hereby undertakes to comply with the provisions thereof to the same extent as if such provisions had been set out in full in this Agreement; and (b) the term "Anti-Corruption Guidelines" in Part B of said Section I shall, as applies to this Agreement, be read as defined in paragraph 2 to the Appendix to this Agreement. 2. For greater clarity and the avoidance of doubt, in view of the incorporation of Section I of Schedule 2 to the Original Financing Agreement in this Agreement pursuant to the preceding paragraph, if the Original Financing Agreement terminates prior to the termination of this Agreement, such termination shall have no effect for purposes of this Agreement, and the provisions of the Original Financing Agreement incorporated in this Agreement pursuant to the preceding paragraph shall continue in full force and effect between the Recipient and the Association for purposes of this Agreement following and notwithstanding such termination of the Original Financing Agreement. 3. The Recipient shall ensure that the following are financed exclusively out of its own resources or other resources of the Recipient and not out of the proceeds of the Financing; and provide, promptly as needed, the resources needed for this purpose: (i) taxes exceeding 15%; (ii) recurrent expenditures for the purpose of attending meetings, conferences, seminars, workshops and study visits (sitting allowances/cash per diems/honoraria, notwithstanding eligible expenditures under Operating Costs and Training); and (iii) purchase of vehicles. 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 semester, covering the calendar semester. -7- Section II. Withdrawal of the Proceeds of the Financin2 A. General Without limitation upon the provisions of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Percentage of Amount of the Credit Expenditures to be Allocated Financed Category (expressed in SDR) (inclusive of Taxes) (1) Grants, Educational 4,300,000 100% Allowances and Training under Parts 1, 2, 3 and 4 of the Project. (2) Consulting services, non- 400,000 100% consulting services, Goods (excluding vehicles), Works, Operating Costs under Parts 1, 2, 3 and 4 of the Project. TOTAL AMOUNT 4,700,000 B. Withdrawal Conditions; Withdrawal Period I. Notwithstanding the provisions of Part A above, no withdrawal shall be made for payments made prior to the Signature Date. 2. The Closing Date is June 30, 2021. -8- SCHEDULE3 Repayment Schedule Principal Amount of the Credit Date Payment Due repayable (expressed as a percentage)* On each May I and November 1: commencing May 1, 2026 to and including 1.65% November 1, 2045 commencing May 1, 2046 to and including 3.40% November 1, 2050 * The percentages represent the percentage of the principal amount of the Credit to be repaid, except as the Association may otherwise specify pursuant to Section 3.05 (b) of the General Conditions. -9- APPENDIX Section 1. Definitions 1I "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. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 3. "COVID-19" means the coronavirus disease caused by the 2019 novel coronavirus (SARS-CoV-2). 4. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated December 14, 2018. 5. "Operating Costs" means the reasonable costs required for the day-to-day coordination, administration and supervision of Project activities, including leasing and/or routine repair and maintenance of vehicles, equipment, facilities and office premises; office rent; office supplies; utilities; consumables; communication expenses; translation; printing, photocopying and postal expenses; bank charges; advertising expenses; insurance; costs of clearing, forwarding, inspection, survey and transportation of goods; Project-related meeting expenses; Project-related travel, subsistence and lodging expenses; provided that such Operating Costs are paid to the eligible recipient through the banking system (except for petty cash expenses following the Recipient's existing policy); but excluding salaries, per diem, allowances and honorarium of officials of the Recipient's civil service and/or other sitting allowances, cash per diems and honorarium of any other nature. 6. "Original Financing Agreement" means the financing agreement entered into between the Recipient and the Association on January 10, 2013 (Credit No 5166- BD), as amended to the date of this Agreement through the amendment dated December 28, 2017 and the amendment dated November 6, 2018. 7. "Original Project" means the project described in Schedule I to the Original Financing Agreement as amended through the amendment entered into between the Recipient and the Association on November 5, 2018. 8. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. -10- 9. "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. 10. "Training" means the reasonable costs required for the participation of personnel involved in training activities, conferences, seminars and workshops under the Project, which have been approved by the Association in writing on an annual basis, including: (a) travel, hotel, and subsistence costs associated to training, conferences, seminars and workshops provided that such costs are paid directly to the eligible recipient using the banking system; and (b) costs associated with rental of training, conference, seminar and workshop facilities; preparation and reproduction of training, conference, seminar and workshop materials; costs of academic degree studies; and other costs directly related to preparation and implementation of any training course or workshop; but excluding sitting allowances, workshop allowances and honorarium of any nature.