GRANT NUMBER H814-MM Financing Agreement (National Community Driven Development Project) between REPUBLIC OF THE UNION OF MYANMAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated /Ov4 / ,2012 FINALNCING AGREEMENT AGREEMENT dated o e".e* 14 , 2012, entered into between REPUBLIC OF THE UNION OF MYANMAR ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCLArioN ("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) constitute an integral part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE H - FINANCING 2.01. The Association agrecs to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount equivalent to fifty two million six hundred thousand Special Drawing Rights (SDR 52,600,000) ("Financing") to assist in financing the project described in Schedule 1 to this Agreement ("Project";. 2.02. The Recipient may w thdraw the proceeds of the Financing in accordance with Section IV of Schedule 2 to this Agreement. 2.03. The Maximum Cominitm.nt Charge Rate payable by the Recipient on the Unwithdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) per annum. 2.04. The Payment Dates art May I and November 1 in each year. 2.05. The Payment Currency is L nited States Dollar. -2- ARTI CLE III - PROJECT ..01. The Recipient declare; its commitment to the objective of the Project. To this end, the Recipient shz 11 carry out the Project through the Department of Rural Development in its Ministry of Border Affairs and in accordance with the provisions of Article i of :he General Conditions. 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Recipiert and the Association shall otherwise agree, the Recipient shall ensure that the Froject is carried out in accordance with the provisions of Schedule 2 to this Agroement. ARTICLE IV - EFFECTIVENESS; TERMINATION 4.01. The Effectiveness De,idlin. is the date ninety (90) days after the date of this Agreement. 4.02. For purposes of Section 8.k5(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 years after the date of this Agreement. ARTICLE V - REPRESENTATIVE; ADDRESSES 5.01. The Recipient's Representative is its minister at the time responsible for finance and revenue. 5.02. The Recipient's Address is: Ministry of Finance and Revenue Building No.: 6 Naypyitaw Myanmar Facsimile: 95-67-410-190 -3- 5.03. The Association's Address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of A-nerica Cable: Telex: Facsimile: INDEVAS 248423 (MCI) 1-202-477-6391 Washington, D.C. AGREED at Naypyilaw, Republic of Myanmar, as of the day and year first above written. REPt BLIC OF THE UNION OF MYANMAR By Au ized Representative rTitle:pLkly M%%STFLMFt-\CI) INTERNATIONAL DEVELOPMENT ASSOCIATION By Authorized Representative Name: ' Title: 4u- -4- SCHEDULE 1 Project Description The objective of the Froject is to enable poor rural communities to benefit from improved access to and use of basic infrastructure and services through a people-centered approach and to enhance the Recipient's capacity to respond promptly and effectively to an Eligible Crisis or Emergency. The Project consists ofthe following parts: Part A: Community Block Grants. Financing of block grants for priority community level infrastructure in selected Townships. Part B: Facilitation and Capacity Development. Technical assistance, institutional support and training at the union, , and village levels for the purpose of supporting the implementation of community driven activities under Part A; financing of a grievance redress mechanisr. Part C: Knowledge and Learning. Learning programs for government staff and community and civil scciety representatives on community-based development approaches. Support for development market places to highlight the most promising innovations in people-centered development and for the establishment and operation of a gender network. Part D: Implementation Support. Support for Project management at the union and Township levels including monitoring and evaluation, reporting and communications, as well a s administration and logistical support for Project implementation; and third parti financial and technical audits. Part E: Emergency Contingency Response. Providing immediate response to an Eligible Crisis or Emergency, as needed. -5- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrang ments 1. Steering Committee (a) The Recipient shall maintain, throughout the implementation of the Project, a steering committee with functions, composition and resources satisfactory to the Association. (b) Without limitation to the )rovisions of sub-paragraph (a) of this Part A. 1, the Steering Committee ;hall meet periodically for the purposes of, inter alia: (i) providing overall strategic and policy guidance on all activities supported under the Project; (ii) facilitating the coordination of Project activities among the relevant ministries ar d the effective removal of any obstacles to the timely implementation of th,- Project; and (iii) selecting the participating townships under Part A of the Project, in accordance with criteria acceptable to the Association. 2. Department of Rural Development (a) The Department of Rural Development shall, throughout the implementation of the Project, be responsible for the coordination, monitoring and evaluation, and reporting of Project activities. (b) The Recipient shall naintain within the Department of Rural Development, throughout the impk mentation of the Project, a secretariat with functions, composition and resources satisfactory to the Association, which shall be responsible for, inter ilia: (i) overseeing and guiding the overall administration of financial management, procurement, environmental and social safeguards management, and communication of the Project; (ii) carrying out the overall monitoring and evalt atior of Project activities; (iii) providing technical and capacity building sup ort to all Project stakeholders; and (iv) consolidating all the reporting under thc Project. (c) The Department of Rural Development shall ensure that Part A of the Project is implemented by vario.is agencies, offices, forums and committees in accordance with the arrangements described in the Project Operations Manual and in accordance with this Agreement, the Procurement Guidelines, the Consultant Guidelines, the Envircnme:ital and Social Screening and Assessment Framework, and the Anti-Corruption Guidelines. -6- B. Anti-Corruption The Recipient shall er sure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines. C. Sub-projects The Recipient shall make available Block Grants to Beneficiaries in accordance with procedures acccptable to the Association and outlined in the Project Operations Manual for the purpose of carrying out Sub-Projects under Part A of the Project. 2. The Recipient shall me.ke each Block Grant pursuant to a Block Grant Agreement with the respective Beneficiary, on terms and conditions approved by the Association, and shall obtain rights adequate to protect its interests and those of the Association, incluc ing the right to: (i) suspend or terminate the right of the Beneficiary to use the procec ds of the Block Grant, or declare to be immediately due and pE yabl, all or any part of the amount of the Block Grant then withdiawn. upon the Beneficiary's failure to perform any of its obligations under the Block Grant Agreement; and (ii) requir, each Beneficiary to: (A) carry out its Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the applicable provisions of the Project Operations Manual, the Procurement Guidelines, the Consultant Guidelines, the Environmental and Social Screening and Assessment FrE.mework and those provisions of the Anti-Corruption Guidelines applicable to the recipients of grant proceeds other than the Recipient; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works and services to be financed out of the Block Grant in accordance with the provisions of Section III of Schedule 2 to this Agreement, and utilize such goods, works and services exclusively in carrying -7- out of its respective activities under Part A of the Project an 1 for the objectives thereof, (D) maintain procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub-project and the achievement of its objectives; (E) (1;' maintain records and accounts adequate to reflect the ex-enditures pertaining to its activities under the respective Sub-project and provide such information to the Recipient and the Association upon request; and (2' at the Association's or the Recipient's request, have such records and accounts audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the records and accounts as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-project, its operation and any relevant records and documents; and (G) 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. 3. The Recipient shall e2ercise its rights under the Block Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purpcses of the Financing. Except as the Association shall otherwise agree in wfiting, the Recipient shall not assign, amend, abrogate or waive any Block Gran: Agreement or any of its provisions. D). Project Operations Manual The Recipient shall prepare and adopt a Project Operations Manual in form and substance satisfactory to the Association, containing detailed arrangements and procedures for: (a) institutional coordination and day-to-day execution of the Project; (b) disburs,mer.t and financial management; (c) procurement; (d) environmental ar d social safeguards management; (e) monitoring and evaluation, reporting and communication; (f) the selection of Townships and the selection, approval and implementation of respective Sub-projects under Part A of the Project, including the Positive List and the Negative List; and (g) such -8- other administrative, -inancial, technical and organizational arrangements and procedures as shall be -equired for the Project. 2. The Recipient shall ensure that the Project is carried out in accordance with the arrangements and procedures set out in the Project Operations Manual, and shall not assign, amend, a)rogate or waive, or permit to be assigned, amended, abrogated or waived, the Project Operations Manual or any of its provisions without prior approval in writing by the Association. 1. In the event of any conflict between the provisions of this Agreement and the provisions of the Proje-ct Operations Manual, the provisions of this Agreement shall prevail. E. Safeguards 1. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and ' ocial Screening and Assessment Framework and the objectives, policies and procedures thereof. 2. The Recipient shall: (a) finance exclusively out of its own or other resources, and not out of the proceeds of the Financing, any land that may be acquired by the Recipient in relation to or on account of the Project, and any such acquisition shall, in any event, comply with the applicable requirements of the Environmental and Social Screening and Assessment Framework; and (b) in the case of any resettlement activity under the Project involving Affected Persons, ensure that no displacement (including restriction of access to legally designated parks and protected areas) shall occur before necessary resettlement measures consistent with the Environmental and Social Screening and Assessment Framework have been executed, including, in tie case of displacement, full payment to Affected Persons of compensati )n and of other assistance required for relocation, prior to displacement. 3. The Recipient shall not z.ssign, amend, abrogate or waive, or permit to be assigned, amended, ab -ogaled or waived, the ESSAF or any other document to be adopted in accordance witf the provisions of the ESSAF, unless the Association has provided its prior ipprcval thereof in writing, and the Recipient has complied with the same consu tation and disclosure requirements as applicable to the original adoption of th- said instruments. -9- 4. In the event of any c nflict between the provisions of this Agreement and the provisions of the ESSAF, the provisions of this Agreement shall prevail. Without limitation to the provisions of Section II.A of this Schedule 2, the Recipient shall take all measures necessary on its part to regularly collect, compile, and submit to the Association a written report, in form and substance acceptable to the Association, containing information on the status of compliance with the ESSAF and giving details of: (a) the measures taken in accordance with the ESSAF; (b) conditions, if any, which interfere or threaten to interfere with the implementatior of the ESSAF; and (c) remedial measures taken or required to be taken to address such conditions. Section II. Project Moni:oring, Reporting and Evaluation A. Project Reports; Mid-term Review The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and on the basis of indicators acceptable to the Association, as set forth in the Project Operations Manual. Each Project Report shall cover the period of one calendar quarter, and shall be furnished to the Association not later than forty-five (45) days after the end of the period covered by such report. 2. As part of the Project Report, the Recipient shall furnish to the Association the report referred to in paragreph I.E.5 of this Schedule II. 1 The Recipient shall, n )t laler than March 31, 2015, carry out a mid-term review of progress in implem.nting the Project under terms of reference satisfactory to the Association, furni. h the results of the review to the Association, and, based on the Association's recommendations, adopt measures, satisfactory to the Association, for the efficient and effective implementation of the Project and the achievement of its objective. B. Financial Manageme it, Financial Reports and Audits The Recipient shall maintain or cause to be maintained a financial management system in accordance wiith the provisions of Section 4.09 of the General Conditions. - 10 - 2. Without limitation on the provisions of Part A of this Section, the Recipient shall prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the Association. 3. The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 4.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one (1) fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period. 4. The Recipient shall, not lter than three (3) months after the Effective Date, appoint the independent auditors referred to in Section 4.09 (b) of the General Conditions, in accordance with the provisions of Section III of this Schedule, with qualifications, expetience and terms of reference satisfactory to the Association. 5. The Recipient shall, not later than six (6) months after the Effective Date, install an accounting and financial management software at the DRD, in form and substance satisfactory :o the Association. Section III. Procurement A. General Goods, Works and Non--consulting Services. All goods, works and non- consulting services recuired for the Project and to be financed out of the proceeds of the Financing shall be procured in accordance with the requirements set forth or referred to in Secticn I of the Procurement Guidelines, and with the provisions of this Section. 2. Consultants' Service.. A I consultants' services required for the Project and to be financed out of the proceeds of the Financing shall be procured in accordance with the requirement:; set forth or referred to in Sections I and IV of the Consultant Guidelines, and with the provisions of this Section. Definitions. The cajitalized terms used below in this Section to describe particular procurement methods or methods of review by the Association of particular contracts, rc fer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be. - 11 - B. Particular Methods of Procurement of Goods, Works and Non-consulting Services 1. International Compei itive Bidding. Except as otherwise provided in paragraph 2 below, goods, works and non-consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. 2. Other Methods of "'rocurement of Goods, Works and Non-consulting Services. The following methods, other than International Competitive Bidding, may be used for procirem.nt of goods, works and non-consulting services for those contracts specified in the Procurement Plan: (a) Shopping; and (b) Community Participation procedures which have been found acceptable to the Association and specified ir. the Project Operations Manual. C. Particular Methods oF Pro-curement of Consultants' Services 1. Quality- and Cost-baied Selection. Except as otherwise provided in paragraph 2 below, consultants' !;ervices shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. 2. Other Methods of Procurement of Consultants' Services. The following methods, other than Quality- and Cost-based Selection, may be used for procurement of consultants' services for those contracts which are specified in the Procurement Plan: (a) Quality-based Selection; (b) Selection under a Fixed Budget; (c) Least Cost Selection; (d) Selection based on Consultants' Qualifications; (e) Single-source Selection of consulting firms; (f) Procedures set forth in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the Selection of Individual Consultants; and (g) Single-source procedures for the Selection of Individual Consultants ). Review by the Association of Procurement Decisions The Procurement Plan shall set forth those contracts which shall be subject to the Association's Prior Review. All other contracts shall be subject to Post Review by the Association. Section IV. Withdrawal of the Proceeds of the Financing A. General 1. The Recipient may withdraw the proceeds of the Financing in accordance with the provisions of Article II of the General Conditions, this Section, and such additional instructions as tFe Association shall specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the Association and as made applicable to - 12 - this Agreement pursuait to such instructions), to finance Eligible Expenditures as set forth in the table in paragraph 2 below. 2. The following table specifies the categories of Eligible Expenditures that may be financed out of the prcceeds of the Financing ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible EKpenditures in each Category: Category Amount of the Percentage of Expenditures to Grant Allocated be Financed (expressed in SDR) (inclusive of Taxes) (1) Block Grants under 34,400,000 100% of the amount of the Block Part A of the Project Grant disbursed (2) Goods, non- 18,200,000 100% consulting services, consultants' services (including audits), Training and Operating Costs for the Project, other than Parts A and E (3) Goods, works, non- 0 100% consulting services, consultants' services and Operating Costs under Part E of the Project TOTAL AMOUNT 52,600,000 B. Withdrawal Conditions; Withdrawal Period 1 . Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made: (a) for payments made prior to the date of this Agreement, except that withdrawals t p to an aggregate amount not to exceed $8,000,000 equivalent may be made for payments made prior to this date but on or after October 1, 20 '2, for Eligible Expenditures; (b) any Eligible Expenditure under Category (1), until and unless the Recipient has prepared and adopted, in form and substance satisfactory to the Association, the Project Operations Manual; or - 13 - (c) under Category (3), unless and until the Recipient has: (i) publically declared that an Eligible Crisis or Emergency has occurred, and the Association has agreed with such determination; (ii) prepared and disclosed, in form and substance satisfactory to the Association, all safeguards in.truments required pursuant to the ESSAF for activities under said Part E of the Project, if any, and the Recipient has implemented iny actions which are required to be taken under said instruments, all in accordance with the provisions of Section I.E of Schedule 2 to this Agreement; (iii) established adequate implementation arrangements, satisfactory to the Association, including the provision of staff and othor resources for the purposes of said activities, which arrangements ;hall thereafter be maintained by the Recipient throughout the remaining implementation of the Project; and (iv) has updated the Project Operalions Manual in accordance with the provisions of Section I.D of this Schedule 2 so as to be appropriate for the inclusion and implementation of activities under said Part E of the Project. 2. The Closing Date is January 31, 2019. - 14 - APPENDIX Definitions "Affected Persons" means any person who, on account of the execution of the Project, has experienccd or would experience direct economic and social impacts caused by: (a) the involuntary taking of land, resulting in: (i) relocation or loss of shelter; (ii) loss of assets or access to assets; or (iii) loss of income sources or means of livelihood, m hether or not such person must move to another location; or (b) the involuntari restriction or access to legally designated parks and protected areas, resulting in adverse impacts on the livelihood of such person. "Anti-Corruption Guidelires" means the "Guidelines on Preventing and Combating Fraud and Corription in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011. "Beneficiary" means a Village Tract forum in selected Townships that satisfies the requirements set cut in the Project Operations Manual to carry out a Sub- Project under Part A (Community Block Grants) of the Project and to receive a Block Grant in accordz nce with a Block Grant Agreement with the Recipient. "Block Grant" means a grait made or proposed to be made by the Recipient to a Beneficiary out of tho proceeds of the Financing pursuant to a Block Grant Agreement for the pur)ose of financing goods, works and services required for a Sub-project in accorda ice with the provisions of Section I.C of Schedule 2 to this Agreement. "Block Grant Agreemc nt" means an agreement entered into, or to be entered into, between the Recipient and a Beneficiary, for the purpose of extending a Block Grant, and referred to in paragraph 2 of Section I.C of Schedule 2 to this Agreement. 6. "Category" means a ctegory set forth in the table in Section IV of Schedule 2 to this Agreement. 7. "Consultant Guidelines" means the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011. 8. "Department of Rural Development" and the acronym "DRD" mean the department responsible fo- rural development within the Ministry of Border Affairs, or any successor thereto. "Eligible Crisis or Energ.ncy" means one or more events that has or have caused, or is or are likely to imminently cause, a major adverse economic and/or - 15 - social impact to the Fecipient, associated with a natural or man-made crisis or disaster. 10. "Environmental and Social Screening and Assessment Framework" and the acronym "ESSAF" m an the Recipient's environmental and social screening and assessment frameworl:, dated October 2012, and agreed with the Association, setting out: (i) mitigation, enhancement, monitoring, and institutional measures, including capacity )uilding through training, to manage any adverse environmental and/or social impacts of activities to be implemented under the Project, including mitiga:ion and adaptive measures to offset, reduce to acceptable levels, or eliminate, any adverse environmental or social impacts under the Project; anc (ii) modalities for the compensation of and resettlement assistance to Affected Persons, acceptable to the Association, together with environmental codes cf practice and guidelines for the carrying out of free, prior and informed consultations with potentially affected Indigenous Peoples and procedures for the pr.paration of participatory social assessments, as well as requirements for the development of environmental management plans, and also the Grievance Redres!; System, the Positive List and the Negative List, as said framework may be modified from time to time with the prior written agreement of the Association, and sL.ch term includes any schedules or annexes to such framework. 1 . "General Conditions" means the "International Development Association General Conditions for Credits and Grants", dated July 31, 2010. ,2. "Grievance Redress System" means the system described in the Project Operations Manual, and the technical system it describes, designed to track grievances regarding the use of the proceeds of the Financing allocated from time to time to Part A (3lock Grants) of the Project and/or the selection and implementation of Sub-projects, guide resolution of such grievances, track resolution of such gricvances, and if warranted in accordance with such system, as an interim measurc exclude use of such proceeds in a particular Township, Village Tract or Village, or the participation of responsible individuals or other actions authorized by ,uch system, as such system may be modified from time to time by written agreentent between the Recipient and the Association. 3. "Indigenous Peoples" means those social groups in the Recipient's territory that have a distinct, vulnerable, social and cultural identity, and that are susceptible to being disadvantaged i:i the development process affected by the Project or any part tl4ereof, and that possess the following characteristics in varying degrees: (a) self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (b) collective attachment to geographically distinct habitats or ar cestral territories in the Project area and to the natural resources in these habitats, and territories; (c) customary cultural, economic, social, or political intitutions that are separate from those of the dominant - 16 - society and culture; a id (d) an indigenous language; (e) having a subsistence economy, (f) using simple taols and technology, (g) having a high dependence on the environment and local natural resources, and (h) having restricted access to social, economic, and politial services. 14. "Ministry of Border Affairs" means the Recipient's ministry responsible for border areas, national races and development affairs, or any successor thereto. 15. "Negative List" means the list of community level investments which shall be excluded from financing under any Sub-project and which is described in the Project Operations Manual and the ESSAF, as such list may be modified from time to time with the p -ior written agreement of the Association. 16. "Operating Costs" means the reasonable expenditures directly related to the Project incurred by the Re,cipient, based on annual budgets approved by the Association, on accou it of the implementation, management, coordination, and monitoring and evalt ation of the Project, including expenditure on travel, lodging and per diem,, consumable materials, office supplies, communications services (including postage handling, telephone and internet costs), publication services, translation services, operations and maintenance of office equipment and vehicles, but excluding salaries, bonuses, fees and honoraria or equivalent payments of members of the Recipient's civil service. 17. "Positive List" means the ist of community level infrastructure which shall be financed under any S ib-project in the first year of the implementation of the Project in a selected T:wnship, and which is described in the Project Operations Manual and the ESSA -7, as such list may be modified from time to time with the prior written agreement of the Association. 1 8. "Procurement Guidelines" means the "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrower ;" dated January 2011. 9. "Procurement Plan" rieans the Recipient's procurement plan for the Project, dated September 27, 2012 and referred to in paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines, as the same shall be updated from time to t me in accordance with the provisions of said paragraphs. 20. "Project Operations Vlanual" means the Recipient's manual, in form and substance satisfactory to the Association, satisfying the requirements referred to in Section I.D of Schedulc 2 to this Agreement, as the same may be amended from time to time wi :h prior written agreement of the Association, including, without limitation, fo- the purposes of paragraph 1(c)(iv) of Section IV.B of Schedule 2 to this Agreem.nt, and such term includes any annexes or schedules to such manual. - 17- 21. "Steering Committee" means the committee to be maintained by the Recipient in accordance with the provisions of paragraph 1 of Section L.A of Schedule 2 to this Agreement. 22. "Sub-Project" means zn activity qualified for financing by a Block Grant under Part A of the Project in accordance with the terms of this Agreement, the Project Operations Manual and the relevant Block Grant Agreement. 23. "Township" means an administrative sub-division of the Recipient's territory at the third level below tf e union level. 24. "Training" means the reasonable costs of training under the Project, based on annual budgets approved by the Association, and directly attributable to seminars, workshops, anc study tours, along with travel and subsistence allowances for training participants, course fees, services of trainers, rental of training facilities, prcparation, acquisition, distribution and reproduction of training materials, and other activities directly related to course preparation and implementation. 25. "Village" means an administrative sub-division of the Recipient's territory at the fifth level below the urion level. 26. "Village Tract" means an administrative sub-division of the Recipient's territory at the fourth level below the union level.