CREDIT NUMBER 7061-UZ Financing Agreement (Second Rural Enterprise Development Project) between REPUBLIC OF UZBEKISTAN and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER 7061-UZ FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF UZBEKISTAN ("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 credit, which is deemed as Concessional Financing for purposes of the General Conditions, in the amount of twenty million Dollars (US$20,000,000) (variously, "Credit" and "Financing"), to assist in financing Part 1 of 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 Service Charge is the greater of: (a) the sum of three-fourths of one percent (3/4 of 1 %) per annum plus the Basis Adjustment to the Service Charge; and (b) three-fourths of one percent (3/4 of 1 %) per annum; on the Withdrawn Credit Balance. 2.05. The Interest Charge is the greater of: (a) the sum of one and a quarter percent (1.25%) per annum plus the Basis Adjustment to the Interest Charge; and (b) zero percent (0%) per annum; on the Withdrawn Credit Balance. -2- 2.06. The Payment Dates are February 15 and August15 in each year. 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, shall carry out the Project through the Agency, in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV REMEDIES OF THE ASSOCIATION 4.01. The Additional Event of Suspension consists of the following: the Agency Legislation has been amended, suspended, abrogated, repealed, or waived so as to affect, materially and adversely, in the opinion of the Association, the ability of the Agency to perform any of its obligations under this Agreemen'.t. 4.02. The Additional Event of Acceleration consists ofthe following: the event specified in Section 4.01 of this Agreement occurs. ARTICLE V EFFECTIVENESS; TERMINATION 5.01. The Additional Conditions of Effectiveness consist of the following: (a) the Loan Agreement has been executed and delivered and all conditions precedent to its effectiveness or to the right of the Borrower to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled; (b) the POM has been adopted by the Recipient in form and substance satisfactory to the Association; and (b) the PIU has been established within the Agency under terms and conditions satisfactory to the Association. 5.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. -3- ARTICLE VI - REPRESENTATIVE; ADDRESSES 6.01. The Recipient's Representative is the Minister of Finance. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Ministry of Finance Istiqlol Tashkent 100017 Republic ofUzbekistan; and (b) the Borrower's Electronic Address is: Facsimile: (998-71) 233-7073 (998-71) 239-1259 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: Facsimile: Email 1-202-477-6391 tproskuryakova@worldbank.org -4- AGREED as of the Signature Date. REPUBLIC OF UZBEKISTAN By «e CL(beg[Ro n Sept,Lite- fac + 7- 7 ». Ant2i22.2Z T 7 INTERNATIONAL DEVELOPMENT ASSOCIATION By , Authorized Representative ota2a an. L /ar y«rove mo Kena'_ureter d e. on2 7 3I 20.2 -5- SCHEDULE 1 The objective of the Project is to support the expansion of rural enterprise activity, investments and job creation in regions supported by the Project. The Project consists of the following parts: Part 1 : Enterprise Development Support to micro, small and medium enterprise development by: (a) facilitating business incubation and mentorship by supporting: (i) a business incubator hub program for rural entrepreneurs; and (ii) activities for launching innovation start-ups; (b) technical assistance to implement demand-driven investment proposals to strengthen value chains and expand or establish partnerships in targeted sectors to. expand productive activities or reach new markets; (c) supporting demonstration of climate smart technologies for small and medium sized agribusiness and farm enterprises; and (d) entrepreneurship support activities targeting women (Women Entrepreneurship Sub-projects). Part 2: Access to Finance Facilitating access to finance for micro, small and medium sized enterprises by: (a) Provision of subsidiary loans to PFis to provide credits to agribusinesses and rural enterprises for agriculture, food processing, handicraft, rural services, tourism and small manufacturing sectors (Agribusiness and Rural Enterprises (ARE) Sub- projects); (b) Provision of funds for Partial Credit Guarantees to be issued under the State Fund for Support of Entrepreneurship to PFis for credits in targeted sectors; (c) Provision of technical assistance to SFSED and PFis on innovative financial products for agricultural and rural enterprises. Part3: Project Management Support to the Agency for Project management, implementation, and monitoring, evaluation, and reporting, including in the areas of financial management, procurement, disbursement, and social and environmental protection. -6- SCHEDULE2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. 1. The Recipient shall, through the Agency, maintain throughout the course ofProject implementation, a Project Implementation Unit (PIU) with a structure, functions, responsibilities and adequate staff, all as further described in the POM and acceptable to the Association, for the purposes of day-to-day Project management, monitoring, evaluation and supervision. 2. The Recipient shall, through the Agency (a) carry out the Project in accordance with the provisions set out in the POM; and (b) not amend, suspend, abrogate, repeal or waive any provision of said POM without the prior written approval of the Association, provided, however, that in case of any conflict between the provisions set out in the POM and the provisions of this Agreement, the provisions of this Agreement shall prevail. B. Subsidiary Loan Agreements and Sub-Loan Agreements 1. To facilitate the carrying out of Part 2 (a) of the Project, and upon-approval of any ARE Sub-project, the Recipient shall, through the Agency, make a part of the proceeds of the Loan available to the pertinent PFI under the applicable Subsidiary Loan Agreement between the MOF, Agency and the PFI, under the terms and conditions set out in the Credit Line Guidelines, including those set out in paragraph 3 below, and satisfactory to the Association. 2. The Recipient shall, through the Agency, exercise its rights and carry out its obligations under the Subsidiary Loan Agreements in such manner as to protect the interests of the Recipient and the Association, and to accomplish the purposes of the Loan. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate, or waive the Subsidiary Loan Agreements, or any of their provisions. 3. The Recipient shall, through the Agency, ensure that each Subsidiary Loan Agreement with a PFI shall include the following terms and conditions: (a) the amount and currency of the Subsidiary Loan; (b) the Subsidiary Loan repayment terms; (c) interest to be charged on the outstanding balances ofthe Subsidiary Loans; -7- (d) the requirement that each PFI shall carry out activities under Part 2 (a) of the Project in accordance with the Anti-Corruption Guidelines; (e) the requirement to comply with the ESS, including the ESCP and other environmental and social instruments; (f) obligations of the PFI to make the Sub-loans pursuant to the Sub-loan Agreements satisfactory to the Association, including those set out in sub- paragraph (i) of this paragraph 3; (g) each Sub-loan Agreement shall ensure the PFI's right to protect its interests and those ofthe Recipient and the Association, including the right to: (i) require each Credit Line Beneficiary to: (A) carry out its ARE 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 provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient and the ESS, including the ESCP and other environmental and social instruments; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works, and services to be financed out of the Sub-loan in accordance with the provisions of this Agreement; (D) not use the Sub-loan to finance any ineligible activities or expenditures set out in the Credit Line Guidelines; (E) maintain policies and procedures adequate to enable it to monitor and evaluate the progress of the ARE Sub-project and the achievement of its objectives; (F) (1) maintain a satisfactory financial management system and prepare financial statements in accordance with consistently applied accounting standards; and (2) at the Association's or the Recipient's request, have such financial statements audited by independent auditors, in accordance with consistently applied auditing standards, and promptly furnish the statements as so audited to the Recipient and the Association; (G) enable the Recipient and the Association to inspect the ARE Sub-project, its operation and any relevant records and documents; and (H) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; and (ii) suspend or terminate the right of the Credit Line Beneficiary to use the proceeds of the Sub-loan, or declare to be immediately due -8- and payable all or any part of the amount of the Sub-loan then withdrawn, upon the Credit Line Beneficiary's failure to perform any of its obligations under the Sub-loan Agreement. C. Partial Credit Guarantee Agreement and Subsidiary Partial Credit Guarantee Agreements 1. To facilitate the carrying out of Part 2 (b) of the Project, the Recipient shall, through the Agency, make a part of the proceeds of the Loan available to the SFSED under the Partial Credit Guarantee Agreement between the MOF, Agency and the SFSED, under the terms and conditions set out in the Partial Credit Guarantee Guidelines, and satisfactory to the Association. 2. The Recipient shall, through the Agency, exercise its rights and carry out its obligations under the Partial Credit Guarantee Agreement in such manner as to protect the interests of the Recipient and the Association, and to accomplish the purposes ofthe Loan. Except as the Association shall otherwise agree, the Agency shall not assign, amend, abrogate, or waive the Partial Credit Guarantee Agreement, or any of its provisions. 3. The Recipient shall, through the Agency, ensure that the SFSED issues partial credit guarantee commitments under Part 2 (b) of the Project in accordance with the terms and conditions set out in the Partial Credit Guarantee Guidelines, and the Subsidiary Partial Credit Guarantee Agreements, satisfactory to the Association, including those set out in paragraph 4 below. 4. Each Subsidiary Partial Credit Guarantee Agreement between the SFSED and a PFI shall specify, among other things, (a) the charges for the partial credit guarantee commitment issued by the SFSED, (b) the requirement that each PFI shall carry out activities covered by the guarantee commitment in accordance with the Anti-Corruption Guidelines and ESS, including the ESCP and other environmental and social instruments, (c) the obligations ofthe PFI to make credits to be covered by the partial credit guarantee commitments under the terms and conditions satisfactory to the SFSED and (d) the suspension or termination of the right of the PFI to use the proceeds of the Partial Credit Guarantee, or declare to· be immediately due and payable all or any part of the amount of the Partial Credit Guarantee then withdrawn, upon the PFI's failure to perform any of its obligations under the Partial Credit Guarantee Agreement. D. Subsidiary Women Entrepreneurship Grant Agreements 1. To facilitate the carrying out of Part 1 (d) of the Project, and upon approval of any Women Entrepreneurship Sub-project, the Recipient, shall through the Agency, make a part ofthe proceeds ofthe Credit available to the Women Entrepreneurship Beneficiaries under the applicable Grant Agreement between the MMFA and the -9- Women Entrepreneurship Beneficiaries, under the terms and conditions set out in the Grant Guidelines, including those set out in paragraph 3 below, and satisfactory to the Association. 2. The Recipient shall, through Agency, exercise its rights and, carry out its obligations under the Grant Agreements in such manner as to protect the interests of the Recipient and the Association, and to accomplish the purposes of the Credit. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate, or waive the Grant Agreements, or any of their provisions. 3. The Recipient shall, through the Agency, ensure that each Grant Agreement with Women Entrepreneurship Beneficiary shall include the following terms and conditions: (a) the amount and currency of the Grant; (b) the requirement that each Women Entrepreneurship Beneficiaries shall carry out activities under Part 1 (d) of the Project in accordance with the Anti-Corruption Guidelines; (e) the requirement to comply with the ESS, including the ESCP and other environmental and social instruments; (f) each Grant Agreement shall ensure the right to protect the interests of the Recipient and the Association, including the right to: (i) require each Women Entrepreneurship Beneficiary to: (A) carry out Women Entrepreneurship 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 provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient and the ESS, including the ESCP and other environmental and social instruments; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works, and services to be financed out of the Grant in accordance with the provisions of this Agreement; (D) not use the Grant to finance any ineligible activities or expenditures set out in the Grant Guidelines; (E) maintain policies and procedures adequate to enable it to monitor and evaluate the progress of the Women Entrepreneurship Sub-project and the achievement of its objectives; (F) (1) maintain a satisfactory financial management system and prepare financial statements in accordance with consistently applied accounting standards; and (2) at the -10- Association's or the Recipient's request, have such financial statements audited by independent auditors, in accordance with consistently applied auditing standards, and promptly furnish the statements as so audited to the Recipient and the Association; (G) enable the Recipient and the Association to inspect the Women Entrepreneurship Sub-project, its operation and any relevant records and documents; and (H) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; and (ii) suspend or terminate the right of the Women Entrepreneurship Beneficiary to use the proceeds of the Grant, or declare to be immediately due and payable all or any part of the amount of the Grant then withdrawn, upon the Women Entrepreneurship Beneficiary's failure to perform any of its obligations under the Grant Agreement. E. Environmental and Social Standards. 1. The Recipient shall, through the Agency, ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESS), in a manner acceptable to the Association. 2. Without limitation upon paragraph 1 above, the Recipient shall, and shall cause the PIE to, ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan ("ESCP"), in a manner acceptable to the Association. To this end, the Recipient shall, and shall cause the Project Implementing Entity to, ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, as provided in the ESCP; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies and procedures are maintained, and qualified and experienced staff in adequate numbers are retained to implement the ESCP, as provided in the ESCP; and. (d) the ESCP, or any provision thereof, is not amended, repealed, suspended or waived, except as the Association shall otherwise agree in writing, as specified in the ESCP, and ensure that the revised ESCP is disclosed promptly thereafter. -11- 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, through the Agency, 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. 5. The Recipient shall, through the Agency, 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. -12- Section II. Project_Monitoring, Reporting and Evaluation The Recipient shall furnish to the Association each Project Report not later than forty-five (45) after the end of each calendar semester, covering the calendar semester. Section III. Withdrawal of the Proceeds of the Financing A. General Without limitation upon the provisions of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures; in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Percentage of Expenditures to be financed (inclusive of Taxes for Part 1 (d) of the Project and exclusive of Taxes Amount of the Credit other than Withheld Allocated Taxes for all other Parts Category (expressed in USD) of the Project) ( 1) Goods, works, 16,000,000 100% non-consulting services, consulting services, Training and Incremental Operating Costs under Part 1 of the Project (2) Sub-grants under 4,000,000 100% of the amount Part 1 (d) of the Project disbursed (3) Sub-Loans under Part 2 0 100% (a) of the Project (4) (a) First Tranche 0 100% Capitalization of the SFSED under Part 2 (b) the Project. (a) Second Tranche Capitalization of the SFSED under Part 2 (b) the Project -13- (5) Goods, works, non- 0 100% consulting services, consulting services, Training, and Incremental Operating Costs for Part 2 and 3 of the Project TOTAL AMOUNT 20,000,000 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) under Category (2), unless the Recipient has adopted the Grant Guideline in accordance with Section I.D of this Schedule. 2. The Closing Date is December 15, 2027. -14- SCHEDULE3 Repayment Schedule Principal Amount of the Credit Date Payment Due repayable (expressed as a percentage) On each February 15 and August 15: commencing August 15, 2027 to and including 1.65% February 15, 2047 commencing August 15, 2047 to and including 3.40% February 15, 2052 * 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. -15- APPENDIX Definitions 1. "Agency for Work of Mahallabay and Development of Entrepreneurship" or "Agency" means the Project Implementing Entity for this Project, an agency established under the MEDPR (as defined hereinafter) pursuant to the Agency Legislation (as defined hereinafter), or its successor thereof. 2. "Agency Legislation" means the Decree of the President of the Republic of Uzbekistan No. state agency established by the President Decree of the Republic of Uzbekistan N29 dated December 3, 2021. 3. "Agribusiness and Rural Enterprises Sub-project" or "ARE Sub-project" means a sub-project to be undertaken by a Credit Line Beneficiary that is in the agribusiness and/or rural enterprise sector and that meets criteria set forth in the Credit Line Guidelines. 4. "Anti-Corruption Guidelines" means, for purposes ofparagraph 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. Basis Adjustment to the Interest Charge" means the Association's standard basis adjustment to the Interest Charge for credits in the currency of denomination ofthe Credit, in effect at 12:01 a.m. Washington, D.C. time, on the date on which the Credit is approved by the Executive Directors of the Association, and expressed either as a positive or negative percentage per annum. 6. "Basis Adjustment to the Service Charge" means the Association's standard basis adjustment to the Service Charge for credits in the currency of denomination of the Credit, in effect at 12:01 a.m. Washington, D.C. time, on the date on which the Credit is approved by the Executive Directors of the Association, and expressed either as a positive or negative percentage per annum. 7. "Capitalization of the SFSED" means the Borrower's contribution to the SFSED partial credit guarantee fund, in accordance with the terms and conditions of the Partial Credit Guarantee Agreement, and financed-or proposed to be financed from the Loan proceeds. 8. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 9. "Credit Line Beneficiary" means a micro, small, or medium size enterprise selected by a PFI in accordance with the Credit Line Guidelines, to which the PFI -16- proposes to make or has made a Sub-loan, under Part 2(a) of the Project and "Beneficiaries" means any two or more Beneficiaries. 10. "Credit Line Guidelines" means the guidelines to be adopted by the Borrower with respect to Part 2 (a) of the Project, which set out: (i) terms and conditions of the sub-loans to be provided by the Agency and MOF to PFIs; (ii) the eligibility criteria and selection procedures for PFis; (iii) selection and appraisal by the PFis of the Credit Line Beneficiaries; (iv) the operational, legal, and financial terms and conditions of sub-loans to be made by the PFis under Part 2 (a) of the Project; and (v) monitoring and reporting requirements; as such guidelines may be amended from time to time with prior approval of the Bank. 11. "Environmental and Social Commitment Plan" or "ESCP" means the environmental and social commitment plan for the Project, dated February 18, 2022, 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 ofthe 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. 12. "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 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. 13. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated December 14, 2018 (revised on August 1, 2020, April 1, 2021 and January 1, 2022). 14. "Grant" means the financing for Part 1 (d) of the Project provided by Recipient, through the MMFA, to the Women Entrepreneurship Beneficiarylies as described in Section LE of the Schedule 2 to this Agreement and the Grant Guidelines. -17- 15. "Grant Agreement" means the agreement entered into between the Agency and the Women Entrepreneurship Beneficiary as described in Section I.D of the Schedule 2 to this Agreement and the Grant Guidelines. 16. "Grant Guidelines" means the guidelines to be adopted by the Borrower with respect to Part 1 (d) of the Project, which set out: (i) terms and conditions of the grants to be provided by the Agency to Women Entrepreneurship Beneficiaries; (ii) the eligibility criteria and selection procedures for Women Entrepreneurship Beneficiaries; (iii) the operational, legal, and financial terms and conditions of grants to be made by the Agency under Part 1 (d) ofthe Project; and (iv) monitoring and reporting requirements; as such guidelines may be amended from time to time with prior approval of the Bank. 1 7. "Incremental Operating Costs" means the incremental and reasonable expenses incurred by the Agency and other entities of the Borrower on account of Project implementation, management, monitoring and reporting, including office supplies, office equipment maintenance, communication, local travel, vehicles operation and maintenance, expenses for accident insurance of staff and for third party liability insurance of drivers, commercial bank charges, salaries ofthe support staff (including the uniform social charges and the applicable income tax retained at the source but excluding salaries of civil servants of the Borrower), as such expenditures are set forth in the Agency semi-annual budget, satisfactory to the Bank, and such other expenditures as may be agreed upon by the Bank. 18. "MEDPR" means the Recipient's Ministry of Economic Development and Poverty Reduction; or its successor thereof. • 19. "MOF" means the Recipient Ministry of Finance, or its successor thereof. 20. "Partial Credit Guarantee Agreement" means the agreement referred to in Section I.C.2 of Schedule 2 of this Agreement, pursuant to which the Borrower, through the SFSED and MOF, proposes to make or has made a part of the proceeds of the Loan available to the SFSED under Part 2 (b) of the Project, as the same may be amended from time to time, with prior approval of the Bank. 21. Partial Credit Guarantee Guidelines" means the guidelines to be adopted by the Borrower with respect of Part 2 (b) of the Project, which set out: (i) terms and conditions of the guarantees to be provided by the SFSED and MOF to PFis; (ii) the eligibility criteria and selection procedures for PFis; (iii) selection and appraisal by the PFis of the Beneficiaries; (iv) the operational, legal, and financial terms and conditions of partial credit guarantees to be made by the PFis under Part 2 (b) of the Project; and (v) monitoring and reporting requirements; as such guidelines may be amended from time to time with prior approval of the Bank. "PFI" means a commercial bank of the Borrower selected by the Borrower to participate in Part 2 (a) or Part 2 (b) of the Project pursuant to the eligibility criteria -18- set forth in the Credit Line Guidelines or Partial Credit Guarantee Guidelines, respectively. 22. "PIU" means the project implementation unit to be established and maintained within the Agency, and referred to in Section I, Part A, paragraph 2 of Schedule 2 of this Agreement. 23. "POM" means the Project operational manual to be adopted by the Borrower pursuant to Section I, Part A, paragraph 2 of Schedule 2 of this Agreement, setting forth, inter alia: (a) the institutional, operational, and administrative Project responsibilities: (b) disbursement, procurement, and financial management requirements: (c) credit and guarantee requirements for Part 2(a) and 2(b) of the Project; (d) environmental and social requirements; (d) data collection and reporting requirements, (e) the Grant Guidelines (upon their adoption by the Recipient), (f) the Partial Guarantee Guidelines (upon their adoption by the Recipient), and (g) the Credit Line Guidelines (upon their adoption by the Recipient), as said manual may be amended from time to time, with prior approval of the Bank. • 24. "Loan" means the financing for the project provided by the International Bank for Reconstruction and Development to the Republic ofUzbekistan under the Loan Agreement. 25. "Loan Agreement" means the loan agreement for the Project between the Republic of Uzbekistan and the International Bank for Reconstruction and Development, dated the same date as this Agreement, as such loan agreement may be amended from time to time. "Loan Agreement" includes all appendices, schedules and agreements supplemental to the Loan Agreement. 26. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated November 2020. 27. "SFSED" means the Borrower's State Fund for Support of Entrepreneurship Development, established pursuant to the Resolution of the President of the Republic Uzbekistan No. 3225, date August 17, 2017, or any successor thereto. 28. "Sub-loan" means a loan made or proposed to be made by a PFI to a Credit Line Beneficiary out of the proceeds of the Subsidiary Loan for purposes of financing an ARE Sub-project. 29. "Sub-loan Agreement" means a Sub-loan agreement to be entered or entered into between a PFI and a Credit Line Beneficiary for provision of a Sub-loan under Part 2 (a) of the Project, pursuant to the Credit Line Guidelines. -19- 30. "Subsidiary Loan Agreement" means the agreement pursuant to which the Borrower, through the Agency and MOF propose to make, or has made, a part of the proceeds of the Loan available to a PFI under Part 2 (a) of the Project, as the same may be amended from time to time, with prior approval of the Bank. 31. "Subsidiary Partial Credit Guarantee Agreement" means the agreement pursuant to which the Borrower, through SFSED and MOF proposes to make, or has made, . a part of the proceeds of the Loan available to a PFI under Part 2 (b) of the Project, as the same may be amended from time to time, with prior approval of the Bank. 32. "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. 33. "Training" means reasonable expenditures, as approved by the Association, incurred for the carrying out oftraining activities and study tours under the Project, including, costs of travel and per diem of trainers and trainees, cost of workshops, rental of training facilities and equipment, and training materials, all based on a semi-annual budget acceptable to the Association. 34. "Withheld Taxes" means the following taxes withheld at source: taxes for social charges; income taxes for residents and non-residents; and custom registrations duties withheld at the source. 35. "Women Entrepreneurship Beneficiary/ies" means women entrepreneurs operating their business individually or in groups in the Borrower's territory in agriculture, food processing, handicraft, rural services, tourism and small manufacturing sectors. 36. "Women Entrepreneurship Sub-projects" means a Women Entrepreneurship Beneficiary project that meets criteria set forth in the Grant Guidelines.