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CONFORMED COPY 
 
GRANT NUMBER H280-BU 
 
Financing Agreement 
 
(Community and Social Development Project) 
 
between 
 
REPUBLIC OF BURUNDI 
 
and 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
Dated May 22, 2007  
 
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GRANT NUMBER H280-BU 
FINANCING AGREEMENT 
AGREEMENT dated May 22, 2007, entered into between REPUBLIC OF 
BURUNDI (
“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) 
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 II — FINANCING 
2.01.  The Association agrees 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 twenty six million nine hundred thousand Special Drawing Rights  
(SDR 26,900,000
)
(“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 IV of Schedule 2 to this Agreement.   
2.03.  The Maximum Commitment 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 are April 15 and October 15 in each year. 
2.05. 
The Payment Currency is the 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 Ministry of the Interior 
and Public Security in accordance with the provisions of Article IV of the 
General Conditions. 
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3.02. 
Without limitation upon the provisions of Section 3.01 of this Agreement, and 
except as the Recipient and the Association shall otherwise agree, the Recipient 
shall ensure that the Project is carried out in accordance with the provisions  
of Schedule 2 to this Agreement. 
ARTICLE IV 
—
EFFECTIVENESS; TERMINATION 
4.01. 
The Additional Conditions of Effectiveness consists of the following: 
(a) 
The Recipient has adopted the: (i) Project Implementation Manual; 
(ii) 
Administrative, Financial, and Accounting Manual; and 
(iii) Monitoring and Evaluation Manual, all in form and substance 
satisfactory to the Association. 
(b) 
The Recipient has recruited to the Executive Secretariat: (i) a training 
and capacity-building specialist; (ii) a civil works specialist; (iii) a 
monitoring and evaluation specialist; (iv) a socio-environmental 
specialist, all with qualifications, experience, and terms of reference 
satisfactory to the Association and in accordance with the provisions of 
Section III of Schedule 2 to this Agreement. 
(c) 
The Recipient has established a financial management system, in form 
and substance satisfactory to the Association. 
(d) 
The Recipient has appointed external auditors with qualifications, 
experience, and terms of reference satisfactory to the Association and in 
accordance with the provisions of Section III of Schedule 2 to this 
Agreement.  
4.02. 
The Effectiveness Deadline is the date 90 days after the date of this Agreement. 
 
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ARTICLE V 
—
REPRESENTATIVE; ADDRESSES
 
5.01. 
The Recipient’s Representative is the Minster at the time responsible for finance. 
5.02. 
The Recipient’s Address is: 
Ministry of Finance 
P. O. Box 1830 
Bujumbura 
Burundi 
 
Facsimile: 
 
257-22-38-27 
 
5.03. 
The Association’s Address is: 
 International 
Development 
Association 
 
1818 H Street, N.W. 
Washington, D.C. 20433 
 
United States of America 
 
Cable: 
  Telex: 
  Facsimile: 
 
INDEVAS 
 248423 
(MCI) 
 1-202-477-6391 
 Washington, 
D.C. 
 
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AGREED at Bujumbura, Burundi, as of the day and year first above written. 
 
REPUBLIC OF BURUNDI 
 
By /S/ Denise Sinankwa 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
By /S/ Alassane Sow 
Authorized Representative 
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SCHEDULE 1 
Project Description
 
The objective of the Project is to establish and operate a decentralized, 
transparent, and participatory financing mechanism that empowers local governments  
and Communities for purposes of improved and more equitable local service delivery. 
The Project consists of the following parts:
 
1. Capacity 
Building
(a) Local 
Development 
(i) Communities 
Capacity building with respect to local development activities, 
including in areas of participatory assessment, planning, and 
monitoring, financial management and procurement, and 
safeguards issues, for purposes of identification of Community 
members, assets, and issues, assessment of priorities, 
development and implementation of Subprojects, and agreement 
on participatory monitoring and evaluation mechanism. 
(ii) Communes 
(A) 
Preparation of Communal Development Plans, including 
activities relating to Vulnerable Groups, through 
participatory identification of Commune assets and 
issues and the identification and assessment carried out 
under Part 1 (a) (i) (A) of the Project, and development 
and implementation of corresponding Subprojects; and 
(B) 
Provision of institutional support such as information 
management and communication equipment and 
rehabilitation of premises. 
(iii) Line 
Ministries 
(A) 
Provision of support to Directorate General of 
Decentralization and Mobilization for Self-Development 
at central and decentralized levels, particularly with 
respect to monitoring and evaluation of activities under 
Part 1 (a) (i) and (ii) of Project; and 
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(B) 
Carrying out of information campaign and training for 
Line Ministries with respect to Project activities. 
(b) Social 
Cohesion 
Information, education, and communication activities with respect  
to Vulnerable Groups for benefit of: 
(i) 
Local government actors, for purposes of creating improved 
comprehension and support of said groups; 
(ii) 
Representative or support organizations, for purposes 
 
of strengthening support and assistance to said groups; and 
(iii) 
Member organizations, for purposes of strengthening 
organizational capacity, participation in local development 
activities, and resolution of issues.
 
2. Public 
Subprojects
(a) Local 
Development 
Financing of Community- and Commune-driven socioeconomic 
investments, notably in the following areas: 
(i) 
Collective economic facilities (markets, slaughterhouses, bus 
stations); 
(ii) 
Culture and sports (youth centers, sports grounds); 
(iii) 
Education (classrooms, teacher training, literacy programs); 
(iv) 
Health (health centers, HIV / AIDS prevention centers, health 
personnel training); 
(v) Transportation 
(roads, 
bridges); 
and 
(vi) 
Water and sanitation (equipped water sources, latrines). 
(b)  
Social Cohesion 
Financing of Community- and Commune-driven investments for benefit 
of Vulnerable Groups: 
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(i) 
Targeted at specific needs of said groups, notably in the 
following areas: 
(A) 
Schooling of Batwa children and orphans (identification, 
registration, sensitization, provision of schooling kits); 
(B) 
Housing construction for Batwa families and returnees; 
(C) 
Sports equipment for orphans and the youth; 
(D) 
Youth activities (theatre, sports events, youth camps, 
exchange visits, cultural festivals, artistic activities);  
(E) 
Technical and vocational training (construction, 
handicrafts, mechanics, Community-value activities 
 
such as bakery and seed-nursery operation and 
 
cheese-making, establishment of producer associations); 
and  
(F)  
Alphabetization. 
(ii) 
Establishment of local mechanisms for provision of community 
services such as: 
(A) 
Psychosocial counseling such as weekly support visits 
by specialized counselors to female victims of violence, 
orphans, and people living with HIV / AIDS; and 
(B) 
Legal assistance such as to Batwa communities, female 
victims of violence, orphans, and widows with respect to 
land restoration, identification cards, and legal defense.
 
3. 
Project Management, Monitoring and Evaluation, and Communication
(i) 
Administrative, financial, and technical management of Project, 
including capacity building of Project entities for this purpose and 
financing of Operating Costs. 
(ii) 
Project monitoring and evaluation, including results-oriented data 
collection for purposes of management decisions and impact evaluation. 
(iii) 
Development and implementation of communication strategy for 
information circulation amongst Project stakeholders, including 
development and maintenance of website with relevant functionalities. 
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SCHEDULE 2 
Project Execution 
Section I. 
Institutional and Other Arrangements
A. Institutional 
Arrangements
 
1.  
Ministry of the Interior and Public Security 
The Ministry of the Interior and Public Security shall provide oversight of Project 
implementation in accordance with the following institutional arrangements. 
 
National Orientation and Steering Committee 
(a) 
The Recipient shall maintain, throughout Project implementation, the 
National Orientation and Steering Committee, in form and substance  
and with functions and resources satisfactory to the Association, and 
comprising the First Vice President as Chair and Line Ministers. 
(b) 
Without limitation upon the provisions of subparagraph (a) of this 
Section, the National Orientation and Steering Committee shall be 
responsible for: (i) supervision of overall orientation, coordination, and 
monitoring and evaluation of Project implementation; and (ii) approval 
of Project annual work programs and budgets. 
Technical Execution Monitoring Committee 
 
(c) 
The Recipient shall maintain, throughout Project implementation, the 
Technical Execution Monitoring Committee, in form and substance  
and with functions and resources satisfactory to the Association, and 
comprising at least the Minister of the Interior and Public Security or his 
duly appointed representative as Chair and representatives from 
 
the Line Ministries, local government, and civil society. 
(d) 
Without limitation upon the provisions of subparagraph (c) of this 
Section, the Technical Execution Monitoring Committee shall 
 
be responsible for: (i) review of Project annual work programs and 
budgets for submission to the National Orientation and Steering 
Committee; (ii) monitoring of and provision of guidance with respect  
to Project implementation; (iii) approval of any amendment to the Project 
Implementation Manual, the Administrative, Financial, and Accounting 
Procedures Manual, and the Monitoring and Evaluation Manual; and 
(iv) regular review of Financial Reports and any audit reports thereon, 
and ensuring follow-up of any recommendations under said audit reports. 
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Executive Secretariat 
 
(e) 
The Recipient shall maintain, under the Directorate General 
 
of Decentralization and Mobilization for Self-Development throughout 
Project implementation, the Executive Secretariat, in form and substance 
and with functions and resources satisfactory to the Association, 
including staff with qualifications, experience, and terms of reference 
satisfactory to the Association and in accordance with the provisions of 
Section III of this Schedule 2, including the persons referred to in 
Section 4.01 (b) of this Agreement as well as an executive secretary, an 
administrative and financial officer, a procurement specialist, and  
an accountant. 
(f) 
Without limitation upon the provisions of subparagraph (e) of this 
Section, the Executive Secretariat shall be responsible for: (i) oversight, 
in collaboration with the Technical Directorates of the Directorate 
General of Decentralization and Mobilization for Self-Development, of 
all technical, social, and environmental matters relating to Project 
implementation; (ii) planning of Project activities and preparation  
of Project annual work programs, both jointly with said 
 
Directorates; (iii) monitoring and evaluation of Project activities jointly 
with said Directorates; (iv) financial management and procurement; and 
(vi) implementation of Subproject Grant Agreements concluded with 
Communes. 
Directorate General of Decentralization and Mobilization for Self-Development 
(g) 
Province-level entities of the Directorate General of Decentralization  
and Mobilization for Self-Development shall be responsible 
 
for: (i) 
circulation of information relating to Project 
 
activities; (ii) receipt, analysis, and circulation of activity reports 
furnished by Communes; and (iii) technical monitoring of Province-level 
facilitation agencies.
 
2. 
Communes and Communities 
(a) 
Except as the Association shall otherwise agree, the Recipient shall not 
amend, abrogate, or waive, or permit to be amended, abrogated, or 
waived, any provision of the Communal Law if such amendment or 
waiver may, in the opinion of the Association, materially or adversely 
affect Project implementation or achievement of the objective thereof.  
(b) 
The Community shall be responsible for: (i) carrying out of participatory 
needs assessments for preparation of Communal Development Plans; and 
(ii) identification and preparation of Subprojects. 
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(c) 
Without limitation upon the provisions of subparagraph (a) of this 
Section, the Commune shall be responsible for: (i) carrying out of 
consultations with Communities with respect to preparation of 
Communal Development Plans; (ii) approval of said plans; 
(iii) preparation and approval of Subprojects for forwarding to the 
Executive Secretariat; (iv) conclusion and execution of Subproject Grant 
Agreements with the Executive Secretariat; (v) conclusion of agreements 
with Communities for implementation and management of Community-
level Subprojects; and (vi) monitoring of operation and maintenance of 
infrastructure financed under the Project. 
3. Line 
Ministries 
Line Ministries shall, through their de-concentrated officers, be responsible  
for: (i) provision of technical advice to Communities and Communes with 
respect to sector strategies and quality norms; (ii) technical clearance 
 
of Communal Development Plans and Subproject proposals; (iii) provision  
of staff and equipment to Subprojects as required; (iv) development and updating 
of rosters of qualified contractors, suppliers, and technical assistance 
 
providers; and (v) provision of technical assistance with respect to quality 
standards of infrastructure financed under the Project. 
4. Service 
Providers 
The Recipient shall recruit, prior to commencement of implementation 
 
of Part 1 (a) (i) and (b) of the Project and in accordance with the provisions  
of Section III of this Schedule 2, and maintain as long as necessary, facilitation 
agencies with qualifications, experience, terms of reference, functions, and 
resources satisfactory to the Association for purposes of the carrying out of 
support and facilitation activities under said Part of the Project. 
B. Subprojects
 
1. General
(a) 
The Recipient shall maintain, throughout Project implementation, the 
Communal Councils, in form and substance and with functions 
 
and resources satisfactory to the Association, including staff 
 
with qualifications, experience, and terms of reference satisfactory  
to the Association. 
(b) 
Without limitation upon the provisions of subparagraph (a) of this 
Section, the Communal Council shall, on behalf of the Recipient, 
appraise, approve, and monitor Subprojects in accordance with 
 
the provisions of this Part B and the Project Implementation Manual. 
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2. 
Subproject Grant Eligibility and Subproject Implementation Guidelines and 
Procedures 
No proposed Subproject shall be eligible for financing under the Project unless 
the Communal Council has determined, on the basis of an appraisal conducted  
in accordance with this Part B and the Project Implementation Manual, that the 
proposed Subproject satisfies the eligibility criteria specified below 
 
and in further detail in the Project Implementation Manual, which shall include 
the following: 
(a) 
the proposed Subproject has been initiated by a Community or Commune 
which meets the eligibility criteria specified in the Project 
Implementation Manual; 
(b) 
the proposed Subproject is for activities set forth in Section 2 of 
Schedule 1 to this Agreement and in further detail in the Project 
Implementation Manual; 
(c) 
the proposed Subproject does not satisfy any of the non-eligibility 
criteria specified in the Project Implementation Manual; 
(d) 
the proposed Subproject complies with the Environmental and Social 
Management Framework, Indigenous Peoples Development Plan, and 
Resettlement Policy Framework; 
(e) 
the proposed Subproject is consistent with the respective Communal 
Development Plan or, in the absence thereof, has  been identified through 
a
Community- and / or Commune-level participatory process; 
(f) 
the proposed Subproject is consistent with the relevant standards and 
national sector policies. 
(g) 
the cost of the proposed Subproject does not exceed: (A)  $25,000 at 
Community level and $100,000 at Commune level with respect 
 
to Subprojects under Part 2 (a) of the Project; and (B) $15,000 with 
respect to Subprojects under Part 2 (b) of the Project; 
(h) 
with respect to Subprojects under Part 2 (a) of the Project: the respective 
Community is contributing at least three percent (3%) of the projected 
Subproject costs in cash or in kind; and the respective Commune is 
contributing, in accordance with the provisions of said Manual, at 
least between 0.5 and two (2)
 
percent of the projected Subproject costs in 
cash, as per and from its Communal budget; and  
(i) 
the Beneficiary has established a specific committee for management  
of the proposed Subproject and put in place all necessary 
 
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arrangements, including financial and human resources, for maintenance 
of the Subproject. 
3. 
Terms and Conditions of Subproject Grant Agreements
(a) 
A Subproject shall be carried out pursuant to a Subproject Grant 
Agreement, to be concluded between the Executive Secretariat on behalf 
of the Recipient and the respective Communal Council on behalf  
of the Beneficiary, under terms and conditions, satisfactory 
 
to the Association, described in further detail in the Project 
Implementation Manual, which shall include the following:
 
(i) 
the obligation: (A) of the respective Community to contribute at 
least three percent (3%) of the projected Subproject costs in cash 
or in kind; and (B) of the respective Commune to contribute, in 
accordance with the provisions of said Manual, at 
least between 0.5 and two (2)
 
percent of the projected Subproject 
costs in cash, as per and from its Communal budget; 
(ii) 
the obligation of the Beneficiary to: (A) carry out the Subproject 
with due diligence and efficiency and in accordance with sound 
technical, environmental, financial, and administrative 
 
practices; (B) ensure that the resources required for the 
Subproject are provided promptly as needed; (C) maintain 
adequate records to reflect, in accordance sound accounting 
practices, the resources, operations, and expenditures relating  
to the Subproject; and (D) at the request of the Association or the 
Recipient, have such records audited by independent auditors 
acceptable to the Association, in accordance with consistently 
applied auditing standards acceptable to the Association, and 
promptly furnish the records as so audited to the Recipient  
and the Association; 
(iii) 
the requirement that the goods
,
works, and consultants’ services 
to be financed from the proceeds of the Subproject Grant shall  
be procured in accordance with procedures ensuring efficiency 
and economy and in accordance with the provisions 
 
of Section III of this Schedule, and shall be used exclusively  
in the carrying out of the Subproject; and 
(iv) 
the right of the Executive Secretariat, on behalf of the Recipient, 
and of the Recipient in its own right, to: (A) inspect by itself, or 
jointly with the Association, if the Association shall 
 
so request, the goods, works, sites, plants and construction 
included in the Subproject, the operations thereof, and any 
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relevant records and documents; (B) obtain all information  
as it, or the Association, shall reasonably request regarding  
the administration, operation, and financial condition 
 
of Subprojects; and (C) suspend or terminate the right of any 
Beneficiary to use the proceeds of the Subproject Grant upon 
failure by the Beneficiary to perform any of its obligations under 
the Subproject Grant Agreement. 
(b) 
the Executive Secretariat or the Recipient, as the case may be, shall 
exercise its rights under the Subproject Grant Agreement in such manner 
as to protect its interests and the interests of the Association 
 
and to achieve the Project objective, and, except as the Association shall 
otherwise agree, the Recipient shall not assign, amend, abrogate, or 
waive, or permit to be assigned, amended, abrogated, or waived, any 
substantive provision of the aforementioned.
 
C. Manual
 
Except as the Association shall otherwise agree, the Recipient shall: (i) carry out, 
through its Ministry of the Interior and Public Security, the Project in accordance 
with the Project Implementation Manual, the Administrative, Financial, and 
Accounting Procedures Manual, and the Monitoring and Evaluation Manual 
referred to in Section 4.01 (b) of this Agreement; and (ii) except as the 
Association shall otherwise agree, not amend, abrogate, or waive, or permit to be 
amended, abrogated, or waived, the aforementioned, or any provision thereof, in 
a
manner which, in the opinion of the Association, may materially or adversely 
affect Project implementation or achievement of the objective thereof. 
D. 
Environmental and Social Safeguards
 
1. 
The Recipient shall ensure that the Project is implemented in accordance with the 
provisions of the Environmental and Social Management Framework, Indigenous 
Peoples Development Plan, and Resettlement Policy Framework, and, except  
as the Association shall otherwise agree, the Recipient shall not amend, abrogate, 
or waive, or permit to be amended, abrogated, or waived, any provision  
of the aforementioned if such amendment or waiver may, in the opinion of the 
Association, materially or adversely affect Project implementation 
 
or achievement of the objective thereof.  
2. 
The Recipient shall ensure that Subprojects likely to have an adverse 
environmental or social impact shall be appraised, approved, and monitored  
in accordance with the provisions of the Environmental and Social Management 
Framework, Indigenous Peoples Development Plan, and Resettlement Policy 
Framework, and specific procedures set out in the aforementioned. 
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3. 
The Recipient shall maintain, throughout Project implementation, the 
 
socio-environmental specialist referred to in Section 4.01 (b) of this Agreement, 
who shall be responsible for implementation of the Environmental and Social 
Management Framework, Indigenous Peoples Development Plan, and 
Resettlement Policy Framework. 
4. 
In the event of any conflict between the provisions of the Environmental  
and Social Management Framework, Indigenous Peoples Development Plan, or 
Resettlement Policy Framework and those of this Agreement, the provisions  
of this Agreement shall prevail. 
Section II. 
Project Monitoring, Reporting and Evaluation 
A. Project 
Reports 
1. 
(a) 
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 the 
indicators set forth below in sub-paragraph (b) of this section.  Each 
Project Report shall cover the period of one calendar quarter, and shall 
be furnished to the Association not later than one month after the end of 
the period covered by such report. 
(b) 
The performance indicators referred to above in sub-paragraph (a) 
consist of the following, to be assessed as of the Closing Date:   
(i) Project 
Objective 
(A) 
At least 70 percent of the targeted Communes show  
an increase in access to and use of primary health, 
primary education, and water services, as compared with 
that at the time of conclusion of the respective 
Subproject Grant Agreement. 
(B) 
At least 70 percent of the infrastructure financed under 
Subprojects is maintained and operational two years 
after completion of the respective Subproject. 
(C) 
At least 15 percent of the targeted Communes have 
obtained funding for Communal Development Plan 
activities from outside the Project. 
(D) 
At least 50 percent of the targeted Communes have 
integrated the concerns of Vulnerable Groups in their 
Communal Development Plans. 
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(ii) 
Part 1 of Project 
(A) 
At least 90 percent of the targeted Communes have 
developed or updated their Communal Development 
Plans on a participatory basis. 
(B) 
At least 80 percent of the targeted Communes have 
developed a strategy to ensure participation of 
Vulnerable Groups in their decision-making process, 
notably with respect to Communal Development Plans. 
(iii) 
Part 2 of Project 
(A) 
At least 430 Community- and Commune-level 
Subprojects have been completed. 
(B) 
At least 70 Subprojects targeting or relating to 
Vulnerable Groups have been completed. 
(iv) 
Part 3 of Project 
(A) 
At least 60 percent of the targeted Communes provide 
robust monitoring and evaluation information in an 
appropriate timeframe.  
(B) 
A communication strategy targeting all Project 
stakeholders has been developed and implemented. 
(C) 
Each audit report following the audit referred to in 
Part B.3 of this Section II has been unqualified. 
B. 
Financial Management, Financial Reports and Audits 
1. 
The Recipient shall maintain or cause to be maintained a financial management 
system in accordance with the provisions of Section 4.09 of the General 
Conditions. 
2. 
Without limitation on the provisions of Part A of this Section, the Recipient shall 
prepare and furnish to the Association, as part of the Project Report, interim  
un-audited 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 fiscal year of the 
Recipient, commencing with the fiscal year in which the first withdrawal under 
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the Project Preparation Advance was made.  The audited Financial Statements  
for each such period shall be furnished to the Association not later than six 
months after the end of such period.
 
Section III. 
Procurement
A. General
 
1. 
Goods and Works.
 
All goods and works required 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 Section I of the Procurement 
Guidelines, and with the provisions of this Section. 
2. 
Consultants’ Services.
 
All consulta
nts’ services required 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 Sections I and IV 
of the Consultant Guidelines, and with the provisions of this Section. 
3. Definitions.
 
The capitalized terms used below in this Section to describe 
particular procurement methods or methods of review by the Association  
of particular contracts, refer to the corresponding method described 
 
in the Procurement Guidelines, or Consultant Guidelines, as the case may be. 
B. 
Particular Methods of Procurement of Goods and Works 
 
1. International 
Competitive 
Bidding. 
 
Except as otherwise provided 
 
in paragraph 2 below, goods and works shall be procured under contracts 
awarded on the basis of International Competitive Bidding. 
2. 
Other Methods of Procurement of Goods and Works.  
The following table 
specifies the methods of procurement, other than International Competitive 
Bidding, which may be used for goods and works.  The Procurement Plan shall 
specify the circumstances under which such methods may be used: 
Procurement Method
 
(a)  National Competitive Bidding 
(b)  Shopping 
(c)  Direct Contracting 
(d)  Procurement from United Nations Agencies 
(e)  Community Participation 
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C. 
Particular Methods of Procurement of Consultants’ Services 
1. 
Quality- and Cost-based Selection.
 
Except as otherwise provided 
 
in paragraph 
2
below, consultants’ services 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 table 
specifies methods of procurement, other than Quality and Cost-based Selection, 
which may be used for consultants’ services.  The Procurement Plan shall specify 
the circumstances under which such methods may be used. 
Procurement Method
 
(a)  Selection Based on Consultants’ Qualifications 
(b)  Least Cost Selection 
(c)  Selection of Individual Consultants 
(d)  Single Source Selection 
D. 
Review by the Association of Procurement Decisions 
 
Except as the Association shall otherwise determine by notice to 
 
the Recipient, the following contracts shall be subject to Prior Review by the 
Association:  (a) each contract for goods estimated to cost the equivalent  
of $150,000 or more; (b) each contract for works
 
estimated to cost the  
equivalent of $200,000 or more; (c) each contract for consultants’ services with 
specific and exclusive regard to the terms of reference for such contract; (d) the 
first contract for consultants’ services provided by a firm; (e) each contract  
for consultants’ services provided by a firm estimated to cost the equivalent of 
$100,000 or more; (f) the first contract for consultants’ services provided by an 
individual; (g) each contract for consultants’ services provided by an individual 
estimated to cost the equivalent of $50,000 or more; (h) each contract for 
consultants’ services procured on the basis of single source selection; and (i) each 
contract for training, workshops, and study tours in accordance with the 
provisions of the Project Implementation Manual.  All other contracts shall be 
subject to Post Review by the Association. 
 
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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 the 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 this Agreement pursuant 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 proceeds of the Financing (“Category”), the allocations  
of the amounts of the Grant Financing to each Category, and the percentage  
of expenditures to be financed for Eligible Expenditures in each Category: 
 
Category 
Amount of the Grant 
Allocated  
(expressed in SDR) 
Percentage of Expenditures  
to be Financed 
(exclusive of Taxes) 
(1)  Goods 
640,000 
100 
(2)  Works 
480,000 
100 
(3)  Consultants’ services, 
 including 
audits 
1,550,000 100 
(4)  Training 
1,850,000 
100 
(5)  Subprojects 
20,150,000 
100% of amounts disbursed 
(6)  Operating Costs 
440,000 
100 
(7)  Refund of Project 
 Preparation 
Advance 
420,000 
Amount payable pursuant to 
Section 2.07 of the General Conditions 
(8) Unallocated 
1,370,000 
 
TOTAL AMOUNT 
26,900,000  
B. 
Withdrawal Conditions; Withdrawal Period
 
1.
 
Notwithstanding the provisions of Part A of this Section IV, no withdrawal shall  
be made in respect of Subprojects under Category (5) above, unless 
 
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the respective Subproject Grant Agreement shall have been made in accordance 
with the provisions of this Schedule and the Project Implementation Manual, as 
evidenced by submission of the first three (3) Subproject Grant Agreements 
concluded under the Project for approval by the Association.
 
2.
 
The Closing Date is December 31, 2012. 
Section V. 
Other Undertakings
The Recipient shall recruit, no later than three (3) months after the Effective Date 
and in accordance with the provisions of Section III of this Schedule 2, a firm 
with qualifications, experience, and terms of reference satisfactory to the 
Association for the purpose of Commune-level financial oversight of 
Subprojects. 
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APPENDIX 
Definitions
 
1. 
“Administrative, Financial, and Accounting Procedures Manual” 
 
(
Manuel des procédures administratives, financières, et comptables
)
means  
the manual adopted by the Recipient, outlining administrative, financial 
management, and accounting arrangements, as shall have been agreed with  
the Association for purposes of Project implementation and shall be applied  
by the Recipient in accordance with the provisions of Section I.D.1 of Schedule 2 
to this Agreement, as the same may be amended from time to time with  
the concurrence of the Association, and such term includes any schedules  
to the Administrative, Financial, and Accounting Procedures Manual. 
2. 
“Batwa” means the indigenous people who are the oldest recorded inhabitants of 
the 
Great Lakes
region
of 
central Africa
and recognized as being the smallest 
minority group of the Recipient’s population. 
3. 
“Beneficiary” means a Community (as hereinafter defined) or Commune  
(as hereinafter defined) which meets the criteria specified in the Project 
Implementation Manual (as hereinafter defined) and to which or for whose 
benefit a Subproject Grant (as hereinafter defined) is made or proposed  
to be made for the carrying out of a Subproject (as hereinafter defined).  
4. 
“Category” means a category set forth in the table in Section IV of Schedule 2 to 
this Agreement. 
5. 
“Consultant Guidelines” means the “Guidelines: Selection and Employment  
of Consultants by World Bank Borrowers” published by the Bank in May 2004.  
6. 
“Communal Council” (
Conseil Communal
)
means the decision-making organ  
of the Commune, established and operating pursuant to the Recipient’s Law 
No. 1/016 of April 20, 2005. 
7. 
“Communal Development Plan” (
Plan Communal de 
Développement 
Communautaire
)
means the plan prepared by a Commune pursuant to the 
Recipient’s Law No. 
1/016 of April 
20, 2005 and outlining its priority 
development needs for a given period of five (5) years. 
8. “Commune” 
(
Commune
)
means an administrative area of the 
 
Recipient, established pursuant to the Recipient’s Law No. 
1/16 of 
 
April 20,
 
2005,
representing a designated area and population within the territory 
of the Recipient. 
9. “Community” 
(
Colline
)
means an administrative area of the 
 
Recipient in a Commune, established pursuant to the Recipient’s Law No. 1/16 
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of April 20,
 
2005, representing a designated area and population within the 
territory of the Recipient. 
10. 
“Directorate General of Decentralization and Self-Development” 
 
(
Direction Générale de la Décentralisation et de la Mobilisation pour l’Auto 
Développement
)
means the Recipient’s entity, housed under the Ministry  
of the Interior and Public Security (as hereinafter defined), responsible  
for decentralization and mobilization for self-development. 
11. 
“Environmental and Social Management Framework” (
Cadre de Gestion 
Environnementale et Sociale
)
means the framework, dated November 2006, 
adopted by the Recipient, outlining the environmental and social screening 
process to be followed in identifying, assessing, and mitigating the potential 
adverse environmental and social impact, as shall have been agreed with  
the Association for purposes of Project implementation and shall be applied  
by the Recipient in accordance with the provisions of Section I.D.1 of Schedule 2 
to this Agreement, as the same may be updated from time to time with  
the concurrence of the Association, and such term includes any schedules  
to the Environmental and Social Management Framework. 
12. “Executive 
Secretariat” 
(
Secrétariat Exécutif
)
means the Project entity 
established and operating pursuant to the Recipient’s Order No. 04/VP1 of 
January 22, 2007. 
13. “Indigenous 
Peoples 
Development
 
Plan” (
Plan concernant les populations 
Batwa
)
means the Recipient’s plan, dated October 2006, outlining measures  
to ensure culturally appropriate social and economic benefits for the Batwa under 
the Project and avoidance, minimization, or mitigation of or compensation  
for any potential adverse effects on the Batwa associated with activities  
to be implemented under the Project, as shall have been agreed with 
 
the Association for purposes of Project implementation and shall be applied  
by the Recipient in accordance with the provisions of Section I.D.1 of Schedule 2 
to this Agreement, as the same may be updated from time to time with the 
concurrence of the Association, and such term includes any schedules 
 
to the Indigenous Peoples Development Plan. 
14. 
“General Conditions” means the “International Development Association 
General Conditions for Credits and Grants”, dated July 1, 2005. 
15. 
“Line Ministry” means any one of the Recipient’s ministries responsible at the 
time for good governance; general inspection of the state and local government; 
development planning and national reconstruction; finance; public works and 
equipment; land settlement, the environment, and tourism; energy and mining; 
national education and culture; public health; youth and sports; and national 
solidarity, human rights, and gender. 
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23
16. 
“Ministry of the Interior and Public Security” (
Ministère de l’Intérieur et de la 
Sécurité Publique
)
means the Recipient’s ministry at the time responsible for the 
interior, public security, and decentralization. 
17. 
“Monitoring and Evaluation Manual” (
Manuel de Suivi-Evaluation
)
means  
the manual adopted by the Recipient, outlining monitoring and evaluation 
arrangements, as shall have been agreed with the Association for purposes  
of Project implementation and shall be applied by the Recipient in accordance 
with the provisions of Section I.D.1 of Schedule 2 to this Agreement, as the same 
may be amended from time to time with the concurrence of the Association, and 
such term includes any schedules to the Monitoring and Evaluation Manual.  
18. 
“National Orientation and Steering Committee” (
Comité National d’Orientation 
et de Pilotage
)
means the Project entity established and operating pursuant to the 
Recipient’s Order No. 04/VP1 of January 22, 2007. 
19. 
“Operating Costs” means the incremental expenses incurred by the Recipient  
on account of Project implementation, management, and monitoring, including 
for office space rental, utilities, and supplies, bank charges, communications, 
vehicle operation, maintenance, and insurance, building and equipment 
maintenance, advertising expenses, travel and supervision, salaries and statutory 
contributions of contractual and temporary staff, but excluding salaries, fees, 
honoraria, and bonuses of members of the Recipient’s civil service. 
20. 
“Procurement Guidelines” means the “Guidelines: Procurement under IBRD 
Loans and IDA Credits” published by the Bank in May 2004. 
21. 
“Project Implementation Manual” (
Manuel d’Exécution
)
means the manual 
adopted by the Recipient, outlining implementation, organizational, 
disbursement, procurement, and environmental and social monitoring 
 
and mitigation arrangements, as shall have been agreed with the Association  
for purposes of Project implementation and shall be applied by the Recipient  
in accordance with the provisions of Section I.D.1 of Schedule 2 to this 
Agreement, as the same may be amended from time to time with the concurrence 
of the Association, and such term includes any schedules to the Project 
Implementation Manual. 
22. 
“Procurement Plan” means the Recipient’s procurement plan for the Project, 
dated February 8, 2007 and referred to in paragraph 1.16 of the Procurement 
Guidelines and paragraph 1.24 of the Consultant Guidelines, as the same shall be 
updated from time to time in accordance with the provisions of said paragraphs. 
23. 
“Project Preparation Advance” means the advance referred to in Section 2.07 of 
the General Conditions, granted by the Association to the Recipient pursuant  
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24
to the letter agreement signed on behalf of the Association 
 
on September 12, 2005 and on behalf of the Recipient on September 28, 2005. 
24. 
“Province” (
Province
)
means an administrative area of the Recipient, established 
pursuant to the Recipient’s Law No. 1/010 of March 18, 2005, representing  
a
designated area and population within the territory of the Recipient. 
25. 
“Resettlement Policy Framework” (
Cadre de Politique de Réinstallation 
involontaire et de compensation
)
means the 
Recipient’s framework, dated 
October 2006, outlining arrangements for the resettlement and compensation  
of persons affected by potential changes in land use associated with activities to 
be implemented under the Project, as shall have been agreed with the Association 
for purposes of Project implementation and shall be applied by the Recipient  
in accordance with the provisions of Section I.D.1 of Schedule 2 to this 
Agreement,zz as the same may be updated from time to time with the 
concurrence of the Association, and such term includes any schedules to the 
Resettlement Policy Framework. 
26. 
“Subproject” means a specific activity carried out under Part 2 of the Project, 
financed or proposed to be financed through a Subproject Grant (as hereinafter 
defined).  
27. 
“Subproject Grant” means a grant made or proposed to be made to finance  
a
Subproject. 
28. 
“Subproject Grant Agreement” means an agreement between the Recipient 
represented by the Executive Secretariat and a Beneficiary, setting forth the terms 
and conditions under which proceeds of the Financing shall be made available  
to the Beneficiary for the purpose of financing Subprojects. 
29. 
“Technical Execution Monitoring Committee” (
Comité Technique de Suivi de 
l’Exécution
)
means the Project entity established and operating pursuant to the 
Recipient’s Order No. 04/VP1 of January 22, 2007. 
30. 
“Training” means the training of persons involved in Project-supported activities, 
such term including seminars, workshops, and study tours, and costs associated 
with such activity include travel and subsistence costs for training participants, 
costs associated with securing the services of trainers, rental of training facilities, 
preparation and reproduction of training materials, and other costs directly 
related to training preparation and implementation.  
31. 
“Vulnerable Group” means any one of the following groups 
 
of persons: Orphans, households affected by HIV/AIDS, destitute women, 
the 
Batwa, internally displaced persons, returnees, the handicapped, and 
the youth.
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