OFFICIAL DOCUMENTS ARTF GRANT NUMBER TFOB3543 Afghanistan Reconstruction Trust Fund Grant Agreement (COVID-19 Relief Effort for Afghan Communities and Households (REACH) Project) between ISLAMIC REPUBLIC OF AFGHANISTAN and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as administrator of the Afghanistan Reconstruction Trust Fund ARTF GRANT NUMBER TF0B3543 AFGHANISTAN RECONSTRUCTION TRUST FUND GRANT AGREEMENT AGREEMENT dated as of the Signature Date between ISLAMIC REPUBLIC OF AFGHANISTAN ("Recipient") and INTERNATIONAL DEVELOPMENF ASSOCIATION ("Bank"), acting as administrator of the Afghanistan Reconstruction Trust Fund ("ARTF"). WHEREAS: (A) the Recipient, having satisfied itself as to the feasibility and priority of the Project described in Schedule I to this Agreement ("Project"), has requested the Bank to extend a grant from the ARTF to assist in the financing of the Project, which supports the Recipient's Dastarkhan-e-Milli program; and (B) the Recipient has also requested the Bank to provide assistance and make available a grant in the amount of SDR 112,700,000, to assist in the financing ofthe Project, under a financing agreement between the Recipient and the Bank (the "Financing Agreement'); NOW THEREFORE, the Recipient and the Bank hereby agree as follows: Article I Standard Conditions; Definitions 1.01. The Standard 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 Standard Conditions or in the Appendix this Agreement. Article II The Project 2.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient shall carry out the Project in accordance with the provisions of Article II of the Standard Conditions and Schedule 2 to this Agreement. 2 Article III The Grant 3.01. The Bank agrees to extend to the Recipient a grant in an amount not to exceed one hundred twenty-five million United States Dollars ($125,000,000) ("Grant") to assist in financing the Project. 3.02. The Recipient may withdraw the proceeds of the Grant in accordance with Section III of Schedule 2 to this Agreement. 3.03. The Grant is funded out of the abovementioned trust fund for which the Bank receives periodic contributions from the donors to the trust fund. In accordance with Section 3.02 of the Standard Conditions, the Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. Article IV Effectiveness; Termination 4.01. This Agreement shall not become effective until evidence satisfactory to the Bank has been furnished to the Bank that the conditions specified below have been satisfied, namely, that the Financing Agreement dated the same date as this Agreement, between the Recipient and the Bank, providing a grant in support of the Project, has been executed and delivered and all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled. 4.02. By signing the Grant Agreement, the Recipient Entity shall be deemed to represent and warrant that on the Signature Date, the Grant Agreement has been duly authorized by, and executed and delivered on behalf of, the Recipient and is legally binding upon the Recipient in accordance with its terms, except where additional action is required to make such Grant Agreement legally binding. Where additional action is required following the Signature Date, the Recipient shall notify the Bank when such additional action has been taken. By providing such notification, the Recipient shall be deemed to represent and warrant that on the date of such notification the Grant Agreement is legally binding upon the Recipient in accordance with its terms. 4.03. Except as the Recipient and the Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the Bank dispatches to the Recipient notice of its acceptance of the evidence required pursuant to Section 4.01 ("Effective Date"). If, before the Effective Date, any event has occurred which would have entitled the Bank to suspend the right of the Recipient to make withdrawals from the Grant Account if this Agreement had been effective, the Bank may postpone the dispatch of the notice referred to in this Section until such event (or events) has (or have) ceased to exist. 4.04. Termination for Failure to Become Effective. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date ninety (90) days after the date of this Agreement, unless the Bank, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section. The Bank shall promptly notify the Recipient of such later date. Article V Recipient's Representative; Addresses 5.01. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Minister of Finance. 5.02. For purposes of Section 7.01 of the Standard Conditions: (a) the Recipient's address is: Ministry of Finance Pashtunistan Watt Kabul Islamic Republic of Afghanistan; and (b) the Recipient's Electronic Address is: Facsimile: 93-202-103-259 5.03. For purposes of Section 7.01 of the Standard Conditions: (a) the Bank's address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Bank's Electronic Address is: Facsimile: 1-202-477-6391 4 AGREED as of the Signature Date. ISLAMIC REPUBLIC OF AFGHANISTAN By Aut 0epresentative Name: Title: Date: INTERNATIONAL DEVELOPMENT ASSOCIATION acting as administrator of the Afghanistan Reconstruction Trust Fund By Authorized Representative Name: Title: Date: 5 SCHEDULE 1 Project Description The provisions of Schedule I to the Financing Agreement are incorporated herein by reference and apply to the Project, mutatis mutandis. 6 SCHEDULE 2 Project Execution Section 1. Implementation Arrangements The provisions of Section I (Implementation Arrangements) comprising of Section L.A (Institutional Arrangements), Section .B (Implementation Arrangements), and Section L.C (Environmental and Social Standards), in Schedule 2 to the Financing Agreement are incorporated herein by reference and apply to the Project, mutatis mutandis, with the following modifications: 1. The term "Association" wherever used in Sections LA, 1.13, and I.C of Schedule 2 to the Financing Agreement shall mean the "Bank" as defined in this Agreement. 2. The term "Financing" wherever used in Sections LA, 1.13, and L.C of Schedule 2 to the Financing Agreement shall mean the "Grant" as defined in this Agreement. Section II. Proiect Monitoring, Reporting and Evaluation A. Documents; Records In addition, and without limitation to the obligations set forth in Section 2.05 of the Standard Conditions, the Recipient shall ensure that: (a) all records evidencing expenditures under the Project are retained for seven years and six months after the Closing Date, such records to include: (i) this Agreement, all addenda thereof, and any amendments thereto; (ii) the Recipient's financial and narrative progress reports submitted to the Bank; (iii) the Recipient's financial information related to the Grant, including audit reports, invoices and payroll records; (iv) the Recipient's implementation documentation (including sub-agreements, procurement files, contracts, purchase orders); and (v) the corresponding supporting evidence referred to in Section 3.04 of the Standard Conditions; and (b) the representatives of the Bank are: (i) able to examine all records referred to above in paragraph (a); (ii) provided all such information concerning such records as they may from time to time reasonably request; and (iii) able to disclose such records and information to the Donor(s). B. Project Reports The Recipient shall ensure that each Project Report is furnished to the Bank not later than forty-five (45) days after the end of each calendar quarter, covering the calendar quarter. 7 Section HL1. Withdrawal of Grant Proceeds A. General 1. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; and (b) this Section; to finance Eligible Expenditures in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table. Category Amount of the Grant Percentage of Allocated (expressed in Expenditures to be USD) Financed (inclusive of Taxes) (1) Food Grants under Part I of 125,000,000 98.4% the Project (2) Food Grants and Cash Grants 0 under Part 2 of the Project (3) Food Grants and Cash Grants 0 under Part 3 of the Project (4) Goods, non-consulting 0 services, consulting services, and Incremental Operating Costs for the Project (5) Project Implementation Staff 0 TOTAL AMOUNT 125,000,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section no withdrawal shall be made for payments made prior to the Signature Date, except that withdrawals up to an aggregate amount not to exceed $2,000,000 may be made for payments made prior to this date but on or after June 1, 2020, for Eligible Expenditures under Category (1). 2. The Closing Date is December 31, 2021. 8 APPENDIX Definitions 1. "AFA" means Afghani, the Recipient's lawful currency. 2. "Anti-Corruption Guidelines" means, for purposes of paragraph 2 of the Appendix to the Standard 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. 3. "Cash Grant" means a cash grant in the amount of AFA 4,000 for each tranche to be provided to a selected household under Parts 2 and 3 of the Project, and "Cash Grants" means, collectively, all such grants. 4. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 5. "Food Grant" means an in-kind grant (food and hygiene products) in the amount of AFA 4,000 equivalent for each tranche, to be provided to a selected household under Parts 1, 2, and 3 of the Project; and "Food Grants" means, collectively, all such grants. 6. "Incremental Operating Costs" means the reasonable Project-related incremental expenses incurred on account of Project implementation, management, and monitoring, including the rental of office space; operation, maintenance, rental and insurance of vehicles; fuel; communications supplies and charges; advertisements; books and periodicals; office administration and maintenance costs; bank transaction charges; utility charges; travel and per diem; and remuneration of the Project Implementation Staff. 7. "Procurement Regulations" means, for purposes of paragraph 20 of the Appendix to the Standard Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. 8. "Project Implementation Staff' means additional staff recruited by the Recipient for the purposes of the Project implementation on a contractual and temporary basis in compliance with the detailed hiring procedure agreed upon between the Recipient and the Bank, and such term does not include any members of the Recipient's civil service. 9. "Signature Date" means the later of the two dates on which the Recipient and the Bank signed this Agreement and such definition applies to all references to "the date of the Grant Agreement" in the Standard Conditions. 9 10. "Standard Conditions" means the "International Bank for Reconstruction and Development and International Development Association Standard Conditions for Grant Financing Made by the Bank out of Trust Funds", dated February 25, 2019. 10