OFFICIAL DOCUMENTS CREDIT NUMBER 6982-LA Financing Agreement (Enhancing Systematic Land Registration Project) between LAO PEOPLE'S DEMOCRATIC REPLBLIC and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER IDA 6982-LA FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between LAO PEOPLE-S DEMOCRATIC REPUBLIC r-Recipien") and INTERNATIONAL DEVELOPMENT ASSOCIATION ('Association ) WHEREAS (A) under an agreement. to be entered into between the Recipient and the International Development Association (-the Associationr . acting as an administrator for a trust fund from the Swiss Agency for Development and Cooperation i Co-inancing Agreement)_ the Association intends to provide the Recipient with a grant ("Co-financing Grant" in an initial amount not to exceed USS.699.920 plus an> subsequent amount or amounts as the Association shall specif by notice to the Recipient and which shall not exceed in an aggregate amount of USS6.375.000) to assist in financina the Project: and WHEREAS the Association has agreed. on the basis, inter alia. of the foregoing to extend additional assistance to the Recipient upon the terms and conditions set forth in this Agreement: NOW THEREFORE, 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 forn 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 a credit, deemed by the Association to be on concessional tenns, as set forth or referred to in this Agreement, in an amount equivalent to seventeen million four hundred thousand Special Drawing Rights (SDR 17.400.000) (ariousl. -Credit and --Financing_) to assist in financing the project described in Schedule I to this Agreement ( Project > 2.02. The Recipient maN wNithdraw the proceeds of the Financing in accordance w\ith Section Ill 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 Un%ithdrawn Financing Balance. 2.04. The Service Charge is three-fourths of one percent (3/4 of 1%) per annum on the Withdraw.n Credit Balance. 2.05. The Interest Charge is one and a quarter percent (1.25%) per annum oin the Withdrawn Credit Balance. 2.06. The Payment Dates are May 15 and November 1 5 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. 108. The Payment Currenc\ 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 MONRE in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV -- EFFECTIVENESS;TERMINATION 4.01. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 4.01 The Additional Conditions of Effectiveness consist of the following: (a) The Co-financing Agreement 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) has been fulfilled. (b) The Recipient through MONRE has adopted the Project Operations Manual acceptable to the Association for Project implementation. -3- (c) Ihe Recipient has established the PMU and has engaged, as the core staff olthe PMU. a procurement specialist, a financial management specialist, an environmental and social specialist, all w ith terms of reference. qualifications. and experience acceptable to the Association. 4.03. For purposes of Section 10.05 (b) of the General Conditions, the date on hich the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is t\enty (20) years after the Signature Date. ARTICLE V- REPRESENTATIVE; ADDRESSES 50 1. The Recipient's Representati\e is its Minister of Finance. 5.02. For purposes of Section I 1.01 of the General Conditions: (a) the Recipients address is Ministry of Finance 23" Singha Road Saysettha District Vientiane, Lao PDR (b) the Recipient's Electronic Address is Facsimile: 856-21-412142 E-mail: soulivatha gmail.com 5.03. For purposes of Section 11.01 of the General Conditions: (a) the Association's address is. International Development Association 1818 H Street. N.W. Washington. D.C. 20433 United States of America (b) the Association's Electronic Address is: Facsimile: 1-202-477-6391 E:-mail: lan dr a worllkibunL ir -4- AGRIEED as of the Signature Date. LA0 PEOPLE-S DEMIOCRATIC REPLBLIC BN Authorized Representative Name: TFitle: Date: INTERNATIONAL DEVELOPMENT ASSOCIATION By Authorized Representative Name: Title: Date SCHEDULE I Project Description The objective of the Project is to support the Recpient in improving tenure security and land administration services in Selected Areas, and to provide immediate and effective response in case of an Eligible Crisis or Emergency. The Project consists of the following parts: Part 1: Systematic Registration of Land Use Riahts 1.1 Scaling-up Systematic Land Re2istration (a) Implementing sNstematic land registration, including associated environmental and social risk management activities, public a,.areness campaigns, technical assistance, and related operational support: (b) providing goods required for the implementation of land registration process such as vehicles. surve equipment. equipment for the operations of the Continuously Operating Reference Stations (CORSs). ICT equipment. boundary markers and stationery: and (c) surveying and/or mapping land parcels by piloting use of private sector surveyors in land registration. 1.2 Training and Capacity Building: Planning and implementing systematic land registration trainings to enhance the capacity of the relevant government and contract staff through developing a training and capacitN building plan for SI.R: and implementing the SLR trainings. Part 2: Modernization of Land Administration and Service Delivery 2.1: Enhanced Service Delivery: Improving service delivery through: (i) business process reengincering assessment and customer satisfaction surveys: (ii) planning and piloting of land administration service centers: (iii) construction and renovation of PONREs. DONREs and land administration service centers: (iv) procurement of goods such as office equipment. furniture, stationary and ICT equipment, and (v) recruitment and training of staff. 2,2: Scanning, Digitization and Archiving of Existing Land Records: Digitizing existing land records to ensure their safety. accelerate transition to a digital land administration system and enhance the use of office space through the preparation of a document management and digital archive strategy: and scanning. digitizing -6- and archiving the documents. 2.3: Lao LandReg Development and Rollout: Supporting further development and roll-out of Lao LandReg to enhance digitalization of land administration system and service delivery through: (i) preparing an ICT strategy. conducting a technical qualitN reviewx of Lao LandReg and carr-ying out data protection and cyber security studies: (ii) renovating offices to enhance the server room facilities of DOL. PONREs and land administration service centers, (iii) providing iC equipment: (iv) further developing the Lao LandReg system; and (v) providing training for Lao LandReg operators. Part 3: Implementation, Poliev and Legal Framework Development Supporting further development of inclusive and comprehensive land policies and regulatory framework, as well as their implementation procedures, through: (i) preparing policy to address, inter alia, issues related to survey and registration of customary and communal lands as well as registration of lands within state forestlands, and relevant technical guidelines and manuals: (ii) disseminating relevant policies, laws and regulations: and (iii) organizing training workshops for government staff. Part 4: Project Management Supporting the overall Project management and coordination through: (i) provision of Operating Costs associated with Project implementation: (ii) supporting technical assistance for financial management. procurement. coordination. environmental and social risk management. puhlic awareness raising. training, information and communications. Project monitoring and evaluation, and audits: (iii) supporting training programs and study tours, and (iv) provisions of office equipment and furniture. Part 5: Coningent Emergency Response Provision of immediate response to an Eligible Crisis or Emergency, as needed. -7- SCHEDULE 2 Project Execution Section 1. Implementation Arrangements A. Institutional Arrangements 1I The Recipient shall vest responsibility for the overall implementation of the Project in DOL within MONRE. To this end the Recipient. through MONRE. shall: (a) maintain throughout the implementation of the Project. the Project Management Unit (the PMU) for the purposes of day-to-day Project management and coordination, with staffing, functions, and resources satisfactory to the Association: and (b) not later than three (3) months after the Effective Date. establish a Program Steering Committee (the Project Steering Committee) thereafter maintain it throughout the implementation of the Project. for the purposes of providing cross-agency coordination and strategic guidance. wNith composition. functions, staffing and resources satisfactorN to the Association. 2. The Recipient shall retain the consultants enagaged as needed to support the functions of the Project Management Unit and the Program Steering Committee. all wNith terms of reference and qualifications and experience acceptable to the Association as further detailed in the Project Operations Manual. B. Project Operations Manual 1. The Recipient shall through MONRE ensure that the Project is carried out in accordance with the arrangements and procedures set out in the Project Operations Manual: wkhich shall include. inter alia, detailed arrangements and procedures for: (a) institutional coordination and day-to-da\ execution of the Project: (b) disbursement, tinancial management, procurement. environmental and social risk management: and grievance redress procedures; (c) monitoring. evaluation. reporting and communication: and -8- (d) such other administrative. financial, technical and organizational arrangements and procedures as shall be required for the Project. 2. In the event of any conflict between the arrangements and procedures set out in the Project Operations Manual and the provisions of this Agreement. the provisions of this Agreement shall prevail. The Recipient shall not amend, abrogate or wvaive any provision of the Project Operations Manual unless the Association has provided its prior no-objection thereof in writing. C. Annual Work Plans and Budget 1. The Recipient shall through MONRE furnish to the Association. for reviews and approval not later than September 30 of each year during the implementation of the Project (or such later date as the Association may agree), an annual work plan and budget C-AWPB'3) for the Proect containing relevant Project activities and expenditures proposed to be included in the Project in the subsequent year. 2. The Recipient shall through MONRE ensure that the Project is implemented in accordance with the AWPB accepted by the Association for the respective year: provided. however. that in the event of any conflict between the AWPB and the provisions of this Agreement. the provisions of this Agreement shall prevail. D. Environmental and Social Standards 1I The Recipient shall through MONRE ensure that the Project is carried out in accordance with the Environmental and Social Standards. in a manner acceptable to the Association. 2. Without limitation upon paragraph I above. the Recipient shall through MONRE 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 through MONRE ensure that: (a) the measures and actions specified in the ESCP are implemented vwith due diligence and efficiency, and as further specified in the ESCP: (b) sufficient funds are available to cover the costs ofinplementing the ESCP: (c) policies, procedures and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP: and -9- (d) any of the ESCP, or any provision thereof, is not amended, revised or waived. except as the Association shall otherwise agree in writing and the Recipient has. thereafter. disclosed the rev ised ESCP. In case of any inconsistencies between the ESCP, and the provisions of this Agreement, the provisions of this Agreement shall prevail. 3. The Recipient shall through MONRE: (a) take all measures necessary on its part 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 management tools and instruments referred to therein, all such reports in form and substance acceptable to the Association. setting out, interalia: (i) the status of implementation ofthe 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) promptly notify the Association 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. and the Environmental and Social Standards. 4. The Recipient shall through MONRE maintain and publicize the availabilit, of a grievance mechanism. in form and substance satisfacton to the Association, to hear and determine fairlN and in good faith all complaints raised in relation to the Project, and take all measures necessary to implement the determinations made by such mechanism in a manner satisfactory to the Association. 5. The Recipient shall through MONRE ensure that all bidding documents and contracts for civil works under the Project include the obligation of contractors. and subcontractors to: (a) comply with the relevant aspects of ESCP and the environmental and social risk management instruments referred to therein: and (b) adopt and enforce codes of conduct that should be provided to and signed by all workers, detailing measures to address environmental, social. health and safetN risks, all as applicable to such civil works commissioned or carried out pursuant to said contracts. -10- E. Contingent Emergency Response 1I In order to ensure the proper implementation of contingent emergency response activities under Part 5 of the Project C-Contingent EniergencN Response Part-) the Recipient shall ensure that: (a) the CERC Manual is prepared and adopted in form and substance acceptable to the Association. which shall set forth detailed implementation arrangements for the Contingent Emergency Response Part, including: (i) any structures or institutional arrangements for coordinating and implementing the Contingent Emergency Response Part: (ii) specific activities which may be included in the Contingent Emergency Response Part- Eligible Expenditures required therefor C-Emergenc Expenditures"). and an' procedures for such inclusion: (iii) financial management arrangements for the Contingent Emergency Response Part: (iv) procurement methods and procedures for the Contingent Emergency Response Part: (v) documentation required for withdrawals of Financing amounts to finance Emergency Expenditures: (vi) a description of the environmental and social assessment and management arrangements for the Contingent Emergency Response Part: and (vii) a template Emergency Action Plan: (b) the Emergenc\ Action Plan is prepared and adopted in form and substance acceptable to the Association: (c) the Emergency Response Part is carried out in accordance with the CERC Manual and the Emergency Action Plan: provided. however, that in the event of any inconsistency between the provisions of the CERC Manual or the Emergency Action Plan and this Agreement, the provisions of this Agreement shall prevail: and (d) neither the CERC Manual or the Emergency Action Plan is amended, suspended, abrogated, repealed or waived Without the prior written approval by the Association. 2. The Recipient shall ensure that the structures and arrangements referred to in the CERC Manual are maintained throughout the implementation of the Contingent Emergency Response Part. with adequate staff and resources satisfactory to Association. 3. The Recipient shall ensure that: (a) the environmental and social instruments required for the Contingent Emergenc\ Response Part are prepared, disclosed and adopted in -11- accordance with the CERC Manual and the ESCP, and in form and substance acceptable to the Association' and (b) the Contingent Emergency Response Part is carried out in accordance with the environmental and social instruments in a manner acceptable to the Association. 4. The activities under the Contingency Emergency Response Part shall be undertaken onlN after an Eligible Crisis or Emergency has occurred. Section II. Project Monitoring, Reporting and Evaluation 1 . The Recipient shall furnish to the Association each Project Report not later than forty-five (45) days after the end of each calendar semester, covering the ca endar semester. 2. The Recipient shall on or about thirty three (33) months after the Effective Date of this Agreement: (a) prepare and furnish to the Association a mid-term report. in such detail as the Association shall reasonably request. documenting progress achieved in the carrying out of the Project during the period preceding the date of such report, taking into account the monitoring and evaluation activities performed, and setting out the measures recommended to ensure the continued efficient carry ing out of the Project and the achievement of its objectives during the period fllov ing such date: and (b) review\ with the Association such mid-term report. on or about the date forty-five (45) days after its submission. and thereafter take all measures required to ensure the continued efficient implementation of the Project and the achievement of its objectives, based on the conclusions and recommendations of the mid-term report and the Association's ic\s on the matter. Section Ill. Withdrawal of the Proceeds of the Financin2 A. General Without limitation upon the provisions of Article I of the General Conditions and in accordance wkith the Disbursement and Financial Information Letter. the Recipient may xithdraw 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 tle folloxwing table: Amount of the Percentage of Category Financing Allocated Expenditures to be (expressed in SDR) Financed (inclusive of Taxes (1) Civil works and goods (vehicles, motorbikes. CORS. UAVs. office equipment. furniture. 1600.000 100% and filing cabinets) (2) Consulting services under Parts 1-3 and Part 4 (only for costs for audits, short term consultants, and mid-term and final review's 13.000.000 81% under Part 4). Training and Workshops. Operating Costs. and other goods (3) Refund of Preparation 1,800.000 Amount payable Advance pursuant to Section 2.07 (a) of the General Conditions (4) Emergencx Expenditures under 0 100% Part 5 TOTAL AMOUNT 17,400,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the prov isions of Part A above. no withdrav.al shall be made: (1) for payments made prior to the Signature Date: or -13- (2) for Ernergency Expenditures under CategorN 4. unless and until all of the followking conditions have been met in respect of said expenditures: (i) (A) the Recipient has determined that an Eligible Crisis or Emergency has occurred, and has furnished to the Association a request to withdraw Financing amounts under Category 4: and (B) the Association has agreed vwith such determination, accepted said request and notified the Recipient thereof: and (ii) the Recipient has adopted the CERC Manual and Emergency Action Plan, in form and substance acceptable to the Association. 2. The Closing Date is September 30, 2026. -14- SCHEDULE 3 Repayment Schedule Principal Amount of the Credit Date Payment Due repayable (expressed as a percentage) On each November 15 and May 15 Commencing November 15. 2026 to and 1.65% including Max 15. 2046 commencing November 15. 2046 to and 3.40% including May I5. 2051 The percentages represent the percentage of the principal amount of the Credit to be repaid. except as the Association ma\ other\kise specify pursuant to Section 3.05 (b) of the General Conditions. -15- APPENDIX Definitions I. --Annual Work Plans and Biudgct or "AWPB' means the plan and budget to be prepared for the Project and agreed with the Association, on an annual basis as provided for in Section LC of Schedule 2 to this Agreement. 1 --Anti-Corruption Guidelines- means. for purposes of paragraph 5 of the Appendix to the General Conditions. the --Guidelines on Prcienting 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. --CERC Manual means the manual referred to in Section E of Schedule 2 to this Agreement, as such manual may be updated from time to time with the agreement of the Association. and which is an integral part of the Operational Manual. 4. Contingent Emergenc Response Part" means an actiN itN or acti ities to be carried out under Part 5 of the Project to respond to an Eligible Crisis or Emergency. 5. -Categor\ means a categorN set forth in the table in Section ll.A of Schedule 2 to this Agreement. 6. --'ORS- means continuouslk operating reference stations. 7. --DOL- means the Department (of Land N\ithin MONRE. 8. --DONRE- means District Office of Natural Resources and Environment. 9. "Fmergenc Expenditures" means an\ of the elgible expenditures set forth in the CERC Manual referred to in Section E of Schedule 2 to this Agreement and required for the Contingent Emergency Response Part. 10. --Emergc Action Plan" means the plan referred to in Section E of Schedule 2 to this Agreement, detailing the activities. budget. implementation plan. and monitoring and evaluation arrangements, to respond to the Eligible Crisis or lnergency, -16- 11. --Eligible Crisis or Emergenc means an ccent that has caused, or is likeI to imminentl cause. a major adverse economic and/or social impact to the Recipient. associated NNith a natural or man-made crisis or disaster. 12. "EnNironiental and Social Commiltment Plan" or -'ESCP" means the Environmental and Social Commitment Plan for the Project. publicly disclosed on June 2. 2021 as the same maN be amended from time to titne in accordance with the provisions thereof. hich 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 of the Project, including the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any environmental and social instruments to he prepared thereunder. 13. "Enxironmental and Social Standards" or -ESSs- means. collectiNel, (i) -Environmiental and Social Standard I Assessment and Manageient of Enxironmenrtal and Social Risks and Impacts". (ii) -Enironmental and Social Standard 2 Labor and Working Conditions : (iii 'EnNironmenial and Social Standard 3: Resource Efficiency and Pollution Prevention and Manageient (ixI )~-Enxironmental and Social Staiidard 4 Communit' Health and Safer" (x )-En ironiental and Social Standard 5: Land Acquisition. Restrictions on Land Lse and inNoluntar Rescltlement": (i) -Enmironmental and Social Standard 6: Biodiversitv Conservation and Sustainable Management of Living Natural Resources'- (Nii) -EnNironmental and Social Standard 7: Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local Communities" (\iii) --EnNironmenital and Social Standard 8: Cultural Heritage". (i\) --En ironmental and Social Standard 9: Financial Intennediaries': and (x "Exironmenital and Social Standard 10: Stakeholder Engagement and Infomation Disclosure. effectixe on October 1 2018. as published b\ the Association. 14. --General Conditions" means the -International Development Association General Conditions for IDA Financing. Investment Project Financing', dated December 14, 2018. Revised on August 1, 2020 and April 1. 2021. 15. "Lao LandReg" means the Land information system endorsed bx MONRE used in digital processing and storing of land registration and administration related documents, records and data. 16. -MONRE- means the Recipient"s MinistrN of Natural Resources and Environment, and any successor thereto. -17- 17. "-Operating Costs" means Project-related incremental expenses incurred on account of Project implementation and management, including the rental of office space: operation. maintenance, rental and insurance of vehicles: fuel: communications supplies and charges: advertisements: office administration and maintenance costs: bank transaction charges: utility charges: travel and per diem for Project staff of MONRE and relevant government agencies at all levels for undertaking field visits and the cost of contractual staff (including salaries, travel costs and per diem) directlI supporting the Project. but excluding salaries for the Recipient's ciN i ser ants 18. -PONRF means the Provincial Office of Natural Resources and Environment. 19. "Preparation AdNance" means the ad\ance referred to in Section 207 (a) of the General Conditions. granted by the Association to the Recipient pursuant to the letter agreement signed on behalf of the Association on September 30. 2019 and on behalfofthe Recipient on October 25. 2019. 20. "Project Management Unif means the office referred to in Section L.A I (a) of Schedule 2 to this Agreement. 21. --Pro-ject Operations Manual" or --POM" means the manual to be adopted bx the Recipient through MONRE and referred to in Section LB of Schedule 2 to this Agreement. as such manual can be amended from time to time with a prior written approval of the Association. 22. 'Procurement Regulations" means. for purposes of paragraph 87 of the Appendix to the General Conditions. the -AVorld Bank Procurement Regulations for IPF BorrowNers". dated Novernber 2020. 23. 'Program Steering Conittee'' means the committee referred to in Section IA lb of Schedule 2 to this Agreement. 24. Selected Areas" means the areas selected by the Recipient and agreed to by the Association to participate in the Project. 2;. 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. -18- 26. "SLR' means the systematic land registration approach to register all existing land rights in a given geographic or administrative area which aims at complete coverage of the Selected Area. 27. --Training and Workshops"i means the reasonable costs associated w ith training and workshops under the Project. and attributable to stud\ tours, training courses. seminars. workshops and other training activities. not included under service providers contracts. including costs of training materials. space and equipment rental. traN cL accommodation and per diem costs of trainces and trainers, trainers' fees. and other training related miscellaneous costs. 28. L'AVs" means unmanned aerial vehicles.