GRANT NUMBER E423-AF Financing Agreement (Second Additional Financing for the Afghanistan Emergency Food Security Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (for the benefit of Afghanistan) FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (“Recipient” or “FAO”) and INTERNATIONAL DEVELOPMENT ASSOCIATION (“Association”). WHEREAS: (A) the United Nations has, in response to the risks of severe drought in Afghanistan and the crisis therein following the events that occurred on August 15, 2021, requested the Association on November 7, 2021, to finance the international community’s efforts for providing humanitarian assistance and protecting basic service delivery in Afghanistan; (B) the Recipient is a Specialized Agency of the United Nations and an international organization which enjoys privileges and immunities pursuant to international law, as reflected in the Agreement between the Government of the Islamic Republic of Afghanistan and FAO for the establishment of an FAO Representation and the Provision of Technical Assistance concluded on September 6, 2016, and which operates under its mandate and in accordance with its Constitution, the decisions of its governing bodies, and its internal rules, regulations, procedures and policies, as updated from time to time; (C) in view of its status, the Recipient will operate under the Project within the framework established by, and in line with, the relevant United Nations Security Council resolutions, including UN Security Council Resolution 2615 (2021) of 22 December 2021 (S/RES/2615 (2021), which decided that “humanitarian assistance and other activities that support basic human needs in Afghanistan are not a violation of paragraph 1 (a) of resolution 2255 (2015), and that the processing and payment of funds, other financial assets or economic resources, and the provision of goods and services necessary to ensure the timely delivery of such assistance or to support such activities are permitted”, and UN Security Council Resolutions 2681 (2023) of 27 April 2023 (S/RES/2681 (2023) and 2721 (2023) of 29 December 2023 (S/RES/271 (2023), which “[s]tresse[d] the critical importance of a continued presence of […] United Nations Agencies […] across Afghanistan”; (D) the Afghanistan Resilience Trust Fund (“ARTF”) Management Committee and the Association approved on June 2, 2022, a proposal for financing of the Original Project (as hereinafter defined) in the overall amount not to exceed one hundred ninety-five million United States Dollars ($195,000,000) (“Original Financing Allocation”), of which the Association extended to the Recipient the first tranche of the Original Financing Allocation in an amount not to exceed one hundred fifty million United States Dollars ($150,000,000) on terms and conditions set forth or 1 referred to in the Grant Agreement, dated June 3, 2022, as amended (“Original Grant Agreement”), to assist in the financing of the Original Project; (E) the Recipient requested, and the ARTF Management Committee and the Association approved on June 9, 2023, a release of a second tranche of the Original Financing Allocation in an amount not to exceed forty-five million United States Dollars ($45,000,000) out of the ARTF, to assist in the financing of the Original Project; (F) the ARTF Management Committee on January 17, 2024 and the Association approved on February 23, 2024, a proposal for additional financing for the Original Project under the Additional Financing for Afghanistan Emergency Food Security Project (“Additional Financing”) in the overall amount not to exceed one hundred million United States Dollars ($100,000,000) (“Additional Financing Allocation”), of which the Association extended to the Recipient a grant in the amount of seventy million United States Dollars ($70,000,000), on terms and conditions set forth or referred to in the grant agreement dated March 5, 2024 (“Additional Financing Grant Agreement”); (G) the Recipient requested and the Association approved on January 6, 2025, a release of a second tranche of the Additional Financing Allocation in an amount not to exceed thirty million United States Dollars ($30,000,000) out of the ARTF, to assist in the financing of the Additional Financing; (H) the Recipient, having satisfied itself as to the feasibility and priority of the Project (as hereinafter defined), requested the Association to assist with the additional financing for the Project; and (I) the Association has agreed on the basis, inter alia, of the foregoing to: (i) extend to the Recipient: (a) a grant in the amount of twenty million United States Dollars ($20,000,000) for the benefit of the people of Afghanistan upon terms and conditions set forth in the grant agreement entered into between the Recipient and the Association, as administrator of the ARTF, on the same date as this Agreement (“Second Additional Financing Grant Agreement”), and (b) the grant set forth under Article II hereto. 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 form part of this Agreement. 2 1.02. The Financial Management Framework Agreement (“FMFA”) (as defined in the Appendix to this Agreement) constitutes an integral part of this Agreement. Without limitation to the provisions of the FMFA, in respect to the Recipient, all and/or any references in the FMFA to the: (a) “Letter Agreement(s)” shall be understood as references to this Agreement; (b) “Trust Fund Grant(s)” shall be understood as references to the Financing referred to in Section 2.01 of this Agreement; (c) “UN” and “UN Organization,” including a particular reference in Section 7 of the FMFA, shall be understood as references to “the Food and Agriculture Organization of the United Nations (“FAO”)”; (d) “UN Controller” shall be understood as reference to the “Director, Finance Division, FAO”; (e) “UN Financial Regulations” shall be understood as reference to the “FAO Financial Regulations and Rules”; and (f) “Parties” in Section 11 of the FMFA shall be understood as reference to the “Association” and “FAO” or, alternatively, the “Association” on the one hand and the “United Nations Secretariat” and all “UN Organizations” (as that term is defined in the FMFA) on the other hand, if a satisfactory consolidated review mechanism is established. 1.03. 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 grant, which is deemed as Concessional Financing for purposes of the General Conditions, in an amount equivalent to seventy-two million nine hundred thousand Special Drawing Rights (SDR 72,900,000) (“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. 3 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 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 Events of Suspension consist of the following: (a) if, by notice sent to the Recipient pursuant to sub-paragraph (iv) of paragraph 9 of the FMFA, the Association confirms that it reasonably believes the actions taken previously in accordance with said Section 9 have not been sufficient to fulfill its fiduciary obligations to ensure that the proceeds of the Financing were used for eligible expenditures; or (b) if, by notice sent to the Recipient pursuant to sub-paragraph (iii)(a)(1) of paragraph 10 of the FMFA, the Association confirms that alternative financial management arrangements mutually acceptable to the Association and the Recipient were not reached within the period stipulated therein; or (c) if, the Association determines at any time that a reference in either paragraph 1 or paragraph 4 of Section II.B of Schedule 2 to this Agreement to the Recipient’s Financial Regulations and Rules is incomplete or inaccurate in any material respect; and/or (d) if the Association for any reason revokes the application of the Alternative Procurement Arrangements set forth in Section III.1 of Schedule 2 to this Agreement. ARTICLE V — EFFECTIVENESS; TERMINATION 5.01. This Agreement shall become effective as of the Signature Date (“Effective Date”). 5.02. Without prejudice to Section 10.05(b) of the General Conditions, the Financing Agreement and all obligations of the parties under it shall forthwith terminate when all such obligations have been fully performed. 4 ARTICLE VI — REPRESENTATIVE; ADDRESSES 6.01. The Recipient’s Representative is its Director of Office of Emergencies and Resilience. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient’s address is: Viale delle Terme di Caracalla 00153 Rome, Italy; and (b) the Recipient’s Electronic Address is: Telex: Facsimile: E-mail: +39 06 570 52061 +39 06 570 54941 OER-Director@fao.org 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: Telex: Facsimile: 248423 (MCI) or 1-202-477-6391 64145 (MCI) 5 AGREED as of the Signature Date. FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS By ____________________________________/s1/ Authorized Representative Richard Trenchard Name: ______________________________n1/ FAO Representative - Afghanistan Title: ______________________________ /t1/ 15-Apr-2025 Date: ______________________________/ /s1/ /n1/ /t1/ /d1/ INTERNATIONAL DEVELOPMENT ASSOCIATION By ____________________________________/s1/ Authorized Representative Faris H. Hadad-Zervos Name: ______________________________n1/ Country Director Title: ______________________________/t1/ 11-Apr-2025 Date: ______________________________/ /s2/ /n2/ /t2/ /d2/ 6 SCHEDULE 1 Project Description The objective of the Project is to improve food security through promoting resilience and commercialization of agriculture production systems for target beneficiaries. The Project consists of the following parts: Part 1. Building Resilience for Food Security (A) Food Crisis Response Support (i) Supporting restoration of wheat, maize, legumes, vegetables, and other crop production in Selected Provinces by providing Vulnerable Farming Households with: (a) improved technologies, advisory services and training to promote good agricultural practices and improve crop production and management; (b) input packages containing, inter alia, high yielding and drought resistant seeds, fertilizers, improved hermetic grain storage bags, and organic nutrient material; and (c) Vouchers as per the Voucher Implementation Manual. (ii) Providing Backyard Gardening Packages of seeds and fertilizers to women-led Vulnerable Farming Households as per the Project Implementation Manual. (iii) Carrying out an impact evaluation of the Backyard Gardening Packages, provided under (ii) above. (B) Promote improved crop varieties and production practices (i) Promoting the use of released varieties of various crops (wheat, barley, potato, chickpea, lentil, perennial sorghum, forage/fodder crops), in collaboration with CGIAR centers, by: (a) carrying out adaptive testing and farmer participatory trials to assess cultivars and identify the most productive, climate change adaptive, and farmer-preferred varieties to scale up through seed enterprise and farmer groups; 7 (b) using demonstration plots to: (aa) showcase the performance of new varieties in comparison with varieties available in the local markets (local and imported varieties, where relevant); and (bb) generate local evidence of suitable production packages for the new varieties; (c) facilitating transfer and testing of previously released climate- resilient crop and forage germplasm/varieties from CGIAR gene banks; and (d) providing technical assistance to private seed enterprises in planning, on-site support for multiplication, producing, marketing, and certifications of seed production of such varieties through, inter alia: (aa) carrying out of an assessment to identify priority needs for production and capacity development; (bb) trainings; (cc) provision of equipment and early generation seed for seed production and processing; (dd) technical inspection and monitoring support for adherence to relevant standards and compliance with national seed regulations; and (ee) packaging and marketing materials for enhancing marketing efforts. (ii) Providing training to farmers, through demonstration plots and farmers field schools, on the use of improved, efficient, and agroecologically appropriate technologies that promote both climate mitigation and adaptation benefits, including, inter alia: conservation agriculture, precision agriculture, and natural resource management-based technologies (such as laser land leveling, mechanized crop establishment, weed control, and harvesting). Part 2. Providing Water and Resilience Services Supporting rehabilitation and improvement of selected irrigation schemes and watershed areas to address soil erosion and depletion of ground water through: 8 (A) Improving off-farm and on-farm irrigation systems (i) Restoring damaged on-farm and off-farm irrigation systems through both on-farm and off-farm water management interventions, including works such as intake/headworks/diversion structures, cross drainage structures (aqueduct, super passage, siphon, road culverts), temporary/permanent (nucca pucca) structures dividers, ponds, flumes. (ii) Improving and cleaning drainage canal systems (main, secondary and tertiary canals) to enhance the conveyance efficiency, including works such as canal lining and canal bank protection. (iii) Carrying out riverbank protection works to protect canals and adjacent areas from flood damage. (iv) Implementing soil and water conservation measures, including development of small rainwater harvesting structures. (v) Building the capacity of key stakeholders. (vi) Providing Cash for Work Transfers to Cash for Work Transfer Beneficiaries for carrying out Cash for Work Sub-Projects, including construction of contour trenches, check dams, water harvesting ponds, and gully control structures; (vii) Providing Unconditional Cash Transfers to Unconditional Cash Transfer Beneficiaries. (viii) Supporting on-farm climate resilient water management practices through rehabilitation of secondary and tertiary canals, small scale water distribution systems, training of Mirabs and irrigation associations on operation and maintenance of rehabilitated structures. (B) Supporting sustainable land and watershed management interventions (i) supporting plantation of suitable plant species (including, inter alia, pine, olive, pistachio, almond, and judas trees) in Selected Areas, compatible with particular agro-climatic conditions, to help stabilize watershed slopes, contribute to flood management, and provide opportunities for earning income. (ii) establishing and supporting agroforestry groups (including women) to be responsible for planting, maintaining, and monitoring the plantations under (i) above. 9 (iii) improving watershed management and carrying out minor repairs to upper catchment of Karezes; (C) High efficiency irrigation schemes Procuring local and high efficiency new irrigation equipment, including pipes, emitters, fertigation units, filters, and land laser leveler equipment for farmers growing high value crops. Part 3. Promoting Commercialization of Farmers (A) Matching Grants to Small Agribusinesses (“Matching Grant Beneficiaries”) Improving the capacity of Small Agribusinesses to produce high value agriculture commodities, secure long-term market relationships, increase their productivity, and connect to established supply chains by: (i) providing Matching Grants to procure inputs, technical assistance, equipment, and infrastructure capability (“Matching Grant Sub-Projects”); (ii) promoting climate-smart agricultural practices to adapt to climate change, build resilience, and increase sustainable agricultural production; and (iii) providing business development services to Matching Grant Beneficiaries by, inter alia: (a) promoting their active participation in agricultural value chains; (b) identifying viable business opportunities; (c) developing business plans; (d) enhancing their entrepreneurial and operational capacities, including in areas such as financial management, marketing strategies, and investment readiness to promote sustainability and scalability of the Matching Grant Sub-Projects; and (e) building linkages with financial institutions and potential investors to unlock financing options and catalyze business growth. (B) Agriculture Diversification and Value Addition Supporting Vulnerable Households in meeting their nutrition needs by: 10 (i) provision of technical training on improved and climate smart production practices as well as basic nutrition and food hygiene; (ii) provision of technical training and In-Kind Grants to In-Kind Grant Beneficiaries for In-Kind Grant Sub-Projects; (iii) provision of input packages, planting materials, market linkage facilitation services, and technical assistance for supporting high-value crop production in dry lands; and (iv) supporting value addition through development of processing and storage facilities and provision of technical assistance and solar dryers to selected Common Interest Groups and Producers’ Organizations. Part 4. Implementation Support Supporting: (A) the Recipient’s Indirect Costs; (B) direct project monitoring and supervision costs required to support implementation of the Project; (C) Project monitoring, evaluation and coordination at the national and regional levels; (D) mobilization of farmers’ associations and Mirabs to facilitate consultation and community sensitization; and (E) establishment and maintenance of a grievance redress mechanism. 11 SCHEDULE 2 Project Execution Section I. Institutional and Other Implementation Arrangements A. Institutional Arrangements. 1. The Recipient shall carry out the Project with due diligence and efficiency in conformity with appropriate administrative, financial, technical, environmental and social standards and practices, and in accordance with the provisions of this Agreement, the FMFA, the Environmental and Social Commitment Plan (“ESCP”), and the Project Implementation Manual. 2. The Recipient shall maintain throughout the period of the implementation of the Project, the Project Implementation Unit, with composition, mandate, and resources to be agreed with the Association, which shall: (a) include, at all times during Project implementation, experts in adequate number, each with terms of reference, qualifications, and experience to be agreed with the Association, allocated to or recruited for the Project as and when their expertise will be needed for the efficient implementation of the Project and the achievement of its development objectives; and (b) be responsible for day-to-day management and implementation of the Project, including technical, fiduciary (financial management and procurement), grievance redress, monitoring and evaluation, health and safety, and social and environmental aspects of the Project, and coordination with other stakeholders, all as set out in detail in the Project Implementation Manual. 3. Without limitation upon any other provision of the Agreement and solely for purposes of the Recipient’s own legal and policy framework, the Parties acknowledge that the Recipient retains the right to carry out supervision and monitoring of its Project in accordance with its own rules, regulations, policies and procedures, as amended or updated from time to time. B. Project Implementation Manual. 1. The Recipient shall: (a) not later than forty-five (45) days after the Effective Date, update and thereafter maintain, throughout the implementation of the Project, the Project Implementation Manual, in form and substance satisfactory to the Association, containing, inter alia: 12 (i) detailed description of the Project activities and institutional arrangements for their implementation, including allocation of responsibilities; (ii) monitoring, evaluation, financial, reporting, internal controls, and governance procedures, including but not limited to, eligibility criteria, targeting systems and requirements, terms and conditions, amount limits, approval process, detailed protocols, disbursement (flow of funds), distribution, and verification mechanisms for: (A) Vouchers under Part 1(A)(i)(c) of the Project; (B) Cash for Work Transfers under Part 2(A)(vi) of the Project; (C) Unconditional Cash Transfers under Part 2(A)(vii) of the Project; and (D) Matching Grants under Part 3(A) of the Project. (iii) monitoring, evaluation, financial, reporting, internal controls, and governance procedures, including but not limited to, eligibility criteria, targeting systems and requirements, terms and conditions, amount limits, approval process, detailed protocols, distribution, and verification mechanisms for: (A) Input packages to Vulnerable Farming Households under Part 1(A)(i)(b) of the Project; (B) Backyard Gardening Packages to eligible female beneficiaries under Part 1(A)(ii) of the Project; (C) In-Kind Grants under Part 3(B)(ii) of the Project; and (D) Equipment, including laser land leveling, under Part 2(C) of the Project. (iv) Matching Grant Agreement template; (v) operational procedures and arrangements for monitoring compliance with Entry Criteria for Access; and (vi) implementation of environmental and social instruments referred to in the ESCP; and 13 (b) carry out the Project in accordance with the provisions of the Project Implementation Manual. 2. Without limitation upon other provisions of this Agreement, monitoring, evaluation, financial and reporting procedures for third-party monitoring of Project implementation in the Project Implementation Manual under Section I.B.1(a) above shall include, among others, detailed terms of reference of the Recipient’s Third-Party Monitoring, which may be carried out in coordination with the Association’s Third Party Monitoring Agent, and sharing of information between the Recipient’s Third-Party Monitoring Agent(s) and the Association’s Third Party Monitoring Agent. 3. The Recipient shall not amend, suspend, or waive any provision of the Project Implementation Manual without the prior written concurrence of the Association. 4. In the event of any inconsistency between the provisions of the Project Implementation Manual and those of this Agreement, the provisions of this Agreement shall prevail. C. Annual Work Plan and Budget 1. The Recipient shall, not later than one (1) month after the Effective Date prepare and furnish to the Association for its approval, the Annual Work Plan and Budget, containing all proposed activities to be implemented under the Project during the subsequent twelve (12) months, a proposed financing plan for expenditures required for such activities, a proposed timetable for their implementation, planned procurement activities, and implementation issues as well as bottlenecks with necessary remedial actions and key responsibilities. 2. The Recipient shall afford the Association a reasonable opportunity to exchange views on such proposed Annual Work Plan and Budget and thereafter ensure that the Project is implemented in accordance with such Annual Work Plan and Budget as shall have been agreed to by the Recipient and the Association. 3. The Recipient may revise the Annual Work Plan and Budget, as needed, with the prior written agreement of the Association. D. Anti-Corruption 1. The Recipient shall carry out the Project subject to the provisions of the General Conditions and the following undertakings: (a) The Recipient shall take all the appropriate measures in accordance with its accountability and oversight framework to prevent corrupt, fraudulent, coercive or collusive practices in connection with the use of the Financing. 14 (b) In the event that the Recipient or the Association becomes aware of information that indicates the need for further scrutiny of the implementation of the Project or any expenditures under the proceeds of the Financing (including non-frivolous allegations that corrupt, fraudulent, collusive or coercive practices were undertaken in relation to any activity under the Project, the Recipient or the Association, as the case may be, shall promptly bring such information to the attention of the appropriate official or officials of the other party, as designated from time to time by each party by written notice to the other party. (c) Without limitation to paragraph (b) above, the Recipient shall periodically submit to the World Bank Group’s Integrity Vice Presidency (INT) a statement confirming whether or not, during the reporting period, the Recipient has received any non-frivolous allegations referred to in paragraph (b) above, and a brief description of any such allegations received. Any information provided under this paragraph that is designated as such by the Recipient will be considered confidential and will only be disseminated within the Bank on a strict “need to know” basis. Information that has previously been provided to the Association on an ad hoc basis under paragraph (b) will not be considered confidential unless it was designated as such at the time of initial disclosure, regardless of whether the same information is duplicated in whole or in part in any report to be generated under this paragraph. The Association reserves the right to use confidential information in furtherance of its own investigations under paragraph 4 of this Section I.D. but will notify the Recipient in advance and, upon request, will consult with the Recipient before doing so. (d) The Recipient will, to the extent the information relates to actions within the authority or accountability of the Recipient, take timely and appropriate action, in accordance with its accountability and oversight framework, to investigate this information. The Recipient and the Association agree and acknowledge that the Recipient has no authority over, and accordingly shall have no responsibility to investigate, any government official or officials or consultants of the Association. (e) To the extent such investigation confirms the allegations and to the extent that remedial action is within the authority of the Recipient, the Recipient will take timely and appropriate action in response to the findings of such investigation, in accordance with the Recipient’s accountability and oversight framework. (f) To the extent consistent with the Recipient’s accountability and oversight framework, it will keep the Association regularly informed by agreed means of actions taken pursuant to Section I.D.1(e) immediately above, 15 and the results of the implementation of such actions, including where relevant, details of any recovery of funds or writing-off of losses. The Recipient will use its best efforts, consistent with its regulations, rules, policies and procedures, to recover any funds misused. The Recipient will, in consultation with the Association, credit any funds so recovered to the Association or agree with the Association to use these funds for a purpose mutually agreed upon. 2. In the event that the Association reasonably believes that timely and appropriate action has not been taken by the Recipient under Section I.D.1 above, the Association may request direct consultations at a senior level between the Association and the Recipient in order to obtain assurances that the Recipient’s accountability and oversight mechanisms have been and are being fully applied in connection with such allegations. The Recipient and the Association take note of the relevant provisions of the United Nations Financial Regulations and Rules and the Recipient’s Financial Regulations and Rules. 3. The Association may, following consultation with the Recipient, by notice to the Recipient, suspend the right of the Recipient to make further withdrawals of the proceeds of the Financing if the Association reasonably believes the actions taken by the Recipient under Section I.D.1 above have not been sufficient to fulfill its fiduciary obligation with respect to the Financing. 4. The Association has the right and authority, pursuant to the Anti-Corruption Guidelines, to investigate allegations or other information relating to possible corrupt, fraudulent, coercive, or collusive practices (as defined in Section I.D.7 below) by any third party, and to sanction any such third party which the Association has determined to have engaged in such practices; provided, however, that in this Section, “third party” does not include the Recipient , including its personnel. To the extent consistent with the Recipient’s accountability and oversight framework, and if requested by the Association, the Recipient shall cooperate with the Association in the conduct of such investigations. The specific terms of such cooperation shall be agreed-upon between the Association’s and the Recipient’s investigative offices on a case-by-case basis; shall give due consideration to the safety, security, and confidentiality of any involved individual(s); and may include, but not be limited to, providing evidence obtained during the Recipient’s own investigations conducted pursuant to paragraph 1(d) of this Section. 5. Without limitation to the provisions of paragraph D.1 of this Section, the Association retains the right to conduct an investigation in connection with the information referred to in paragraph D.1(b) of this Section and any information provided to the Recipient regarding allegations of corrupt, fraudulent, coercive, or collusive practice in connection with the bidding process, the award, or implementation of any contract to be or being financed out of the proceeds of the 16 Financing, except that the Association may not investigate the Recipient or another United Nations agency. In all such investigations, the Recipient agrees to facilitate such investigations. 6. (a) The Recipient will require any third-party commercial entity with which it has a long-term arrangement or to which it intends to issue a purchase order, or a contract financed with the proceeds of the Financing to disclose to the Recipient whether it is subject to any sanction or temporary suspension imposed by any organization within the World Bank Group. The Recipient will give due regard to such sanctions and temporary suspensions, as disclosed to it when issuing contracts during Project implementation. (b) If the Recipient intends to issue a contract in connection with the Project with a party that has disclosed to the Recipient that it is under sanction or temporary suspension by the World Bank Group, the following procedure will apply: (i) the Recipient will so inform the Association, before signing such contract; (ii) the Association then may request direct consultations at a senior level, if required, between the Association and the Recipient to discuss the Recipient’s decision; and (iii) if after such consultation, the Recipient elects to proceed with the issuance of the contract, the Association may inform the Recipient by notice, that the proceeds of the Financing may not be used to fund such contract. (c) Any portion of the proceeds of the Financing received by the Recipient under this Agreement that may have been used to fund a contract in respect of which the World Bank Group has exercised its right under paragraph 6(b)(iii) immediately above, shall be used to defray the amounts requested by the Recipient in any subsequent Withdrawal Application, if any, or will be treated as a balance in favor of the Recipient in the calculation of the final balances prior to the Closing Date. 7. For the purposes of the provisions of this Section I.D, the following definitions of sanctionable practices shall apply: (a) “corrupt practice” is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party. (b) “fraudulent practice” is any act or omission, including misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid an obligation. (c) “collusive practice” is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party; and 17 (d) “coercive practice” is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party. E. Environmental and Social Standards. 1. The Recipient shall 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 1 above, the Recipient shall ensure that the Project is implemented in accordance with the ESCP in a manner acceptable to the Association. To this end, the Recipient shall 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 from the Financing 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. 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 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 18 significant adverse effect on the environment, the affected communities, the public or workers, including but not limited to sexual exploitation and abuse, sexual harassment and violence against minors, in accordance with the ESCP, the environmental and social instruments referenced therein and the Environmental and Social Standards. 5. The Recipient shall 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. 6. The Recipient shall ensure that all bidding documents and contracts for civil works under the Project include the obligation of contractors, subcontractors, and supervising entities to: (a) comply with the relevant aspects of ESCP and the environmental and social 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 safety risks, and the risks of sexual exploitation and abuse, sexual harassment and violence against children, all as applicable to such civil works commissioned or carried out pursuant to said contracts. 7. (a) Without limitation to the reporting requirements of this Section, the Association may request the Recipient to provide, in accordance with the ESCP: (i) reports from and/or contracts/agreements with contractors and/or Implementing Partners relevant to the implementation of the Environmental and Social Standards for the Project; (ii) assessments of the capacity of Implementing Partners to implement the Environmental and Social Standards for the Project and any capacity enhancement measures. (b) If the Association determines that the status of compliance with the ESCP and the environmental and social instruments referred to therein cannot be established based on the information provided, it may request direct consultations at a senior level between the Association and the Recipient to discuss the matter. F. Cash for Work Transfers; Unconditional Cash Transfers; In-Kind Grants 1. To achieve the objectives of Part 2(A)(vi) and 2(A)(vii) of the Project, the Recipient shall provide Cash for Work Transfers to Cash for Work Transfer Beneficiaries and Unconditional Cash Transfers to the Cash Transfer 19 Beneficiaries, respectively, all in accordance with the procedures, eligibility criteria, amount limits, and mechanisms set forth in the Project Implementation Manual. 2. To facilitate carrying out of Part 3(B)(ii) of the Project, the Recipient shall screen and select In-Kind Grant Beneficiaries and provide In-Kind Grants to such In-Kind Grant Beneficiaries all in accordance with the procedures, eligibility criteria, individual In-Kind Grant limits, and mechanisms set forth in the Project Implementation Manual. 3. In order for the In-Kind Grant Sub-Projects and Cash for Work Sub-Projects to be eligible for financing under Part 3(B)(ii) and 2(A)(vi) of the Project, respectively, the Recipient shall screen and select In-Kind Grant Sub-Projects and/or Cash for Work Sub-Projects, as the case may be, in accordance with the selection and eligibility criteria set forth in the Project Implementation Manual and environmental and social instruments referred to in the ESCP. No In-Kind Grant Sub-Projects and Cash for Work Sub-Projects shall support an activity that is excluded under the ESCP and/or any environmental and social instruments referred to therein. G. Matching Grants 1. For the purposes of Part 3(A)(i) of the Project, the Recipient shall provide Matching Grants to Matching Grant Beneficiaries for the carrying out of Matching Grant Sub-Projects, all in accordance with the procedures, eligibility criteria, amount limits, and mechanisms agreed between the Association and the Recipient and set forth in detail in the PIM. 2. Without any limitation to any other provision of this Agreement, in order for the Matching Grant Sub-Projects to be eligible for financing through a Matching Grant, the Recipient shall screen and select the Matching Grant Sub-Projects in accordance with the selection and eligibility criteria, acceptable to the Association and set forth in detail in the Project Implementation Manual. No Matching Grant Sub-Project shall support an activity that is excluded under the ESCP and/or any environmental and social instrument referred to therein. 3. To facilitate carrying out Part 3(A)(i) of the Project, the Recipient shall make part of the proceeds of the Financing available to the Matching Grant Beneficiaries as Matching Grants under Matching Grant Agreements between the Recipient and Matching Grant Beneficiaries, with provisions and conditions acceptable to the Association and substantially conforming to the Matching Grant Agreement template annexed to the Project Implementation Manual, which shall include: (a) the obligation of the relevant Matching Grant Beneficiary to: 20 (i) carry out its respective Matching Grant Sub-Project(s) with due diligence and efficiency and in accordance with: (A) the Association’s Environmental and Social Standards, including in accordance with the relevant provisions of the ESCP, all in a manner satisfactory to the Association, and (B) sound technical, economic, and financial standards and practices satisfactory to the Association; (ii) provide, promptly as needed, the resources required for the Matching Grant Sub-Projects; (iii) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to Part 3(A)(i) of the Project; (iv) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Matching Grant Sub-Project and the achievement of its objectives; (v) enable the Recipient and the Association to inspect the Matching Grant Sub-Project, its operation and any relevant records and documents; and (vi) assist the Recipient in complying with its obligations under this Agreement, as applicable to Part 3(A)(i) of the Project; and (b) the right of the Recipient to take remedial actions against the relevant Matching Grant Beneficiary in case such Matching Grant Beneficiary has failed to comply with any of its obligations under its relevant Matching Grant Agreement, which actions shall include, inter alia, the partial or total suspension and /or cancellation or refund of all or any part of the proceeds of the Financing transferred to such Matching Grant Beneficiary under its relevant Matching Grant Agreement. 4. The Recipient shall exercise its rights under each Matching Grant Agreement in such manner as to protect its interests and the interests of the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Matching Grant Agreement, or any of their provisions. 21 H. Third-Party Monitoring 1. The Recipient shall maintain throughout Project implementation, the Recipient’s Third-Party Monitoring Agent, with qualifications, experience and terms of reference agreed between the Association and the Recipient, to be financed out of the proceeds of the Financing, to carry out Recipient’s Third-Party Monitoring of the Project implementation. 2. Names and summary of the qualifications of the recommended entity/entities for the contract of the Recipient’s Third-Party Monitoring Agent will be shared with the Association prior to contract award. The Association shall have seven (7) days after the receipt of the name and summary of the qualifications of the recommended entity/entities to share any concerns with the Recipient regarding the recommended entity/entities. For the avoidance of doubt, the Recipient shall carry out the procurement of the Recipient’s Third-Party Monitoring Agent in accordance with Section III of Schedule 2 to this Agreement. 3. The Recipient shall cause the Recipient’s Third-Party Monitoring Agent to prepare a monitoring report quarterly, each covering a period of the preceding three (3) months. The Recipient shall, after its review, and no later than twenty-one (21) days after the receipt of a monitoring report, make available such monitoring report, redated for Personal Data, to the Association. 4. In the event that the Association reasonably believes that the monitoring report submitted pursuant to paragraph 3 above do not contain sufficient details regarding the issues covered by the Recipient’s Third-Party Monitoring Agent’s terms of reference, the Association may request the Recipient to: (a) provide clarification(s) with regards to the Recipient’s Third-Party Monitoring Agent’s report for matters within the scope of the terms of reference; (b) furnish any additional reports, plans or documents (redacted for Personal Data) produced or relied upon by the Recipient’s Third-Party Monitoring Agent in accordance with its terms of reference; and (c) afford a reasonable opportunity to the Association to request additional information from the Recipient for matters within the scope of the Recipient’s Third-Party Monitoring Agent’s terms of reference. The Recipient shall provide any such additional reports, plans, documents or information requested within a period of fourteen (14) days after the receipt of the Association’s request and shall ensure that representatives of the Recipient’s Third-Party Monitoring Agent are available to discuss matters with the Recipient and the Association, if requested by the Association. 5. For the purposes of paragraphs 3 and 4 above, for the avoidance of doubt, information relating to corrupt, fraudulent, coercive or collusive practices or incidents or accident referred to in Part B of the ESCP shall be shared with the Bank in accordance with Section D of Schedule 2 of this Agreement or the stipulations in the ESCP, respectively. 22 6. Without prejudice to Section V of Schedule 2 to this Agreement, the Recipient shall ensure that the Association’s Third-Party Monitoring Agent(s) is provided access to all relevant information in accordance with the Project Monitoring TOR and the Monitoring Protocol. Should the Association’s Third-Party Monitoring Agent(s) face any difficulties with accessing Project-related sites or activities to carry out the Association’s Third-Party Monitoring, the Recipient shall undertake reasonable efforts compatible with its status to collaborate with the Association’s Third-Party Monitoring Agent(s) and facilitate access to Project-related sites with the understanding that the Recipient cannot guarantee access to these sites. The Recipient shall appoint a focal person to attend the requests of the Association’s Third-Party Monitoring Agent(s). The terms of reference of the Association’s Third-Party Monitoring Agent(s) shall be defined in consultation with the Recipient. Section II. Project Monitoring, Reporting and Evaluation A. Project Reports 1. The Recipient shall ensure that each Project Report is furnished to the Association not later than forty-five (45) days after the end of each three (3) calendar months, covering the period of three (3) calendar months. The Recipient shall ensure that each Project Report contains, among others, any update on the implementation of the activities under the Procurement Plan. 2. Except as may otherwise be explicitly required or permitted under this Agreement or as may be explicitly requested by the Association, in sharing any information, report or document related to the activities described in Schedule 1 to this Agreement, the Recipient shall ensure that such information, report or document does not include Personal Data. B. Financial Management; Financial Reports; Audits 1. The Recipient shall maintain a financial management system, including records and accounts, adequate to reflect the transactions related to the Project, in accordance with the applicable policies, procedures, and guidance provided in the Financial Regulations and Rules. In accordance with Article 10 of the FMFA, the Recipient shall notify the Association of any changes to these Financial Regulations and Rules that occur after the signing of this Agreement within thirty (30) days of their effective date and shall make them available on the Recipient’s external website. 2. The Recipient shall maintain records (“Ledger Account”) and accounts that provide a complete, true, and faithful record of all the expenditures financed from 23 the proceeds of the Financing, and in a manner that allows for the clear and separate identification of the activities financed by the Association. 3. The Recipient will prepare interim unaudited financial reports in accordance with its Financial Regulations and Rules and accounting standards acceptable to the Association. The financial reports will be submitted to the Association in accordance with the provisions of Section II (Financial Reports and Audits) of the Disbursement and Financial Information Letter referred to in Section IV.A of this Schedule. 4. Without limitation upon any other provisions of this Agreement, the Financing is subject exclusively to the auditing procedures of the Recipient in accordance with the Recipient’s Financial Regulations and Rules and the FMFA. Where the Association and the Recipient agree that additional due diligence measures are needed, the Recipient shall ensure that any additional due diligence measures, as agreed by the Recipient and the Association in separate terms of reference, are carried out exclusively in accordance with: (i) its Financial Regulations and Rules and in conformity with the UN single audit principle observed by the United Nations system as a whole; and (ii) the FMFA. 5. The Recipient shall retain, and shall cause to be retained, until at least one (1) year after the Association has received the final interim unaudited financial report referred to in the Disbursement and Financial Information Letter referenced in Section IV.A of this Schedule, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing all expenditures in respect of which withdrawals of the proceeds of the Financing were made. Section III. Procurement 1. All goods, works, non-consulting services and consulting services required for the Project and to be financed out of the proceeds of the Financing shall: (a) be procured in accordance with the applicable procurement policies, procedures, regulations and practices of the Recipient, as such procurement policies, procedures, regulations and practices have been assessed and found to be acceptable by the Association, and the Procurement Plan; and (b) not commence to be procured until a Procurement Plan, including any applicable update thereto, has been furnished to, and deemed acceptable by the Association in accordance with paragraph 2 of this Section. 2. The Recipient shall implement the Project in accordance with a Procurement Plan. If any update is necessary to the Procurement Plan, the Recipient shall prepare and furnish to the Association for review such updated Procurement Plan. 24 3. If the Association determines that the procurement policies, procedures, regulations, or practices of the Recipient have been modified, suspended, or waived in such a manner that they are no longer acceptable to the Association, the Association may, in addition to the Association’s rights under the Agreement, revoke the procurement provisions set out in paragraph 1 of this Section III. Section IV. Withdrawal of the Proceeds of the Financing A. General Without limitation upon the provisions of Article II of the General Conditions, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures for the Project in accordance with the Disbursement and Financial Information Letter; all in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Percentage of Amount of the Expenditures to be Category Financing Allocated Financed (expressed in SDR) (inclusive of Taxes) (1) Goods, works, non- consulting services, consulting services, Cash for Work Transfers, Unconditional 67,228,570 100% Cash Transfers, In-Kind Grants, Training, and Operating Costs under the Project. (2) Vouchers under Part 2,200,000 50% 1(A)(i)(c) of the Project (3) Indirect Costs (5%) under Part 4 of the 3,471,430 Project TOTAL AMOUNT 72,900,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made: (a) for payments made prior to the Signature Date; 25 (b) for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the Association’s knowledge, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations; (c) under Category 2 until the Recipient has developed and adopted a Voucher Implementation Manual satisfactory to the Association; and 2. Without prejudice to any other provision of this Agreement, the Recipient further undertakes that no Financing proceeds or resources may be used for law- enforcement, security, military, or paramilitary purposes or for any payments made to any law-enforcement, security, military, or paramilitary forces without the Association’s express approval. 3. All withdrawals shall be made on the basis of the interim unaudited financial reports referred to in Section II.B.3 of this Schedule and under such other terms and conditions as the Association shall specify by notice to the Recipient contained in the Disbursement and Financial Information Letter addressed or to be addressed by the Association to the Recipient for purposes of the Financing. 4. Without prejudice to the provisions of Section 8.07 of the General Conditions, in the event that the Association requests a refund of any portion of the proceeds of the Financing that has been used in a manner inconsistent with the provisions of this Agreement, the Association and the Recipient will adopt the procedures set forth in paragraph 9 of the FMFA. 5. It is understood that the Recipient shall not be responsible for and shall have no obligation to initiate or continue implementation of the pertinent activities under the Project unless the proceeds of the Financing allocated to such activities have been made available to the Recipient. 6. The Closing Date is December 31, 2027. Section V. Other Undertakings A. Personal Data-Related Undertakings 1. The Recipient shall in accordance with its mandate, policies, and governing instruments: (a) Process Personal Data in a fair and legitimate manner, on the basis of the following: (i) the consent of the individual affected; (ii) the vital interest or the best interest, as the case may be, of the individual affected; or (iii) the need to perform a legal agreement. 26 (b) also ensure that Personal Data: (i) is Processed only for purposes specified in the Project, Personal Data shall not be Processed in ways that are incompatible with such purposes; (ii) when Processed, is confined to that which is relevant, limited and adequate to what is necessary in relation to the purposes specified above for Personal Data Processing; (iii) is only retained for the time that is necessary to achieve the purposes specified above; (iv) is accurate and, where necessary, up to date to fulfill the specified purposes; and (v) is Processed with due regard to confidentiality. (c) adopt appropriate organizational, administrative, physical and technical safeguards and procedures in order to protect the security of Personal Data, including against or from misuse, unauthorized or accidental access, damage, loss or other risks presented by data Processing. (d) Process Personal Data with transparency to individuals, as appropriate and whenever possible, including, for example, provision of information about the Processing of their Personal Data as well as information on how to request access, verification, rectification, and/or deletion of that Personal Data. 2. The Recipient shall not share or otherwise disclose Personal Data to a Third Party, except that: (a) the Recipient may share or otherwise disclose Personal Data to a vendor of goods and services; and (b) if the Recipient wishes to share or otherwise disclose any Personal Data with a Third Party other than a Third Party described in subparagraph (a) above, such onward sharing must be subject to paragraph (3) below. 3. Notwithstanding the generality of paragraph (2) above, the Recipient may only transfer Personal Data to a third party other than a Third Party described in paragraph 2(b) above if, under the circumstances: (a) there is a legitimate basis for such transfer, and (b) the Recipient is satisfied that such third party affords 27 protection for the Personal Data on terms no less favorable than provided under this Section V of Schedule 2 to this Agreement. 4. If any Personal Data is sought by any government body, the Recipient shall promptly consult and cooperate with the Association. 5. The Recipient shall establish policies and mechanisms in place to adhere to the foregoing. 28 APPENDIX Section I. Definitions 1. “Additional Financing” means the Additional Financing for Afghanistan Emergency Food Security Project, as set out in the Additional Financing Grant Agreement. 2. “Additional Financing Grant Agreement” the grant agreement dated March 5, 2024, between the Recipient and the Association, as administrator of the ARTF (Grant No. TF0C3845) in support of the Additional Financing for Afghanistan Emergency Food Security Project, as such agreement may be amended from time to time. 3. “Alternative Procurement Arrangements” means the procurement arrangements set forth in Section III of Schedule 2 to this Agreement, as permitted by the Association’s Procurement Regulations for IPF Borrowers, dated September 2023. 4. “Annual Work Plan and Budget” means, individually, each annual work plan and budget for the Project prepared reviewed and found acceptable by the Association pursuant to Section I.C of Schedule 2 to this Agreement; and “Annual Work Plans” means more than one such annual work plan. 5. “Anti-Corruption Guidelines” means, for purposes of paragraph 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. 6. “Association’s Third-Party Monitoring” means monitoring conducted by the Association’s Third-Party Monitoring Agent(s) to undertake physical performance monitoring and financial review, on a sample basis, of Project implementation activities by Implementing Partners contracted by the Recipient in accordance with the PIM. 7. “Association’s Third-Party Monitoring Agent” means a firm or organization, with internationally recognized expertise in monitoring and evaluation of development projects, including for financial management, procurement, and social and environmental safeguards aspects of such development projects, engaged by the Association for carrying out the Association’s Third-Party Monitoring in accordance with Section I.H. of Schedule 2 to this Agreement. 8. “Backyard Gardening Package” means input packages of seeds and fertilizers t o be distributed to women-led Vulnerable Farming Households under Part 1(A)(ii) 29 of the Project, for their use in their backyard, as per the Project Implementation Manual. 9. “Cash for Work Sub-Project” means a set of activities for watershed management under Part 2(A)(vi) of the Project to be carried out by Cash for Work Transfer Beneficiaries, and “Cash for Work Sub-Projects” means more than one such Cash for Work Sub-Project. 10. “Cash for Work Transfer” means cash for work transfers to be provided to a Selected Beneficiary under Part 2(A)(vi) of the Project in accordance with the eligibility criteria and procedures set out in the PIM; and “Cash for Work Transfers” means, collectively, all such cash transfers. 11. “Cash for Work Transfer Beneficiary” means an individual selected in accordance with the eligibility criteria and procedures set out in the PIM to receive a Cash for Work Transfer under Part 2(A)(vi) of the Project; and “Cash for Work Transfer Beneficiaries” means more than one such Cash for Work Transfer Beneficiary. 12. “Category” means a category set forth in the table in Section IV.A of Schedule 2 to this Agreement. 13. “CGIAR” means the Consortium of International Agricultural Research Centers, a global research partnership for a food-secure future dedicated to transforming food, land, and water systems in a climate crisis. 14. “Common Interest Group” means a group of farmers with common interests and needs organized as a village level platform to share knowledge, resources, and work together to collectively address common challenges in agriculture production and value addition; and “Common Interest Groups” means more than one such Common Interest Group. 15. “Entry Criteria for Access” means the criteria required to have been met for the purpose of the Project to ensure that the context on the ground remains aligned with women and other beneficiaries’ participation in Project activities, namely, that, (i) female beneficiaries are not restricted from obtaining the backyard vegetable cultivation packages or from participating in short-term employment opportunities, and (ii) there is no restriction on distribution of cultivation packages to beneficiaries in accordance with targeting criteria set out in the Project Implementation Manual; as such entry criteria are set out in detail in the Project Implementation Manual. 16. “Environmental and Social Commitment Plan” or “ESCP” means the environmental and social commitment plan for the Project, dated February 25, 2025, 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 30 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 be prepared thereunder. 17. “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 African Historically Underserved Traditional Local Communities”; (viii) “Environmental and Social Standard 8: Cultural Heritage”; (ix) “Environmental and Social Standard 9: Financial Intermediaries”; (x) “Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure”; effective on October 1, 2018, as published by the Association. 18. “Financial Management Framework Agreement” or “FMFA” means the Financial Management Framework Agreement between the World Bank and the United Nations, dated March 10, 2006, and signed by the Recipient on March 10, 2006. For purposes of the FMFA, the World Bank means the Association and the International Bank for Reconstruction and Development. 19. “Financial Regulations and Rules” means Recipient’s financial management regulations and rules. 20. “General Conditions” means the “International Development Association General Conditions for IDA Financing, Investment Project Financing”, dated December 14, 2018 (Last revised on July 15, 2023), with the modifications set forth in Section II of this Appendix. 21. “Implementing Partner” means any non-governmental organizations contracted by the Recipient in accordance with the PIM to implement activities under the Project. 22. “Indirect Costs” means the indirect costs incurred by the Recipient as a function and in support of the Project, which cannot be traced unequivocally to the deliverables and technical output of the Project, and which is 5% of the overall Financing received by the Recipient. 31 23. “In-Kind Grant” means in-kind assistance financed out of the proceeds of the Financing in the form of, inter alia, improved planting material, processing equipment, and tools, provided by the Recipient to In-Kind Grant Beneficiaries in accordance with Section I.F.2 of Schedule 2 to this Agreement for carrying out Part 3(B)(ii) of the Project. 24. “In-Kind Grant Beneficiary” means a farmer or farmer group involved in horticulture production and selected by the Recipient in accordance with the eligibility criteria and procedures set out in the PIM to receive an In-Kind Grant under Part 3(B)(ii) of the Project; and “In-Kind Grant Beneficiaries” means more than one such In-Kind Grant Beneficiary. 25. “In-Kind Grant Sub-Project” means a set of activities for the establishment and management of high-to-medium-density orchards for early harvest varieties under Part 3(B)(ii) of the Project; and “In-Kind Grant Sub-Projects” means more than one such In-Kind Grant Sub-Project. 26. “Karez” means an ancient traditional underground horizontal tunnel that collects groundwater from aquifer and outflows on the surface used mainly for irrigation and drinking purposes; and “Karezes” means more than one such Karez. . 27. “Matching Grant” means sub-grant to be provided to a Matching Grant Beneficiary under Part 3(A)(i) of the Project in accordance with the eligibility criteria and procedures set out in the PIM; and “Matching Grants” means more than one Matching Grant. 28. “Matching Grant Agreement” means the agreement to be entered into between the Recipient and each Matching Grant Beneficiary to disburse a Matching Grant pursuant to Section G.3 of Schedule 2 to this Agreement. 29. “Matching Grant Beneficiary” means a Small Agribusiness that meets the eligibility criteria set forth under, and enters into a Matching Grant Agreement pursuant to, Section G.3 of this Agreement and the PIM, to execute a Matching Grant Sub-Project; “Matching Grant Beneficiaries” means more than one “Matching Grant Beneficiary. 30. “Matching Grant Sub-Project” means a set of goods, works, and services to be financed by a Matching Grant under Part 3(A)(i) of the Project pursuant to the terms of a Matching Grant Agreement and this Agreement; and “Matching Grant Sub-Projects” means more than one such Matching Grant Sub-Project. 31. “Mirab” means a community appointed person responsible for operation, maintenance, and distribution of water in accordance with traditional water shares; and “Mirabs” means more than such Mirab. 32 32. “Operating Costs” means the reasonable incremental costs incurred on account of the implementation, management and monitoring of the Project, including office supplies, office space rental, equipment maintenance and repair, vehicle operation and maintenance, utilities, communication charges, mass media and printing services, translation, and interpretation charges, bank charges, charges for transporting cash into the country, travel and lodging allowances, per diems, incremental salaries of contracted employees, but excluding salaries and allowances of the Member Country’s civil service. 33. “Original Grant Agreement” means the grant agreement dated June 3, 2022, as amended, between the Recipient and the Association, as administrator of the ARTF (Grant No. TF0B8720) in support of the Afghanistan Emergency Food Security Project, as such agreement may be amended from time to time. 34. “Original Project” means the Afghanistan Emergency Food Security Project, as set out in the Original Grant Agreement. 35. “Personal Data” mean any information relating to an identified or identifiable individual. An identifiable individual is a natural person who can be identified by reasonable means, directly or indirectly, by reference to an attribute or combination of attributes within the data, or combination of the data with other information. Attributes that can be used to identify an identifiable individual include, but are not limited to name, identification number, location data, online identifier, or metadata; factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of an individual; or assessments of the status and/or specific needs, such as in the context of assistance programs. 36. “Process” or “Processing” means any operation or set of operations performed on Personal Data, whether by automated means or manually, such as collecting, recording, structuring, consulting, retrieving, using, transferring, disclosing, sharing or otherwise making available, or deleting. 37. “Procurement Plan” means the procurement plan to be developed by the Recipient pursuant to Section III of Schedule 2 to this Agreement, as may be amended. 38. “Procurement Regulations” means, for purposes of paragraph 85 of the Appendix to the General Conditions, the “World Bank Procurement Regulations for IPF Borrowers”, dated September 2023. 39. “Producers’ Organization” means a collective organization formed by farmers with voluntary membership providing a platform for its members to aggregate production, inputs, and collective marketing services; and “Producers’ Organizations” means more than one such Producers’ Organization. 33 40. “Project Implementation Manual” means the manual adopted by the Recipient pursuant to provisions of Section I.B.1 of Schedule 2 to this Agreement, setting forth detailed arrangements and procedures for the implementation of the Project; as the same manual may be amended from time to time with written prior approval of the Association. 41. “Project Implementation Unit” means a unit to be established and maintained by the Recipient pursuant to the provisions of section I.A.2 of Schedule 2 to this Agreement for the purpose of day-to-day management and implementation of the Project. 42. “Recipient’s Third-Party Monitoring” means monitoring activities of the Recipient (including inter alia site visits, assessment of local context and conditions, interviews, awareness raising, training and preparation of reports) to be carried out by the Recipient’s Third-Party Monitoring Agent(s) for purpose of carrying out monitoring and evaluation of the activities of the Project, in accordance with the terms of reference mutually agreed by the Recipient and the Association. 43. “Recipient’s Third-Party Monitoring Agent” means any firm or organization engaged by the Recipient, under terms of reference and qualifications mutually agreed by the Recipient and the Association, and to be financed out of the proceeds of the Financing, for carrying out Recipient’s Third-Party Monitoring of the Project. 44. “Selected Areas” means geographical areas selected by the Recipient for the implementation of Part 2(B)(i) of the Project, as set forth in the Project Implementation Manual. 45. “Selected Provinces” means provinces selected by the Recipient for the implementation of Part 1(A)(i) of the Project, as set forth in the Project Implementation Manual. 46. “Second Additional Financing Grant Agreement” means the grant agreement between the Recipient and the Association, as administrator of the ARTF (Grant No. TF0C7599), in support of the Project, as such agreement may be amended from time to time; “Second Additional Financing Grant Agreement” includes all appendices, schedules and agreements supplemental to the Second Additional Financing Grant Agreement. 47. “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. 48. “Small Agribusiness” means an entity registered pursuant to the laws of Afghanistan, whose primary business activity relates to agricultural product 34 collection, aggregation, processing, and distribution, among others, and employs between 4 to 50 full-time individuals, with seasonal labor hired based on demand fluctuations. 49. “Third Party” means a contractor, vendor of goods and services (including cloud service providers), another United Nations system agency, implementing partner and collaborating institution. 50. “Training” means the costs associated with training of personnel, supervisors, and managers involved in activities under the Project, such terms including seminars, workshops, and associated 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 of the training. 51. “Unconditional Cash Transfer” means unconditional cash transfers to be provided to a Cash Transfer Beneficiary under Part 2 (A)(vii) of the Project in accordance with the eligibility criteria and procedures set out in the PIM; and “Unconditional Cash Transfers” means, collectively, all such unconditional cash transfers. 52. “Unconditional Cash Transfer Beneficiary” means a female headed household selected in accordance with the eligibility criteria and procedures set out in the PIM to receive a Cash for Work Transfer under Part 2(A)(vii) of the Project; and “Cash Transfer Beneficiaries” means more than one such Cash Transfer Beneficiary. 53. “Voucher” means a coupon with a monetary value equivalent to fifty percent (50%) of the cost of the seeds to be distributed to Vulnerable Farming Households under Part 1(A)(i)(c) of the Project pursuant to the terms set out in the Voucher Implementation Manual. 54. “Voucher Implementation Manual” means the manual, to be annexed to the Project Implementation Manual, that will set forth the formula and distribution arrangements of Vouchers, including eligibility criteria of Vulnerable Farming Households, pursuant to Part 1(A)(ii) of the Agreement. 55. “Vulnerable Farming Households” means acutely food insecure farming households selected by the Recipient for the implementation of Part 1(A) of the Project in accordance with selection criteria set forth in the Project Implementation Manual. 56. “Vulnerable Households” means households headed by women, children, or people with disabilities or chronic illness selected by the Recipient for the implementation of Part 3(B) of the Project in accordance with the Project Implementation Manual. 35 57. “World Bank Group” means the Association, the International Bank for Reconstruction and Development, the International Finance Corporation, the International Centre for Settlement of Investment Disputes, and the Multilateral Investment Guarantee Agency. Section II. Modifications to the General Conditions The General Conditions are hereby modified as follows: 1. Section 2.06 (Financing Taxes) is modified as follows: “Financing Taxes. The use of any proceeds of the Financing to pay for Taxes levied by, or in the territory of, the Member Country on or in respect of Eligible Expenditures, or on their importation, manufacture, procurement or supply, if permitted pursuant to the Legal Agreements, is subject to the Association’s policy of requiring economy and efficiency in the use of the proceeds of its credits and grants. To that end, if the Association at any time determines that the amount of any such Tax is excessive, or that such Tax is discriminatory or otherwise unreasonable, the Association may, by notice to the Recipient, adjust the percentage of such Eligible Expenditures to be financed out of the proceeds of the Financing.” 2. The following sections in Article III are deleted in their entirety and the remaining sections in Article III are renumbered accordingly, and all references to the Sections of Article III in any provision of the General Conditions are understood to refer to such renumbered Sections: (a) Section 3.02 (Commitment Charge). (b) Section 3.14 (Place of Payment) (c) Section 3.15 (Currency of Payment) (d) Section 3.16 (Amount of Repayment) (e) Section 3.18 (Manner of Payment) (f) Section 3.19 (Temporary Currency Substitution) 3. The following sections in Article V are deleted in their entirety and the remaining sections of Article V are renumbered accordingly, and all references to the Sections of Article V in any provision of the General Conditions are understood to refer to such renumbered Sections: (a) Section 5.07 (Plans; Documents; Records) (b) Section 5.09 (Financial Management; Financial Statements; Audits) (c) Section 5.13 (Procurement) (d) Section 5.14 (Anti-Corruption) 36 4. In Section 5.11 (renumbered as Section 5.09) (Visits), paragraphs (a) and (b) are, respectively, modified to reads as follows: “(a) The Recipient shall take all action necessary or useful to facilitate that the Member Country affords all reasonable opportunity for representatives of the Association to visit any part of their territories and any facilities and sites for purposes related to the Financing or the Project.” “(b) The Recipient shall enable the Association’s representatives to examine any goods financed out of the proceeds of the Financing for the Project, and any plants, installations, sites, works, buildings, property, equipment, relevant to performance of its obligations under the Legal Agreement.” 5. Section 6.01 (Financial and Economic Data) in Article VI is deleted in its entirety and the remaining section in Article VI is renumbered accordingly. 6. Section 8.02(j) (Membership) is modified as to read as follows: “(j) Membership. The Member Country: (i) has been suspended from membership in or ceased to be a member of the Association; or (ii) has ceased to be a member of the International Monetary Fund.” 7. Section 8.02(a) (Payment Failure) is modified as follows: “Payment Failure. The Member Country has failed to make payment (notwithstanding the fact that such payment may have been made by a third party) of principal, service charges, interest or any other amount due to the Association or the International Bank for Reconstruction and Development (“Bank”): (i) under any agreement between the Member Country and the Association or the Bank; or (ii) in consequence of any guarantee extended or other financial obligation of any kind assumed by the Association or the Bank to any third party with the agreement of the Member Country.” 8. Section 9.01 (Enforceability) of Article IX is modified as follows: “Enforceability. The rights and obligations of the Recipient and the Association under the Legal Agreements shall be valid and enforceable in accordance with their terms notwithstanding the law of any state or political subdivision thereof to the contrary. Neither the Recipient nor the Association shall be entitled in any proceeding under this Article to assert any claim that any provision of the Legal Agreements is invalid or unenforceable because of any provision of the Articles of Agreement of the Association, or the constitutive documents of the Recipient.” 9. Section 9.03 (Arbitration) of Article IX is deleted and replaced with the provisions of Section 21 of the FMFA. 37 10. Paragraphs 5 (“Anti-Corruption Guidelines”), 7 (“Arbitral Tribunal”), 17 (“Commitment Charge”), 54 (“Financial Statements”), 76 (“Maximum Commitment Charge Rate”), 84 (“Procurement Plan”), 85 (“Procurement Regulations”), and 109 (“Umpire”) in the Appendix (Definitions) are, respectively, deleted in their entirety and the subsequent paragraphs are renumbered accordingly. 11. Paragraph 77 (“Member Country”) in the Appendix, as renumbered pursuant to paragraph 7 immediately above, is modified to read in full as follows: “77. “Member Country” means the member of the Association in whose territory the Project is carried out or any such member’s political or administrative subdivisions.” 38