27-Jun-2024 Date: __________________ H.E. Mrs. Nadia Fettah Minister of Economy and Finance Ministry of Economy and Finance Quartier Administratif Avenue Mohammed V Rabat Kingdom of Morocco Re: Kingdom of Morocco- Green Generation Program Loan No. 9186-MA First Amendment to the Loan Agreement Excellency: We refer to the Loan Agreement (the “Loan Agreement”) between the Kingdom of Morocco (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”) dated December 22, 2020, for the above-referenced Program. The capitalized terms used in this letter (“Amendment Letter”) and not defined herein have the meanings ascribed to them in the Loan Agreement. We also refer to your letter dated June 10, 2024, requesting inter alia, specific changes to the Disbursement Linked Indicators (DLIs) and Disbursement Linked Results (DLRs), and changes in the Results Framework. We are pleased to inform you that the Bank hereby agrees with your request and proposes to amend the Loan Agreement as follows: 1. Part 1. of Schedule 1 to the Loan Agreement is hereby amended and replaced in its entirety to read as follows: “Part 1. Increased Job Opportunities and Income Generation for Rural Youth Increasing job opportunities and incomes for youth in rural areas through the following activities: 1. Strengthening the ecosystem for rural entrepreneurship development by: (a) improving the attractiveness of the rural economy for youth through the provision of specialized technical assistance to: (i) identify and build on existing economic opportunities along priority agri-food value-chains at provincial level—targeting both local and export markets and ensuring a more equitable inclusion of women in the agri-food sector; (ii) organize communication and promotion campaigns related to these economic opportunities at national and provincial levels; (iii) support the operationalization of CRJEAAs and their branches (CCA); (iv) develop and integrate rural entrepreneurial training modules in vocational training centers and training of trainers in entrepreneurship; (v) organize orientation and ideation sessions for young people to increase climate literacy and investigate potential economic opportunities in their areas and available support services; and (vi) launch pilot national calls to support investments of young promoters on digital and climate smart agriculture; and -2- (b) strengthening the capacity of the Borrower’s relevant institutions for rural entrepreneurship development by: (i) providing capacity building to a number of agricultural advisers, focusing particularly on the needs of women; (ii) revitalizing and professionalizing agricultural cooperatives to improve their operational capacities, climate knowledge, and modernize their management structure; (iii) launching a pilot initiative for the emergence and empowerment of agricultural service cooperatives for youth; and (iv) the provision of technical services to selected youth including dedicated technical assistance to help the youth, particularly women, prepare “bankable” (and climate-informed) business plans and subsequent commercial loan applications. 2. Facilitating access to financial resources for young rural entrepreneurs by: (a) reviewing the FDA’s incentive system and legal framework to target young rural entrepreneurs; (b) implementing financial incentive mechanisms for young people based on the FDA’s revised incentive system carried out under (a) above; and (c) mobilizing other alternative sources of financing to support rural investments for youth.” 2. The table under paragraph 2 of Section IV.A of Schedule 2 to the Loan Agreement is hereby deleted and replaced with the table in the Annex to this Amendment Letter. 3. Section IV.B.4 of Schedule 2 to the Loan Agreement is hereby amended as follows: “4. The Closing Date is October 29, 2027.” 4. The Appendix of the Loan Agreement is hereby amended as follows: (a) The following definitions are hereby amended to read as follows: ““D=BP/T*A” means for DLR#1.1 to 1.2: Disbursement (D) is equal to the number of business plans which have been deemed eligible (BP), divided by the total number of business plan target under said DLR (T), multiplied by total amount allocated to said DLR (A).” (b) The following definitions are hereby added and existing definitions are consequently renumbered to keep the alphabetical order: ““CCA” means each agricultural advisory center of the ONCA.” ““CREJs” means Commissions Régionales de l’Entrepreneuriat des Jeunes, the regional commission for youth entrepreneurship.” ““CRJEAA” means Centres Régionaux des Jeunes Entrepreneurs Agricoles et Agroalimentaires, the regional centers for young agricultural and agri-food entrepreneurs established in the Program Area.” ““MIEPEEC” means the Borrower’s Ministry of Economic Inclusion, Small Business, Employment and Skills, or any successor thereto.” ““PEI” means the Programme d’Extension de l’Irrigation (Programme for Extension of Irrigation).” -3- ““PNEEI” means the Programme National d’Économie de l’Eau d’Irrigation (National Program for Water Savings in Irrigation).” ““PMH” means Petite et Moyenne Hydraulique (Small and Medium Irrigation Scheme).” (c) The following definitions are hereby deleted and existing definitions are consequently renumbered to keep the alphabetical order: ““D=P/T*A” means for (a) DLI#3: Disbursement (D) is equal to the number of young entrepreneurs who received incentives (P), divided by the total target of number of young entrepreneurs to receive incentives under said DLR (T), multiplied by total amount allocated to said DLR (A); and (b) DLI#9 Disbursement (D) is equal to the number of producers (P), divided by the total target of producers under said DLR (T), multiplied by total amount allocated to said DLR (A).” All the terms and conditions of the Loan Agreement that have not been amended hereby shall remain unchanged and in full force and effect. Please confirm your agreement with the foregoing, on behalf of the Borrower, by signing this Amendment Letter. This Amendment Letter shall become effective as of the date of countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT _____________________________ Jesko S. Hentschel Country Director for Morocco Middle East and North Africa Region -4- CONFIRMED AND AGREED: KINGDOM OF MOROCCO By: ____________________________ Authorized Representative Nadia Fettah Name: __________________________ Minister of economy and finances Title: ___________________________ 03-Jul-2024 Date: ___________________________ -5- ANNEX Category Amount of the Loan (including Disbursement Disbursement Linked Result Allocated Linked Indicator as (as applicable) (expressed in EUR) applicable) (1) DLI #1: Support for the DLR#1.1: 500 business plans developed DLR#1.1: 642,600 development of business in CY2021, from a baseline of 0. D=BP/T*A plans for young rural entrepreneurs DLR#1.2: cumulative 538 business DLR#1.2: 48,837.60 plans developed in CY 2023 DLR#1.3: pro memoria DLR#1.3: pro memoria DLR#1.4: pro memoria DLR#1.4: pro memoria DLR#1.5: pro memoria DLR#1.5: pro memoria DLR#1.6: 10,000 young rural DLR#1.6: 12,852,000.00 entrepreneurs with business plans From a baseline of 0, for eligible for funding by the CREJs and each additional young by other eligible commissions or partner rural entrepreneur, organizations. EUR1,285.20. DLR#1.7: 30 CRJEAA or their DLR#1.7: 2,876,562.40 branches (CCA) are operational. From a baseline of 0, for each CRJEAA or CCA, EUR95,885.41 (2) DLI #2: Reform of the DLR#2.1: The governmental decree to DLR#2.1: 4,284,000 legal framework and provide incentives for young strengthening of the entrepreneurs to start their rural partnership framework investments has been adopted. to facilitate access to financing for young DLR#2.2: pro memoria DLR#2.2: pro memoria rural entrepreneurs DLR#2.3: The agreement between DLR#2.3: 2,142,000 MAPMDREF and MIEPEEC for technical and financial support to young rural entrepreneurs in the agricultural, para-agricultural and digital sector has been signed. DLR#2.4: The Order establishing DLR#2.4: 2,142,000 incentives for young people in the context of the development of collective land has been published. (3) DLI #3: Young DLR#3.1: pro memoria DLR#3.1: pro memoria entrepreneurs who have DLR#3.2: pro memoria DLR#3.2: pro memoria benefitted from public DLR#3.3: pro memoria DLR#3.3: pro memoria incentives/funding for the realization of their DLR#3.4: 16,000 young entrepreneurs. DLR#3.4: 51,408,000 agricultural, para- From a baseline of 0, per agricultural and/or young entrepreneur digital projects having benefitted from public incentives/funding -6- Category Amount of the Loan (including Disbursement Disbursement Linked Result Allocated Linked Indicator as (as applicable) (expressed in EUR) applicable) for the realization of an agricultural, para- agricultural and/or digital project, EUR3,213.00 (4) DLI #4: Revised legal DLR#4.1: pro memoria DLR#4.1: pro memoria and regulatory framework governing DLR#4.2: pro memoria DLR#4.2: pro memoria the new modernized wholesale markets DLR# 4.3: Three (3) framework DLR#4.3: 4,284,000 established agreements signed for the 3 wholesale For each framework markets (Berkane, Marrakech, Meknes). agreement signed, EUR1,428,000. DLR#4.4: 4,284,000 DLR#4.4: Four (4) agreements signed For each agreement for the wholesale markets of Agadir, signed, EUR1,071,000. Berkane, Meknes and Marrakech. DLR#4.5: (a) The draft Law fixing the DLR#4.5: 5,000,000 modalities regarding the creation and EUR 2,500,000 for the functioning of the modernized transmission of the Law wholesale markets, has been transmitted to the General Secretary to the General Secretary of of Government and EUR Government; and (b) the law fixing the 2,500,000 for the modalities regarding the creation and publication in the functioning of the modernized Official Gazette. wholesale markets has been published in the Official Gazette (5) DLI #5: Modernized DLR#5.1: The national strategic DLR#5.1: 1,713,600 wholesale market environmental and social study for the program developed Borrower’s modernized wholesale market program has been prepared, consulted and published, all in form and substance as set forth in the POM. DLR#5.2: The ESIA/ESMP and, as DLR#5.2: 10,281,600 applicable, resettlement action plan, for For each ESIA/ESMP each of the modernized wholesale and, as applicable markets to be constructed in each of the resettlement action plan Selected Cities, has been approved and approved and published, published. EUR2,570,400 may be made available for withdrawal by the Borrower, up to EUR10,281,600 DLR#5.3: The Management Structures DLR#5.3: 3,427,200 in charge of operating each of the For each Management Structure established, -7- Category Amount of the Loan (including Disbursement Disbursement Linked Result Allocated Linked Indicator as (as applicable) (expressed in EUR) applicable) modernized wholesale markets have EUR856,800 may be been established. made available for withdrawal by the Borrower, up to EUR3,427,200 DLR#5.4: The construction works and DLR#5.4: 7,175,700 installation of equipment for each For each wholesale modernized wholesale market have market with construction been completed. of works completed and fully equipped, EUR1,793,925 may be made available for withdrawal by the Borrower, up to EUR7,175,700 DLR#5.5: The modernized wholesale DLR#5.5: 6,854,400 markets are operational. For each modernized wholesale market constructed under DLR#5.4 that is fully operational, EUR1,713,600 may be made available for withdrawal by the Borrower, up to EUR6,854,400 (6) DLI #6: Food export DLR#6.1: 50% in CY2021 from a DLR#6.1: 8,568,000 performance improved: baseline of 0 in CY2020 D=E/T*A percentage of export inspection certifications DLR#6.2: 100% in CY2022, from a DLR#6.2: 8,568,000 issued in digital form baseline of 50% D=E/T*A (7) DLI #7: Number of agri- DLR#7.1: 8,200 in CY2021, from a DLR#7.1:10,281,600 food baseline of 7,800 D=A/T*A enterprises/organisations authorized by ONSSA DLR#7.2: cumulative 8,400 in CY2022, DLR#7.2: 5,140,800 for improved market from a baseline of 8,200 D=A/T*A access and improved food safety DLR#7.3: cumulative 8,600 in CY2023, DLR#7.3: 5,140,800 from a baseline of 8,400 D=A/T*A DLR#7.4: cumulative 8,800 in CY2025, DLR#7.4: 5,140,800 from a baseline of 8,600 D=A/T*A (8) DLI #8: Digital DLR#8.1: GIS and satellite image DLR#8.1: 8,568,000 ecosystem for climate- processing covering 2 million hectares D=TA/T*A are operational and deployed. -8- Category Amount of the Loan (including Disbursement Disbursement Linked Result Allocated Linked Indicator as (as applicable) (expressed in EUR) applicable) smart agriculture established DLR#8.2: Land use digital mapping DLR#8.2: 8,568,000 tool for climate-smart agriculture D=TA/T*A covering 500,000 hectares has been deployed. DLR#8.3: Remote management systems DLR#8.3: 8,568,000 in selected modernized irrigation For each hectare in a schemes are operational and deployed selected modernized in 8,000 hectares from a baseline of 0. irrigation schemes in the Program Area with a remote management system operational, EUR1,071. DLR#8.4: ARDNA platform upgraded DLR#8.4: 8,568,000 and 7,500 users in the Program Area EUR1,142.40 for each registered from a baseline of 0. user registered in the upgraded ARDNA platform. (9) DLI #9: Adoption of DLR#9.1: pro memoria DLR#9.1: pro memoria climate-smart DLR#9.2: pro memoria DLR#9.2: pro memoria agriculture practices for DLR#9.3: pro memoria DLR#9.3: pro memoria the efficient use of water DLR#9.4: 9,000 producers in selected DLR#9.4: 11,700,000 modernized irrigation schemes in the Per each additional Program Area benefiting from producer, EUR1,300. agricultural advisory extension services for the efficient use of water, from a baseline of 0. DLR#9.5: A monitoring-evaluation DLR#9.5: 2,570,400 system for impacts in modernized irrigated areas (PNEEI, PEI and PMH) is put in place for field schools in the Program Area. DLR#9.6: A monitoring-evaluation DLR#9.6: 2,865,600 system for impacts in modernized irrigated areas (PNEEI, PEI and PMH) is set up in pilot form for all agricultural advisory activities in an irrigated intervention zone in the Program Area. (10) Front-end Fee to be paid pursuant to 535,500 Section 2.03 of this Agreement in accordance with -9- Category Amount of the Loan (including Disbursement Disbursement Linked Result Allocated Linked Indicator as (as applicable) (expressed in EUR) applicable) Section 2.05(b) of the General Conditions (11) Interest Rate Cap or Interest Rate Collar 0 premium to be paid pursuant to Section 4.05(c) of the General Conditions TOTAL AMOUNT 214,200,000 * Unless the context of the respective DLR otherwise require, the references to CY are provided for indicative verification purposes. Whenever feasible and in accordance with their terms (including applicable formula), the DLRs can be met in advance or carried forward and met later.