LOAN NUMBER 9687-DO Loan Agreement (Sustai.nable Development Policy Loan) between DOMINICAN REPUBLIC and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT \ LOAN AGREEMENT AGREEMENT dated as of the Signature Date between DOMINICAN REPUBLIC ("Borrower'') and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("Bank") for the purpose of providing financing in support of the Program (as defined in the Appendix to this Agreement). WHEREAS (A) the Bank has decided to provide this financing on the basis, ;nter alia, of: (i) the actions which the Borrower has already taken under the Program and which are described in Section I.A of Schedule I to this Agreement; and (ii) the Borrower's maintenance of an adequate macroeconomic policy framework; and (B) the financing mentioned herein will be available to the Borrower in accordance with the terms of this Agreement to finance any budgeted expenditures (other than Excluded Expenditures). The Borrower and the Bank therefore hereby agree as follows: ARTICLE I - GENERAL CONDITIONS; DEFINITIONS 1.0 I. The General Conditions (as defined in the Appendix to this Agreement) apply to and form part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in tbis Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE II - LOAN 2.01. The Bank agrees to lend to the Borrower the amount of four hundred million Dollars ($400,000,000), as such amount may be converted from time to time through a Currency Conversion ("Loan"). 2.02. The Front-end Fee is one quarter of one percent (0.25%) of the Loan amount. 2.03. The Commitment Charge is one quarter of one percent (0.25%) per annum on the Unwithdrawn Loan Balance. 2.04. The interest rate is the Reference Rate plus the Variable Spread or such rate as may apply following a Conversion; subject to Section 3.02(e) of the General Conditions. 2.05. The Payment Dates are May 15 and November 15 in each year. 2 2.06. The principal amount of the Loan shall be repaid in accordance with Schedule 2 to this Agreement. 2.07. Without limitation upon the provisions of Section 5.05 of the General Conditions, the Bon·ower shall promptly furnish to the Bank such infom1ation relating to the provisions of this Article II as the Bank may, from time to time, reasonably request. ARTICLE III - PROGRAM 3.01. The Borrower declares its commitment to the Program and its implementation. To this end, and fwther to Section 5.05 of the General Conditions: (a) the Borrower and the Bank shall from time to time, at the request of either party, exchange views on the Borrower's macroeconomic policy framework and the progress achieved in carrying out the Program; (b) prior to each such exchange of views, the Borrower shall furnish to the Bank for its review and comment a repo1t on the progress achieved in carrying out the Program, in such detail as the Bank shall reasonably request; and (c) without limitation upon paragraphs (a) and (b) of this Section, the Borrower shall promptly inform the Bank of any situation that would have the effect of materially reversing the objectives of the Program or any action taken under the Program including any action specified in Section I of Schedule 1 to this Agreement. ARTICLE IV - REMEDIES OF THE BANK 4.0 I. The Additional Event of Suspension consists of the following, namely, that a situation has arisen which shall make it improbable that the Program, or a significant part of it, will be carried out. 4.02. The Additional Event of Acceleration consists of the following, namely, that the event specified in Section 4.0 I of this Agreement occurs and is continuing for a period of thirty (30) days after notice of the event has been given by the Bank to the Borrower. ARTICLE V - EFFECTIVENESS; TERMINATION 5.0 I. The Additional Conditions of Effectiveness consist of the following, namely, that the Bank is satisfied with the progress achieved by the Borrower in carrying out the Program and with the adequacy of the Borrower' s macroeconomic policy framework. o/ 3 5.02. The Effectiveness Deadline is the date one hundred eighty (180) days after the Signature Date (unless the Bank, after consideration of the reasons for the delay, establishes a later Effectiveness Deadline for the purpose of Section 9.04 of the General Conditions). ARTICLE VI - REPRESENTATIVE; ADDRESSES 6.01. The Borrower's Representative is its Minister of Finance. 6.02. For purposes of Section I 0.0 I of the General Conditions: (a) the Borrower' s address is: Ministry of Finance (Ministerio de Hacienda) Av. Mexico 45, Gazcue Santo Domingo de Guzman, Distrito Nacional Dominican Republic; and (b) the Borrower's Electronic Address is: Telex: E-mail: 809-687-5131 jovicente@ hacienda.gov .do 6.03. For purposes of Section 10.01 of the General Conditions: (a) the Bank' s address is: International Bank for Reconstruction and Development 18 18 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Bank' s Electronic Address is: Telex: Facsimile: E-mail: 248423(MC1) or 1-202-477-639 1 mkerf@worldbank.org 64 145(MCI) 4 AGREED as of the Signature Date. By presentative Na me: Jo s:e M. Vicentl, Title: Mini M ~ lt{itCAendtA Date: 21 / A-~ OW lwvt INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Authorized Representative Michel Kerf Name: ----------- Title: Country Di rector 14- Aug - 2024 Date: ----------- \ 5 SCHEDULE 1 Program Actions; Availability of Loan Proceeds Section I. Actions under the Program A. Actions Taken Under the Program. The actions taken by the Borrower under the Program include the fol lowing: 1. The Borrower, through its Ministry of Environment and Natural Resources, has taken measures to enhance marine conservation and reduce marine pollution by: (a) issuing an Environmental Technical Regulation to control discharges to surface and coastal waters, including on sludge managenJent and disposal; and (b) issuing a resolution to make effective the Integrated Management of Marine Waste Action Plan, as evidenced by Resolution No. 0048/2023, dated November 20, 2023 and codified as MA- VGA-RT-003-2023 on November 20, 2023, and published in the Ministry of Environment and Natural Resources' official website; and Resolution No. 0045/2023 dated October 17, 2023 and codified as MA- VCM-RG- 001-23, on February 23, 2023 and published on the Ministry of Environment and Natural Resources' official website. 2. The Borrower, through its Ministry of Environment and Natural Resources, has enhanced the protection, conservation and sustainable use of rivers and water bodies by approving a resolution that limits pollution and regulates its recreative uses, as evidenced by Resolution No. 0050/2023 dated December 13, 2023, and published on the Ministry of Environment and Natural Resources' official website. 3. The Borrower has approved a regulation on the Integrated Management of Waste from Electrical and Electronic Equipment, including the establishment of obligations and responsibilities of the producers, distributors, suppliers, and consumers, as evidenced by Presidential Decree No. 253-23, dated June 7, 2023, and published in the Official Gazette on June 15, 2023. 4. The Borrower, through its Ministry of Environment and Natural Resources, has recognized hydrofluorocarbon substances as drivers of climate change, and has issued a regulation to adopt provisions in line with the Kigali Amendment to the Montreal Protocol regulating the import of cooling appliances, as evidenced by Resolution 0001/2024 dated January 12, 2024, and codified as MA-VGA-RT-001-2024, on January 12, 2024 and published on the Ministry of Environment and Natural Resources' official website. f:l