09-Oct-2024 Date: __________________ H. E. Doudou Fwamba Likunde Li-Botayi Minister of Finance Ministry of Finance Blvd. du 30 juin Kinshasa-Gombe B.P. 12997 Democratic Republic of the Congo Re: Credit Number 6858-ZR and Grant Number 7940-ZR DRC: Kinshasa Multisector Development and Urban Resilience Project - Kin Elenda Third Amendment to the Financing Agreement Excellency: We refer to the Financing Agreement between the Democratic Republic of the Congo (the “Recipient”) and the International Development Association (“Association”) dated May 12, 2021, as amended on July 10, 2023 and December 15, 2023, for the above-mentioned Project (“Financing Agreement”). Please note that the capitalized terms used in this letter (“Amendment Letter”) and not defined herein have the meanings ascribed to them in the Financing Agreement. We also refer to your letter No. 1034, dated June 21, 2024, requesting: (i) a reallocation of Financing proceeds between disbursement categories; (ii) a deletion of selected Project activities; and (iii) a revision of the Results Framework. We are pleased to confirm that the Association agrees to amend the Financing Agreement in respect to the provisions below, as follows: 1. Schedule 1 to the Financing Agreement is hereby amended to read as set forth in Annex 1 to this Amendment Letter. 2. The withdrawal table in Section III.A. of Schedule 2 to the Financing Agreement is hereby amended as set forth in Annex 2 to this Amendment Letter. All other provisions of the Financing Agreement that have not been amended hereby, shall remain in full force and effect. Please confirm your agreement to the foregoing by signing, dating this Amendment Letter. This Amendment Letter shall become effective as of the date of its countersignature. -2- Finally, please find attached the revised Results Framework as set forth in Annex 3. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION _____________________ Albert G Zeufack Country Director for the Democratic Republic of the Congo Eastern and Southern Africa Region AGREED: DEMOCRATIC REPUBLIC OF THE CONGO By__________________________________ Authorized Representative H.E. Doudou Fwamba Likunde Li-Botayi Name: _______________________________ Minister of Finances Title: ________________________________ 25-Nov-2024 Date: ________________________________ Enclosures Restructuring Paper -3- Annex 1 SCHEDULE 1 Project Description The objective of the Project is to improve institutional capacity for urban management and access to select infrastructure and services, as well as to socio-economic opportunities in Kinshasa. The Project consists of the following components: Component 1: Resilient Infrastructure and Services 1. Citywide Basic Services Improving the access to basic services through the following activities: (a) Resilient water supply: improve the access and resilience of the water production and distribution system in Selected Communes through, inter alia: (i) the construction of the first phase of the Ozone water treatment plant and associated water intake plant; (ii) the construction of the third phase of the Ozone water treatment plant; (iii) the rehabilitation of the N’Djili water treatment plant and associated rehabilitation works at the intake plant, including increased network storage capacity and climate change and flood protection for the intake plant; (iv) the construction and/or rehabilitation of selected water transport and distribution networks; (v) the establishment of new and rehabilitated household connections; and (vi) the carrying out of selected technical assistance, training activities and purchase and installation (including small works) of relevant equipment to improve the financial and operational capacity of REGIDESO. (b) Sanitation: improve the access to sanitation services through, inter alia: (i) the improvement of household collection and sector organization through the provision of technical assistance to key public and private sector actors; (ii) the development and implementation of hygiene and sanitation campaigns; and (iii) the preparation of additional technical studies to support future sector investments (not financed under the Project) and the development of a long-term strategy for sanitation in Kinshasa, including for private sector investments. (c) Solid Waste Management: improve municipal solid waste management services through, inter alia: (i) the rehabilitation of the Mpasa landfill site, including the rehabilitation of Mpasa access road bridge; (ii) the strengthening of the sector regulation and the improvement of household collection, organization of the recycling sector and financial sustainability through the provision of technical assistance; (iii) the provision of technical assistance for the development of a long- term strategy for solid waste management in Kinshasa; (iv) the development of solid waste management campaigns; and (v) the promotion of the use of digital technology for municipal solid waste management. -4- (d) Resilience of electrical power infrastructure and service: enhance the resilience and coverage of electricity service in Selected Communes through, inter alia: (i) the construction of infrastructure to protect selected power distribution stations against flooding and erosion; (ii) the provision of solar energy to social infrastructure and for streetlighting and the design of funding mechanisms for their operation and maintenance; (iii) the promotion of the use of digital technology for solar energy service management; (iv) the preparation of studies and provision of relevant technical assistance for designing PPPs and funding mechanism for solar energy operation and maintenance and other future sector investments (not financed under the Project); and (v) the carrying out of selected off-grid power investments in tertiary education public institutions. 2. Neighborhood Upgrading Improving mobility, resilience to natural hazards and climate change, and urban space in Selected Communes through the following activities: (a) Urban mobility and roads: improve urban mobility through better connectivity, including, inter alia: (i) the rehabilitation and/or construction of selected roads with focus on pedestrian mobility and safety; and (ii) the preparation of feasibility and design studies for a mass-transit system for Kinshasa. (b) Flood risk mitigation and erosion control infrastructure: the carrying out of investments to reduce the risk of natural hazards, including inter alia: (i) the cleaning, upgrading and/or construction of tertiary neighborhood drains; (ii) the carrying out of pilot stabilization works and other anti-erosion investments, (iii) the dredging of critical segments of the N‘Djili and Matete rivers; and (iv) the carrying out of sensibilization campaigns including on the promotion of good urban practices for climate change adaptation. (c) Public space rehabilitation and neighborhood-level infrastructure: the carrying out of investments consisting of, inter alia: (i) the improvement and/or greening of selected public spaces; (ii) the carrying out of small infrastructure and upgrading works based on identified needs and sense of safety and security of the population; and (iii) the carrying out of selected drainage investments. Component 2: Inclusive and Resilient Communities 1. Socio-economic Inclusion Providing support to the Recipient through the following activities: (a) Infrastructure maintenance and social inclusion: Support the most vulnerable through, inter alia, development and implementation of training programs for poverty graduation supporting sustainable livelihoods and self-reliance for vulnerable groups (including through the financing of school supplies and teaching materials). -5- (b) Skills development: improve access to quality and relevant skills training programs in Kinshasa related to the investments supported under Component 1 including, inter alia: the development of short-term upskilling courses for workers within selected sectors (including water and energy), including the development and operationalization of mobile training units; and (ii) the development of gender- responsive training, with special focus on technical areas specifically targeting women, formation of women instructors and, piloting the establishment of a number of childcare facilities in training centers. (c) Violence prevention: provision of support through: (i) gender-based violence prevention and response activities including survivor referral and dignity kits for survivors and capacity building and awareness-raising for communities; (ii) training to personnel of relevant institutions on case management of rape, GBV prevention and response activities; and (iii) capacity building and awareness-raising for communities and authorities. 2. Urban planning and land administration Improving the management of the urban space and the planning of basic service delivery as well as testing the feasibility of innovative land management practices, through, inter alia: (a) the preparation of strategic studies and local planning documents, including a strategy for digital urban planning; (b) the development and operationalization of a digital management platform for Kinshasa, including the provision of relevant training on the use of such platform; (c) the preparation of studies for attracting private sector investments; (d) the preparation of studies and the provision of relevant technical assistance for the establishment of metropolitan urban management institutions and the development of a metropolitan development platform; (e) the phased implementation of an improved plot card (fiche parcellaire) with a special focus and promotion for enhancing women’s land ri ghts; and (f) capacity strengthening of relevant administrative and academic entities through the carrying out of targeted training activities and purchase of relevant equipment. 3. City governance Strengthening the revenue mobilization capacities of Kinshasa, including of the Selected Communes, to improve the quality of public services delivered to the population, through, inter alia: (a) the provision of technical assistance, purchase of equipment and construction of administrative buildings to strengthen Kinshasa and its commune- level revenue management and increase their own-source revenues; (b) the provision of technical assistance and purchase of equipment to strengthen budgeting and infrastructure investment; (c) the carrying out of an organizational and financial review of the RASKIN and the FONAK and the provision of relevant technical assistance; (d) the provision of technical assistance to establish and implement an e-governance strategy; (e) the provision of technical assistance to improved PPP procurement and contract management; (f) the strengthening of the disaster risk response capacity of the CDUK through the provision of technical assistance and the purchase of equipment; and (g) the purchase of equipment (including hardware, software and small equipment) and, as needed and defined in the PIM, the rehabilitation and/or construction of buildings. -6- Component 3: Project Management 1. Support the Recipient and more particularly the CI, the CEP-O, the UCM, and, as applicable, the CDUK and the INPP, to ensure efficient, transparent and accountable Project management, implementation, monitoring and evaluation through the provision of goods, consultant services (including the preparation of audits), training, the financing of Operating Costs. 2. Acquisition of land and provision of compensation (including cash compensation and other assistance paid for involuntary resettlement) in connection with the implementation of the relevant resettlement action plans prepared, consulted, adopted and published in accordance with the RPF. Component 4: Contingency Emergency Response Support the Recipient to immediately respond to an Eligible Crisis or Emergency, as needed. -7- Annex 2 Amount of the Percentage of Amount of the Grant Credit Allocated Expenditures to be Category Allocated (expressed in (expressed in Financed SDR) USD) (inclusive of Taxes) (1) (a) Goods, works, non-consulting services (including Training), 71,238,780.00 49,490,181.00 100% (50% Credit/50% and consulting services for the activities to be carried out by CI Grant) under Components 1.1(c) (but excluding Component 1.1(c)(i)), 1.2 and 2 of the Project (b) Goods, works, non-consulting services (including Training) 3,447,973.00 2,388,536.00 and consulting services for the activities to be carried out by CI under Component 1.1(c)(i) of the Project (2) [Intentionally left blank] 0 0 0% (3) (a) Goods, works, non-consulting services (including Training) 102,799,818.00 71,419,067.00 100% (50% Credit/50% and consulting services for the activities to be carried out by CEP- Grant) O under Components 1.1(a) (but excluding Component 1.1(a)(ii)); and 1.1(b) of the Project (b) Goods, works and consulting services for the activities to be 18,689,453.00 12,978,450.00 carried out by CEP-O under Component 1.1(a)(ii) of the Project (4) Goods, works, non-consulting services (including Training) and 17,409,052.00 12,088,816.00 100% (50% Credit/50% consulting services for activities to be carried out by UCM under Grant) Component 1.1(d) (5) Goods, non-consulting, consulting services and Operating Costs 100% (50% Credit/50% for activities to be carried out under Component 3 by: Grant) (a) CI 6,833,709.00 4,740,975.00 (b) CEP-O 4,511,661.00 3,127,596.00 (c) UCM 969,750.00 666,645.00 (6) Emergency Expenditures under Component 4 of the Project 0 0 100% (7) Refund of Preparation Advances 2,849,804.00 2,037,234.00 Amount payable pursuant to Section 2.07(a) of the General Conditions -8- Amount of the Percentage of Amount of the Grant Credit Allocated Expenditures to be Category Allocated (expressed in (expressed in Financed SDR) USD) (inclusive of Taxes) (8) Land Acquisition and Compensation under Component 3.2 of the 100% (50% Credit/50% Project by: Grant) (a) CI 8,036,000.00 5,545,000.00 (b) CEP-O 1,395,000.00 963,000.00 (c) UCM 11,819,000.00 8,154,500.00 TOTAL AMOUNT 250,000,000.00 173,600,000.00 -9- Annex 3 - 10 -