CREDIT NUMBER 7664-DM Financing Agreement (Additional Financing for the Disaster Vulnerability Reduction Project) (Third Additional Financing) between COMMONWEALTH OF DOMINICA and INTERNATIONAL DEVELOPMENT ASSOCIATION FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between COMMONWEALTH OF DOMINICA (“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION (“Association”) for the purpose of providing a third additional financing for the activities related to the Original Project (as defined in the Appendix to this Agreement). 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. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE II — FINANCING 2.01. The Association agrees to extend to the Recipient a credit, which is deemed as Concessional Financing for purposes of the General Conditions, in an amount equivalent to thirty million one hundred thousand Special Drawing Rights (SDR 30,100,000) (variously, “Credit” and “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 III of Schedule 2 to this Agreement. 2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.04. The Service Charge is three-fourths of one percent (3/4 of 1%) per annum on the Withdrawn Credit Balance. 2.05. The Payment Dates are March 15 and September 15 in each year. 2.06. Except as provided in Section 2.07, the principal amount of the Credit shall be repaid in accordance with Section 3.05 of the General Conditions and the repayment schedule set forth in Schedule 3 to this Agreement. -2- 2.07. (a) Upon occurrence of an Eligible Event and issuance of government proclamation of emergency, the Recipient may request the Association to activate: (i) the Principal Payment Deferral in respect of a portion or all of the Withdrawn Credit Balance; and/or (ii) Interest Payment Deferral; for the Deferral Period, provided that such request shall be made no earlier than in respect of the first Principal Payment Date and no later than the fifth anniversary prior to the final maturity of the Credit. Such request and any activation shall be made in accordance with the CRDC Terms and Conditions in effect at the time of the submission of the request, the provisions of which are hereby incorporated by reference and form an integral part of this Agreement. The activation of the Payment Deferral may occur only once during the term of the Credit. (b) At the time of requesting the Principal Payment Deferral pursuant to the provisions of paragraph (a) of this Section 2.07, the Recipient may also request repayment provisions different from those set out in Schedule 3 to this Agreement for a portion or all of the Withdrawn Credit Balance for which Principal Payment Deferral is requested, provided that (i) the average maturity of the Withdrawn Credit Balance after the Deferral Period equals the original average maturity of such Withdrawn Credit Balance prior to the Principal Payment Deferral request and the final maturity of the Withdrawn Credit Balance after the Deferral Period will not exceed the original final maturity of such Withdrawn Credit Balance prior to the Principal Payment Deferral request; and (ii) such repayment provisions have been agreed between the Recipient and the Association. (c) Upon review of the Recipient’s request and the Association’s reasonable determination of the eligibility of the Credit for a Payment Deferral, the Association shall take such actions as necessary to implement the Payment Deferral in accordance with the terms of this Agreement and the CRDC Terms and Conditions. Effective the date of the activation of the Payment Deferral as notified by the Association to the Recipient, the provisions of this Agreement providing for repayment of the proceeds of the Credit, including the provisions of Schedule 3, shall be deemed to have been modified, as applicable. The Association shall notify the Recipient of the applicable financial terms of the Credit, including any revised amortization provisions, if applicable, at the time of the Payment Deferral activation or promptly thereafter. (d) In the event the Interest Payment Deferral is activated, the Recipient shall pay to the Association interest on any such deferred amount at the rate set forth in Section 2.04 of this Agreement until such time as the deferred amount is fully paid to the Association. Such interest shall accrue from the respective dates when the relevant amounts are deferred after the Interest -3- Payment Deferral is activated and shall be payable on the remaining Payment Dates after the Deferral Period. (e) The Payment Deferral shall not be activated, if either of the events specified in Section 8.02(a) or 8.06(a) of the General Conditions occurs and is continuing, provided, however, that the Payment Deferral itself, upon its activation, shall not constitute an event described in Sections 8.02(a) or 8.06(a) of the General Conditions. Furthermore, the Recipient shall continue to pay all applicable and accrued Financing Payments during the Deferral Period, except the amounts that have been deferred pursuant to the activated Payment Deferral as described herein. (f) If the Withdrawn Credit Balance or any interest and other applicable Credit Charges, to which the request for Payment Deferral relates, are subject to a Currency Conversion then in effect, the Recipient and the Association shall agree to amend or terminate such Currency Conversion. In the event of an early termination of such Currency Conversion prior to the end of its Conversion Period as a result of the Payment Deferral, the provisions of Section 4.06(b) of the General Conditions shall apply. 2.08. The Payment Currency is Dollar. ARTICLE III — PROJECT 3.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient shall: (a) through the PCU and the CSU, carry out Parts A, B and D of the Project; and (b) through the Coordinating Authority, carry out Part C of the Project, all in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV — EFFECTIVENESS; TERMINATION 4.01. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 4.02. For purposes of Section 10.05(b) of the General Conditions, the date on which the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is twenty years after the Signature Date. -4- ARTICLE V — REPRESENTATIVE; ADDRESSES 5.01. The Recipient’s Representative is its Minister responsible for Finance. 5.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient’s address is: Ministry for Finance Financial Centre Kennedy Avenue, Roseau Commonwealth of Dominica; and (b) the Recipient’s Electronic Address is: Facsimile: E-mail: 1-767-448-0054 financialsecretary@dominica.gov.dm 5.03. For purposes of Section 11.01 of the General Conditions: (a) the Association’s address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Association’s Electronic Address is: Telex: Facsimile: E-mail: 248423 (MCI) 1-202-477-6391 lburunciuc@worldbank.org [remainder of page intentionally left blank] -5- AGREED as of the Signature Date. COMMONWEALTH OF DOMINICA By __________________________________________/s1/ Authorized Representative Hon. Dr. Irving McIntyre Name: ____________________________________/n1/ Minister for Finance, Economic Development, Climate Resilience Title: ____________________________________/t1/ 23-Dec-2024 Date: ____________________________________/d1/ INTERNATIONAL DEVELOPMENT ASSOCIATION By __________________________________________/s2/ Authorized Representative Lilia Burunciuc Name: ____________________________________/n2/ Country Director Title: ____________________________________ /t2/ 19-Dec-2024 Date: ____________________________________/d2/ -6- SCHEDULE 1 Project Description The objective of the Project is to reduce vulnerability to natural hazards and climate change impacts in the Recipient’s territory through: (a) investment in resilient infrastructure; and (b) improved hazard data collection and monitoring systems. The Project consists of the following parts: Part A: Prevention and Adaptation Investments 1. Carrying out of selected infrastructure investments, including: (a) construction of water storage and distribution infrastructure; (b) slope stabilization; and (c) rehabilitation of transportation infrastructure including, inter alia, selected primary and secondary roads and bridges, all through the provision of works, technical advisory services, operating costs and acquisition of goods. Part B: Capacity Building and Data Development, Hazard Risk Management and Evaluation 1. Building the capacity for analysis and assessment of risks from natural hazards and climate change, including integration of such analysis into policy and decision making process for the development of investments, and developing data collection systems, including, inter alia: (a) creation of high resolution digital topographic and bathymetric model for the Recipient; (b) creation of a high resolution soils survey map; (c) design and deployment of robust hydromet network; and (d) development of district and community level climate adaptation plans, all through the provision of technical advisory services and training, and acquisition of goods. Part C: Natural Disaster Response Investments 1. Carrying out of Emergency Recovery and Reconstruction Subprojects. Part D: Project Management and Implementation Support 1. Strengthening the institutional capacity for Project management, including: (a) strengthening the capacity and staffing of the PCU and CSU; (b) preparation of investment designs and tender documents; (c) preparation of Project reports; (d) processing of contracts and tender evaluation; (e) coordination of participating line ministries; (f) supervision of the quality of works; (g) provision of training of staff of the PCU and CSU in Project management and implementation support; (h) monitoring and evaluation of the Project progress and results; and (i) carrying out related activities on Project management and implementation, all through the provision of technical advisory services, training and operating costs, and acquisition of goods. -7- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. 1. Project Steering Committee (a) The Recipient shall ensure that the Project Steering Committee is maintained at all times during the implementation of the Project, with a composition, mandate, and in form and substance satisfactory to the Association. (b) Without limitation to sub-paragraph (a) immediately above, the Recipient shall ensure that the Project Steering Committee shall be responsible for providing policy guidance to ensure prompt and efficient implementation of the Project, including, inter alia: (i) reviewing progress made towards achieving the Project’s objective; and (ii) facilitating the coordination of Project activities, and making recommendations for removal of any obstacles to the implementation of the Project. 2. Project Coordination Unit and Central Services Unit (a) The Recipient shall operate and maintain, at all times during the implementation of the Project, the Project Coordination Unit (“PCU”) within the Recipient’s Ministry of Public Works, Public Utilities and Digital Economy, with functions, staffing and resources satisfactory to the Association. (b) Without limitation to the provisions of Section 3.01 of this Agreement and Section I.A.1 of this Schedule, the Recipient shall ensure that the PCU is responsible for the day-to-day administration of the overall Project planning, reporting, coordination, and technical implementation, all in accordance with the provisions of this Agreement and the Project Operations Manual. (c) Without limitation to the provisions of Section 3.01 of this Agreement and Sections I.A.1, I.A.2(a) and (b) of this Schedule, the Recipient shall operate and maintain, at all times during the implementation of the Project, a Central Services Unit (“CSU”) under the authority of the Ministry of Finance, with functions, staffing and resources satisfactory to the Association, responsible for the fiduciary (i.e., procurement and financial management) aspects, environmental and social safeguards compliance, monitoring and evaluation and communication services for the Project, all in accordance with the provisions of this Agreement and the Project Operations Manual. -8- 3. Line Ministries and Agencies Without limitation to the provisions of Section I.A.1 and I.A.2 of this Schedule, the Recipient shall ensure that its Ministry of Environment, Rural Modernization, and Kalinago Upliftment, the Dominica Water and Sewerage Company, the Office of Disaster Management, and other relevant ministries and agencies (Line Ministries and Agencies), provide as may be required, technical support to the PCU for relevant technical supervision and implementation of respective Project activities in the area of expertise of the relevant Line Ministry and Agency, all in accordance with the Project Operations Manual. B. Project Operations Manual. 1. The Recipient shall carry out Parts A, B and D of the Project in accordance with the provisions of the updated Project Operations Manual, containing detailed arrangements and procedures for: (a) institutional coordination and day-to-day execution of said Parts of the Project; (b) Project budgeting, disbursement and financial management; (c) procurement; (d) environmental and social safeguard guidelines; (e) monitoring, evaluation, reporting and communication; and (f) such other administrative, financial, technical and organizational arrangements and procedures as shall be required for said Parts of the Project. 2. The Recipient shall not amend, abrogate, waive or fail to enforce any provision of the Project Operations Manual without the prior written agreement of the Association: provided, however, that in case of any conflict between the arrangements and procedures set out in the Project Operations Manual and the provisions of this Agreement, the provisions of this Agreement shall prevail. C. Emergency Recovery and Reconstruction Subprojects under Part C of the Project. In order to ensure the proper implementation of Part C of the Project, the Recipient shall take the measures set forth below: 1. The Recipient, shall: (a) update and furnish to the Association for its review and approval, the CERC Manual which shall set forth detailed implementation arrangements for said Part of the Project, including: (i) designation of, terms of reference for and resources to be allocated to, the entity to be responsible for coordinating and implementing Part C of the Project (“Coordinating Authority”); (ii) specific Emergency Recovery and Reconstruction Subprojects, a sound and actionable country-level response plan, Eligible Expenditures required therefore (“Emergency Expenditures”) and any -9- procedures for such inclusion; (iii) eligibility criteria required for the Emergency Recovery and Reconstruction Subprojects and other necessary arrangements to ensure their effective and efficient implementation; (iv) eligibility criteria and mechanisms for the provision of Cash Transfers and Grants to Eligible Beneficiaries; (v) financial management arrangements for Part C of the Project; (vi) procurement methods and procedures for Eligible Emergency Expenditures to be financed under Part C of the Project; (vii) documentation required for withdrawals of Eligible Emergency Expenditures; (viii) environmental and social safeguard management frameworks for Part C of the Project, consistent with the Association’s policies on the matter; and (ix) any other arrangements necessary to ensure proper coordination and implementation of Part C of the Project. (b) afford the Association a reasonable opportunity to review said updated CERC Manual; (c) promptly adopt such CERC Manual for Part C of the Project as shall have been approved by the Association; (d) ensure that Part C of the Project is carried out in accordance with the CERC Manual; provided however, that in the event of any inconsistency between the provisions of the CERC Manual and this Agreement, the provisions of this Agreement shall prevail; and (e) not amend, suspend, abrogate, repeal or waive any provision of the CERC Manual without prior approval by the Association. 2. The Recipient shall, throughout the implementation of Part C of the Project, maintain the Coordinating Authority, with adequate staff and resources satisfactory to the Association. 3. The Recipient shall undertake no Emergency Recovery and Reconstruction Subprojects under Part C of the Project (and no such subprojects shall be included in Part C of the Project) unless and until the following conditions have been met in respect of said activities: (a) the Recipient has determined that an Eligible Emergency has occurred, has furnished to the Association a request to include said Subprojects in Part C of the Project in order to respond to said Eligible Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (b) the Recipient has prepared and disclosed all safeguards instruments required for said activities, in accordance with the CERC Manual, the Association has approved all such instruments, and the Recipient has -10- implemented any actions which are required to be taken under said instruments; and (c) the Recipient has ensured that no activities under Part C of the Project fall under the excluded activities mentioned in the CERC Manual. 4. For purposes of carrying out an Emergency Recovery and Reconstruction Subproject, the Recipient through the Coordinating Authority may provide Cash Transfers or Grants to Eligible Beneficiaries pursuant the corresponding Grant Agreement to be entered into between the Recipient and said Eligible Beneficiaries on terms and conditions acceptable to the Association as set forth in the CERC Manual. 5. An investment or activity shall qualify as an Emergency Recovery and Reconstruction Subproject only if: (a) it is initiated in response to an Eligible Emergency; (b) it aims, inter alia, to repair or reconstruct streets, roads, bridges, transportation and other infrastructure damaged by the event of an Eligible Emergency in question, re-establish telecommunications infrastructure, re-establish urban or rural solid waste, water supply and sanitation (including urban drainage) infrastructure damaged by the event of an Eligible Emergency in question; repair, re-equip, construct or reconstruct homes, schools, clinics, hospitals or works of cultural significance or other communal structures damaged by the event of an Eligible Emergency in question; remove and dispose debris resulting from the event of an Eligible Emergency in question (but only if such removal and disposal is not an end in itself but constitute an integral part of an infrastructure repair, reconstruction or re-establishment activity itemized herein); restore the productive assets damaged by the event of an Eligible Emergency in question of uninsured low-income producers; replace vegetation destroyed by the event of an Eligible Emergency in question, or repair or mitigate damage caused by the event of an Eligible Emergency to a national natural protected area or buffer zone thereof (all the above in such a way as to take into account the reasons for the damage suffered in the disaster and to ensure that the infrastructure re-establishment through the Emergency Recovery and Reconstruction Subproject is environmentally sound in a way that reduces its vulnerability to possible social disasters); (c) the Association has reviewed and approved the proposed Emergency Recovery and Reconstruction Subproject prior to such Subproject’s initiation; -11- (d) in case of an Emergency Recovery and Reconstruction Subproject which consists of carrying out an activity, the terms of reference for any consultancy in respect of any such activity shall be satisfactory to the Association following its review thereof and, to that end, the implementation of such an activity and/or any such terms of reference, shall duly comply with the requirements of the Association Safeguard Policies; and (e) the requirements set forth in subparagraphs (a) to (c) of this paragraph have been met with respect to the Emergency Recovery and Reconstruction Subproject, and contracts for the execution thereof have been awarded and signed (and on-site work under such contracts has commenced) after forty-five (45) calendar days (but no more than one hundred and eighty (180) calendar days), have passed since the occurrence of an Eligible Emergency. 6. On an exceptional basis, the forty-five (45) calendar day limit set forth in paragraph 5(e) of this Section, as well as the one hundred and eighty (180) calendar days limit set forth in said paragraph, may, before the relevant limit expires, be extended in writing by the Association for a particular commencement of any Emergency Recovery and Reconstruction Subproject if the nature of the disaster is such as to justify, in the Association’s opinion, delays in the commencement of such Emergency Recovery and Reconstruction Subproject on-site work (such as when disaster conditions, for example non-receding flood waters, persist on-site long after the occurrence of an Eligible Emergency). D. Environmental and Social Safeguards. 1. The Recipient shall ensure that Parts A, B, and D of the Project are carried out in accordance with the Environmental Management Framework (EMF), the Environmental Assessment (EA), the Resettlement Policy Framework (RPF), the Indigenous Peoples Plan (IPP) respectively, including the guidelines, rules and procedures defined in said EMF, EA, RPF and IPP. To this end, the Recipient shall, specifically take the following actions in a manner acceptable to the Association: (a) if an environmental management plan would be required on the basis of the EMF: (i) such environmental management plan shall be prepared in accordance with the requirements of the EMF, disclosed locally and furnished to the Association for approval; and (ii) if applicable, the pertinent Project activities shall be carried out in accordance with such environmental management plan as approved by the Association; and (b) if a resettlement action plan would be required on the basis of the Resettlement Policy Framework: (i) said resettlement action plan shall be prepared in accordance with the requirements of the Resettlement Policy Framework, disclosed locally and furnished to the Association for -12- approval; and (ii) no works in respect of such Project activities shall commence until: (A) all measures required to be taken under said resettlement action plan have been taken in accordance with the terms of said plan and in a manner acceptable to the Association; and (B) the Recipient has furnished to the Association a report in form and substance satisfactory to the Association, on the status of compliance with the requirements of said resettlement action plan. 2. The Recipient shall ensure that all measures required for carrying out the EA, any indigenous peoples plan, any environmental management plan, or any resettlement action plan are taken in a timely manner, acceptable to the Association. 3. Without limitation of the provisions of paragraph 1 of this Section, the Recipient shall include in the Project Reports adequate information on the implementation of the EMF, the EA, the RPF, the IPP, any environmental management plan, and any resettlement action plan, giving details of: (a) measures taken in furtherance of the EMF, the EA, the RPF, the IPP, any environmental management plan, any resettlement action plan, and any indigenous peoples plan; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the EMF, the EA, the RPF, the IPP, any environmental management plan, any resettlement action plan, and any indigenous peoples plan; and (c) remedial measures taken or required to be taken to address such conditions and to ensure the continued efficient and effective implementation of the EMF, the EA, the RPF, the IPP, any environmental management plan, any resettlement action plan, and any indigenous peoples plan. E. Specific Environmental Covenant for Part B of the Project. The Recipient shall ensure that the terms of reference for any consultancy in respect of any Project activity under Part B of the Project shall be satisfactory to the Association following its review thereof and, to that end, such terms of reference shall duly incorporate the requirements of the Association’s Safeguard Policies, as applied to the advice conveyed through such technical assistance. Section II. Project Monitoring, Reporting and Evaluation The Recipient shall furnish to the Association each Project Report not later than forty-five (45) days after the end of each calendar semester, covering the calendar semester. -13- Section III. 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 Credit Expenditures to be Category Allocated Financed (expressed in SDR) (inclusive of Taxes) (1) Goods, works, non-consulting services, consulting 30,062,250 100% services, Training and Operating Costs for Part A of the Project (2) Goods, works, non-consulting services and consulting 0 100% services, Training and Operating Costs for Part B of the Project (3) Emergency Expenditures for Emergency Recovery and Reconstruction 0 100% Subprojects, including Cash Transfers or Grants, under Part C of the Project (4) Goods, non-consulting services and consulting services, Training and 37,750 100% Operating Costs for Part D of the Project TOTAL AMOUNT 30,100,000 -14- 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, except that withdrawals up to an aggregate amount not to exceed SDR6,020,000 may be made for payments made prior to this date but on or after November 7, 2024, for Eligible Expenditures; or (b) under Category (3), for Emergency Expenditures under Part C of the Project, unless and until the Association is satisfied, and has notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said activities: (i) the Recipient has determined that an Eligible Emergency has occurred, has furnished to the Association a request to include said activities in Part C of the Project in order to respond to said Eligible Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has prepared and disclosed all safeguards instruments required for said activities, and the Recipient has implemented any actions which are required to be taken under said instruments, all in accordance with the provisions of Section I.C of this Schedule; (iii) the Recipient’s Coordinating Authority has adequate staff and resources, in accordance with the provisions of Section I.C.2 of this Schedule, for the purposes of said activities; and (iv) the Recipient has adopted the CERC Manual in form, substance and manner acceptable to the Association and the provisions of the CERC Manual remain, or have been updated in accordance with the provisions of Section I.C.1(a) of this Schedule so as to be appropriate for the inclusion and implementation of any given Emergency Recovery and Reconstruction Subproject. (c) for Eligible Expenditures already paid under the Amended and Restated Financing Agreement, the Amended and Restated PPCR Grant Agreement, the Amended and Restated SCF Loan Agreement, the First Additional Financing Agreement or the Second Financing Agreement. 3. The Closing Date is June 30, 2025. -15- SCHEDULE 3 Repayment Schedule Subject to the provisions of Section 2.07 of this Agreement, the Recipient shall repay the principal amount of the Credit in accordance with the table set forth below. Date Payment Due Principal Amount of the Credit repayable (expressed as a percentage)* On each March 15 and September 15: commencing March 15, 2035 to and 1% including September 15, 2044 commencing March 15, 2045 to and 2% including September 15, 2064 * The percentages represent the percentage of the principal amount of the Credit to be repaid, except as the Association may otherwise specify pursuant to Section 3.05 (b) of the General Conditions. -16- APPENDIX Section I. Definitions 1. “Amended and Restated Financing Agreement” means the financing agreement for the Disaster Vulnerability Reduction Project between the Recipient and the Association, dated June 10, 2014, as amended and restated on November 27, 2018, and amended on August 5, 2020, and May 11, 2023 (Credit Number 5495-DM). 2. “Amended and Restated PPCR Grant Agreement” means the grant agreement for the Disaster Vulnerability Reduction Project between the Recipient and the World Bank, dated June 10, 2014, as amended and restated on November 27, 2018, and amended on August 5, 2020, and May 11, 2023 (SCF-PPCR Grant Number TF016955). 3. “Amended and Restated SCF Loan Agreement” means the loan agreement for the Disaster Vulnerability Reduction Project between the Borrower and the World Bank, dated June 10, 2014, as amended and restated on November 27, 2018, and amended on August 5, 2020, and May 11, 2023 (SCF-PPCR Loan Number TF016912). 4. “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. 5. “Association’s Safeguard Policies” means the Association’s operational policies and procedures set forth in the Bank’s Operational manual under OP/BPs 4.01, 4.04, 4.09, 4.10, 4.11, 4.36, and 4.37, as said manual is published under www.WorldBank.org/opmanual 6. “Cash Transfers or Grants” means an amount made out of the proceeds of the Financing to pay an Eligible Beneficiary to finance an Emergency Recovery and Reconstruction Subproject in accordance with the provisions set forth in the corresponding Grant Agreement and the CERC Manual. 7. “Category” means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 8. “Central Services Unit” or “CSU” means the central services unit under the authority of the Ministry of Finance and referred to in Section I.A.2(c) of Schedule 2 to this Agreement or any successor thereto, acceptable to the Association.” -17- 9. “CERC Manual” means the manual dated September 17, 2015 and adopted by the Coordinating Authority referred to in Section I.C.1(a) of Schedule 2 to this Agreement. 10. “Coordinating Authority” means the Recipient’s entity or institution in charge of implementing Part C of the Project. 11. “Displaced Person” means a person who as a result of an involuntary taking of land under Parts A, B or D of the Project, had or would have their: (i) standard of living adversely affected; or (ii) access to, or right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently; or (iii) business, occupation, work or place of residence or habitat adversely affected; and “Displaced Persons” means, collectively, all such Displaced Persons. 12. “Dominica Water and Sewerage Company” means the authority established and operating pursuant to Water and Sewage Act (Act No. 43:40 of 2017 as revised) of the laws of the Recipient, or any successors thereto acceptable to the Association. 13. “Eligible Beneficiary” means low-income persons affected by an Eligible Emergency eligible to receive a Cash Transfer or Grant that meet the criteria set forth in the CERC Manual. 14. “Eligible Emergency” means the imminent or actual occurrence of a natural or man-made crisis or disaster, which, in the opinion of the Association, has the capacity to cause major adverse economic, health and/or social impacts in the Recipient’s population. 15. “Emergency Expenditures” means the eligible expenditures consisting of the approved goods, works, consulting services, non-consulting services, Operating Costs and Training under Emergency Recovery and Reconstruction Subprojects, including Cash Transfers or Grants. 16. “Emergency Recovery and Reconstruction Subproject” means an investment or activity for a productive purpose under Part C of the Project aimed at responding to damage caused by an Eligible Emergency and meeting the criteria set forth Section I.C.5 of Schedule 2 to this Agreement and in the CERC Manual. 17. “Environmental Assessment” or “EA” means the Recipient’s report for the Project dated February 2014, and disclosed in-country on February 27, 2014, and subsequently re-disclosed on March 25, 2014, and in the Association’s InfoShop on February 21, 2014, and subsequently re-disclosed on March 27, 2014, describing the set of avoidance, mitigation, enhancement, monitoring, and institutional measures to be taken under any activity for rehabilitation or -18- construction to avoid, mitigate, offset, or reduce adverse environmental and social impacts to acceptable levels, or to enhance positive impacts, as such EA may be amended with the agreement of the Association. 18. “Environmental Management Framework” or “EMF” means the Recipient’s framework, acceptable to the Association, dated February 2014, and disclosed in-country on February 27, 2014, and subsequently re-disclosed on March 25, 2014, and in the Association’s InfoShop on February 21, 2014, and subsequently re-disclosed on March 27, 2014, setting forth the modalities for environmental screening and procedures/actions for the preparation and implementation of environmental assessments and management plans under Parts A, B and D of the Project, including a generic standardized EMP for minor works, and such term includes all schedules and annexes to the Environmental Management Framework, as such EMF may be amended from time to time with the agreement of the Association. 19. “First Additional Financing Agreement” means the first additional financing agreement for the Project between the Recipient and the Association (IDA Credit No. 6314-DM), dated November 27, 2018, as amended on August 5, 2020, and May 11, 2023. 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. “Grant Agreement” means any of the agreements referred to in Section I.C.4 of Schedule 2 to this Agreement, acceptable to the Association. 22. “Indigenous Peoples” means a social group of people with a distinct social and cultural identity that makes them vulnerable to being disadvantaged in the development process, including the presence in varying degrees of the following characteristics: (i) a close attachment to ancestral territories and to the natural resources in these areas; (ii) self-identification and identification by others as members of a distinct cultural group; (iii) an indigenous language, often different from the national language; (iv) presence of customary social and political institutions; and (v) primarily subsistence-oriented production. 23. “Indigenous Peoples Plan” or “IPP” means the Recipient’s plan, acceptable to the Association, dated February 2014 and disclosed in-country on February 25, 2014, and subsequently re-disclosed on March 26, 2014, and in the Association’s InfoShop on February 25, 2014, and subsequently re-disclosed on March 27, 2014, setting forth measures for addressing the needs of the Indigenous Peoples living in the Kalinago Council (formerly Carib Council) within the territory of the Recipient, and providing guidelines and procedures for consultation with, and -19- informed participation of Indigenous Peoples residing or cultivating lands in areas under the Project, as such IPP may be amended from time to time with the agreement of the Association. 24. “Line Ministries and Agencies” mean the Recipient’s Ministry of Environment, Rural Modernization, and Kalinago Upliftment, Dominica Water and Sewerage Company, Office of Disaster Management, and other relevant ministries and agencies that may participate in the implementation of the Project. 25. “Ministry of Environment, Rural Modernization, and Kalinago Upliftment” means the Recipient ministry in charge of environment, or any other successor thereto, acceptable to the Association. 26. “Ministry of Finance” means the Recipient’s ministry in charge of finance, or any successor thereto acceptable to the Association. 27. “Ministry of Public Works, Public Utilities and Digital Economy” the Recipient’s ministry in charge of public works, or any successor thereto acceptable to the Association. 28. “Office of Disaster Management” means the Recipient’s office for disaster management within the Ministry of National Security, and Legal Affairs. 29. “Operating Costs” means the incremental expenses incurred on account of Project management as approved by the Association, including office space rental for the PCU and CSU, office equipment and supplies, vehicle operation and maintenance, communication and insurance costs, office administration costs, utilities, travel and per diem, excluding the salaries of the Recipient’s civil service. 30. “Original Project” means the Project described in Schedule 1 to the Amended and Restated Financing Agreement, the Amended and Restated SCF Loan Agreement, the Amended and Restated PPCR Grant Agreement, the First Additional Financing Agreement, the Second Financing Agreement and this Agreement. 31. “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. 32. “Project Coordination Unit” or “PCU” means the coordination unit within the Recipient’s Ministry of Public Works, Public Utilities and Digital Economy and referred to in Section I.A.2(a) of Schedule 2 to this Agreement or any successor thereto, acceptable to the Association.” -20- 33. “Project Operations Manual” means the Recipient’s manual dated April 2017 and updated on February 18, 2019, referred to in Section I.B.1 of Schedule 2 to this Agreement, as said manual may be amended from time to time with the agreement of the Association. 34. “Project Steering Committee” means the committee referred to in Section I.A.1(a) of Schedule 2 to this Agreement. 35. “Resettlement Policy Framework” or “RPF” means the Recipient’s framework, acceptable to the Association, dated February 2014, and disclosed in-country on March 5, 2014, and subsequently re-disclosed on March 25, 2014, and in the Association’s InfoShop on February 26, 2014, and subsequently re-disclosed on March 27, 2014, setting forth the modalities for resettlement and compensation of Displaced Persons, including guidelines for the preparation of the resettlement plans, all under Parts A, B and D of the Project, as the same may be amended from time to time with the agreement of the Association. 36. “Second Financing Agreement” means the second additional financing agreement for the Project between the Recipient and the Association (IDA Credit No. 6717-DM), dated August 5, 2020, as amended on May 11, 2023. 37. “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. 38. “Training” means the cost associated with the training and workshops approved by the Association, for reasonable expenditures (other than expenditures for consulting services), including: (i) travel, room, board and per diem expenditures incurred by trainers and trainees in connection with their training; (ii) course fees; (iii) training facility rentals; and (iv) training material preparation, acquisition, reproduction and distribution expenses. Section II. Modifications to the General Conditions The General Conditions are hereby modified as follows: 1. Section 3.04 (Interest Charge) is deleted in its 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 be to such renumbered Sections. 2. The following definitions are inserted in the Appendix in alphabetical order as paragraphs [#]-[#], and the remaining definitions and paragraphs (as the case may be) renumbered accordingly: -21- “[#]. “CRDC” or the “Climate Resilient Debt Clause” means a mechanism established in the Financing Agreement allowing the eligible Recipient to defer certain payments of principal and/or interest (and other Credit charges) during a Deferral Period upon occurrence of an Eligible Event.” “[#]. “CRDC Terms and Conditions” means the terms and conditions as issued and revised from time to time, by the Bank and the Association, and in effect at the time of the Payment Deferral request.” “[#]. “Deferral Period” means the period of up to 24 (twenty-four) months, during which the Payment Deferral is activated pursuant to the provisions of the Financing Agreement.” “[#]. “Eligible Event” has the meaning given to such term in the CRDC Terms and Conditions.” “[#]. “Interest Payment Deferral” means a one-time temporary deferral of payment of Interest and other applicable Credit charges during a Deferral Period, requested by the Recipient and activated by the Association pursuant to the provisions of the Financing Agreement.” “[#]. “Payment Deferral” means a Principal Payment Deferral and/or Interest Payment Deferral, requested by the Recipient and activated by the Association pursuant to the provisions of the Financing Agreement.” “[#]. “Principal Payment Deferral” means the one-time temporary deferral of repayments of the Withdrawn Credit Balance during a Deferral Period, requested by the Recipient and activated by the Association pursuant to the provisions of the Financing Agreement.” 3. In paragraphs originally numbered 4, 66 and 81 of the Appendix, the terms “Amortization Schedule”, “Interest Change” and “Payment Date”, respectively are modified to read as follows: “4. “Amortization Schedule” means the schedule for repayment of principal amount specified in the Financing Agreement for purposes of Sections 3.05 and 3.10.” “66. “Interest Charge” means the interest charge for the purpose of Section 3.08.” “81. “Payment Date” means each date specified in the Financing Agreement occurring on or after the date of the Financing Agreement on which Service Charges, Interest Charges, Commitment Charges, and other Credit charges and fees (other than the Front-end Fee) are payable, as applicable.”