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CONFORMED COPY 
 
GRANT NUMBER H485-BI 
 
Financing Agreement 
 
(Public Works and Urban Management Project) 
 
between 
 
REPUBLIC OF BURUNDI 
 
and 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
Dated July 7, 2009 
 
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GRANT NUMBER H485-BI 
FINANCING AGREEMENT 
AGREEMENT dated July 7, 2009 entered into between the REPUBLIC OF 
BURUNDI (
“Recipient”) and the INTERNATIONAL DEVELOPMENT 
ASSOCIATION (“Association”).  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) 
constitute an integral 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, on the terms and conditions 
set forth or referred to in this Agreement, a grant in an amount equivalent to 
thirty million one hundred thousand Special Drawing Rights (30,100,000) 
(variously, 
“Grant”, 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 IV of Schedule 2 to this Agreement. 
2.03. 
The Maximum Commitment Charge Rate payable by the Recipient on the Un-
withdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) per 
annum. 
2.04. 
The Payment Dates are April 15 and October 15 in each year. 
2.05. 
The Payment Currency is the Dollar. 
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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 through the Ministry of Public 
Works and Equipment in accordance with the provisions of Article IV of the 
General Conditions. 
3.02. 
Without limitation upon the provisions of Section 3.01 of this Agreement, and 
except as the Recipient and the Association shall otherwise agree, the Recipient 
shall ensure that the Project is carried out in accordance with the provisions of 
Schedule 2 to this Agreement. 
ARTICLE IV — EFFECTIVENESS; TERMINATION 
4.01. 
The Additional Conditions of Effectiveness consist of the following: 
(a) 
The Umbrella Delegated Contract Management Agreement, in form and 
substance satisfactory to the Association, has been executed on behalf of 
the Recipient and ABUTIP. 
(b) 
 
The Recipient has appointed an internal financial auditor, with 
qualifications, experience, and terms of reference satisfactory to the 
Association, in accordance with the provisions of Section III of 
Schedule 2 to this Agreement, for purposes of Project implementation 
and monitoring and evaluation. 
4.02. 
The Effectiveness Deadline is the date ninety (90) days after the date of this 
Agreement. 
4.03. 
For purposes of Section 8.05 (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 (20) years after the date of this 
Agreement. 
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ARTICLE V 
—
REPRESENTATIVE; ADDRESSES
 
5.01. 
The Recipient’s Representative is its minister at the time responsible for finance. 
5.02. 
The Recipient’s Address is: 
Ministry of Finance 
P. O. Box 1830 
Bujumbura 
Burundi 
Telex: 
  Facsimile: 
5135 
  257-22-22-38-27 
MINIFINBDI 
5.03. 
The Association’s Address is: 
International Development Association 
1818 H Street, N.W. 
Washington, D.C. 20433 
 
United States of America 
 Cable: 
  Telex: 
  Facsimile: 
INDEVAS 
 248423 
(MCI) 
 1-202-477-6391 
 Washington, 
D.C. 
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AGREED at Bujumbura, Burundi, as of the day and year first above written. 
 
REPUBLIC OF BURUNDI 
 
By /s/ Clotilde Nizigama 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
By /s/
 
Mercy Miyang Tembon 
Authorized Representative 
 
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SCHEDULE 1 
Project Description
 
The objective of the Project is to increase access to basic socioeconomic services 
and short-term employment opportunities in target areas. 
The Project consists of the following parts: 
1. Infrastructure
Rehabilitation and expansion of the following infrastructure through the carrying 
out of Subprojects: 
(a) 
Communal and community demand-driven infrastructure, such as roads, 
markets, water supply and sanitation systems, communal buildings, 
schools, health and social centers, erosion control and environmental 
systems, and quarries
,
in the Recipient’s Communes. 
(b) 
City-level trunk infrastructure, such as roads, central markets, bus 
stations, sanitation systems, and city halls, in Bujumbura, Gitega, and 
Ngozi cities. 
2. 
Municipal and Urban Management
Capacity building of communal staff, principally in Bujumbura, Gitega, and 
Ngozi, in the following areas through the acquisition of goods and the provision 
of consultants’ services and Training: 
(a) 
Infrastructure and services programming, development, and 
maintenance, including development of programming tools such as city-
level urban and financial audits and performance-based contract 
management, acquisition of digital maps, development of a strategic 
sanitation plan and a priority investment program for Bujumbura, 
development and monitoring of a maintenance program, provision of 
training in procurement, project management, and environmental and 
disaster management, carrying out of infrastructure and facilities 
management, and provision of information technology and office 
equipment support. 
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(b) 
Taxpayer identification and management of revenue-generating facilities 
for purposes of communal resource mobilization, including updating of 
the local fiscal base and development of management models for 
revenue-generating facilities, such as markets and bus stations targeted 
under Part 1 of the Project. 
(c) 
Municipal administrative and financial management, including 
preparation of local budgets and charts of accounts and budget and 
accounting procedures manuals, production of administrative and 
management accounts and financial statements, provision of training in 
budget preparation, execution, monitoring, and control, evaluation of 
existing accounting and financial management software, updating of 
administrative procedures manuals, computerization of registries, and 
provision of information technology and office equipment support. 
3. 
Institutional Strengthening and Monitoring and Evaluation
Carrying out of the following activities through the acquisition of goods, the 
provision of consultants’ services and Training, and the financing of Operating 
Costs: 
(a) 
Capacity building of institutional partners in communal development, 
including development of a knowledge database of local financial and 
fiscal data, and a preparation study for local tax reform, for the 
Directorate of Communal Finance, development of programming tools 
complementing Communal Development Plans for the National Fund for 
Communal Investment, facilitation of exchanges between the Burundian 
Association of Local Representatives and other similar entities, and 
development of improved urban planning tools for, and provision of 
training in the area to, the Directorate of Urban Planning. 
(b) 
Capacity building of local private actors in the construction sector in 
project management, technical standards, quality control, environmental 
and social management, and on-site HIV / AIDS prevention. 
(c) 
Project, including any Subproject, implementation, management, and 
monitoring and evaluation, including implementation and monitoring and 
evaluation of environmental and social safeguards measures, and 
carrying out of audits, information, education, and communication 
activities, and capacity building of Technical Secretariat and ABUTIP 
staff.
 
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SCHEDULE 2
 
Project Execution 
Section I. 
Implementation Arrangements
A. Institutional 
Arrangements
 
1. 
The Ministry of Public Works and Equipment shall be responsible for Project 
implementation and management in accordance with the following arrangements. 
Technical Committee
2. 
The Recipient shall maintain, throughout Project implementation, the Technical 
Committee, with a composition, an institutional framework, functions and 
resources satisfactory to the Association for purposes of Project implementation. 
3. 
The Technical Committee shall be responsible for the provision of overall 
strategic orientation to the Project and ensuring the equitable distribution of 
Subprojects across the territory of the Recipient.  As such, it shall ensure Project 
implementation and feasibility in accordance with the annual work plans and 
budgets referred to in Section V.B of this Schedule and examine the Project 
Reports referred to in Section II.A.1 (a) of this Schedule. 
Technical Secretariat
4. 
The Recipient shall maintain, throughout Project implementation, the Technical 
Secretariat, with an institutional framework, functions, and resources satisfactory 
to the Association for purposes of Project implementation, including staff with 
qualifications, experience and terms of reference satisfactory to the Association. 
5. 
Without prejudice to the provisions of paragraph 4 of this Section, the Technical 
Secretariat shall be responsible for day-to-day Project, including Subproject, 
implementation, management, and monitoring and evaluation, including financial 
and administrative management, and implementation of the Umbrella Delegated 
Contract Management Agreement with ABUTIP. 
 
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B. 
Umbrella Delegated Contract Management Agreement
 
1. 
To facilitate the carrying out of Part 1 of the Project, the Recipient, represented 
by the Ministry of Public Works and Equipment, shall enter into an agreement 
with ABUTIP
 (“Umbrella Delegated Contract Management Agreement”), under 
terms and conditions approved by the Association, which shall include the 
following: 
a) 
the obligation of ABUTIP to carry out procurement, quality control, and 
implementation of applicable safeguards instruments under Part 1 of the 
Project; 
b) 
the obligation of ABUTIP to ensure that Part 1 of the Project is carried 
out in accordance with the provisions of the Anti-Corruption Guidelines; 
c) 
the obligation of ABUTIP to ensure that Part 1 of the Project is 
implemented in accordance with the provisions of the Project 
Implementation Manual, and without any right or authority, except as the 
Association shall otherwise agree, to assign, amend, abrogate, or waive, 
or permit to be assigned, amended, abrogated, or waived, the 
aforementioned, or any provision thereof; 
d) 
the obligation of ABUTIP to ensure that Part 1 of the Project is carried 
out in accordance with the provisions of the Environmental and Social 
Management Framework, the Resettlement Policy Framework, any 
Environmental Management Plans, and any Resettlement Action Plans, 
and without any right or authority, except as the Association shall 
otherwise agree, to assign, amend, abrogate, or waive, or permit to be 
assigned, amended, abrogated, or waived, the aforementioned, or any 
provision thereof; 
e) 
the obligation of ABUTIP to ensure that procurement of the goods, 
works, and services required for Part 1 of the Project is carried out in 
accordance with the provisions of Section III of this Schedule, as said 
provisions may be further elaborated in the Procurement Plan; 
f) 
the obligation of ABUTIP to: (A) enter into a Subproject Delegated 
Contract Management Agreement with each Beneficiary; and (B) carry 
out procurement, quality control, and implementation of applicable 
safeguards instruments under the respective Subproject or package of 
Subprojects in accordance with the provisions of said Agreement; and 
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g) 
the payment of appropriate fees to ABUTIP for its services, both under 
the Umbrella Delegated Contract Management Agreement and the 
Subproject Delegated Contract Management Agreements, in accordance 
with the provisions of the Project Implementation Manual. 
2. 
The Recipient shall exercise its rights under the Umbrella Delegated Contract 
Management Agreement in such manner as to protect the interests of the 
Recipient and the Association and to accomplish the purposes of the Financing, 
and, except as the Association shall otherwise agree, the Recipient shall not 
assign, amend, abrogate, or waive, or permit to be assigned, amended, abrogated, 
or waived, the aforementioned, or any provision thereof.
 
C. Anti-Corruption 
 
The Recipient shall ensure that the Project is carried out in accordance with the 
provisions of the Anti-Corruption Guidelines. 
D. Subprojects
 
1. General
(a) 
Without prejudice to the provisions of Section I.A.3 and 5 of this 
Schedule, the Technical Secretariat shall review and appraise Subproject 
proposals, prior to having them submitted for approval by the Technical 
Committee, and thereafter monitor and evaluate Subprojects on behalf of 
the Recipient in accordance with the provisions of this Part D and the 
Project Implementation Manual. 
(b) 
The Technical Committee shall approve Subprojects following their 
approval in the first instance by the Technical Secretariat. 
(c) 
The Technical Secretariat shall ensure that Subprojects are carried out in 
accordance with the provisions of the Umbrella Delegated Contract 
Management Agreement. 
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2. 
Subproject Grant Eligibility and Subproject Implementation Guidelines and 
Procedures 
No proposed Subproject shall be eligible for financing under the Project unless, 
on the basis of an appraisal conducted in accordance with this Part D and the 
Project Implementation Manual, the proposed Subproject is deemed to satisfy the 
eligibility criteria specified below and in further detail in the Project 
Implementation Manual, which shall include the following: 
(a) 
the proposed Subproject has been initiated by a Commune; 
(b) 
the proposed activities satisfy the requirements of Part 1 of the Project as 
described in further detail in the Project Implementation Manual; 
(c) 
the cost of the proposed Subproject is at least Burundian Francs 
120 million, with the exception of Subprojects under Part 1 (a) of the 
Project relating to erosion control and environmental systems, the cost of 
which may be lower; 
(d) 
the proposed Subproject is consistent with the respective Communal 
Development Plan, and, in the case of a Subproject relating to a school or 
health center, the national sanitation or school program, as the case may 
be; 
(e) 
the proposed Subproject complies with the: (i) Environmental and Social 
Management Framework; (ii) Resettlement Policy Framework; (iii) any 
Environmental Management Plan; and (iv) any Resettlement Action 
Plan; 
(f) 
the proposed Subproject is consistent with the relevant technical, 
engineering, and environmental standards and national sector policies; 
(g) the 
Beneficiary
’s contribution to the projected Subproject costs in cash or 
in kind is in accordance with the provisions of the Project 
Implementation Manual; 
(h) 
the Beneficiary has put in place all necessary arrangements, including 
financial and human resources, for the management of the proposed 
Subproject and a plan for its maintenance following completion; and 
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(i) 
in the case of a Beneficiary who received subproject financing under the 
Public Works and Employment Project, it shall have implemented said 
subproject satisfactorily and in accordance with the requirements of the 
subproject financing. 
3. 
Terms and Conditions of Subproject Grant Agreements
(a) 
A Subproject shall be carried out pursuant to a Subproject Grant 
Agreement, to be concluded between the Technical Secretariat on behalf 
of the Recipient, ABUTIP, and the respective Beneficiary, under terms 
and conditions, satisfactory to the Association, described in further detail 
in the Project Implementation Manual, which shall include the following:
 
(i) 
a description of the Subproject, its budget, and applicable 
performance indicators; 
(ii) 
the provision of the Subproject Grant on a grant basis; 
(iii) 
the obligation of ABUTIP and the Beneficiary to enter into a 
Subproject Delegated Contract Management Agreement with 
ABUTIP; and of ABUTIP to carry out the Subproject in 
accordance with the provisions of said Agreement; 
(iv) 
the obligation of the Beneficiary to contribute part of the 
projected Subproject costs in cash or in kind in accordance with 
the provisions of the Project Implementation Manual and, in the 
case of a cash contribution, to make available, prior to execution 
of the Subproject Delegated Contract Management Agreement, 
the full cash contribution or an initial down-payment, with any 
balance to be provided in one (1) or more subsequent 
installments, as the case may be, in accordance with the 
provisions of said Agreement; 
(v) 
the obligation of ABUTIP to: (A) carry out the Subproject with 
due diligence and efficiency and in accordance with sound 
technical, financial, administrative, and environmental practices; 
and (B) at the request of the Association or the Recipient, have 
such records audited by independent auditors acceptable to the 
Association, in accordance with consistently applied auditing 
standards acceptable to the Association, and promptly furnish the 
records as so audited to the Recipient and the Association; 
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(vi) 
the obligation of the Beneficiary to: (A) ensure that the resources 
required for the Subproject are provided promptly as needed; and 
(B) maintain adequate records to reflect, in accordance with 
sound accounting practices, the resources, operations, and 
expenditures relating to the Subproject; 
(vii) 
the obligation of ABUTIP to carry out the Subproject in 
accordance with the provisions of the Anti-Corruption 
Guidelines; 
(viii) 
the obligation of ABUTIP to carry out the Subproject in 
accordance with the provisions of the Project Implementation 
Manual; 
(ix) 
the obligation of ABUTIP to carry out the Subproject in 
accordance with the provisions of (A) Environmental and Social 
Management Framework; (B) Resettlement Policy Framework; 
(C) any Environmental Management Plan; and (D) any 
Resettlement Action Plan; 
(x) 
the obligation of ABUTIP to ensure that the goods, works, and 
consultants’ services to be financed from the proceeds of the 
Subproject Grant shall be procured in accordance with 
procedures ensuring efficiency and economy and in accordance 
with the provisions of Section III of this Schedule, and shall be 
used exclusively in the carrying out of the Subproject; and 
(xi) 
the right of the Technical Secretariat, on behalf of the Recipient, 
and of the Recipient in its own right, to: (A) inspect by itself, or 
jointly with the Association, if the Association shall so request, 
the goods, works, sites, plants, and construction included in the 
Subproject, the operations thereof, and any relevant records and 
documents; (B) obtain all information as it, or the Association, 
shall reasonably request regarding the administration, operation, 
and financial condition of Subprojects; and (C) suspend or 
terminate the right of ABUTIP to use the proceeds of the 
Subproject Grant, or obtain a refund of all or any part of the 
amount of the Subproject Grant then withdrawn, as the case may 
be, upon failure by ABUTIP to perform any of its obligations 
under the Subproject Grant Agreement; and 
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(xii) 
the obligation of the Beneficiary to monitor Subproject 
implementation and operationalize it following completion. 
(b) 
The Recipient, or the Technical Secretariat, as the case may be, shall 
exercise its rights under the Subproject Grant Agreement in such manner 
as to protect its interests and the interests of the Association and to 
accomplish the purposes of the Subproject Grant, and, except as the 
Association shall otherwise agree, neither the Recipient nor the 
Technical Secretariat shall assign, amend, abrogate, or waive, or permit 
to be assigned, amended, abrogated, or waived, the aforementioned, or 
any provision thereof. 
E.  
Manual 
1. 
The Recipient shall: (i) ensure that the Project, including any Subprojects, is 
carried out in accordance with the Project Implementation Manual; and 
(ii) except as the Association shall otherwise agree, not assign, amend, abrogate, 
or waive, or permit to be assigned, amended, abrogated, or waived, the 
aforementioned, or any provision thereof. 
2. 
In the event of any conflict between the provisions of the Project Implementation 
Manual and those of this Agreement, the latter shall prevail. 
F. Safeguards
 
1. 
The Recipient shall ensure that the Project, including any Subprojects, shall be 
carried out in accordance with the provisions of the Environmental and Social 
Management Framework, Resettlement Policy Framework, any Environmental 
Management Plans, and any Resettlement Action Plans, and, except as the 
Association shall otherwise agree, the Recipient shall not assign, amend, 
abrogate, or waive, or permit to be assigned, amended, abrogated, or waived, the 
aforementioned, or any provision thereof. 
2. 
Wherever required in terms of the Environmental and Social Management 
Framework or Resettlement Policy Framework, the Recipient shall, for the 
purposes of any Subproject, and prior to implementation thereof, proceed to have 
an Environmental Management Plan or Resettlement Action Plan, as the case 
may be, 
(a) 
prepared in form and substance satisfactory to the Association, 
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(b) 
except as otherwise agreed with the Association, submitted to the 
Association for review and approval, and 
(c) 
thereafter adopted, and locally disclosed. 
3. 
In the event of any conflict between the provisions of the Environmental  
and Social Management Framework, the Resettlement Policy Framework, any 
Environmental Management Plans, or any Resettlement Action Plans, and those 
of this Agreement, the latter shall prevail.  
4. 
Without limitation upon its other reporting obligations under Section II.A.1 (a) of 
this Schedule, the Recipient shall take all measures necessary on its part to 
regularly collect, compile, and submit to the Association, on a quarterly basis, 
reports on the status of compliance with the Environmental and Social 
Management Framework and Resettlement Policy Framework, and 
Environmental Management Plans and Resettlement Action Plans, if any, giving 
details of: 
 
(a) 
measures taken in furtherance of such Environmental and Social 
Management Framework and Resettlement Policy Framework, and 
Environmental Management Plans and Resettlement Action Plans, if 
any; 
 
(b) 
conditions, if any, which interfere or threaten to interfere with the 
smooth implementation of such Environmental and Social Management 
Framework and Resettlement Policy Framework, and Environmental 
Management Plans and Resettlement Action Plans, if any; and 
 
(c) 
remedial measures taken or required to be taken to address such 
conditions. 
 
5. 
The Technical Secretariat shall be responsible for the implementation and 
monitoring and evaluation of said Frameworks and Plans. 
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Section II. 
Project Monitoring, Reporting and Evaluation 
A. Project 
Reports 
1. 
(a) 
The Recipient shall monitor and evaluate the progress of the Project and 
prepare Project Reports in accordance with the provisions of 
Section 4.08 of the General Conditions and on the basis of the indicators 
set forth below in sub-paragraph (b) of this paragraph. Each Project 
Report shall cover the period of one (1) calendar quarter, and shall be 
furnished to the Association not later than 45 days after the end of the 
period covered by such report. 
(b) 
The performance indicators referred to above in sub-paragraph (a) 
consist of the following: 
No. Indicator 
Project Objective 
1. 
Percentage of population with access to an all-season road 
2. 
Percentage of population with access to improved market facilities 
3. 
Number of persons with access to improved school and health facilities 
4. 
Number of person-days of short-term employment created through public 
works
 
B. 
Financial Management, Financial Reports and Audits 
1. 
The Recipient shall maintain or cause to be maintained a financial management 
system in accordance with the provisions of Section 4.09 of the General 
Conditions. 
2. 
Without limitation on the provisions of Part A of this Section, the Recipient shall 
prepare and furnish to the Association as part of the Project Report, interim un-
audited financial reports for the Project covering the quarter, in form and 
substance satisfactory to the Association. 
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3. 
The Recipient shall have its Financial Statements audited in accordance with the 
provisions of Section 4.09 (b) of the General Conditions.  Each audit of the 
Financial Statements shall cover the period of one (1) fiscal year of the Recipient.  
The audited Financial Statements for each such period shall be furnished to the 
Association not later than six (6) months after the end of such period. 
Section III. 
Procurement
A. General
 
1. 
Goods and Works.
 
All goods and works required for the Project and to be 
financed out of the proceeds of the Financing shall be procured in accordance 
with the requirements set forth or referred to in Section I of the Procurement 
Guidelines, and with the provisions of this Section. 
2. 
Consultants’ Services.
 
All consultants’ services required for the Project and to 
be financed out of the proceeds of the Financing shall be procured in accordance 
with the requirements set forth or referred to in Sections I and IV of the 
Consultant Guidelines, and with the provisions of this Section. 
3. Definitions.
 
The capitalized terms used below in this Section to describe 
particular procurement methods or methods of review by the Association of 
particular contracts, refer to the corresponding method described in the 
Procurement Guidelines, or Consultant Guidelines, as the case may be. 
B. 
Particular Methods of Procurement of Goods and Works 
 
1. 
International Competitive Bidding.  
Except as otherwise provided in 
paragraph 2 below, goods and works shall be procured under contracts awarded 
on the basis of International Competitive Bidding. 
2. 
Other Methods of Procurement of Goods and Works.  
The following table 
specifies the methods of procurement, other than International Competitive 
Bidding, which may be used for goods and works.  The Procurement Plan shall 
specify the circumstances under which such methods may be used: 
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Procurement Method
 
(a) National Competitive Bidding 
(b) Shopping 
(c) Direct Contracting 
C. 
Particular Methods of Procurement of Consultants’ Services 
1. 
Quality- and Cost-based Selection.
 
Except as otherwise provided in 
paragraph 2 below, c
onsultants’ services shall be procured under contracts 
awarded on the basis of Quality and Cost-based Selection.
 
2. 
Other Methods of Procurement of Consultants’ Services.
 
The following table 
specifies methods of procurement, other than Quality- and Cost-based Selection, 
which may be used for consultants’ services.  The Procurement Plan shall specify 
the circumstances under which such methods may be used. 
Procurement Method
 
(a) Least Cost Selection 
(b) Selection Based on Consultants’ Qualifications 
(c) Single Source Selection 
(d) Selection of Individual Consultants 
D. 
Review by the Association of Procurement Decisions 
 
The Procurement Plan shall set forth those contracts which shall be subject to the 
Association’s Prior Review.  All other contracts shall be subject to Post Review 
by the Association.
 
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Section IV. 
Withdrawal of the Proceeds of the Financing
A. General 
1. 
The Recipient may withdraw the proceeds of the Financing in accordance with 
the provisions of Article II of the General Conditions, this Section, and such 
additional instructions as the Association shall specify by notice to the Recipient 
(including the “World Bank Disbursement Guidelines for Projects” dated 
May 2006, as revised from time to time by the Association and as made 
applicable to this Agreement pursuant to such instructions), to finance Eligible 
Expenditures as set forth in the table in paragraph 2 below. 
2. 
The following table specifies the categories of Eligible Expenditures that may be 
financed out of the proceeds of the Financing (“Category”), the allocations of the 
amounts of the Financing to each Category, and the percentage of expenditures to 
be financed for Eligible Expenditures in each Category: 
Category 
Amount of the 
Financing Allocated 
(expressed in SDR) 
Percentage of 
Expenditures to be 
Financed 
(exclusive of Taxes) 
(1) Goods, works, non-
consulting services, 
consultants’ services 
(including audits), Training, 
and Operating Costs under 
the Project (Parts 2, and 3 
of the Project) 
3,500,000 100 
(2) Subprojects (Part 1 of the 
Project) 
22,100,000 
100% of amounts 
disbursed 
(3) Refund of Project 
Preparation Advance 
400,000 
Amount payable pursuant 
to Section 2.07 of the 
General Conditions 
(4) Unallocated 
4,100,000 
 
TOTAL AMOUNT 
30,100,000  
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B. 
Withdrawal Conditions; Withdrawal Period 
1.
 
Notwithstanding the provisions of Part A of this Section, no withdrawal shall be 
made for payments made prior to the date of this Agreement. 
2.
 
The Closing Date is December 31, 2014. 
Section V. 
Other Undertakings
A. Financial 
Auditors
 
The Recipient shall, no later than three (3) months after the Effective Date, 
appoint, in accordance with the provisions of Section III of this Schedule, 
external financial auditors, with qualifications, experience, and terms of reference 
satisfactory to the Association, for purposes of the audit referred to in 
Section II.B.3 of this Schedule. 
B. 
Annual Work Plans and Budgets 
The Recipient shall: 
(a) 
furnish to the Association for approval as soon as available, but in any 
case not later than November 30
 
of each year, the annual work plan and 
budget for the Project for each subsequent year of Project 
implementation, of such scope and detail as the Association shall have 
reasonably requested, except for the annual work plan and budget for the 
Project for the first year of Project implementation, which shall be 
furnished no later than one (1) month after the Effective Date; and 
(b) 
thereafter ensure that the Project is carried out in accordance with said 
plans and budgets. 
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C. Semi-Annual 
Reviews 
The Recipient shall review with the Association, no later than one (1) month after 
the transmittal to the Association of every second Project Report referred to in 
Section II.A.1 (a) of this Schedule, or such later date as the Association shall 
request, said Project Report and the preceding one, and, thereafter, take all 
measures required to ensure the efficient completion of the Project and the 
achievement of the objective thereof, based on the conclusions and 
recommendations of said Reports
 and the Association’s views on the matter. 
D.  
Midterm Review 
The Recipient shall: 
(a) 
carry out jointly with the Association, no later than 30 months after the 
Effective Date, a midterm review to assess the status of Project 
implementation, as measured against the performance indicators referred 
to in Section II.A.1 (a) of Schedule 2 to this Agreement.  Such review 
shall include an assessment of the following: (i) overall progress in 
Project implementation; (ii) results of monitoring and evaluation 
activities; (iii) annual work plans and budgets; (iv) 
progress on 
procurement and disbursement; (v) progress on the implementation of 
safeguards instruments; (vi) Project implementation arrangements; and 
(vii) the need to make any adjustments to the Project and reallocate funds 
to improve performance; 
(b) 
prepare and furnish to the Association, at least three (3) months before 
such review, a report, in scope and detail satisfactory to the Association, 
needed to undertake the review, integrating the results of the monitoring 
and evaluation activities performed pursuant to paragraph (a) of this 
Section on the progress achieved in the carrying out of the Project during 
the period preceding the date of said report and setting out the measures 
recommended to ensure the efficient carrying out of the Project and the 
achievement of the objective thereof during the period following such 
date; and 
(c) 
 
review, jointly with the Association, the report referred to in 
paragraph (b) of this Section and thereafter take all measures required to 
ensure the efficient completion of the Project and the achievement of the 
objective thereof, based on the conclusions and recommendations of the 
said report and the Association’s views on the matter. 
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APPENDIX 
Section I. 
Definitions 
1. 
“Anti-Corruption Guidelines” means the “Guidelines on Preventing and 
Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA 
Credits and Grants”, dated October 15, 2006. 
2. 
“Beneficiary” means a Commune (as hereinafter defined) to which or for whose 
benefit a Subproject Grant (as hereinafter defined) is made or proposed to be 
made for the carrying out of a Subproject (as hereinafter defined). 
3. 
Burundian Agency for Implementation of Public Interest Works (
Agence 
Burundaise pour la Réalisation des Travaux d’Intérêt Public
,
ABUTIP) means 
the Recipient
’s enterprise established and operating pursuant to its Ministerial 
Ordinance No. 530/897 of June 27, 2003. 
4. 
“Burundian Association of Local Representatives” (
Association Burundaise des 
Élus Locaux
)
means the entity, established and operating pursuant to the 
Recipient’s Law No. 01/11 of April 18, 1992, the objective of which is to 
safeguard the functioning of local government and strengthen communal 
administration and good local governance. 
5. “Burundian 
Franc” 
(
Franc Burundais
)
means the currency of the Recipient. 
6. 
“Communal Development Plan” (
Plan Communal de 
Développement 
Communautaire
)
means the plan prepared by a Commune (as hereinafter 
defined) 
pursuant to the Recipient’s Law No. 1/016 of April 20, 2005 and 
outlining its priority development needs for a given period of five (5) years. 
7. “Commune” 
(
Commune
)
means an administrative subdivision of the 
 
Recipient, established pursuant to its Law No. 1/16 of April 20,
 
2005. 
8. 
“Consultant Guidelines” means the “Guidelines: Selection and Employment of 
Consultants by World Bank Borrowers” published by the Bank in May 2004 and 
revised in October 2006. 
9. 
“Directorate of Communal Finance” (
Direction des Finances Communales
)
means the Recipient’s entity, under the supervisory authority of the Ministry for 
Communal Development (as hereinafter defined), responsible for communal 
finance. 
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10. 
“Directorate of Urban Planning” (
Direction de l’Urbanisme
)
means the 
Recipient
’s entity, under the supervisory authority of the Ministry of Water, 
Environment, Land Planning, and Urban Planning (as hereinafter defined), 
responsible for urban planning. 
11. 
“Environmental and Social Management Framework” (
Cadre de Gestion 
Environnementale et Sociale
)
means the Recipient’s framework, dated 
March 22, 2009, agreed with the Association and setting out mitigation, 
enhancement, monitoring, and institutional measures, including capacity building 
through training, that have been identified by the Recipient to eliminate any 
adverse environmental and social impacts of Project activities, offset them, or 
reduce them to acceptable levels, or enhance positive impacts, including in 
relation to medical waste management in the case of health centers targeted under 
the Project, as the same may be modified from time to time with the prior written 
agreement of the Association, and such term includes any schedules to said 
Framework. 
12. 
“Environmental Management Plan” (
Plan de Gestion Environnementale
)
means 
the Recipient’s plan, to be agreed with the Association and setting out mitigation, 
enhancement, monitoring, and institutional measures, including capacity building 
through training, that have been identified by the Recipient to eliminate any 
adverse environmental and social impacts of activities to be implemented under a 
Subproject, offset them, or reduce them to acceptable levels, or enhance positive 
impacts, including in relation to medical waste management in the case of health 
centers targeted under a Subproject, in accordance with the provisions of the 
Environmental and Social Management Framework, as the same may be 
modified from time to time with the prior written agreement of the Association, 
and such term includes any schedules or annexes to said Plan. 
13. 
“General Conditions” means the “International Development Association 
General Conditions for Credits and Grants”, dated July 1, 2005 (as amended 
through October 15, 2006). 
14. 
“Ministry of Communal Development” (
Ministère du Développement 
Communal
)
means the Recipient’s ministry at the time responsible for communal 
development. 
15. 
“Ministry of Public Works and Equipment” (
Ministère des Travaux Publics et de 
l’Équipement
)
means the Recipient’s ministry at the time responsible for public 
works and equipment. 
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16. 
“Ministry of Water, Environment, Land Planning, and Urban Planning” 
(
Minist
ère de l’Eau, de l’Environnement, de l’Aménagement du Territoire et de 
l’Urbanisme
)
means the Recipient’s ministry at the time responsible for water, 
environment, land planning, and urban planning. 
17. 
“National Fund for Communal Investment” (
Fonds National d’Investissement 
Communal
)
means the Recipient
’s entity, under the supervisory authority of the 
Ministry for Communal Development, established and operating pursuant to the 
Recipient’s Decree No. 100/260 of August 30, 2007, and the objective of which 
is to mobilize, channel, and manage internal and external funds for purposes of 
local development. 
18. 
“Operating Costs” means the incremental operating costs under the Project, 
based on the annual work plans and budgets referred to in Section V.B of 
Schedule 2 to this Agreement as approved by the Association, and incurred by 
the Technical Secretariat on account of utilities and supplies, bank charges, 
communications, vehicle operation, maintenance, and insurance, office space 
rental, building and equipment maintenance, public awareness-related media 
expenses, travel and supervision, and salaries of contractual and temporary staff, 
but excluding salaries, fees, honoraria, and bonuses of members of the 
Recipient’s civil service
.
19. 
“Procurement Guidelines” means the “Guidelines: Procurement under IBRD 
Loans and IDA Credits” published by the Bank in May 2004 and revised in 
October, 2006. 
20. “Procurement 
Plan” 
(
Plan de Passation des Marchés
)
means the Recipient’s 
procurement plan for the Project, dated April 8, 2009
 
and referred to in 
paragraph 1.16 of the Procurement Guidelines and paragraph 1.24 of the 
Consultant Guidelines, as the same shall be updated from time to time in 
accordance with the provisions of said paragraphs.  
21. 
“Project Implementation Manual” (
Manuel d’Exécution du Projet
)
means the 
Recipient’s manual, dated April 2009, agreed with the Association and outlining 
implementation, organizational, administrative, monitoring and evaluation, 
environmental and social monitoring and mitigation, financial management, 
disbursement, and procurement arrangements for purposes of Project 
implementation, as the same may be amended from time to time with the prior 
written agreement of the Association, and such term includes any schedules to 
said Manual. 
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22. 
“Public Works and Employment Project” means the Recipient’s project financed 
by the Association (Credit No. 3460 BU and Grant No. H198 BU) whose 
objectives are to: (i) generate productive employment to help reconstruction in 
the Recipient’s territory through labor-intensive public works; (ii) promote the 
execution of cost-effective and economically and socially useful public works 
projects, including through small and medium enterprises; and (iii) building 
institutional capacity at the municipal level to identify, prioritize, operate, and 
maintain subprojects. 
23. 
“Resettlement Action Plan” (
Plan d’Action de Réinstallation
)
means the 
Recipient’s plan, to be agreed with the Association and setting out the 
arrangements, including related compensation measures, to be applied in the 
event of the physical or economic displacement of persons affected by activities 
to be implemented under a Subproject in accordance with the provisions of the 
Resettlement Policy Framework (as hereinafter defined), as the same may be 
modified from time to time with the prior written agreement of the Association, 
and such term includes any schedules or annexes to said Plan. 
24. 
“Resettlement Policy Framework” (
Cadre de Politique de Réinstallation
)
means 
the 
Recipient’s framework, dated March 22, 2009, agreed with the Association 
and setting out the arrangements, including related compensation measures, to be 
applied in the event of the physical or economic displacement of persons affected 
by activities to be implemented under the Project, as the same may be modified 
from time to time with the prior written agreement of the Association, and such 
term includes any schedules or annexes to said Framework. 
25. 
“Subproject” means a specific activity carried out under Part 1 of the Project, 
financed or proposed to be financed through a Subproject Grant (as hereinafter 
defined). 
26. 
“Subproject Delegated Contract Management Agreement” means an agreement 
between a Beneficiary and ABUTIP pursuant to which ABUTIP shall carry out 
contract management, specifically procurement, quality control, and 
implementation of applicable safeguards instruments under a Subproject or a 
package of Subprojects. 
27. 
“Subproject Grant” means a grant made or proposed to be made out of the 
proceeds of the Financing to finance a Subproject. 
28. 
“Subproject Grant Agreement” means an agreement between the Recipient, 
represented by the Technical Secretariat, and a Beneficiary, setting forth the 
terms and conditions governing a Subproject Grant. 
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25
29. 
“Technical Committee” (
Comité Technique
)
means the 
Recipient’s entity, under 
the supervisory authority of the Ministry of Public Works and Equipment, 
established and operating pursuant to the Recipient’s Decision No. 720/53 of 
February 1, 2002. 
30. 
“Technical Secretariat” (
Secretariat Technique
)
means the Recipient’s entity, 
under the supervisory authority of the Ministry of Public Works and Equipment, 
established and operating pursuant to the Recipient’s Decision of April 25, 2001, 
and which is responsible for the provision of technical assistance, training, and 
advisory services to municipalities in project identification, programming, 
operation, and maintenance. 
31. 
“Training” means the costs of training under the Project, based on the annual 
work plans and budgets referred to in Section V.B of Schedule 2 to this 
Agreement, and attributable to seminars, workshops, and study tours, along with 
travel and subsistence allowances for training participants, services of trainers, 
rental of training facilities, preparation and reproduction of training materials, 
and other activities directly related to course preparation and implementation. 
32. 
“Umbrella Delegated Contract Management Agreement” means the agreement 
between the Recipient and ABUTIP pursuant to which ABUTIP shall carry out 
contract management, specifically procurement and quality control, under Part 1 
of the Project. 
Section II.   
Modifications to the General Conditions
 
The modifications to the General Conditions are as follows:   
1. 
Section 2.07 is modified to read as follows: 
 
“Section 2.07. 
Refinancing Preparation Advance 
 
If the Financing Agreement provides for the repayment out of the 
proceeds of
 
the Financing of an advance made by the Association or the Bank 
(“Preparation Advance”), the Association shall, on behalf of the Recipient, 
withdraw from the Financing Account on or after the Effective Date the amount 
required to repay the withdrawn and outstanding balance of the advance as at the 
date of such withdrawal from the Financing Account and to pay all accrued and 
unpaid charges, if any, on the advance as at such date.  The Association shall pay 
the amount so withdrawn to itself or the Bank, as the case may be, and shall 
cancel the remaining unwithdrawn amount of the advance.” 
 
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2. 
Paragraph (i) of Section 6.02 is modified to read as follows: 
 
“Section 6.02. 
Suspension by the Association 
 
... (l) 
Ineligibility
.
The Association or the Bank has declared the Project 
Implementing Entity ineligible to receive proceeds of any financing made by the 
Association or the Bank or otherwise to participate in the preparation or 
implementation of any project financed in whole or in part by the Association or 
the Bank, as a result of a determination by the Association or the Bank that the 
Project Implementing Entity has engaged in fraudulent, corrupt, coercive or 
collusive practices in connection with the use of the proceeds of any financing 
made by the Association or the Bank.” 
 
3. 
The following terms and definitions set forth in the Appendix are modified or 
deleted as follows, and the following new terms and definitions are added in 
alphabetical order to the Appendix as follows, with the terms being renumbered 
accordingly: 
 
(a) 
The term “Project Preparation Advance” is modified to read “Preparation 
Advance” and its definition is modified to read as follows:  
“‘Preparation Advance’ means the advance referred to in the Financing 
Agreement and repayable in accordance with Section 2.07.” 
__________