THE WORLD BANK IBRD - IDA I WORLD BANK GROUP His Excellency OFFICIAL Lic. Juan Ariel Jim6nez Nifiez Minister of Economy, Planning and Development DOCUMENTS Ministry of Economy, Planning and Development Av. M6xico Esq. Dr. Delgado, Distrito Nacional Santo Domingo, Dominican Republic Re: Dominican Republic: Grant for Preparation of Integrated Productive Landscapes Through Land Use Planning, Restoration and Sustainable Intensification of Rice in Yaque and Yuna Project GEF Project Preparation Grant No. TFOB2147-DO Excellency: In response to the request for financial assistance made on behalf of the Dominican Republic ("Recipient"), I am pleased to inform you that the International Bank for Reconstruction and Development ("Bank"), acting as Implementing Agency of the Global Environment Facility ("GEF"), proposes to extend to the Recipient a grant in an amount not to exceed forty-five thousand six hundred and sixty-two United States Dollars (USD 45,662.00) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financing of the activities described in the Annex ("Activities"). This Grant is funded out of the GEF trust fund for which the Bank receives periodic contributions from donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Activities in accordance with the terms and conditions set forth or referred to in this Agreement. The award of the Grant does not constitute or imply any commitment on the part of the Bank, either as Implementing Agency of the GEF or in its own capacity, to assist in the financing of any project which may result from the Activities financed by the Grant. 1818 H Street NW * Washington, DC 20433 USA Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date this Agreement, and returning one duly executed copy to the Bank. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Acting as Implementing Agency of the Global Environment Facility By_________ Alessandro LegrottIglie Country Manager, Dominican Republic Latin America and the Caribbean Region AGREED: DOMINICAN REPUBLIC By ized Representative Name .&~K 9 Titie ~ Date: Enclosures: (1) "International Bank for Reconstruction and Development and International Development Association Standard Conditions for Grant Financing Made by the Bank out of Trust Funds" dated February 25, 2019 (2) Disbursement and Financial Information Letter of the same date as this Agreement, together with the "Disbursement Guidelines for Investment Project Financing", dated February 2017 -2- GEF PPG No. TFOB2147-DO ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions (as defined in Section 1.02 below) constitute an integral part of this Agreement. 1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions or in this Section; provided that for the purposes of this Agreement the term "Project", whenever used in the Standard Conditions, shall mean the Activities referred to in Section 2.01 of this Annex: (a) "Anti-Corruption Guidelines" means, for purposes of paragraph 2 of the Appendix to the Standard 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. (b) "Category" means a category set forth in the table in Section 3.01 of this Agreement. (c) "Environmental and Social Commitment Plan" or the acronym "ESCP" means the Recipient's environmental and social commitment plan, acceptable to the Bank, dated January 16, 2020, which sets out a summary of the material measures and actions to address the potential environmental and social risks and impacts of the Activities, including the timing of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any instruments to be prepared thereunder; as the ESCP may be revised from time to time, with prior written agreement of the Bank. t(d) "Environmental and Social Standards" means, collectively: (i) "Environmental and Social Standard 1: Assessment and Management of Environmental and Social Risks and Impacts"; (ii) "Environmental and Social Standard 2: Labor and Working Conditions"; (iii) "Environmental and Social Standard 3: Resource Efficiency and Pollution Prevention and Management"; (iv) "Environmental and Social Standard 4: Community Health and Safety"; (v) "Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement"; (vi) "Environmental and Social Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources"; (vii) "Environmental and Social Standard 7: Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local Communities"; (viii) "Environmental and Social Standard 8: Cultural Heritage"; (ix) "Environmental and Social Standard 9: Financial Intermediaries"; (x) "Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure"; effective on October 1, 2018, as published by the Bank at http://pubdoes.worldbank.org/en/837721522762050108/Environmental-and-Social- Framework.pdf (e) "MARN" means Minislerio de Medio Ambiente y Recursos Naturales, or the Recipient country's Ministry of Environment and National Resources. -3- (f) "Procurement Regulations" means, for purposes of paragraph 20 of the Appendix to the Standard Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. (g) "Standard Conditions" means the "International Bank for Reconstruction and Development and International Development Association Standard Conditions for Grant Financing Made by the Bank out of Trust Funds", dated February 25, 2019. Article II Grant Execution 2.01. Grant Objectives and Description. The objective of the Grant is to prepare the Integrated Productive Landscapes through Land Use Planning, Restoration, and Sustainable Intensification of Rice Crops in the Yaque Norte and Yuna Watersheds Project, which Project has as its objective to strengthen integrated landscape management and expand the area under improved land use practices in targeted watersheds in the Dominican Republic. The activities ("Activities") for which the Grant is given consist of the following parts: (a) Provision of technical assistance for Project preparation, including the hiring of expert consultants and the preparation of environmental and social instruments ahd Project proposal. (b) Enable Project preparation through the carrying out of consultation workshops and field visits with various stakeholders 2.02. Grant Execution Generally. The Recipient declares its commitment to the objettives of the Project. To this end, the Recipient shall carry out the Activities through MARN in accordance with: (a) the provisions of Article II of the Standard Conditions; (b) the Anti-Corruption Guidelines; and (c) this Article II. 2.03. Environmental and Social Standards. (a) The Recipient shall ensure that the Activities are carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Bank. (b) Without limitation upon paragraph (a) above, the Recipient shall ensure that the Activities are implemented in accordance with the Environmental and Social Commitment Plan ("ESCP"), in a manner acceptable to the Bank. To this end, the Recipient shall ensure that: (i) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, and as further specified in the ESCP; (ii) sufficient funds are available to cover the costs of implementing the ESCP; (iii) policies, procedures and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP; and -4- (iv) the ESCP or any provision thereof, is not amended, revised or waived, except as the Bank shall otherwise agree in writing and the Recipient has, thereafter, disclosed the revised ESCP. In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions of this Agreement shall prevail. (a) The Recipient shall: (i) take all measures necessary on its part to collect, compile, and furnish to the Bank through regular reports, with the frequency specified in the ESCP, and promptly in a separate report or reports, if so requested by the Bank, information on the status of compliance with the ESCP and the management tools and instruments referred to therein, all such reports in form and substance acceptable to the Bank, setting out, inter alia: (A) the status of implementation of the ESCP; (B) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (C) corrective and preventive measures taken or required to be taken to address such conditions; and (ii) promptly notify the Bank of any incident or accident related to or having an impact on the Activities which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers in accordance with the ESCP, the instruments referenced therein and the Environmental and Social Standards. (b) The Recipient shall maintain and publicize the availability of a grievance mech4nism, in form and substance satisfactory to the Bank, to hear and determine fairly and in good faith all complaints raised in relation to the Activities and take all measures necessary to implement the determinations made by such mechanism in a manner satisfactory to the Bank. 2.04. Monitoring, Reporting and Evaluation. The Recipient shall ensure that each Project Report is furnished to the Bank not later than twenty (20) days after each calendar semester covering the calendar semester. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; and (b) this Section; to finance Eligible Expenditures as set forth in the following table. The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: -5- Category Amount of the Grant Percentage of Expenditures Allocated to be Financed (expressed in USD) (inclusive of Taxes) (1) Consulting services, - 45,662 100% Operating Costs and Training and Workshops TOTAL AMOUNT 45,662 For the purpose of this table: (a) the term "Operating Costs" means the incremental expenditures incurred on account of the Activities implementation, including, inter-alia, office supplies, transportation, office administration, insurance, publication of training materials, reasonable bank charges relating to operation of the designated account, but excluding consultant fees and salaries of civil servants; and (b) the term "Training and Workshops" means the reasonable costs of goods and services required for the participation of personnel involved in training and workshops under the Activities, including travel and subsistence costs for training and workshop participants, costs associated with securing the services of trainers, rental of training and workshop facilities, preparation and reproduction of training and workshop materials, and other costs directly related to training, workshop, preparation and implementation, but excluding fees of consultants. 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of this Agreement. 3.03. Withdrawal Period. The Closing Date is October 31, 2021. Article IV Recipient's Representative; Addresses 4.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Minister of Economy, Planning and Development. 4.02. Recipient's Address. For purposes of Section 7.01 of the Standard Conditions: (a) the Recipient's Address is: Ministry of Economy, Planning and Development Av. M6xico Esq. Dr. Delgado, Distrito Nacional Santo Domingo, Dominican Republic; and (b) the Recipient's Electronic Address is: Telephone: Facsimile: E-mail: +1 809-688-7000 +1 809-688-7000 informaciont @economia.gob.do -6- 4.03. Bank's Address. For purposes of Section 7.01 of the Standard Conditions: (a) the Bank's address is: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433, United States of America; (b) the Bank's Electronic Address is: Telephone: Facsimile: E-mail: ±809 872 7300 1-202-477-6391 alegrottaglie@worldbank.org -7-