OFFICIAL DOCUMENTS CREDIT NUMBER 6751-GN GRANT NUMBER D698-GN Financing Agreement (COVID-19 Emergency Response and Recovery Development Policy Financing) between REPUBLIC OF GUINEA and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER 6751-GN GRANT NUMBER D698-GN FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between the REPUBLIC OF GUINEA ("Recipient") and the INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing financing in support of the Program (as defined in the Appendix to this Agreement). The Association has decided to provide this financing on the basis, inter alia, of: (i) the actions which the Recipient has already taken under the Program and which are described in Section I A of Schedule I to this Agreement; and (ii) the Recipient's maintenance of an adequate macroeconomic policy framework. The Recipient and the Association therefore 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 grant and a credit, which are deemed as Concessional Financing for purposes of the General Conditions (collectively, "Financing") in the following amounts to assist in financing the project described in Schedule I to this Agreement ("Project"): (a) an amount of twenty-nine million two hundred thousand Special Drawing Rights (SDR 29.200,000) ("Grant"); and (b) an amount of twenty-nine million two hundred thousand Special Drawing Rights (SDR 29,200,000) ("Credit"). 2,02. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.03. The Service Charge is three-fourths of one percent (3/4 of 1%) per annum; on the Withdrawn Credit Balance. 2.04. The Payment Dates are March 15 and September 15 in each year. 2.05. The principal amount of the Credit shall be repaid in accordance with the repayment schedule set forth in Schedule 2 to this Agreement. -2- 2.06. The Payment Currency is Dollar. 2.07. Without limitation upon the provisions of Section 5.05 of the General Conditions, the Recipient shall promptly furnish to the Association such information relating to the provisions of this Article II as the Association may, from time-to-time, reasonably request. ARTICLE III - PROGRAM 3.01. The Recipient declares its commitment to the Program and its implementation. To this end, and further to Section 5.05 of the General Conditions: (a) the Recipient and the Association shall from time to time, at the request of either party, exchange views on the Recipient's macroeconomic policy framework and the progress achieved in carrying out the Program; (b) prior to each such exchange of views, the Recipient shall furnish to the Association for its review and comment a report on the progress achieved in carrying out the Program, in such detail as the Association shall reasonably request; and (c) without limitation upon the provisions of paragraphs (a) and (b) of this Section, the Recipient shall promptly inform the Association of any situation that would have the effect of materially reversing the objectives of the Program or any action taken under the Program including any action specified in Section I of Schedule 1 to this Agreement. ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.01. The Additional Event of Suspension consists of the following, namely that a situation has arisen which shall make it improbable that the Program, or a significant part of it, will be carried out. 4.02. The Additional Event of Acceleration consists of the following, namely that the event specified in Section 4.01 of this Agreement occurs and is continuing for a period of sixty (60) days after notice ofthe event has been given by the Association to the Recipient. ARTICLE V - EFFECTIVENESS; TERMINATION 5.01. The Additional Condition of Effectiveness consists of the following, namely that the Association is satisfied with the progress achieved by the Recipient in carrying out the Program and with the adequacy of the Recipient's macroeconomic policy framework. 5.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 5.03. 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 (20) years after. ARTICLE VI - REPRESENTATIVE; ADDRESSES 6.01. The Recipient's Representative is its minister in charge of planning and economic development. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Boulevard de Commerce BP 579 Conakry Republic of Guinea; and 6.03. 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: 248423 (MCI) (+1) 202-477-6391 -4- AGREED as of the Signature Date. REPUBLIC OF GUINEA By Authorized Representative - Name: ~ t CAV Title: V orb Date: Y INTERNATIONAL DEVELOPMENT ASSOCIATION By Authorized R resentative Name: o Title: 4j Date: \ -5- SCHEDULE 1 Program Actions; Availability of Financing Proceeds Section 1. Actions under the Program The actions taken by the Recipient under the Program include the following: 1. To strengthen health institutional capacity to respond to the COVID- 19 outbreak and facilitate access to medical supplies, the Recipient has: (i) through MoH, issued a memorandum (note de service) no0068/MS/CAB2020 dated May 28, 2020, to adopt standardized operating procedures for testing, tracing, surveillance, and treatment following directives from WHO across testing places and laboratories, surveillance teams within MoH, and isolation and healthcare centers; and (ii) through MoB issued a circular no I 727/MB/DNI/DRPC/2020 dated, April 16, 2020, to exempt duties and taxes, for a period of three (3) months (April to June 2020), on health equipment and similar products falling within the scope of the fight against COVID- 19. 2. To provide temporary liquidity to residential consumers and the tourism and hotel sector and to protect service delivery of public utilities, the Recipient has: (i) adopted inter-ministerial arrOtis no AC/2020/1933/MEIMEF/MB and n AC/1934/MHA/MEF/MB/SGG dated June 19, 2020, defining a procedure to temporarily subsidized (April to July 2020) electricity and water charges for the most vulnerable households and establishing a temporary payment deferral schedule of electricity and water charges (April to July 2020) for other residential consumers, hotels and tourism-related businesses; and (ii) defining a procedure for EDG and SEG to request transfer of payment of the monthly invoices through an accelerated budgetary mechanism. 3. To relieve liquidity constraints for businesses, the Recipient has adopted through circular no1727/MB/DNUDRPC/2020, dated April 16, 2020, the following administrative tax measures: (i) an extension for three (3) months the deadline for filing tax returns and paying taxes / duties for the tourism and hotel sector; (ii) a waiver for three (3) months of VAT on water and electricity bills of companies in the tourism and hotel sector; (iii) the cancellation, for a period of three (3) months (April to June 2020) of tax charges weighing on small trade and crafts; and (iv) the postponement, for a period of three (3) months (April to June 2020), of the payment of all tax and social security charges for the tourism and hotel sector and SMEs. 4. To strengthen oversight of resources to address the COVID-19 crisis, the Recipient has: issued arrWts no A/2020/I635/MEF/MB/CAB and n A2020/1636/MEF/MB/CAB/DNTCP dated May 26, 2020: (i) establishing an emergency management response committee with a mandate to coordinate and -6- monitor all emergency-related actions; (ii) creating a budgetary COVID-19 fund that will account for all earmarked external and domestic resources to address the pandemic; and (iii) adopted arrgtd no AC/2020/1852/MEF/MB/SGG, dated June 15, 2020, providing for proper control and auditing mechanisms for all COVID- 19 related resources and spending. 5. To support financial inclusion and electronic cash transfer payments, the Recipient's BCRG has issued a circular n' 0033/DGSIF/DSIFI/2020, dated May 28, 2020, to simplify customer due diligence procedures based on risk analysis for opening electronic money accounts and executing operations on these accounts. 6- To enhance access to finance, the Recipient has issued a presidential decree n D/2020/098PRG/SGG. dated May 29, 2020, to establish a partial guarantee fund for credits to micro, small & medium enterprises. 7. To enhance debt transparency, the Recipient has: (i) made available on MEF's website legislation and public debt statistics covering all types of debt instruments (external, domestic, and guarantee); and (ii) strengthened the quality of its annual debt bulletin including information about collateralized loans, and launched a quarterly debt bulletin. Section IL Availability of Financin2 Proceeds A. General. The Recipient may withdraw the proceeds of the Financing in accordance with the provisions of this Section and such additional instructions as the Association may specify by notice to the Recipient. B. Allocation of Financing Amounts. The Financing is allocated in a single withdrawal tranche, from which the Recipient may make withdrawals of the Financing proceeds. The allocation of the amounts of the Financing to this end is set out in the table below: Amount of the Grant Amount of the Credit Allocations Allocated Allocated (expressed in SDR) (expressed in SDR) (1) Single 29,200,000 29,200,000 Withdrawal Tranche TOTAL 29,200,000 29,200,000 AMOUNT -7- C. Withdrawal Tranche Release Conditions No withdrawal shall be made of the Single Withdrawal Tranche unless the Association is satisfied: (a) with the Program being carried out by the Recipient; and (b) with the adequacy of the Recipient's macroeconomic policy framework. D. Deposit of Financing Amounts The Recipient shall, within thirty (30) days after the withdrawal of the Financing from the Financing Account, report to the Association: (i) the exact sum received into the account referred to in Section 2.03(a) of the General Conditions; (ii) the details of the account to which the local currency equivalent of the Financing proceeds will be credited; (iii) the record that an equivalent amount has been accounted for in the Recipient's budget management systems; and (iv) the statement of receipts and disbursement of the account referred to in Section 2.03(a) of the General Conditions. E. Closing Date. The Closing Date is January 31, 2022. -8- SCHEDULE 2 Repayment Schedule Principal Amount of the Credit repayable Date Payment Due (expressed as a percentage)* On each March 15 and September 15, commencing on 1.5625% September 15, 2026 to and including March 15, 2058 * 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. -9- APPENDIX Definitions 1. "BCRG" means Banque Centrale de la Rdpublique de Guinje, the Recipient's central bank. 2. "COVID-19" means the coronavirus disease caused by the 2019 novel coronavirus (SARS-CoV-2). 3. "EDG" means Electriciti de Guinde, the Recipient's public electricity utility. 4. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Development Policy Financing", dated December 14,2018. 5. "MEF" means Minist&re de l'Economie et des Finances, the Recipient's ministry in charge of economy and finance and any successor thereto. 6. "MoB" means Ministre du Budget, the Recipient's ministry in charge of budget and any successor thereto. 7. "MoH" means Ministare de la Santd, the Recipient's ministry in charge of health and any successor thereto. 8. "Program" means: the program of objectives, policies, and actions set forth or referred to in the letter dated June 18, 2020 from the Recipient to the Association declaring the Recipient's commitment to the execution of the Program, and requesting assistance from the Association in support of the Program during its execution and comprising actions taken, including those set forth in Section I of Schedule I to this Agreement, and actions to be taken consistent with the program's objectives. 9. "SEG" means Socidt des Eaux de Guinge, the Recipient's public water utility. 10. "SMEs" means small and medium enterprises. I. "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. 12. "Single Withdrawal Tranche" means the amount of the Financing allocated to the category entitled "Single Withdrawal Tranche" in the table set forth in Part B of Section II of Schedule I to this Agreement. 13. "WHO" means the World Health Organization.