THE WORLD BANK B$: 4# I waosmofou, ,2022 H. E. Domitien Ndihokubwayo Minister of Finance, Budget and Development Planning Ministry of Finance, Budget and Development Planning Bujumbura Republic of Burundi Re: Republic of Burundi: Advance Agreement for Preparation of Proposed Burundi Digital Foundations Project Preparation Advance No. V4110 Excellency: In response to the request forfinancial assistance made on behalf ofthe Republic of Burundi ("Recipient'), I am pleased to inform you that the International Development Association/ International Bank for Reconstruction and Development ("World Bank") proposes to extend to the Recipient an advance out of the World Bank's Project Preparation Facility in an amount not to exceedfourmillion nine hundred thousand Dollars ($4,900,000) ("Advance") on the termsand conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in financing the activities described in the Annex ("Activities"). The objective ofthe Activities is to facilitate the preparation of a proposed project designed to increase broadband internet access to underserved populations and improve government capacity to deliver public services digitally ("Project"), for the carrying out of which the Recipient has requested the World Bank's financial assistance. The Recipient represents, by confirming its agreement below, that: (a) it understands that the provision ofthe Advance does not constitute or imply any commitmenton the part of IBRD orIDA to assist in financing the Project; and (b) it is authorized to enter into this Agreement and to carry out the Activities, repay the Advance and perform its other obligations under this Agreement, all in accordance with the provisions of this Agreement. Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of th is Agreement, and returning it to the World Bank. Upon receipt by the World Bank ofthis countersigned copy, this Agreement shall become effective as of the date of the countersignature; provided, however, that the offerof this Agreement shall be deemed withdrawn if the World Bank has not received this countersigned copy within 90 days after the date of signature of this Agreement by the World Bank, unless the World Bank has established a later date for such purpose. -2- January 21, 2022 Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION/INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Jean-Christophe Carret Country Director forfBurundi Africa Region AGREED: REPUBLIC OF BURUNDI By orized Relpresentative Name Title t OW QY Date Enclosures: (1) "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility", dated July 31, 2010; and (2) Disbursement Letter for the Advance of the same date as this Agreement, together with "Disbursement Guidelines for Investment Project Financing", datedFebruary 2017. -3- January 21, 2022 PPA No. V4110 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility", dated July 31,2010 ("Standard Conditions"), 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 Agreement including the Appendixto this Agreement. Article 11 Execution of the Activities 2.01. Description oftheActivities. The Activities for which the Advance is provided consist of the following parts: (a) Provision of technical assistance for, inter alia, the development of national sectoral strategies and road naps; (ii) provision of legal advisory services for the updating and development of digital economy laws and regulations; and (iii) carrying out of preparatory studies to include, inter alia: a national census on digital access; feasibility studies for shared digital infrastructure; and study trips for knowledge exchange. (b) Preparation of Project Implementation Manual and procurement and financial management documents. (c) Preparation of safeguards documents for the Project. (d) Recruitment of consultants for the Project Implementation Unit to support the preparation and implementation of the Project. (e) Goods and Operating Costs for performing Project preparation Activities. 2.02. Execution of the Activities Generally. The Recipient declares its commitment to the objectives of the Activities. To this end, the Recipient shall carry out the Activities in accordance with the provisions of: (a) Article 11 of the Standard Conditions; (b) this Article 11; and (c) the "Guidelines on Preventingand Combating Fraud and Corruptionin Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 20 11 and as of July 1, 2016. 2.03. Institutional and OtherArrangements. Without limitation upon paragraph2.02 above, die Recipient shall: (a) maintainthroughout the implementation of the Advance the Coordinating Unit ("CU") with terms of reference, composition and resources satisfactory to the World Bank, which shall be responsible for overseeing the day-to-day implementation and fiduciary aspects of the Advance; and (b) not later than three (3) months after the Effective Date, recruit a competent -4- January 21, 2022 accountant under terms of reference acceptable to the World Bank and with qualifications and experience satisfactory to the World Bank. 2.04. Environmental andSocial Standarts. (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 World 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 World 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, as pmvided in the ESCP; (ii) sufficient funds are available to cover the costs of implementing the ESCP; (iii) policies and procedures are maintained, and qualified and experienced staff in adequate numbers are retained to implement the ESCP, as provided in the ESCP, and (iv) the ESCP, or any provision thereof, is not amended, repealed, suspended or waived, except as the World Bank shall otherwise agree in writing, as specified in the ESCP, and ensure that the revised ESCP is disclosed promptly thereafter. (c) Without limitation upon the provisions of paragraph (b) above, if 60 days prior to the Closing Date, the World Bank determines that there are measures and actions specified in the ESCP which will not be completed by the Closing Date, the Recipient shall: (a) not later than 30 days before the Closing Date, prepare and present to the World Bank an action plan satisfactory to the World Bank on the outstanding measures and actions, including a timetable and budget allocation for such measures and actions (which action plan shall deemed to be considered an amendment of the ESCP); and (b) thereafter, cany out said action plan in accordance with its terms and in a manner acceptable to the World Bank. (d) In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions ofthis Agreement shall prevail. (e) The Recipient shall ensure that: (i) all measures necessary are taken to collect, compile, and furnish to the World Bank through regular reports, with the frequency specified in the ESCP, and promptly in a separate reportor reports, if so requested by the World Bank, information on the status of compliance with the ESCP and the environmental and social instruments referred to therein, all such reports in form and substance acceptable to the World 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 ofthe ESCP; and (C) corrective and preventive measures taken or required to betaken to address such conditions; and -5- January 21, 2022 (ii) the World Bank is promptly notified of any incident or accidentrelated to orhaving an impacton the Activities which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including, , any workplace accidents thatresultin death,serious or mutiple injury, any case ofsexual exploitation and abuse, sexual harassment and violence against minors, in accordance with the BSCP, the environmental and social instruments referenced therein and the Environmental and Social Standards. (f) The Recipient shall, establish, publicize, maintain and operate an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances of Activities- affectedpeople, and take all measures necessary and appmpriateto resolve, or facilitate the resolution of, such concerns and grievances, in a manner acceptableto the World Bank. 2.05. Monitoring, Reporting andEvaluation of the Activities. The Recipient shall monitor and evaluate the progress of the Activities in accordance with the provisions of Section 2.08 of the Standard Conditions. 2.06. FinancialManagement. (a) The Recipient shall ensure that a financial management system is maintained in accordancewith the provisions of Section2.09 of the Standard Conditions. (b) The Recipient shall ensure that interim un-audited financial reports for, the Activities are prepared and furnished to the World Bank not later than forty-five (45) days after the end of each calendar quarter, coveringthe quarter, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordancewith the provisions of Sections 2.09(b) of the Standard Conditions. Such audit of the Financial,Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the firstwithdrawal under the Advance was made. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the end of such period. 2.07. Procurement. All goods, non-consultingservices, and] consulting services req uired for the Activities and to be financed outofthe proceeds of the Advance shalI be procured in accordance with the requirements set forth or referred to in the "World Bank Pro curement Regulations for IPF Borrowers" dated November 2020 ("Procurement Regulations") and the provisions of the Recipient's procurement plan for the Activities dated December 7, 2021 ("Procurement Plan") provided for under Section IV of the Procurement Regulations, as the same may be updated from time to time in agreement with the World Bank. Article III Withdrawal of the Advance 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Advance in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank mayspecify by notice to the Recipient (including the "Disbursement Guidelines for Investment Project Financing" dated February 2017, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the following table. The table specifies each category of Eligible Expenditures that may be financed out of the proceeds of the Advance -6- January 21, 2022 ("Category"), the amount of the Advance allocated to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Category Amount of the Advance Percentage of Allocated Expenditures to be (expressed in Dollars) Financed (inclusive/exclusive of Taxes) (1) Goods, non-consulting 4,900,000 100% services, consultants' services and Operating Costs under the Activities TOTAL AMOUNT 4,900.000 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 countersignature of this Agreement by the Recipient. 3.03. Refinancing Date. The Refinancing Date is July 19,2022. Article IV Terms of the Advance 4:01. Refinancing under the RefinancingAgreement- If, on or before the Refinancing Date, a Refinancing Agreement has been executed by all of its parties, then the full amount of the Withdrawn Advance Balance shall be paid to the World Bank as soon as the Refinancing Agreement becomes effective, by means of a withdrawal by the World Bank of such amount of the Refinancing Proceeds, in accordance with the provisions of the Refinancing Agreement. 4.02. No Repaymeni in the absence ofa RefinancingAgreement: Notwithstandingany provision to the contrary in the Standard Conditions, if, on or before the Refinancing Date, no Refinancing Agreement has been executed by all of its parties, or if, by such date, it has been so executed but terminates without becoming effective, then the Recipient shall not be obligated to repay the Withdrawn Advance Balance. Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative refered to in Section 9.02 of the Standard Conditions is its Minister in charge of finance. -7- January 21, 2022 5.02. RecipientsAddress. The Recipient's Address referred to in Section 9.01 of the Standard Conditions is: Ministry of Finance, Budget and Economic Development Cooperation P. O.Box 1830 Bujumbura Burundi Telex: Facsimile: 5135 257-22-22-27-75 MINIFINBDI 5.03. World Bank's Address. The World Bank's Address referred to in Section 9.01 of the Standard Conditions is: International Development Association 1818 1- Street, N.W. Washington, D.C. 20433 United States of America Telex: Facsimile: 248423 (MCI) or (1)-202-477-6391 64145 (MCI) -8- January 21, 2022 APPENDIX Definitions 1. "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 Financedby lBRD Loans and IDA Credits and Grants", dated October 15,2006, and revised in January 2011, and as of July 1, 2016. 2. "Coordination Unit" or "CU" means the coordination unit of the World Bank financed Great Lake Trade Integration Project Preparation Advance (PPA No. V3940) dated October 29, 2021, established by the Recipient within its Ministry of Agriculture and Livestock, as referred to in Section 2.03 of Annex to this Agreement. 3. "Environmental and Social Commitment Plan" or "ESCP" means the environmental and social commitment plan for the Activitie<, of even date herewith, as the same may be amended from time to time in accordance with the provisions thereof, which sets out the material measures and actions that the Recipient shall carry out or cause to be carried out to address the potential environmental and social risks and impacts of the Activities, including the timeframes of the actions and measures, institutional, staffing, training monitoring and reporting arrangements, and any environmental and social instruments to be prepared thereunder. 4. "Environmental and Social Standards" or "ESSs" 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 World Bank. 5. "Operating Costs" means the incremental expenses incurred on account of the Activities' implementation, management and monitoring, consisting of the cost of operation and maintenance of offices, vehicles and office equipment, water and electricity utilities charges, telephone charges, bank charges, travel and per diem, and salaies of contractual staff, but excluding the salaries of officials and public servants of the Recipient's civil service.