Page  1
CONFORMED COPY 
 
The World Bank 
1818 H Street N.W. 
(202) 473-1000 
I
NTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
 
Washington, D.C.  20433 
Cable Address:  INTBAFRAD 
INTERNATIONAL DEVELOPMENT ASSOCIATION
 
U.S.A.
 
Cable Address:  INDEVAS
 
April 25, 2009 
 
His Excellency 
Noel Aguirre Ledezma 
Minister of Development Planning 
Ministry of Development Planning 
La Paz, Bolivia 
 
Subject: Rural Alliances Project (IDA Credit No. 4068-BO): Amendment and Restatement of 
Financing Agreement to incorporate Additional Financing (IDA Credit No. 4558-BO) 
 
Excellency: 
 
We refer to the Financing  
Agreement (“Agreement”), dated September 7, 2005 entered between 
the Republic of Bolivia (“Recipient”) and the International Development Association (“Association”). 
 
We also refer to the Recipient’s request for assistance as received by the Association through a 
letter from its Minister of Development Planning dated July 17, 2008 and to our recent discussions, and 
pursuant to which the Recipient and the Association have agreed to amend the Agreement, to provide 
therein additional financing in support of the implementation of the Recipient’s Rural Alliances Project 
(“Project”), all in the manner hereinafter set forth.  
 
Consequently, the Agreement is hereby amended and restated in its entirety so as to read as set 
forth in the Annex hereto. 
 
This amendment shall become effective upon receipt by the Association of a legal opinion 
satisfactory to the Association, establishing that the Agreement, as hereby amended and restated, has been 
duly authorized, executed and delivered on behalf of the Recipient and is legally binding upon the 
Recipient in accordance with its terms. 
 
If this amendment shall not have come into force and effect by a date one hundred and twenty 
(120) days after the date first above written, the unamended Agreement dated September 7, 2005, 
between the Recipient and the Association, shall continue in full force and effect, as if this amendment 
had not been executed.   
 
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2
IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly 
authorized, have caused this amendment to be signed in their respective names as of the day and year first 
above written. 
 
REPUBLIC OF BOLIVIA 
 
By /s/ Noel Aguirre Ledezma 
 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
By /s/ Carlos Felipe Jaramillo 
 
Authorized Representative 
 
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ANNEX 
 
CREDIT NUMBER 
4068
-BO 
 
CREDIT NUMBER 4558-BO 
 
Financing Agreement 
(Rural Alliances Project) 
between 
REPUBLIC OF BOLIVIA 
and 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
Dated September 7, 2005  
and restated on April 25, 2009 
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4
CREDIT NUMBER 4068 -BO 
CREDIT NUMBER 4558 -BO 
 
FINANCING AGREEMENT 
AGREEMENT dated September 7, 2005, and restated on April 25, 2009, entered 
int
o
between REPUBLIC OF BOLIVIA (“Recipient”) and 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, an initial credit in an amount equivalent 
to eighteen million nine hundred thousand Special Drawing Rights (SDR 
18,900,000) (Initial Financing or Initial Credit), and an additional credit in an 
amount equivalent to nineteen million nine hundred thousand Special Drawing 
Rights (SDR 19,900,000) (Additional Financing or Additional Credit) 
(collectively Financing or Credit) 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 
Unwithdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) per 
annum. The Commitment Charge with respect to the Initial Financing accrues 
from a date sixty (60) days after the date of this Agreement; the Commitment 
Charge with respect to the Additional Financing accrues from a date sixty (60) 
days of the restated date of this Agreement. 
2.04. 
The Service Charge payable by the Recipient on the Withdrawn Credit Balance 
shall be equal to three-fourths of one percent (3/4 of 1%) per annum. 
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5
2.05. 
The Payment Dates for the Initial Financing are February 15 and August 15 in 
each year and the Payment Dates for the Additional Financing are February 15 
and August 15 in each year. 
2.06. 
The principal amount of the Credit shall be repaid in accordance with the 
repayment schedule set forth in Schedule 3 to this Agreement. 
2.07. 
The Payment Currency is Dollars. 
ARTICLE III 
—
PROJECT
 
3.01. 
The Recipient declares its commitment to the objectives of the Project.  To this 
end, the Recipient shall carry out the Project through MDRT, 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 — REMEDIES OF THE ASSOCIATION
 
4.01. 
The Additional Events of Suspension consist of the following: 
(a) 
FPS shall have failed to perform any of their respective obligations under 
the FPS Agreement. 
(b) 
Any Eligible Producer Organization or Eligible Market Agent or Eligible 
Municipality shall have failed to perform any of their obligations under 
the respective Subproject Implementation Agreement. 
4.02. 
The Additional Event of Acceleration consists of the following, namely, that any 
event specified in Section 4.01
 
of this Agreement occurs and is continuing for a 
period of 60
 
days after notice of the event has been given by the Association to 
the Recipient. 
ARTICLE V — EFFECTIVENESS; TERMINATION 
5.01. 
The Additional Conditions of Effectiveness consist of the following: 
(a) 
the Recipient has adopted the Operational Manual in a manner 
acceptable to the Association; 
(b) 
the Recipient has established the UCN, and selected the Project manager 
and the procurement and financial experts referred to in Section I.A.1(b) 
of Schedule 2 to this Agreement with respect to the UCN; and 
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(c) 
the Supreme Decree has been issued and published in
 the Recipient’s 
Official
 
Gazette
 in form and substance acceptable to the Association. 
5.02. 
The Effectiveness Deadline is December 6, 2005. 
5.03. 
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 years after the date of this 
Agreement. 
ARTICLE VI 
—
REPRESENTATIVE; ADDRESSES
 
6.01. 
The Recipient’s Representative is its Minister of Development Planning. 
6.02. 
The Recipient’s Address is: 
Ministerio de Planificación del Desarrollo  
Viceministerio de Inversión Pública y Financiamiento Externo (VIPFE) 
Palacio de Comunicaciones, Piso 11 
La Paz, Bolivia 
 
Facsimile: 
011-591-2-231-7408 (with a copy to: 011-591-2-239-2891) 
6.03. 
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. 
 
IN WITNESS WHEREOF, the parties hereto, acting through their duly 
authorized representatives, have caused this Agreement to be signed in their respective 
names in the District of Columbia, United States of America, as of the day and year first 
above written. 
 
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REPUBLIC OF BOLIVIA 
 
By /s/ Jaime Aparicio
 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
By /s/ Marcelo Giugale
 
Authorized Representative 
 
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SCHEDULE 1 
 
Project Description 
 
The objective of the Project is to test a model to improve accessibility to markets 
for poor rural producers in the Pilot Areas by: 
(a) 
promoting strategic productive alliances between different economic 
players at the local level; 
(b) 
empowering rural producers through the development of self-managed 
grass-root organizations; 
(c) 
increasing access to productive assets and technology; and 
(d) 
promoting more effective, responsive and accountable service 
organizations at the local level. 
The Project consists of the following parts, subject to such modifications thereof 
as the Recipient and the Association may agree upon from time to time to achieve such 
objective: 
Part A: Institutional Strengthening
Provision of technical assistance and training to provide the institutional and 
organizational support needed for the creation of Rural Alliances in the Pilot Areas 
including, 
inter alia
:
1. 
The carrying out of a communication and dissemination campaign to inform 
potential stakeholders about the scope and rules of the Project through local 
workshops and mass-media outlets. 
2. 
(a) 
Strengthening of the institutional capacity of producer groups to: (i) form 
Rural Alliances and prepare investment plans; (ii) improve their 
marketing and business skills; and (iii) strengthen their skills for 
negotiating with potential purchasers in a Rural Alliance. 
(b) 
Preparation of pre-feasibility and feasibility studies of Rural Alliances 
and their investment plans, and provision of training to relevant 
stakeholders on specific themes relevant to working with small, rural 
and/or indigenous producers. 
3. 
Strengthening of the capacity of technical service providers and Eligible 
Municipalities to support the Rural Alliances through, 
inter alia
:
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9
(a) 
training of officials of Eligible Municipalities in the Pilot Areas to 
familiarize them with the Rural Alliance concept and processes; 
(b) 
training of staff of Rural Alliances’ service providers on the Project and 
its fiduciary management, evaluation, organizational strengthening, 
business management and environmental aspects; and 
(c) 
management of an information system with a service provider database 
in the UORs, including an outreach program to expand the number of 
available relevant providers. 
4. 
(a) 
Publication and dissemination of Project activities including, 
inter alia
,
the results of the call-for-proposals for Subprojects, pre-feasibility and 
feasibility studies of Rural Alliances and their business plans; and 
(b) 
carrying out of financial, social, environmental and technical evaluations 
of Rural Alliances with the assistance of external evaluators. 
Part B: Subprojects
1. 
Carrying out of subprojects consisting of, among others, one or more of the 
following activities (Producer Organization Subprojects): 
(a) 
on farm infrastructure such as minor irrigation canals, storage facilities 
and community centers for product processing and water harvesting 
structures; 
(b) 
soil conservation measures such as terracing, land leveling and watershed 
treatments; 
(c) 
provision and utilization of equipment, tools, machinery, veterinary 
supplies, seeds and other vegetative material and agriculture inputs; and 
(d) 
provision of expert services and carrying out of studies in market and 
marketing, information technology, surveys, laboratory tests, publicity, 
organic certification and other technical productive services. 
2. 
Carrying out of subprojects in support of the productive goals of the Rural 
Alliance and consisting of, among others, one or more of the following activities 
(the Municipal Subprojects): 
(a) 
rural road improvement; and 
(b) 
provision of water, gas, electricity or other utility services. 
 
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Part C: Project Management
1. 
Establishment and operation of the UCN and UORs. 
2. 
Setting up and operation of a financial management information system in 
MDRT. 
3. 
Carrying out of technical studies relevant to the Project, including studies on 
market opportunities in rural areas, rural investment climate, social analysis of 
potential beneficiaries of the Project and selection of new pilot areas to be added 
to the Project, all as shall be proposed by the Recipient and agreed to by the 
Association. 
4. 
Establishment of a functional, transparent, participatory and efficient monitoring 
and evaluation system for the Project, including external and independent 
evaluations conducted at the time of mid-term review and Project completion. 
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SCHEDULE 2 
Project Execution 
Section I. 
Implementation Arrangements
A. Institutional 
Arrangements 
1. 
For purposes of implementing the Project, the Recipient shall: 
(a) 
establish and maintain at all times during Project implementation: 
(i) 
within MDRT, a national coordination unit with operational 
autonomy, established pursuant to Supreme Decree No. 28304, 
dated August 26, 2005 (the UCN); and 
(ii) 
within the UCN in each of the Pilot Areas
,
a
regional operation 
unit (UOR), 
 
all with structures, functions and responsibilities acceptable to the 
Association and set forth in the Operational Manual, including, 
inter 
alia
,
the responsibility of the UCN to coordinate, monitor and supervise 
the carrying out of the Project, and 
the UORs’ responsibilities in 
Subproject processing, field supervision and monitoring; 
(b) 
ensure that the UCN and the UORs are, at all times during Project 
implementation, headed by a Project manager for the UCN, and staffed 
with adequate professional, fiduciary, administrative and technical 
personnel (including procurement and financial experts), all with 
qualifications, experience and terms of employment acceptable to the 
Association;  
(c) 
ensure that the staff of the UCN and UORs are hired following a 
competitive and transparent selection process detailed in the Operational 
Manual; and 
(d) 
not later than November 30, 2009, complete the staffing of the UORs. 
2. 
(a) 
The Recipient shall, prior to the implementation of Subprojects in a Pilot 
Area or a part thereof, enter into an agreement with the respective 
Prefectura
 or 
Prefecturas 
with jurisdiction over such area, under terms 
and conditions which shall have been approved by the Association, 
which shall include, 
inter alia
,
the 
Prefectura
’s obligation to enable the 
Recipient to carry out the Project as set forth in the Operational Manual, 
including the operation of the respective UOR. 
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(b) 
The Recipient shall exercise its rights under each of the 
Prefectura
 
Agreements in such manner as to protect the interests of the Recipient 
and the Association and to accomplish the purposes of the Credit, and, 
except as the Association shall otherwise agree, the Recipient shall not 
assign, amend, abrogate or waive any of the 
Prefectura
 Agreements or 
any provision thereof. 
3. 
The Recipient shall, prior to the implementation of any Municipal Subproject, 
enter into an agreement with FPS under terms and conditions which shall have 
been approved by the Association which shall include, 
inter alia
:
(i) 
FPS’ obligation to supervise the Municipal Subprojects, 
including all procurement carried out by Eligible Municipalities;  
(ii) 
FPS’ obligation to enter into, together with the Recipient, the 
Municipal Implementation Subproject Agreements; and 
(iii) 
the conditions for the Recipient’s payment, out of the proceeds 
of the Credit, of selected operating costs related to FPS’ 
discharge of its responsibilities under the FPS Agreement. 
4. 
The Recipient shall, prior to implementation of any Producer Organization 
Subproject, enter into an agreement with the Eligible Producer Organization 
and/or Eligible Market Agent, substantially in accordance with the terms of the 
respective Model Producer Organization Subproject Implementation Agreement 
which shall include, 
inter alia
,
the Eligible Producer Organization’s and/or 
Eligible Market Agent’s obligation to: 
(i) 
carry out the Producer Organization Subproject in accordance 
with the requirements of the Operational Manual; and 
(ii) 
procure the goods, works and services in accordance with the 
provisions of this Agreement. 
5. 
The Recipient shall, prior to carrying out a Municipal Subproject, enter into an 
agreement with the Eligible Municipality, together with FPS, substantially in 
accordance with the terms of the Model Municipal Subproject Implementation 
Agreement, including, 
inter alia
,
the Eligible Municipality’s obligation to: 
(i) 
carry out the Municipal Subproject in accordance with the 
requirements of the Operational Manual; and 
(ii) 
procure the goods, works and services in accordance with the 
provisions of this Agreement. 
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6. 
The Recipient shall exercise its rights under the FPS Agreement, and each of the 
Producer Organization Subproject Implementation Agreements and Municipal 
Subproject Implementation Agreements, in such manner as to protect the 
interests of the Recipient and the Association and to accomplish the purposes of 
the Credit,  and, except as the Association shall otherwise agree, the Recipient 
shall not assign, amend, abrogate or waive the FPS Agreement or any of the 
Producer Organization Subproject Implementation Agreements and Municipal 
Subproject Implementation Agreements, or any provision thereof. 
7. 
(a) 
Without limitation to the provisions of Section 3.01 of this Agreement, 
the Recipient shall carry out the Project in accordance with a manual (the 
Operational Manual), acceptable to the Association, said manual to 
include, 
inter alia
:
(i) 
the environmental management plan for the Project including a 
pest management plan for the Project and the Subprojects; 
(ii) 
the guidelines for the preparation of Annual Operational Plans 
and the financial management and procurement procedures of 
the Project (including an acceptable procurement filing system);  
(iii) 
the criteria for the selection and monitoring of Rural Alliances 
and Eligible Producer Organizations and Eligible Market 
Agents; 
(iv) 
the criteria and procedures for the eligibility (including the non-
eligibility of any activity that would entail relocation or loss of 
shelter; loss of assets or access to assets; or loss of income 
sources or means of livelihood, whether or not the affected 
persons must move to another location), selection, approval, 
carrying out, monitoring and supervision of Subprojects;  
(v) 
models of agreements for: (A) Producer Organization 
Subprojects; and (B) Municipal Subprojects; and 
(vi) 
the organizational structure for implementation of the Project, 
including the functions of the UCN, and the UORs and the 
procedure to hire the UCN and UORs staff. 
(b) 
In case of any conflict between the terms of the Operational Manual and 
those of this Agreement, the terms of this Agreement shall prevail. 
8. The 
Recipient 
shall: 
(a) 
not later than November 15 of each year of Project implementation, 
starting in year 2005, furnish to the Association, for its approval, an 
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annual operational plan (the Annual Operational Plan), each said plan to 
include, 
inter alia
:
(i) the Project activities to be carried out by the 
Recipient, during the calendar year following the presentation of each 
said plan; (ii) the updated disbursement schedule for each said Project 
activities; (iii) a budget plan; (iv) a procurement plan; and (v) a Project 
schedule with timing of activities, linkages between activities and 
responsibilities; and (vi) the training program to be carried out the 
following calendar year; and 
(b) 
thereafter implement and cause to be implemented said Annual 
Operational Plan, in accordance with its terms. 
9. The 
Recipient 
shall: 
(a) 
ensure that consultants and service contracts entered into to assist in the 
implementation of Producer Organization Subprojects are awarded on 
the basis of the selection criteria, evaluation process and form of contract 
set forth in the Operational Manual; 
(b) 
carry out the communication campaign referred to in Part A.1 of the 
Project and set forth in the letter from the Recipient to the Association 
dated April 7, 2005, in accordance with its terms; and 
(c) 
not later than January 31, 2006, select the experts required to carry out 
the financial evaluations referred to in Part A.4 (b) of the Project for the 
activities financed under the Additional Financing. 
10. 
It is agreed by the parties to this Agreement that MDRT shall, yearly, prioritize 
within its overall budget allocation, the budget necessary for implementation of 
the Project during the following year. 
B. Anti-Corruption 
 
The Recipient shall ensure that the Project is carried out in accordance with the 
provisions of the Anti-Corruption Guidelines. 
Section II. 
Project Monitoring, Reporting and Evaluation 
A. Project 
Reports 
1. 
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 agreed with the Association and as 
set forth in the Indicators Letter.  Each Project Report shall cover the period of 
one calendar semester, and shall be furnished to the Association not later than 
one month after the end of the period covered by such report.  
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2. 
For purposes of Section 4.08 (c) of the General Conditions, the report on the 
execution of the Project and related plan required pursuant to that Section shall 
be furnished to the Association not later than six months after the Closing Date. 
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 not later than forty five days after the end 
of each calendar quarter, interim unaudited financial reports for the Project 
covering the quarter, in form and substance satisfactory to the Association. 
3. 
The Recipient shall have 
the Project’s 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 fiscal year of 
the Recipient.  The audited Financial Statements for each such period shall be 
furnished to the Association not later than six 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. 
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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: 
Procurement Method
(a) 
National Competitive Bidding, subject to the 
additional provisions set forth in Section I of Annex 
A
to this Schedule 2. 
(b) Shopping. 
(c) Direct 
Contracting. 
(d) Commercial 
Practices. 
(e)  Community Participation in Procurement (in 
accordance to the procedures set forth in the 
Operational Manual). 
C. 
Particular Methods of Procurement of Consultants’ Services 
 
1.
 Quality- 
and 
Cost-based 
Selection.
 
Except as otherwise provided in paragraph 
2
below, consultants’ 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 f
or
consultants’ services.  The Procurement Plan shall specify 
the circumstances under which such methods may be used. 
 
Procurement Method
(a) Quality-based 
Selection. 
(b) 
Selection under a Fixed Budget. 
(c) 
Least Cost Selection. 
(d) 
Selection Based on Consultant’s Qualifications. 
(e) 
Single Source Selection. 
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Procurement Method
(f) 
Procedures set forth in paragraphs 5.2 and 5.3 of 
the Consultant Guidelines for the Selection of 
Individual Consultants. 
(g)  Sole Source Procedures for the Selection of 
Individual Consultants. 
D. 
Review by the Association of Procurement Decisions 
1. 
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. 
2.
 
Annual Procurement Audits.  The Recipient, through MDRT, shall: 
(a) 
not later than August 31 of each year during the implementation of the 
Project, beginning on August 31, 2009, contract independent auditors 
with experience and qualifications satisfactory to the Association, 
operating under terms of reference satisfactory to the Association, to 
perform a procurement audit of all the procurement records and 
documentation for the Project, relating to the Recipient’s previous fiscal 
year of implementation of the Project, in accordance with procurement 
auditing principles acceptable to the Association (“Procurement Audit”); 
(b) 
not later than December 31 of each year during the implementation of the 
Project, beginning on December 31, 2009 and continuing for each year 
thereafter during the implementation of the Project, furnish to the 
Association the report, in form and substance satisfactory to the 
Association, on the Procurement Audit completed for the Recipient’s 
prior fiscal year;  
(c) 
at all times during the implementation of the Project, furnish to the 
Association and to the auditors performing a Procurement Audit such 
other information concerning the procurement records and 
documentation for the Project as the Association or the auditors may 
from time to time reasonably request; and 
(d) 
not later than January 31 of each year during the implementation of the 
Project, beginning on January 31, 2010, exchange views with the 
Association on the results of the Procurement Audit completed for the 
Recipient’s prior fiscal year and thereafter implement such recommended 
measures, taking into account the Association’s views on the matter. 
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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 Credit to each Category, and the percentage of expenditures to be 
financed for Eligible Expenditures in each Category: 
 
Category
Amount of the Initial 
Credit  
Allocated  
(expressed in SDR
)
Amount of the 
Additional Credit  
Allocated  
(expressed in SDR
)
Percentage of 
Expenditures  
to be Financed 
(inclusive of Taxes
)
(1) Goods 
 
490,000 
 
30,000 
 
100% 
 
(2)  Special Services 
 
150,000
220,000
100%
(3)  Consultants’ services 
 (including 
procurement 
financial audits) and 
 Training 
 
 
3,000,000 
 
3,940,000 
 
100% 
(4) Producer Organization 
 Subprojects 
 
13, 130,000 
 
10,900,000 
100% of the amounts 
disbursed by the 
Recipient on account 
of the cost of goods, 
works and services 
under a Subproject 
(5) Municipal Subprojects 
 
 1,290,000 
 
2,850,000 
100% of the amounts 
disbursed by the 
Recipient on account 
of the cost of goods, 
works and services 
under a Subproject 
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19
 
Category
Amount of the Initial 
Credit  
Allocated  
(expressed in SDR
)
Amount of the 
Additional Credit  
Allocated  
(expressed in SDR
)
Percentage of 
Expenditures  
to be Financed 
(inclusive of Taxes
)
(6) Deleted Category 
 
0 
 
0 
0 
(7) Operating Costs 
 
740,000 
 
1,000,000 
100% 
(8) Unallocated 
 
100,000 
 
960,000 
 
TOTAL AMOUNT 
 18,900,000 
 19,900,000 
 
B. 
Withdrawal Conditions; Withdrawal Period 
1. 
For purposes of the table in paragraph 2 above, the terms: 
(a) 
“Special Services” means expenditures incurred for implementation of 
the communication campaign referred to in Section A.1 of Schedule 1 to 
this Agreement, for consultants and other services, goods and materials; 
(b) 
“Training” means expenditures (other than those for consultants’ 
services) incurred by the Recipient to finance reasonable transportation 
costs and 
per-diem
 of trainees and trainers (if applicable), rental of 
training facilities and equipment under the Project; and 
(c) 
“Operating Costs” means reasonable recurrent expenditures that would 
not have been incurred by the Recipient and FPS absent the Project, for 
inter alia
,
salaries, transportation and 
per-diem
 costs of its staff including 
those for Eligible Producer Organizations participating in Project 
activities other than Training, office rent and utilities, operation and 
maintenance of office equipment, non-durable goods (all needed for the 
preparation and implementation of the Project) and health benefits only 
for the UCN and UOR staff who work for the Project. 
2.
 
Notwithstanding the provisions of Part A of this Section, no withdrawal shall be 
made for: 
(a) 
payments made for expenditures prior to the date of this Agreement, 
except that withdrawals, in an aggregate amount not exceeding the 
equivalent of SDR 660,000, may be made on account of payments made 
for expenditures before that date but after March 15, 2005; 
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(b) 
payments covered by Categories (4) and (5) of the table in paragraph 2 
above in each Pilot Area unless the required 
Prefectura
 Agreement or 
Agreements have been entered into;  
(c) 
payments covered by Categories (4) and (5) of the table in paragraph 2 
above for a Subproject unless the environmental license required for 
implementation of the Project has been issued by any competent 
authority; 
(d) 
payments covered by Category (5) of the table in paragraph 2 above for a 
Subproject unless:  
(i)  
the FPS Agreement and the respective Municipal Subproject 
Implementation Agreement have been entered into; and 
(ii)  
FPS has established to the satisfaction of the Association: (a) the 
control and monitoring unit under
 FPS’s executive office; (b) the 
environmental unit; and (c) the procurement monitoring unit; and 
(e) 
payments covered by Category (4) of the table in paragraph 2 above for a 
Subproject unless the respective Producer Organization Subproject 
Implementation Agreement has been entered into. 
2.
 
The Closing Date is March 31, 2014. 
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21
Annex A 
to 
SCHEDULE 2
 
Additional Provisions Relating to  
Particular Methods of Procurement 
Section I. 
Goods and Works
Without limitation upon the provisions of Schedule 2 to this Agreement or the 
Procurement Guidelines, the following additional provisions shall apply to all goods and 
works procured for the Project under contracts awarded on the basis of National 
Competitive Bidding (“NCB Contracts”): 
1. 
A merit point system shall not be used in the pre-qualification of bids.  
 
2. 
The award of goods and works contracts shall be based exclusively on price and, 
 
whenever appropriate, shall also take into account factors similar to those 
 
referred to in paragraph 2.51 of the Guidelines, provided, however, that the bid 
 
evaluation shall always be based on factors that can be quantified objectively, 
 
and the procedure for such quantification shall be disclosed in the invitation to 
 bid. 
 
 
3. 
The Recipient shall open all bids at the stipulated time and place in accordance 
 
with a procedure satisfactory to the Association. 
 
4. 
The Recipient shall use a single envelope procedure.  
 
5. 
Whenever there is a discrepancy between the amounts in figures and in words of 
 
a bid, the amounts in words shall govern.  
 
6. 
Except as the Association shall otherwise agree, the bidding process shall not be 
 
declared void if only three (3) bids or less have been submitted unless such bids 
 
have been determined not to be responsive.  
 
7. 
Any standards and technical specifications (quoted in the bidding documents) 
 
that are at least substantially equivalent to the national standards and technical 
 
specifications shall be acceptable.  
 
8. 
Foreign bidders shall be allowed to participate.  
 
9. 
Foreign bidders shall not be required to legalize any documentation related to 
 
their bids with Bolivian authorities as a prerequisite for bidding.  
 
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22
10. 
No margin of preference shall be granted for any particular category of bidders.  
 
11. 
In the event that a bidder whose bid was evaluated as the bid with the lowest 
 
evaluated price withdraws its bid, the contract may be awarded to the second 
 
lowest responsive evaluated bid.  
 
12. 
Foreign bidders shall not, as a condition for submitting bids, be required to enter 
 
into a joint venture agreement with local bidders. 
 
13. 
No other procurement rules or regulations of the Recipient's agencies or of any 
 
state-owned entity shall apply without the prior review and consent of the 
 Association. 
 
 
Section II. 
Selection of Consultant Services
Without limitation upon the provisions of Schedule 2 to this Agreement or the Consultant 
Guidelines, the following additional provisions shall apply to all consultants’ services 
procured for the Project: 
1.  
As a condition for participating in the selection process, foreign consultants shall 
 
not be required to enter into a joint venture agreement with local consultants, 
 
unless the conditions stated in paragraph 1.13 of the Consultant Guidelines are 
 met. 
 
 
2.  
As a condition for participating in the selection process, foreign consultants shall 
 
not be required to legalize their proposals or any documentation related to such 
 
proposals with the Recipient’s authorities.  
 
3.  
Foreign consultants shall not be required to be registered in the Recipient's 
 
National Registry of Consultants (
Registro Nacional de
 Consultoría
).  
 
4.    
Consultants (firms and individuals) shall not be required to present bid and 
performance securities as a condition to present proposals and sign a contract. 
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SCHEDULE 3
 
Repayment Schedule 
1. 
For the Initial Financing: 
 
Date Payment Due 
Principal Amount of the Credit 
repayable 
(expressed as a percentage)* 
On each February 15 and August 15: 
 
Commencing  August 15, 2015 
 to and including February 15, 2025. 
1.25% 
Commencing August 15, 2026 
to and including February 15, 2040. 
2.50% 
*
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 3.03 (b) of 
the General Conditions. 
2. 
For the Additional Financing: 
 
Date Payment Due 
Principal Amount of the Credit 
repayable 
(expressed as a percentage)* 
On each February 15 and August 15: 
 
Commencing  August 15, 2019 
 to and including February 15, 2029. 
1.25% 
Commencing August 15, 2029 
to and including February 15, 2044. 
2.50% 
*
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 3.03 (b) of 
the General Conditions. 
 
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APPENDIX 
Section I. 
Definitions 
1. 
“Additional Credit” or “Additional Financing” means the additional credit 
referred to in Section 2.01 of this Agreement. 
2. 
“Annual Operational Plan” means any of the plans referred to in Section I.A.8 (a) 
of Schedule 2 to this Agreement. 
3. 
“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. 
4. 
“Category” means a category set forth in the table in Section IV of Schedule 2 to 
this Agreement. 
5. 
“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. 
6. 
“Eligible Market Agent” means a market agent or a legally established 
organization of market agents of a Rural Alliance eligible for implementation of 
any of the activities included in Part B.1 (d) of the Project as a Producer 
Organization Subproject. 
7. 
“Eligible Municipality” means a municipality included in a Pilot Area and 
eligible for implementation of Municipal Subprojects in accordance with the 
provisions of the Operational Manual. 
8. 
“Eligible Producer Organization” means a legally established producer 
organization of a Rural Alliance eligible for implementation of a Producer 
Organization Subproject in accordance with the provisions of the Operational 
Manual. 
9. 
“Fiscal Year” means the Recipient’s fiscal year which commences on January 1 
and ends on December 31. 
10. “FPS” 
means 
Fondo Nacional de
 Inversión Productiva y Social,
 the Recipient’s 
Productive and Social Investment Fund, established pursuant to the Recipient’s 
Law Number 2235 of July 31, 2001. 
11. 
“FPS Agreement” means the agreement referred to in Section I.A.3 of Schedule 2 
to this Agreement. 
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25
12. 
“General Conditions” means the “International Development Association 
General Conditions for Credits and Grants”, dated July 1, 2005 (as amended 
through October 15, 2006), with the modifications set forth in Section II of this 
Appendix. 
13. 
“Indicators Letter” means the letter dated February 11, 2009, from the Recipient 
to the Association, setting forth the Project monitoring indicators. 
14. 
“Initial Credit” or “Initial Financing” means the initial credit referred to in 
Section 2.01 of this Agreement. 
15. “MDRT” 
means 
Ministerio de Desarrollo Rural y Tierras
,
the Recipient’s 
Ministry of Rural Development and Land or its successor thereto. 
16. 
“Model Municipal Subproject Implementation Agreement” means any of the 
agreements referred to in Section I.A.7 (v)(B) of Schedule 2 to this Agreement. 
17. 
“Model Producer Organization Subproject Implementation Agreement” means 
any of the agreements referred to in I.A.7(v)(A) of Schedule 2 to this Agreement. 
18. 
“Municipal Subproject” means a subproject to be carried out under Part B.2 of 
the Project by an Eligible Municipality selected, carried out, supervised and 
monitored in accordance with the provisions of the Operational Manual. 
19. 
“Municipal Subproject Implementation Agreement” means any of the agreements 
referred to in Section I.A.5 of Schedule 2 to this Agreement. 
20. 
“Operational Manual” means the manual referred to in Section I.A.7 of Schedule 
2
to this Agreement. 
21. 
“Pilot Area” means any of the areas listed in the Pilot Areas Letter, and any other 
pilot area as the Association shall agree, provided that the necessary 
environmental and social screenings for the additional area have been carried out 
and are satisfactory to the Association. 
22. 
“Pilot Areas Letter” means the letter dated February 12, 2009, from the Recipient 
to the Association, setting forth the pilot areas. 
23. “
Prefectura” 
means any of t
he departmental representations of the Recipient’s 
executive branch as set forth in its Law Number 1654 of July 28, 1993, and/or 
their successors thereto (
Gobiernos Autonomos Departamentales
), pursuant to 
article 277 of the Recipient’s Constitution approved on February 7, 2009. 
24. “
Prefectura 
Agreement” means the agreement referred to in Section I.A.2 of 
Schedule 2 to this Agreement. 
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26
25. 
“Procurement Guidelines” means the “Guidelines: Procurement under IBRD 
Loans and IDA Credits” published by the Bank in May 2004 and revised in 
October 2006. 
26. 
“Procurement Plan” means the Recipient’s procurement plan for the Project, 
dated February 10, 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. 
27. 
“Producer Organization Subproject” means a subproject to be carried out  under 
Part B.1 of the Project by an Eligible Producer Organization and/or and Eligible 
Market Agent selected, carried out, supervised and monitored in accordance with 
the provisions of the Operational Manual. 
28. 
“Producer Organization Subproject Implementation Agreement” means any of 
the agreements referred to in Section I.A.4 of Schedule 2 to this Agreement. 
29. 
“Rural Alliance” means a potential association or established association, as the 
case may be, of producers and market agents eligible for participation in Part A 
of the Project in accordance with the provisions of the Operational Manual. 
30. 
“Subprojects” means collectively Producer Organization Subprojects and 
Municipal Subprojects. 
31. 
“Subproject Implementation Agreement” means any of the agreements referred 
to in Sections I.A.3 or I.A.4 or I.A.5 of Schedule 2 to this Agreement. 
32. 
“Supreme Decree” means the Recipient’s decree No. 28304, dated August 26, 
2005, required to enable the financing of Producer Organization Subprojects, as 
per the terms of this Agreement. 
33. 
“UCN” means the national coordination unit referred to in Section I.A.1(a)(i) of 
Schedule 2 to this Agreement. 
34. 
“UOR” means any of the regional operating units referred to in Section 
I.A.1(a)(ii) of Schedule 2 to this Agreement. 
 
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27
Section II.   
Modifications to the General Conditions 
The modifications to the General Conditions for Credits and Grants of the Association, 
dated July 1, 2005 (as amended through October 15, 2006) 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.” 
 
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.” 
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