OFFICIAL DOCUMENTS GRANT NUMBER D5670 Financing Agreement (Solar Energy in Local Communities Project) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION GRANT NUMBER D5670 FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between the REPUBLIC OF BURUNDI ("Recipient") and the INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of assisting in financing the project described in Schedule I to this Agreement ("Project"). 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) 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 Il -FINANCING 2.01. The Association agrees to extend to the Recipient a grant, which is deemed as Concessional Financing for purposes of the General Conditions (collectively, "Financing") in an amount equivalent to seventy two million and four hundred thousand Special Drawing Rights (SDR 72,400,000) ("Financing" or "Grant") to assist in financing the project described in Schedule I to this Agreement ("Project"). 2.02. The Recipient may withdraw the proceeds of the Financing in accordance with Section l11 of Schedule 2 to this Agreement. 2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.04. The Payment Dates are April 15 and October 15 in each year. 2.05. The Payment Currency is Dollar. ARTICLE I1-PROJECT 3.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient shall carry out Parts 1, 3,4 and 5 of the Project through the Ministry of Hydraulics. Energy and Mines ("MINHEM") and Part 2 of the Project through the Rural Electrification Agency ("ABER") in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV- EFFECTIVENESS; TERINATION 4.01. The Additional Conditions of Effectiveness consist of the following, namely that the Recipient has prepared and thereafter adopted the Project Implementation Manual, in form and substance acceptable to the Association. 4.02. The Effectiveness Deadline is the date is one hundred and twenty (120) days after the Signature Date. 4.03. 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 the Signature Date. ARTICLE V- REPRESENTATIVE; ADDRESSES 5.01. The Recipient's Representative is the minister in charge of finance, budget and cooperation for economic development. 5.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Minister of Finance, Budget and Cooperation for Economic Development Ministry of Finance, Budget and Cooperation for Economic Development Bujumbura, Republic of Burundi ; and (b) the Recipient's Electronic Address is: Telex: MINIFINBDI 5.03. 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 AGREED as of the Signature Date. REPUBLIC OF BURUNDI By Athorized Representative Name: ii >4ÉZ&,iŠd Title: I , c.iÆiSca.z Date: Etrofl INTERNATIONAL DEVELOPMENT ASSOCIATION By Authorized Representative Name: Title: Date: , SCHEDULE I Project Description The objective of the Project is to expand access to energy services for households, enterprises, schools and health centers in rural areas of Burundi. The Project consists of the following parts: 1. Energy Services for Schools and Health Service Centers A. Supporting Selected Schools and Selected Health Service Centers through: (i) the supply and installation of institutional stoves and/or solar PV systems, including purchase of Maintenance Equipment; and (ii) provision of technical assistance and Training to enhance access to alternative fuel sources, as well as the design and rollout of related energy services to the nearby communities, including solar and clean and efficient stoves libraries. B. Provision of Maintenance Grants to: (i) Selected Schools to maintain the institutional stoves; and (ii) Selected Health Service Centers to maintain the solar PV systems. 2. Energy Services for Rural Communities Supporting ABER in delivering electricity to Burundian households through mini- grids supplied through solar-hybrid systems. 3. Energy Services for Households A. Accelerating the clean energy market growth and carrying out the distribution of stand-alone solar products and clean and efficient cookstoves (Subprojects) through the provision of Subgrants to Selected Private Companies under a Grant Administrator, including: (i) Subgrants to startup companies and/or entities and; (ii) Subgrants to early stage growth companies and/or entities; and (iii) Result Based Grants to existing companies and/or entities against the selling and/or leasing quality certified solar products and clean and efficient cookstoves. 4. Technical Assistance. Capacity Building and Project Implementation Support Supporting the Recipient in: A. Strengthening energy access and planning, including through: (i) the development of a national electrification strategy and plan; (ii) the establishment of a national electricity access planning and program coordinating unit; (iii) the establishment of a national energy database and planning platform; and (iv) capacity building of the Project Coordination Unit for planning activities and hosting a geospatial unit. B. Strengthening the market for off-grid energy solutions, including through: (i) the development of curriculum and Training local technicians and strengthening and/or establishing district maintenance centers; (ii) provision of technical assistance to establish quality standards for mini-grids, stand-alone solar systems and clean and efficient cookstoves; (iii) carrying out market campaigns to promote quality products; (1v) carrying out awareness campaigns for commercial banks, microfinance institutions and other financing entities, on investment opportunities in the solar sector; (iv) organizing matchmaking events between local solar companies and solar manufactures; and (v) establishing sistainability mechanisms for the Project. C. (i) carrying out consumer awareness and citizen engagement campaigns; and (ii) supporting the Gender Action Plan through required technical assistance, Trainings, and establishment of a scholarship program. D. Project Management, coordination, supervision, financial management, procurement, communication and outreach, supervision of implementation of the social and environmental standards, monitoring and evaluation. All through the provision of technical assistance, Training, Operating Costs, goods and services required for the purpose, Part 5. Contingent Emergency Response Providing immediate response to an Eligible Crisis or Emergency, as needed. SCHEDULE 2 Project Execution Section 1. Implementation Arrangements A. MINHEM 1. The Recipient shall designate the implementation of Parts 1,3,4 and 5 of the Project, to MINHEM, and shall take all actions including the provision of funding, personnel and other resources necessary to enable the MINHEM to perform its functions. To this end, The Recipient shall ensure that MINHEM, coordinates with the ministries in charge of health and education, in accordance with adequate implementation arrangements as defined in the Project Implementation Manual. 2. To facilitate the day- to- day implementation of Project activities, MINHEM shall maintain at all times during the implementation of the Project within MINHEM, the Project Coordination Unit ("PCU") with composition, mandate, staffing and other resources satisfactory to the Association, all in accordance with the provisions of the Project Implementation Manual. To this end, the Recipient, through the MINHEM shall no later than four (4) months after the Effective Date, recruit and thereafter maintain throughout Project implementation, a Project coordinator, a procurement specialist, financial management specialist, environmental specialist and social specialist; energy, health and education technical specialists, gender specialist, two accountants, and a monitoring and evaluation specialist; all with qualifications, experience and terms of reference satisfactory to the Association. 3. The Recipient shall through MINHEM, no later than six (6) months after the Effective Date, shall hire an independent audit firm to audit the Project's financial statements, with terms of reference satisfactory to the Association. 4. The Recipient, through MINHEM shall, no later than three (3) months after the Effective Date, establish and thereafter maintain a technical committee, in charge of providing support to the PCU throughout Project implementation, and which shall include experienced and technical specialists from project stakeholders, including the Recipient's ministries in charge of health and education, under terms and conditions satisfactory to the Association. B. Steering Committee In order to ensure proper oversight of the Project and coordination among the Recipient's ministries and agencies involved in the Project, the Recipient shall, not later than three (3) months after the Effective Date, establish, and thereafter maintain throughout Project implementation, with terms of reference, mandate, composition and resources satisfactory to the Association, a steering committee chaired by the permanent secretary of MINHEM and a deputy chair who is a high level representative in the MoF; and composed of representatives from ABER, AREEN, REGIDESO, and Recipient's ministries in charge of health, education and solidarity as well as consumers representatives, as further detailed in the Project Implementation Manual ("Steering Committee"). To this end, the Steering Committee shall meet biannually, approve Annual Plans and Budgets, oversee Project Implementation, and provide overall guidance. C. ABER 1. The Recipient shall carry out Part 2 of the Project, through ABER and shall take all actions necessary to enable ABER to perform its functions. To this end, the Recipient shall cause ABER to establish and maintain throughout Project Implementation, an Implementation Unit (ABER PIU) with a composition, mandate, staffing and other resources satisfactory to the Association, all in accordance with the provisions of the Project Implementation Manual. To this end, The Recipient shall, no later than four (4) months after the Effective Date, cause the ABER to hire and/or designate and thereafter maintain throughout Project implementation key staff, including, a Project Manager, a procurement specialist, financial management specialist, an environmental specialist and a social specialist; all with qualifications, experience and terms of reference satisfactory to the Association. 2. To facilitate the carrying out of Part 2 of the Project, the Recipient shall make the proceeds of the Financing allocated to Category (2) of the table set forth in Section III of this Schedule, from time to time, available to the ABER under an implementation agreement between the Recipient and the ABER, under terms and conditions approved by the Association ("linplementation Agreement"), which shall include: (a) the principal amount of the Financing made available under the Implementation Agreement which shall be on Grant terms; (b) the obligation ofthe ABER to carry out Part 2 ofthe Project in coordination with the Project PCU, with due diligence and efficiency, in conformity with appropriate administrative, social and environmental aspects, financial and technical practices, including the Procurement Regulations, Anti-corruption Guidelines and the Environmental and Social Standards, and in accordance with the Project Implementation Manual, and provide, or cause to be provided, promptly as needed, the facilities, services and other resources required for the Project; (c) the obligation of the ABER to comply with record keeping, auditing and reporting requirements set forth in this Agreement (operations, resources and expenditure) for the Project; (d) the obligation of the ABER, at the request of the Recipient or the Association, to exchange views with the Recipient and the Association with regards to the progress of the Project and the performance of its obligations under the Implementation Agreement; (e) the obligation of ABER to prepare and submit biannually, a progress report to the Recipient and the Association, as further detailed in the Project Implementation Manual; and (f) the obligation of the ABER to promptly inform the Recipient and the Association of any condition which interferes or threatens to interfere with the progress of the Project, or the performance of its obligations under the Implementation Agreement. 3. The Recipient shall exercise its rights under the Implementation Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. 4. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Implementation Agreement or any of its provisions. 5. In the event of any conflict between the provisions of the Implementation Agreement and the provisions of this Agreement, the provisions of this Agreement shall prevail. D. Project Implementation Manual 1 . The Recipient shall, maintain, in accordance with terms of reference acceptable to the Association, and furnish to the Association, a Project implementation manual containing detailed: (a) technical, administrative, procurement, accounting, financial management matters, environmental and social standards, and monitoring and evaluation arrangements (b) sample formats for annual reports; (c) detailed coordination mechanisms on cross-sectoral collaboration with ministries in charge of health and education; (d) mechanisms for the Recipient to ensure that any Project activities, including any Subprojects, involving irrigation will be Ilimited to the rehabilitation and/or renovation of existing irrigation schemes or installations and that no new irrigation investments or other investments in new infrastructure/works involving the use or potential pollution of international waterways will be financed under the Project, and satisfactory to the Association; and (e) mechanisms for the monitoring and evaluation of the work performed by the Subgrant Administrator, Selected Schools, Selected Health Service Centers and Selected Private Companies. Said manual to further include, inter alta, an elaboration of the eligibility criteria and terms and conditions of, Subgrants, Subprojects and Maintenance Grants, and procedures for preparation, approval and monitoring and evaluation, of Subprojects and Maintenance Grants, in a manner satisfactory to the Association. 2. The Recipient shall: (a) furnish such manual to the Association for review and approval; (b) afford the Association a reasonable opportunity to exchange views with the Recipient on said manual; and (c) thereafter adopt said manual as shall have been approved by the Association ("Project Implementation Manual" and -PIM"). 3. The Recipient shall carry out the Project in accordance with the Project Implementation Manual, and shall not assign, amend, abrogate, or waive, or permit to be assigned, amended, abrogated, or waived, the aforementioned manual, or any provision thereof, without the prior written agreement of the Association. 4. Notwithstanding the foregoing, in the event of any inconsistency between the provisions of the Project Implementation Manual and those of the Financing Agreement, the provisions of the Financing Agreement shall prevail. E. Annual Work Program I. The Recipient shall, not later than June 15 in each calendar year during Project implementation, prepare and furnish to the Association, a program of Project activities proposed for implementation in the following calendar year, including: (a) a detailed timetable for the sequencing and implementation of said activities; and (b) the types of expenditures required for such activities, a proposed financing plan and a budget ("Annual Work Program"). 2. The Recipient shall exchange views with and seek approval of the Association on each such proposed annual work program, and shall thereafter ensure that ABER carries out such program of activities for Part 2 of the Project for such following year as shall have been agreed between the Recipient and the Association 3. Only those activities which are included in an Annual Work Program shall be implemented. Notwithstanding the foregoing, the Annual Work Program might be amended from time to time to include new activities with the prior and written concurrence of the Association. F. Maintenance Grants I. The Recipient shall provide Maintenance Grants to Selected Schools and Selected Health Service Centers under Part 1.B of the Project. To this end, the Recipient shall make each Maintenance Grant under a Maintenance Grant Agreement with the respective Selected School or Health Service Center on terms and conditions approved by the Association, which shall include the following: (a) The Maintenance Grant shall be made on a non-reimbursable grant basis. (b) The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the respective Selected School or Health Service Center to use the proceeds of the Maintenance Grant, or obtain a refund of all or any part of the amount of the Maintenance Grant then withdrawn, upon the respective Selected School or Health Service Center's failure to perform any of its obligations under the Maintenance Grant Agreement; and (ii) require each Selected School or Health Service Center to: (A) carry out or ensure that the Maintenance Grant is carried out with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social aspects and practices satisfactory to the Association, including in accordance with the provisions of the Procurement Regulations, Anti- Corruption Guidelines and Environmental and Social Standards; (B) provide, promptly as needed, the resources required for the purpose; (C) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect its operations, including the operations, resources and expenditures related to the Maintenance Grant; and (2) at the Association's or the Recipient's request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association, and permit the Association to make such statements as so audited available to the public, along with Maintenance Grant Agreement; and (D) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 6. The Recipient shall exercise its rights and carry out its obligations under each Maintenance Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Maintenance Grant Agreement or any of its provisions. G. Subgrant Administrator and Subgrant Operational Manual 1 The Recipient, through MINHEM, shall recruit and thereafter maintain, a Subgrant Administrator or more, as the need may be, with experience and under terms of reference acceptable to the Association, to coordinate and implement Part 3 of the Project, in accordance with the provisions of this Agreement, the Project Implementation Manual and the Subgrant Operational Manual. 2. The Recipient, through the Subgrant Administrator shall develop, adopt and thereafter maintain a Subgrant Operational Manual which shall include, inter alia, an elaboration of the eligibility criteria and terms and conditions of Subprojects, and procedures for preparation, approval and monitoring and evaluation, of Subprojects ("Subgrant Operational Manual"). The Subgrant Operational Manual shall become an integral part of the PlM upon approval by the Association. 3. The Recipient, through the Subgrant Administrator shall: (a) furnish such manual to the Association for review and approval; (b) afford the Association a reasonable opportunity to exchange views with the Recipient on said manual; and (c) thereafter adopt said manual as shall have been approved by the Association. 4. The Recipient shall cause the Subgrant Administrator carry out its responsibilities under Part 3 of the Project in accordance with the Project Implementation Manual and Subgrant Operational Manual, and shall not assign, amend, abrogate, or waive, or permit to be assigned, amended, abrogated, or waived, the aforementioned manuals, or any provision thereof, without the prior written agreement of the Associatipn. 5. Notwithstanding the foregoing, in the event of any inconsistency between the provisions of the Project Implementation Manual or the Subgrant Operational Manual and those of the Financing Agreement, the provisions of the Financing Agreement shall prevail. H. Subgrants 1. The Recipient, through MINHEM, shall make Subgrants to Selected Private Companies to finance Subprojects under Part 3 of the Project, in accordance with eligibility criteria and procedures set forth in the PIM, the Subgrant Operational Manual and acceptable to the Association, which shall not include: (a) any Sub-projects involving non-eligible expenditures (as such term is defined in the Project Implementation Manual); (b) any Sub-projects affecting international waterways, natural habitats or disputed areas; (c) any Sub-projects involving the conversion or degradation of forest areas; (d) any Sub-projects involving the construction or rehabilitation of dams; (e) any Sub-projects that would be classified as 'High" in accordance with the Bank's environmental and social policies and procedures; and (f) any Sub-projects that finance Excluded Expenditures, as set forth in this Agreement. 2. The Recipient shall, through MIINHEM, ensure that the proposed Selected Private Company: (a) is a natural person or a legal entity established and operating under the laws of the Recipient with the organization, management, technical capacity and financial resources necessary to carry out the proposed Subproject; and (b) has prepared a satisfactory business plan, including financing plan and budget, and a satisfactory implementation plan for the proposed Subproject. 3. The Recipient shall make each Subgrant under a Subgrant Agreement with the respective Selected Private Company on terms and conditions approved by the Association, which shall include the following: (a) The Subgrant shall be made on a non-reimbursable grant basis. (b) The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Selected Private Company to use the proceeds of the Subgrant, or obtain a refund of all or any part of the amount of the Subgrant then withdrawn, upon the Selected Private Company's failure to perform any of its obligations under the Subgrant Agreement; and (ii) require each Selected Private Company to: (A) carry out or ensure that the Subproject is carried out with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social aspects and practices satisfactory to the Association, including in accordance with the provisions of the, Procurement Regulations, Anti-Corruption Guidelines, and Environmental and Social standards; (B) provide, promptly as needed, the resources required for the purpose; (C) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect its operations, including the operations, resources and expenditures related to the Sub-project; and (2) at the Association's or the Recipient's request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association, and permit the Association to make such statements as so audited available to the public, along with Subgrant Agreement; and (D) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 6. The Recipient shall exercise its rights and carry out its obligations under each Subgrant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Subgrant Agreement or any of its provisions. L Contingent Emergency Response Mechanism 1 . In order to ensure the proper implementation of Part 5 of the Project ("Contingent Emergency Response") ("CERC Part"), the Recipient shall take the following measures: (a) prepare and furnish to the Association for its review and approval, an operations manual, which shall set forth detailed implementation arrangements for the CERC Part, including: (i) designation of, terms of reference for and resources to be allocated to, the entity to be responsible for coordinating and implementing the CERC Part ("Coordinating Authority"); (ii) specific activities which may be included in the CERC Part, Eligible Expenditures required therefor ("Emergency Expenditures"), and any procedures for such inclusion; (iii) financial management arrangements for the CERC Part; (iv) procurement methods and procedures for Emergency Expenditures to be financed under the CERC Part; (v) documentation required for withdrawals of Emergency Expenditures; (vi) environmental and social safeguard management frameworks for the CERC Part, consistent with the Association's policies on the matter; and (vii) any other arrangements necessary to ensure proper coordination and implementation of the CERC Part; (b) afford the Association a reasonable opportunity to review said proposed operations manual; (c) promptly adopt such operations manual for the CERC Part as shall have been approved by the Association ("CERC Operations Manual"); (d) ensure that the CERC Part is carried out in accordance with the CERC Operations Manual; provided, however, that in the event of any inconsistency between the provisions ofthe CERC Operations Manual and this Agreement, the provisions of this Agreement shall prevail; and (e) not amend, suspend, abrogate, repeal or waive any provision of the CERC Operations Manual without prior approval by the Association. 2. The Recipient shall, throughout the implementation of the CERC Part, maintain the Coordinating Authority, with adequate staff and resources satisfactory to the Association. 3. The Recipient shall undertake no activities under the CERC Part (and no activities shall be included in the CERC Part) unless and until the following conditions have been met in respect of said activities: (a) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the CERC Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (b) the Recipient has prepared and disclosed all safeguards instruments required for said activities, in accordance with the CERC Operations Manual, the Association has approved all such instruments, and the Recipient has implemented any actions which are required to be taken under said instruments. J. Environmental and Social Standards. 1. The Recipient, through MINHEM shall, and shall cause ABER to, ensure that the Project is carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Association. 2. Without limitation upon paragraph 1 above, The Recipient, through MINHEM shall, and shall cause ABER to, ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan ("ESCP"), in a manner acceptable to the Association. To this end, the Recipient, through MINHEM shall, and shall cause ABER to, ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, and as further specified in the ESCP; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies, procedures and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP; and (d) the ESCP or any provision thereof, is not amended, revised or waived, except as the Association 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. 2. The Recipient, through MINHEM shall, and shall cause ABER to, (a) take all measures necessary on its part to. collect, compile, and furnish to the Association through regular reports, with the frequency specified in the ESCP, and promptly in a separate report or reports, if so requested by the Association, 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 Association, setting out, inter alia: (i) the status of implementation of the ESCP; (ii) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (iii) corrective and preventive measures taken or required to be taken to address such conditions; and (b) promptly notify the Association of any incident or accident related to or having an impact on the Project 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. 3. The Recipient, through MINHEM shall , and shall cause ABER to, maintain and publicize the availability of a grievance mechanism, in form and substance satisfactory to the Association, to hear and determine fairly and in good faith all complaints raised in relation to the Project, and take all measures necessary to implement the determinations made by such mechanism in a manner satisfactory to the Association. Section II. Project Monitoring, Reporting and Evaluation The Recipient shall furnish to the Association each Project Report not later than one month after the end of each calendar semester, covering the calendar semester. Section I. Withdrawal of the Proceeds of the Financin A. General Without limitation upon the provisions of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures; in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Category Amount of the Grant Allocated Percentage of (expressed in SDR) Expenditures to be Financed (inclusive of taxes) (1) Goods, 25,400,000 100% works, non- consulting services, and consulting services, Training and Operating Costs for the Project except Part 2. (2) Goods, 26,800,000 100% works, non- consulting services, and consulting services, Training and Operating Costs for Part 2 of the Project (3) 8,700,000 100% Maintenance Grants under Part 1.B of the Project (4) Subgrants 11,500,000 100% under Part 3 of the Project (5) 0 Emergency Expenditures under Part 5 of the Project. TOTAL 72,400,000 AMOUNT B. Withdrawal Conditions; Withdrawal Period I1. Notwithstanding the provisions of Part A above, no withdrawal shall be made for payments made prior to the Signature Date, or (a) under Category (2), unless and until the Recipient enters into an Implementation Agreement with ABER, with terms and conditions acceptable to the Association, to carry out Part 2 of the Project; (b) under Category (4), unless and until the Recipient: (i) hires a Subgrant Administrator with terms of reference and mandate, acceptable to the Association; and (ii) develops and adopts, through the Subgrant Administrator, a Subgrant Operational Manual, satisfactory to the Association; (c) under Category (5), unless and until the Association is satisfied, and has notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said activities: (i) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the CERC Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has prepared and disclosed all environmental and social standards instruments required for said activities, and the Recipient has implemented any actions which are required to be taken under said instruments, all in accordance with the provisions of Section J of Schedule 2 to this Agreement; (iii) the Recipient's Coordinating Authority has adequate staff and resources, in accordance with the provisions of Section LI of Schedule 2 to this Agreement, for the purposes of said activities; and (iv) the Recipient has adopted an CERC Operations Manual in form, substance and manner acceptable to the Association and the provisions of the CERC Operations Manual remain or have been updated in accordance with the provisions of Section 1.I of Schedule 2 to this Agreement so as to be appropriate for the inclusion ahd implementation of said activities under the CERC Part. 2. The Closing Date is March 1, 2026. APPENDIX Section 1. Definitions 1. "ABER" means the Burundian Agency for Rural Electrification, established by virtue of Presidential decree number 10013 18 on December 22, 2011. 2. "AREEN" means the Burundian National authority for regulating the electricity and water sector, established by virtue of Presidential decree no 100/159 on November 5, 2018. 3. "Anti-Corruption Guidelines" means, for purposes of paragraph 5 of the Appendix to the General 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. 4. "Category" means a category set forth in the table in Section l11I.A of Schedule 2 to this Agreement. 5. "CERC" means contingent emergency response mechanism. 6. "CERC Part of the Project" and "CERC Part" each means Part 5 of the Project 7. "Contingent Emergency Response Operations Manual" and "CERC Operations Manual" each means the operations manual referred to in Section F of this Agreement, to be adopted by the Recipient for the CERC Part of the Project in ,accordance with the provisions of said Section. 8. "Coordinating Authority" the entity or entities designated by the Recipient in the CERC Operations Manual and approved by the Association pursuant to Section F of Schedule 2 to this Agreement, to be responsible for coordinating the CERC Part of the Project. 9. "Eligible Crisis or Emergency" means an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact to the Recipient, associated with a natural or man-made crisis or disaster. 10. "Emergency Expenditures" means the eligible expenditures required to finance the cost of the approved list of goods, works, and services necessary to support emergency mitigation, response and recovery, under Part 5 of the Project and set forth in the Emergency Response Operations Manual. 11. "Emergency Response Operations Manual" means the operations manual to be adopted by the Recipient for Part 5 of the Project in accordance with the provisions of Section 1.1 of Schedule 2 to this Agreement. 12. "Environmental and Social Commitment Plan" or the acronym "ESCP" means the Recipient's environmental and social commitment plan, acceptable to the Association, dated January 24, 2020, which sets out a summary of the material measures and actions to address the potential environmental and social risks and impacts of the Project, 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 Association, and such term includes any annexes or schedules to such plan. 13. "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 Association at 14. "Excluded Expenditures" means alcoholic beverages, tobacco, un-manufactured, tobacco refuse, tobacco, manufactured (whether or not containing tobacco substitutes), radioactive and associated materials, pearls, precious and semiprecious stones, unworked or worked, nuclear reactors, and parts thereof; fuel elements (cartridges), nonirradiated, for nuclear reactors, tobacco processing machinery, jewelry of gold, silver or platinum group metals (except watches and watchcases) and goldsmiths' or silversmiths' wares (including set gems), gold, non-monetary (excluding gold ores and concentrates). 15. "Gender Action Plan": means the plan prepared by the Recipient to include (i) the actions to be implemented in order address gender gaps identified, alongside a proposed schedule, and (ii) the monitoring mechanism needed to track the implementation of the gender actions, under the Project. 16. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated December 14, 2018. 17. "Implementation Agreement" means the agreement to be entered into between the Recipient and ABER to carry out the technical activities of Part 2 of the Project, as further detailed in the PIM. 18. "Maintenance equipment" means equipment needed to maintain and replace parts of the installed solar PV systems and clean and efficient stoves under Part I.A of the Project. 19. "Maintenance Grants" means the grants for maintenance and replacement provided to Selected Schools and Health Service Centers, under Part I.B of the Project. 20. "MINHEM" means the Recipient's ministry in charge of energy. 21. "MoF" means the Recipient's ministry in charge of finance. 22. "Operating Costs" means the reasonable cost of the following expenditures required for the Project: office supplies, vehicle, office equipment and office operation and maintenance, communication and insurance costs, banking charges, rental expenses, utilities, transport, accommodation and per diem for Project supervision carried out by Project staff, and salaries of Project contractual staff (but excluding the salaries of officials of the Recipient's civil service) 23. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. 24. TV" means photovoltaic. 25. "Result Based Grants" means a type of the Sub-grants provided under Part 3.A(iii) against the selling and/or leasing of quality certified solar products and/or clean and efficient cookstoves, as verified by a verification agent, under the terms and conditions set out in the PIM. 26. "REGIDESO" means the state-owned national electricity and water production and distribution company, established by virtue of Presidential decree number 100/164 on September 5, 1997. 27. "Subproject" mean means the Subprojects carried out by Selected Private Companies under Part 3 of the Project, and with criteria and conditions further defined in the PIM. 28. "Selected Schools" means the eligible schools selected to receive a Maintenance Grant under Part LB of the Project. 29. "Selected Health Service Center" means the eligible health centers selected to receive a Maintenance Grant under Part LB of the Project. 30. "Selected Private Company" means any eligible company or entity selected to receive a Subgrant through a Subgrant Administrator under Part 3 of the Project. 31. "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. 32. "Subgrant" means any Subgrant provided through a Subgrant Administrator under Part 3 of the Project, including the Result Based Grants. 33. "Subgrant Administrator" means experienced consultant/firm who, under the PCU, will manage the allocation of Subgrants, including Result Based Grants, including the screening and selection of grant beneficiaries under Component 3 of the Project. 34. "Subgrant Operational Manual" means the manual to be prepared by the Grant Administrator, and endorsed by the Recipient, pursuant to the Section LG of Schedule 2 to this Agreement containing detailed implementation arrangements and procedures for the allocation of Subgrants, including Result Based Grants under Component 3, as the same may be amended and/or supplemented from time to time; including,all of its annexes. 35. "Training" means the reasonable costs of training under the Project approved by the Association, 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,