The World Bair k 181 HstPerFICIAL Oqz Oq 2Q71234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOP'MEN h D C WJIMh Cable Address: INTBAFRAD INTERNATIONAL DEVIE LOPMENT ASSOCIATION US Cable Address: INDEVAS February 6, 2013 H.E. Riadh Bettaieb Minister of Investment and Interna ional Cooperation Ministry of Investment and Interna :ior al C )operation Place Ali Zouaoui 1000 Tunis Republic of Tunisia Re: Republic of Tunisia: Secor d Natural Resources Management Project (Loan No. 7921 - TN; GE] TF097703) Amendments to tho Loan i,greement, the GEF Grant Agreement and the Supplemental Letter No. 2 Excellency: We refer to the Loan Agree-me.nt b -tween the Republic of Tunisia and the International Bank for Reconstruction and Development (tho Ba -ik) (the Loan Agreement), the Global Environment Facility Grant Agreement between the Republic of funisia and the Bank acting as an Implementing Agency of the Global Environment Facility (the Grznt A greement), and the Supplemental Letter No. 2 regarding the performance monitoring irdicator, all fo the above-mentioned Project, and all dated October 7, 2010 (collectively referred to as Legal Agrem( nts). We also refer to your letter dated November 22, 2012, requesting amendments to the Legr 1 Agree nents. We are pleased to inform yot tha: the Bank, after due consideration, has acceded to the above request. Accordingly, the Legal Agrecmen:s are hereby amended as follows: I. Loan Agreement 1. Schedule 1 (Project Descri)ticn) tc the Loan Agreement is hereby amended to read as set forth in Attachment I to this Amendment L ett(r. 2. Section I.A.1 of Schedule 2 (Proj ct Execution) to the Loan Agreement is hereby amended to read as follows: "The Borrower shall: (a) nsure (verall Project coordination through the CCU; (b) ensure the implementation of the Pro ect at tl .e local level through the RCADs located in the Project Area; and (c) maintain the CCUJ and 1he RCADs located in the Project Area with functions and responsibilities sat isfactorl to the 3ank and with staff in adequate numbers whose qualifications and experience are at all tiries sati: factory to the Bank." 3. Section I.C.4 of Schedule 2 (Proj,-ct Execution) to the Loan Agreement is hereby amended to read as follows: "The Borrower shall en.ure tha: any activity under Part A of the Project, requiring land acquisition is carried out iii accord ince with the RPF." 4. The table in Section III.B. , o - Scl edule 2 (Project Execution) to the Loan Agreement is hereby amended to read as set fort 1 in Att, chi nent 2 to this Amendment Letter. 5. The table in Section IV.A.2 of Sch,-dule 2 (Project Execution) to the Loan Agreement is amended to read as follows: Percentage of Amount of the Loan Expenditures to be Category Allocated financed (expressed in US Dollars) (exclusive of Taxes) (1) Works uncer PartAo- 17,500,000 100% the Project (2) Goods, Consultant' 14,600,000 100% Services and trainiiig (3) Front-end Fee 90,250 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (4) Unallocated 3,909,750 TOTAL AMOUNT 36,100,000 II. Grant Agreement 1. Schedule 1 (Project Descripticn) tc the Grant Agreement is hereby amended to read as set forth in Attachment 1 to this Amendment Lettcr. 2 2. Section I.A.1 of Schedule 2 (Proj -ct Execution) to the Grant Agreement is hereby amended to read as follows: "The Recipient shall: (a) Ins ire overall Project coordination through the CCU; (b) ensure the implementation of the Pro ect at th te local level through the RCADs located in the Project Area; and (c) maintain the CCJ End 1he RCADs located in the Project Area with functions and responsibilities satisfactory to the 3ank and with staff in adequate numbers whose qualifications and experience are at all tities sati factory to the Bank." 3. Section I.C.4 of S,-hedule 2 (Proj .ct Execution) to the Grant Agreement is hereby amended to read as follows: "The Recipient shall ensare thal any activity under Part A of the Project, requiring land acquisition is carried out ir acc.ord,.nce with the RPF." 4. The table in Secticn III.B.1 oi ScF edule 2 (Project Execution) to the Grant Agreement is hereby amended to read as set forth in Att, chi nent 2 to this Amendment Letter. 5. The table in Section IV.A.2 of Schedule 2 (Project Execution) to the Grant Agreement is amended to read as follows: Percentage of Amount of the Loan Expenditures to be Category Allocated financed (expressed in US Dollars) (exclusive of Taxes) (1) Works under PartA o' 4,500,000 100% the Project (2) Goods, Consultants' 4,100,000 100% Services and traini ig (3) Unallocated 1,130,000 TOTAL AMOUNT 9,730,000 III. Supplemental Letter No. 2 The performance indicators attact ed to the Supplemental Letter No. 2 are hereby amended to read as set forth in Attachment 3 to thi; An endment Letter. 3 All the terms and -onditions of th,- Legal Agreements that have not been hereby amended shall remain in full force and effect. Please confirm your agrcement vith the foregoing amendments by signing and dating the confirmation on the enclosed copy of this Amendment Letter and returning it to us. Upon receipt by the Bank of the copy of this Amendm ent Lett,,r countersigned by you, this Amendment Letter shall become effective as of the date of your cou iter sign, iture. Sincerely, lI TEF NATIONAL BANK FOR RECONSTRIJCTION AND DEVELOPMENT CONFIRMED AND AGREED: REPUBLIC OF TUNISIA By: Authorized Represe,ntative Jinistre de f'Investissement et ce la Title: Coopdrffo lterntionnie !4916: Riadh BETTAIEBi Date: IZu 4 Attachment 1 3roject Description The objectives of the Project are tc improve access to basic infrastructure and production means, and to improve management of natira rest urces, using a participatory approach in the Project Area. The Project consists of the foLowing parts: Part A: Financing for Execution o Investr ients Selected under the PDP Framework. Carrying out of selected in vesi men :s encompassing works, equipment, tools, materials, consultants' services and train ng, o sustain development activities in the following areas: 1. Construction and rehabIitetion of water harvesting infrastructure, establishment and rehabilitation of public anc pr ivatc irrigation schemes; and construction of drinking water supply systems. 2. Construction and rehabilitE tioi of i ural feeder roads. 3. Development of sustaina)le agri :ultural production systems through improved delivery of agricultural extension and alvisory services, improvement of pastoral, sylvo-pastoral, and forested areas, diiseminal:ior of climate-resilient farming practices, diversification of rural economic activities, and primotior of efficient water and soil conservation practices. Part B: Institutional Stren thening anc Ser sitization to Environmental Issues and IPA Methodology 1. Strengthening the capacity cf in titutions involved in implementation of the Project at the national, regional and local leA els i icluding RCADs and ADGs through the provision of logistical support, technical advisory service:, and adequate training programs. 2. Strengthening the CCU's capacity to manage the Project efficiently including ensuring adequate monitoring and evaluation, and con ipliance with all safeguard measures related to implementation of the environment and social 3rott ction framework. 3. Development and executioin cf a -ommunication and sensitization action plan aimed at raising awareness on environmentil themc s and IPA methodology. 5 Attachment 2 P rocurement Method (a) National Com3etitive IBidding subject to the following additional provisions: (i) The bidding loc ame: it clearly explains the bid evaluation, award criteria and bidder qu alif icati n criteria; (ii) Any bidder ri,gisteret in an eligible country, as defined in paragraphs 1.6 to 1. of the Procure nent Guidelines will be eligible to bid; therefore no restriction baied on nationality of bidders or origin of goods shall apply and foreign bidcers ;hall not be subject to any unjustified requirement which will af ect theii ability to bid; (iii) Gove:nment-owred enterprises in the Borrower's country may participate only if they cEn e tablish that they (a) are legally and financially autonomous; (b) ope ate under commercial law, and (c) are independent from contract ng entil y; (iv) Bidders will be allow -d to deliver their bids by mail or by hand before the expiration of :he dead line for submitting bids; (v) Technical and firianc ial envelopes are submitted together and opened in public, simulk-anious y during a unique session open to the public for works, goods and no n-consulting services; amounts shall be read aloud during the pu lic sesE ion; bidders or their representatives are authorized to attenc the bic opening session. The date, time and place for bid opening shall be annol inc -d in the invitation to bid; these date and time shall be the same as for tl- e d,-adli re for receipt of bids or immediately thereafter; (vi) Bids are eval iat d or price and any other criteria disclosed in the bidding documents ar d quant fled in monetary terms and contracts are awarded to the qualified >idder h ving submitted the lowest evaluated responsive bid, and price sha [l not bi negotiated with the lowest evaluated bidder except under the prov sion3 stated in paragraph 2.63 of the Procurement Guidelines; (vii) Procedures will incl ide the publication of the evaluation results, the contract awar] ai id pr )vision for bidders to protest; (viii) If foreign firms wish to participate, they shall be allowed to do so and no provision foi prefer .ntial treatment of national firms or mandatory assoc lation with a na ional firm or prior registration in the country of the Borrower sha I bi apf lied; (ix) Prior to issuit g t ie fi st call for bids, a draft standard bidding document to be used unt er Nat onal Competitive Bidding procurement must be subm tted to nd found acceptable by the Bank; and (x) Each bidding do:um!nt and contract for goods and works to be financed from the proceeds of the Loan shall provide that the supplier, contractor and subcontractc r sh ill permit the Bank, at its request, to inspect their accounts and records -elating to the bid submission and performance of the contract, and to hal e said accounts and records audited by auditors 6 F rocurement Method appointed by the B ink. The deliberate and material violation by the supplier, conI:ractor or subcontractor of such provision may amount to obstructive piact ce. (b) Shopping (c) Direct Contracting (d) Community P irticipat ion proc edures described in the POPM, satisfactory to the Bank 7 Attachment 3 Results Framework and Monitoring TUNISIA: Second Natural Resources Management Project (NRMP2) Proiect Develotment Obiective: The Project Development Objective is to improve living conditions for rural communities in the Project Area inter alia by fostering increased access to basic infrastructure and services, sustainable increase of income, improved natural resource management practices and promotion of an integrated approach to community-based development among various stakeholders. ThGloban ironmentaI eve4st duc4 hothratoand deWdl cmatechangeo i-vulnerable agproduonystem ith4arget aras whileelopingoptions to address land-based pollution affecting the Mediterranean Sea. R'evised Project Developmeat Objective: the revised Project Development Objective and iobal Environmental Objective is to improve access to basic intrastructure and production means, and to improve management of natural resources, using a participatory approach in the project area. I F Cumulative Tarvet Valueq I Drooned I 1T I . Resnonsibilitv PDO Level Indicators Q C= Baselinec Frequency "a o c for Data IDefinition 4)Continue _UJnit of IBeneSept Dec Dec Dec De Mehdlg ColIto N= New hVIA AVIA AVIO AU14 I U1i R= Revised These infrastructures include: - Rural roads; and - Drinking water supply systems. Beneficiaries having Annual RAs Rslswl ecletdo improved access to L R Number 0 0 200 5,800 13,000 21,000 Progress Project Sheet RCADs Results will be collected on a basic infrastructures Report (M&E Units) disaggregated basis, but presented cumulatively. If possible, disaggregation by gender will be included. These activities include - IGAs; - Agricultural extension services; - Arboriculture production; Annual - Animal production; and e ire0 0 4,000 10,300 17,500 Progress Project Sheet RCADs - Creation and rehabilitation of accempro mbees Ppr ot S (M&E Units) irrigated perimeters. Results will be collected on a disaggregated basis, but presented cumulatively. If possible, disaggregation by gender will be included. Annual Conservation activities include E N Hectares 0 0 1,500 8,200 23,100 34,300 Progress Contracts RCADs - Soil and water conservation works; e opore (M&E Units) - Land consolidation; and Repoea o- Rangeland and forestry management Direct project Number 0 0 0 30,000 60,000 100,000 Annual beneficiaries (number), N Progress ACs RCADs of which femnle (M&F TInit,) (percentage) r 0 % Report % of targeted rural Imadas targeted with improved access to 0 D basic infrastructure and services. % of IGAs introduced generating positive 0 D income flow for the beneficiaries. % of rural Imadas validated by the implemented through ACs. % of ACs that include investments in sustainable land management measures, E D including climate change adaptation measures. 9 INTERMEDIATE RESULTS D- Dropped 1 Responsibility Definition Indicators 21 C= Continue Unit of Baseline Sept Dec Dec Dec Data Source/ fosDat N= New Measure 2012 2012 120131 2014 De c 2015 FC Methodology l R= Revised Collection Component 1: Financing for Execution of Investments Selected under the PDP Framework Biannual mber of signed ACs and e ARCADs (M&E Action Contracts with a Signed s I R {Number 0 5 14 41 81 132 Progress Minutes Units) signed PV by the ADG and Reportthe RCAD. Area provided with new Biannual RCADs (M&E and improved irrigation R Hectares 0 0 0 200 400 600 Progress Contract Units) and _improvedirrigatiI onReport Units) Rural roads built or 1 Il ImItII 0 r3lannna n RCADs (M&EI Im I -1I NJ 111mett-r,1 ( 1 0 145 1 CnA I 0 Qn Pnrq CnntrnictII renanlintated Report units) Collective water points KCAD)S (M& eec r o Z N Number 0 0 40 150 300 400 Progress Contract K nAus)M plus number of water tanks Report created. Number of ACs E D implemented % of total ACs requested by communities E D implemented under the Project Water storage capacity D improved (m3) Irrigation efficiency E D improved (ha) No. farmers contracting D with advisory services. Vulnerable beneficiaries organized into interest groups and manage: Ol D - Agricultural IGAs; and - Non-agricultural IGAs: IGAs which are managed by women and young O] D graduates Number of small employment contracts E D (tdcherons) generated by project activities. % of all IGAs that include climate change adaptation E] D Increased area protected D from erosion (ha) Reduction in soil loss in areas protected from O D erosion (% decrease in tons/ha) Component 2: Development and Promotion of Use of Treated Wastewater in Agriculture Wn~ctPxvntPr rpic nntmnnc I11 1, and specifications E D identified for investments and implementation. Increase in treated I I I I ncrease I I agriculture in Kasserne Component 3: [to become Component 2 following the restructuring]: Institutional Strengthening and Sensitization to Environmental Issues and IPA Methodology Biannual Number of EDCI which Operational EDCI El N Number 0 0 14 27 40 51 Progress ACs Unit) have a working plan and Report are applying it Implementation rate of Biannual RCDAs Percentage of engagements ACsE N Percentage 0 6% 50% 70% 80% 90% Progress Contracts (M&E Units) at the level of the ACs Report UCC (M&E Values will be collected on Biannual List of Unit) a disaggregated by staff Persons trained E N Number 0 0 60 320 480 640 Progress from EDCI, UCC, RCDAs, Report (M&E Units) DEQL, but presented cumulatively % of 72 targeted Imadas with operational ADGs (technical director, action D plan implemented, adequate working equipment). Data/indicators regularly updated into national E] D M&E system. Safeguards have been implemented in line with I D the FDESP Performance reports and [ D 11 periodic reports on project activities and indicators disseminated on time. 12