OFFICAL IF i3 Lf DOCUMENTS The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL h, kK FOR RECONSTRUCT ON AND D:VELOPME NT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL i)= /ELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS February 8, 2013 H. E. Amadou Kane Minister of State Mini ter of Economy ard Finan ce Mini5try of Economy arid Finarice Daka- Reptiolic of Senegal Re: State and Peace-Building Fund Grant for the Community Peacebiuild ing Initiatives in Casamance SPF Grant TF)13474 Excellency: In response to the requc st for fi iancial assistance made on behalf of the Republic of Senegal ("Recipient"), I am pleased tc in form you that International Development Association ("World Bank"), acting as administrator of giant funds provided by various donors under the State-and Peace-Building Fund, propose; to exti,nd to the Recipient a grant in an amount not to exceed two million three hundred thousan I Unite( States Dollars (U.S.$2,300,000) ("Grant") on the terms and conditions set forth or referr,d Lo in[ this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financi ig of the project described in the Annex ("Project"). This Grant is funded ow of the abovementioned trust fund for which the World Bank receives periodic contributionw frm tie Donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex t) this Agreement), the World Bank's payment obligations in connection with this Agreemi:nt are limited to the amount of funds made available to it by the Donors under the abcvemenlion-d t-ust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availabi ity c f such funds. The Recipient represe its, by confirming its agreement below, that it is authorized to enter into this Agreement aid to catrry out the Project in accordance with the terms and conditions set forth or referred to in this Agri err ent. Please confirm the IRecipiei.t's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Ban of this countersigned copy, this Agreement shall become effecti e as of the date of tFe coun:ersignature; provided, however, that the offer of this Agrecment shall be deemed w"thcrawi if the World Bank has not received the countersigned copy f this Agreement within iin -ty (90) days after the date of signature of this Agreement by the World Bank, unless the World 3anl shall have established a later date for such purpose. Very truly yours, INTERNATIONA . DEVELOPME N Sy. Vera Songwk Coun try Director for en R - Africa Region AGREED: Le Mini e dhe I'Ec nomie REPU3LIC OF SINEGA (FinAnc s By: ByAutthorized R4 aKiNTH Name: Title: Date: 9 higa Enclosures: (1) Standard Conditions for Gra its Made by the World Bank Out of Various Funds, dated February 15, 2012 (2) Disbursement Letter of the sime date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006 (3) "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Cr!dits and Grants", dated October 15, 2006 and revised in January 2011 (4) "Guidelines: Procure nient of Goods, Works and Non-consulting Services under IBRD Loans and IDA Cred ts and Grants by World Bank Borrowers", dated January 2011 (5) "Guidelines: Selecticn and Employment of Consultants under IBRD Loans and IDA Credits and Grants by H orld Bank Borrowers", dated January 2011 2 SPF Grant No. TF013474 ANNEX Article I Stands rd Conditions; Definitions 1.01. Standard Conditions. Tie Stan lard Conditions for Grants Made by the World Bank out of Various Funds dated February 15, 201' ("Standard Conditions") constitute an integral part of this Agreement. 1.02. Definitions. Unless the c)ntext r.,quires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to th(!m n th, Standard Conditions or in this Agreement, and the following additional terms have the followin m weani igs: (a) "Consultative Grups" or "Cadre de Concertation" means a consultative group created by a Rural Counci Ito eng, ige in dialogue on local development with such Rural Council's constituency. (b) "Investment" memns a m:netary allocation equivalent to fifty thousand United States Dollars (US$50,0,)0) of the Grant for the implementation of a Peacebuilding Project by the Recipient. (c) "Operating Costs' mean; the reasonable costs, as shall have been approved by the World Bank, foi the incremental expenses incurred on account of Project implementation, con.isting of vehicle operation and maintenance, communication and insurance costs, bankini, charges, rental expenses, office (and office equipment) maintenance, utilltie5, do.ument duplication/printing, consumables, travel cost and per diem for Project staff for travel linked to the implementation of the Project, and salaries of contractual staf f: r tl e Project (but excluding consultants' services and salaries of officials of the Re-ipient'! civil service). (d) "Peacebuilding Pi oje:t" rieans a targeted set of measures to reduce Rural Community's vulnerability to co)nf ict a nd hamper its development, which has been designed by the Rural Community's Consi iltative Group and approved by its Rural Council. (e) "Rural Communilies" or 'Communauti Rurale" means one of the 25 local government entities in the rui al area! of the Ziguinchor region, as defined by Law no. 96-06 of March 22, 1996 entitled "Codes des Collectivitis Locales ". (f) "Rural Council" or "Cc nseil Rural" means the deliberative assembly of a Rural Communi.y as dfired by Law no. 96-06 of March 22, 1996 entitled "Codes des Collectiviies Locales '. (g) "Service Agreement" or Convention de Maitrise d'Ouvrage Ddligude) means the agreemeni referred to in Article 2.03.B.1. (h) "SPF Operation Mar ual" means an annex to the existing administrative and financial manual of the Re ipient v hich details implementation and reporting arrangements for the Project. 3 (i) "Training and Workshop." means the reasonable costs, as shall have been approved by the World Bank, for tra ning and workshops conducted under the Project, including tuition, travel ard :;ubsistence costs for training and workshop participants, costs associated with sec:ur ng t ie services of trainers and workshop speakers, rental of training and workshop fac litis, p -eparation and reproduction of training and workshop materials, and other costs dir.ctly related to training course and workshop preparation and implementation (tut exclL ding goods and consultants' services). Article II Project Execution 2.01. Project Objectives and Pescripti on. The objective of the Project is to support peace-building initiatives of Rural Communities in Ca;ama ice. The Project consists of the following parts: Part A Capacity Building for Peac, Carrying out a program of activiti.s t str.ngthen the capacity of Rural Communities and their respective Consultative Groups to promote pea Lce, incr ase their technical expertise in peace building projects and public information. Such program to include activ ties such as (i) collecting data and information and disseminating the results to local stakeholders, (ii) Froviding training in peacebuilding activities, and (iii) holding public consultations on different proposals prc pare I by Consultative Groups and assisting in project design. Part B: Catalytic Investmer ts 1. Strengthening managemeni capacity of Rural Councils and their respective Consultative Groups by providing training on topic; su:h a, planning, contracting, financial management and accounting. 2. Carrying out peace -building Ir vest nents, such investments to include, but not be limited to activities such as: (a) educat on campaig n on landmines risk; (b) start-up kits for young farmers; (c) vocational training; (d) rehabilitation of small )ublic infrastructures; and (e) community radio equipment. 3. Monitoring and supervision of the Project implementation activities through collaborative community oversight. Part C: Project Managemer t Project coordination, supervisior,, -mar cial management, communication and outreach, including (i) strengthening the capacity of tho R cipient, (ii) monitoring and evaluation of the Project, and (iii) provision of Training, Operating Costs, goods and services required for the purpose. 2.02. Project Execution Gener,alj. T ie Recipient declares its commitment to the objectives of the Project To this end, the Recip eni sh,11 carry out the Project through the Agence Rigionale de Diveloppement de Ziguinchor (AlDZ) in accordance with the provisions of: (a) Article 1I of the Standard Conditions; (b) the "Guidelines or Pr.ven ting and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credit s aid (rants", dated October 15, 2006 and revised in January 2011 ("Anti-Corruption Guidelines"); a id (c) th is Article II. 4 2.03. Institutional and Other Arraigen rents A. Institutional Arrangemeits In ord.er to ensure prompt and efficient irrplementation of the Project, the Recipient shall, throughout the Projeci. implementation period: (i) main ain, ARDZ with competent and qualified staff in adequate number to be responsible for Proj ct imple-mentation and management, such staff to include a director, a civil engineer, an agronomist an tcccuntant and a procurement specialist, and (ii) no later than three (3) months after the Effective Date, re cruit anI thereafter maintain at all times during Project implementation, a Project coordinator specialized in peacc-building and a Project assistant each of whose qualifications, experience and terms of reference shall be acceptable to the World Bank. B. Other Institutional Arrairgc men ts 1. Service Agreement: To [acilitat the proper carrying out of Part B of the Project, the Recipient shall, no later thar twelve months (12) after the Effective Date, enter into an agreement with each of the Rural Communitics ("Ser vice Agreement") pursuant to which (a) each Rural Council delegates the implemeniation of an Investment, including technical, economic, financial, managerial, and aI fiduci iry aspe:ts, to the Recipient, and (b) the Recipient agrees to implement such Investment on behalf of the I ural Council. 2. SPF Operation Manual: Tie R,-cipient shall (a) within four (4) months of the Effective Date, update the SPF Operatiom Manuil in form and substance satisfactory to the World Bank, (b) ensure that the Project is !arried cut in accordance with the SPF Operation Manual, and shall not amend or waive any of its provisions without the prior written agreement of the World Bank, and (c) notwithstandirg the fhregoing, in the event of inconsistency between the provisions of the SPF Operation IVManual and thos,- in this Agreement, the provisions of this Agreement shall prevail. 2.04. Project Monitoring, Repo rtiLg at, d Evaluation. (a) The Recipient shall monitor and evaluate the progress of the Proj ct and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Cotidit ons and on the basis of indicators acceptable to the World Bank. Each P,oject Report shall cover tle periot of three (3) months, and shall be furnished to the World Bank not later than fifteen (15) clays after the en I of the period covered by such report. (b) The Recipient sh 11 rrepa-e the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conlitions. The Completion Report shall be furnished to the World Bank not later than six (6) months after he Clos ng Date. 2.06. Financial Management. ia) T ie Recipient shall ensure that a financial management system is maintained in accordance with the prcvisiins of Section 2.07 of the Standard Conditions. (b) The Recipient sh ill -nsu e that interim unaudited financial reports for the Project are prepared and furnished to ,he Wor Id Bank not later than forty-five (45) days after the end of each calendar semesler, covering the semester, ir, fo7m a id substance satisfactory to the World Bank. (c) The Recipient sliall haNe its Financial Statements audited in accordance with the provisions of Section 2.07 (b) of the Star dard Conditions. Each audit of the Financial Statements shall cover lie period of one (1) fiscal ear of t] e Recipient, commencing with the fiscal year in which the first 5 withdrawal was made under the P rcjcct. [he audited Financial Statements for each such period shall be furnished to the World Bank not hter than six (6) months after the end of such period. 2.07. Procurement. Al goods, works, ion-consulting services, and/or consulting services required for the Project and to be financed, ftilly or r artially, out of the proceeds of the Grant shall be procured in accord&nce with the requirement st t fo th or referred to in the "Guidelines: Procurement of Goods, Works, and Non-Consulting Serv ice! unt.er IBRD Loans and IDA Credits and Grants by World Bank Borrow%ers", dated January 201' ("Pro,urement Guidelines"), and the "Guidelines: Selection and Employment of Consultants under IB RD Loans and IDA Credits and Grants by World Bank Borrowers", dated .anuary 2011 ("Consultant Guidelin.s"). 2.08. Any contract for Eligible Expenditures to be financed in full or in part out of the proceeds of the Grant shall be included in the procur -mevt plan prepared by the Recipient and approved by the Bank in accordance with the Pro-uremerit Guidclines and the Consultant Guidelines, prior to initiating the procurement process for any such contract Article III WVith lrawal of Grant Proceeds 3.01. Eligible Expenditures. The Rec pient may withdraw the proceeds of the Grant in accordance with the provisions of: (i) Article II cf the Standard Conditions; (ii) this Section; and (iii) such additional instructions as the World Bank nay sp(cify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projocts" da ed May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance 100% of Eligible Expenditures consisting of goods, works, consultants' services, Training and Workshops, and Operating Costs inclusive of Taxes. 3.02. Withdrawal Conditions. No:witl standing the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payneits a ade prior to the date of countersignature of this Agreement by the Recipient. 3.03. Withdrawal Period. The Clcsing Date referred to in Section 3.06 (c) of the Standard Conditions is March 31, 2014. Article IV IR eciiiien 's Representative; Addresses 4.01. Recipient's Representatire. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its minister of finai,ce. 4.02. Recipient's Addrcss. The Zeci )ient's Address referred to in Section 7.01 of the Standard Condilions is: Ministry of Economy and Finance Rue Rend N'diaye B.P. 4017 Dakar Senegal 6 Facsimile: 221-33-821-1630 4.03. World Bank's Address. The Wo -Id Bank's Address referred to in Section 7.01 of the Standard Condilions is: International Development Associ:iticn 1818 I Street, N.W. Washington, D.C. 20433 United States of America Facsini'ile: 1-202- 77-6391 7