OFFICIAL DOCUMENTS CREDIT NUMBER 6517-BO CREDIT NUMBER 6516-BO Financing Agreement (Bolivia Urban Resilience Project) between PLURINATIONAL STATE OF BOLIVIA and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER 6517-BO CREDIT NUMBER 6516-BO FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between PLURINATIONAL STATE 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) 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 II- CREDIT 2.01. The Association agrees to extend to the Recipient two credits, which are deemed as Non-concessional Financing for purposes of the General Conditions, as follows: (a) a credit in the amount of fifty million Dollars (USD 50,000,000) ("Credit No. 6517-BO"), and (b) a credit in the amount of twenty million Dollars (USD 20,000,000) ("Credit No. 6516-BO"), as such amounts may be converted from time to time through a Currency Conversion, to assist in financing the project described in Schedule I to this Agreement ("Project"). 2.02. The Recipient may withdraw the proceeds of each Credit in accordance with Section III of Schedule 2 to this Agreement. 2.03. The Front-end Fee is one quarter of one percent (A of 1%) of the respective Credit amount. 2.04. The Commitment Charge is one-quarter of one percent (1 of 1%) per annum on the respective Unwithdrawn Credit Balance. -2- 2.05. (a) The Interest Charge for Credit 6517-BO is the Reference Rate plus the Fixed Spread or such rate as may apply following a Conversion; subject to Section 3.09(e) of the General Conditions. (b) The Interest Charge for Credit 6516-BO is the Reference Rate plus the Variable Spread or such rate as may apply following a Conversion; subject to Section 3.09(e) of the General Conditions. 2.06. (a) The Payment Dates for Credit 6517-BO are April 15 and October 15 in each year. (b) The Payment Dates for Credit 6516-BO are March 15 and September 15 in each year. 2.07. (a) The principal amount of Credit 6517-BO shall be repaid in accordance with Section A of Schedule 3 to this Agreement. (b) The principal amount of Credit 6516-BO shall be repaid in accordance with Section B of Schedule 3 to this Agreement. ARTICLE III - PROJECT 3.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient shall cause (a) the GAMSC to carry out Parts I and 3.1 of the Project; and (b) the GAMLP to carry out Parts 2 and 3.2 of the Project, all in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.01. The Additional Event of Suspension consists of, namely, that Municipal Law No. 233 has been amended, suspended, abrogated, repealed or waived so as to materially and adversely affect, in the opinion of the Association, the ability of GAMLP to prevent encroachments in areas stabilized under or in connection with the Project. 4.02. The Additional Event of Acceleration consists of, namely that any event specified in Section 4.01 of this Agreement occurs and is continuing for a period of thirty (30) days after notice of the event has been given by the Association to the Recipient. -3- ARTICLE V - EFFECTIVENESS; TERMINATION 5.01. The Additional Conditions of Effectiveness consist of the following: (a) the Operational Manual has been prepared and adopted by each Project Implementing Entity in respect of each Project Implementing Entity's Respective Part of the Project, all in a manner acceptable to the Association. (b) at least one Subsidiary Agreement has been signed and delivered and all conditions precedent to its effectiveness (other than the effectiveness of this Agreement) have been fulfilled, 5. 02. The Effectiveness Deadline is the date one hundred and twenty (120) days after the Signature Date. ARTICLE VI - REPRESENTATIVE; ADDRESSES 6.01. The Recipient's Representative is the Minister of Development Planning. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Avenida Mariscal Santa Cruz, 1092 Ministerio de Planificaci6n del Desarrollo La Paz, Bolivia; and (b) the Recipient's Electronic Address is: E-mail: despacho.min@plani ficacion.gob.bo 6.03. 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 -4- (b) the Association's Electronic Address is: Telex: Facsimile: 248423 (MCI) 1-202-477-6391 AGREED as of the Signature Date. PLURINATIONAL STATE OF IltIVEk Authe zed Rep enative Lame: Carlos M hor D1Villavicencio Title: Minist of Development Planning Date: March 5, 2020 INTERNATIONAL DEVELOPME T ASSOCIATION By u orized Representative Name: Indu John-Abraham Title: Country Manager Date: March 5, 2020 -5- SCHEDULE 1 Project Description The objective of the Project is to reduce vulnerability to hydrometeorological hazards and improve living conditions in selected low-income areas in the Participating Municipalities. The Project consists of the following parts: Part 1: Resilient Infrastructure and Urban Upgradinu in Santa Cruz de Ia Sierra 1.1. Development of Resilient Infrastructure and Improvement of Public Space (a) Construction of approximately 6.4 kilometers (kin) of Santa Cruz de la Sierra's Eighth Ring Drainage Channel, and improvement of a continuous flood buffer area along the banks of the Channel to be designed as a public space to include walkways, pedestrian crossings and bicycle lanes; (b) construction, informed by public consultations carried out under Part 3.1 of the Project, of a stretch of approximately 4.2 km of the Pirai Metropolitan River Park (Parque Ecoldgico Merropolitano Pirai), including, inter alia, playgrounds, recreational areas, pedestrian crossings and bicycle paths, and nature viewing points to reduce the risk of future encroachment and maintain the space as a permeable flood buffer zone for Santa Cruz de la Sierra; and (c) development of an Integral Management Plan for the Pirai Metropolitan River Park, the improvement of Santa Cruz de la Sierra's disaster risk management and flood early warning system, and capacity building for operations and maintenance of assets. 1.2. Upgrading of Urban Neighborhoods and Improvement of Mobility (a) Upgrade certain areas in the City Center Area selected in accordance with the criteria set forth in the Operational Manual through, inter alia, upgrading and construction of public space landscaping, pedestrian crossings, and street lights; (b) construction of approximately 65 km of bicycle lanes using ecological and resilient standards to connect the Pirai Metropolitan River Park to the City Center Area; and (c) the development of a city masterplan for non-motorized transport, including, inter alia, social campaigns to promote cycling and road safety. Part 2: Resilient Infrastructure, Slope Stabilization and Urban Upgrading in La Paz 2.1. Development of Resilient Infrastructure, Slope Stabilization and Improvement of Public Space -6- (a) Construction of approximately 870 meters long channeling infrastructure along the Irpavi and Orkojahuira rivers, reclaim available public space along the Irpavi and Orkojahmira rivers and generate green areas to create a buffer zone to prevent flooding and settlements along the riverbanks; and (b) in the Landslide Area: carrying out of slope stabilization works, supporting the repair of the drainage system, construction of approximately 550 meters of channeling infrastructure along the Colahluma river to maintain the river course, prevent future erosion and reduce further landslide risk. 2.2. Upgrading of Urban Neighborhoods and Improvement of Mobility (a) Upgrading of Selected Neighborhoods with street improvements, access to basic services, street lighting, recreational parks, community centers, and infrastructure to strengthen their resilience to natural hazards. Part 3: Project Management 3.1. Provision of Support for Project management and implementation activities under Part I of the Project, including, inter alia, Project audits; monitoring and evaluation of the Project; and citizen engagement (including the public consultations for the carrying out of Part 1.1(b) of the Project) and communication campaigns. 3.2. Provision of Support for Project management and implementation support activities under Part 2 of the Project, including, inter alia, Project audits; monitoring and evaluation of the Project; and citizen engagement and communication campaigns. -7- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements The Recipient shall cause each Project Implementing Entity to: (a) carry out its Respective Part of the Project pursuant to Article Ill of this Agreement, initially through (i) in the case of GAMSC, its Municipal Secretariat of Administration and Finance, and (ii) in the case of GAMLP, its Municipal Secretariat of Integral Risk Management; and (b) assign Project implementation to the respective PIU pursuant to paragraph 2 of this Section LA of Schedule 2. 2. No later than 30 days after the Effective Date, the Recipient shall cause each Project Implementing Entity to establish and thereafter maintain in charge of the implementation of the Project, a project implementing unit (the "PIU") with resources and terms of reference satisfactory to the Association, including: (a) for the PIU-SC under GAMSC: a Project coordinator, procurement specialist, social safeguards specialist, environmental safeguards specialist, monitoring and evaluation specialist, a financial management specialist, and a communications expert; and (b) for the PIU-LP under GAMLP: a Project coordinator, a Project planning, control and monitoring specialist, procurement specialist, technical social and environmental specialist, financial management specialist, and a legal advisor. 3. In respect of Part 1.1(c) of the Project, the Recipient shall ensure through the respective Project Implementing Entity that adequate implementation arrangements and staffing are in place, in form and substance acceptable to the Association, prior to initiating the procurement process for the improvement of the early warning system for the city of Santa Cruz de la Sierra. B. Subsidiary Agreements 1 . To facilitate the carrying out of the Project Implementing Entities' respective Parts of the Project, the Recipient shall make part of the proceeds of the pertinent Credit available to the pertinent Project Implementing Entity under a subsidiary agreement to be entered into between the Recipient and each Project Implementing Entity (each, a "Subsidiary Agreement") under terms and conditions acceptable by the Association, which shall include, inter alia: -8- (a) the principal amount of the pertinent Credit made available under a Subsidiary Agreement shall be made available in no less favorable terms than those set forth in this Agreement; (b) the obligation of each Project Implementing Entity to comply with the pertinent provisions of this Agreement, the Operational Manual and the Anti-Corruption Guidelines; (c) the obligation of each Project Implementing Entity to promptly inform the Recipient and the Association of any condition which interferes, or threatens to interfere, with the performance of their respective obligations under the Project; and (d) the right of the Recipient to take remedial actions against a Project Implementing Entity in the event such Project Implementing Entity shall have failed to comply with any of its obligations under the respective Subsidiary Agreement. 2. The Recipient shall take the necessary measures required to enable each Project Implementing Entity to comply with its obligations under its respective Subsidiary Agreement. 3. The Recipient shall exercise its rights and carry out its obligations under each Subsidiary Agreement in such a manner as to protect the interests of the Recipient and the Association and to accomplish the Project objective. The Recipient shall not take any action in respect of the Subsidiary Agreement or any of its provisions which shall affect materially and adversely, in the opinion of the Association, the ability of the Project Implementing Entity to perform any of its obligations under the Subsidiary Agreement. 4. In the case of a conflict between the provisions of any Subsidiary Agreement and the provisions of this Agreement, the provisions of this Agreement shall prevail. C. Operational Manual The Recipient shall cause each Project Implementing Entity to carry out its Respective Parts of the Project in accordance with the provisions of a manual, acceptable to the Association (the "Operational Manual"), which shall include, in respect of each Project Implementing Entity's Respective Parts of the Project, iner alia: (i) the procurement, financial management and disbursement requirements and procedures (including standard bidding documents) for the Project; (ii) the indicators to be used for monitoring and evaluating the Project; (iii) the functions, responsibilities, structure and key staff composition of the respective PIU; (iv) the policies and procedures for the coordination of the implementation, monitoring and evaluation of the Project, including, inter alia, the procedures for: (A) -9- coordinating requests for amendments, waivers, and other communications between each Project implementing Entity, the Recipient and the Association, including requests for the reallocation or cancellation of proceeds of the Loan; and (B) compiling and consolidating the Project reports, financial statements and other information prepared by each Project Implementing Entity for delivery to the Association; and (v) the selection criteria for the areas in which Project activities will be implemented. 2. Except as the Association shall otherwise agree, the Recipient shall not, and shall cause each Project Implementing Entity to not, amend, abrogate, waive or fail to enforce the Operational Manual, or any provision thereof. In case of any conflict between the terms of this Agreement and those of the Operational Manual, the terms of this Agreement shall prevail. D. Safeguards 1 . The Recipient shall ensure that the Project shall be implemented in accordance with the guidelines, procedures, timetables and other specifications set forth in the Safeguard Instruments. In particular, the Recipient shall ensure and shall cause the Project Implementing Entities to ensure that: (a) for each activity under the Project of a type for which the respective Environmental Management Frameworks provide that an Environmental Management Plan should be prepared, such Environmental Management Plan, in form and substance satisfactory to the Association, is effectively prepared and locally disclosed, before the implementation of such activity, in accordance with the provisions of the Environmental Management Framework, and the relevant activity is implemented in accordance with its Environmental Management Plan; (b) for each activity under the Project of a type for which the respective Social Management Frameworks provide that a Social Management Plan should be prepared, such Social Management Plan, in form and substance satisfactory to the Association, is effectively prepared and locally disclosed, before the implementation of such activity, in accordance with the provisions of the Social Management Framework, and the relevant activity is implemented in accordance with its Social Management Plan; and (c) for each activity under the Project of a type for which the respective Resettlement Policy Framework provides that a Resettlement Action Plan should be prepared, such Resettlement Action Plan, in form and substance satisfactory to the Association, is effectively prepared and locally disclosed, before the implementation of such activity, in accordance with -10- the provisions of the Resettlement Policy Framework, and the relevant activity is implemented in accordance with its Resettlement Action Plan. 2. Except as the Association shall otherwise agree in writing and subject to compliance with applicable consultation and public disclosure requirements of the Association, the Recipient shall not, and shall ensure that each Project Implementing Entity does not abrogate, amend, repeal, suspend, waive or fail to enforce any provisions of any of the Safeguard Instruments. 3. Without limitation upon its other reporting obligations under this Agreement, the Recipient shall cause each Project Implementing Entity to regularly collect, compile and submit to the Association, on a semi-annual basis, reports on the status of compliance with the Safeguard Instruments, giving details of: (a) measures taken in furtherance of the Safeguard Instruments; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the Safeguard Instruments; and (c) remedial measures taken or required to be taken to address such conditions. 4. The Recipient shall cause each Project Implementing Entity in respect of the Project Implementing Entity's Respective Parts of the Project to ensure that all contracts for civil works under the Project obligate the applicable contractors and subcontractors to: (a) adopt and enforce a code of conduct that applies to and is signed by all personnel working on any Project activities, in form and substance acceptable to the Association, detailing measures on environmental, health and safety as well as measures to prevent and respond to gender-based violence; (b) report promptly to the relevant PIU any allegations of gender-based violence against any of their personnel; and (c) investigate promptly and thoroughly any allegations of violations of said code of conduct. 5. Technical Assistance. The Recipient shall cause each Project Implementing Entity in respect of the Project Implementing Entity's Respective Parts of the Project to ensure that: (a) all consultancies related to technical assistance, design and capacity building under the Project, the application of whose results could have environmental, social and health and safety implications, shall only be undertaken pursuant to terms of reference reviewed and found satisfactory by the Association; and (b) such terms of reference shall require the technical assistance, design and capacity building activities to take into account the requirements of the applicable Safeguards Policies and EHS Guidelines. 6. Grievance Redress Mechanism. The Recipient shall cause each Project Implementing Entity in respect of the Project Implementing Entity's Respective Parts of the Project to maintain, throughout Project implementation, and publicize the availability of a grievance redress 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 -11- implement the determinations made by such mechanism in a manner satisfactory to the Association. 7. In the event that any provision of the Safeguard Instruments shall conflict with any provision under this Agreement, the terms of this Agreement shall prevail. E. Other Arrangements I. The Recipient shall cause each Project Implementing Entity to carry out its Respective Parts of the Project in accordance with the provisions of: i. this Agreement; ii. its respective Subsidiary Agreement; iii. the Operational Manual in respect of its Respective Parts of the Project; and iv. the Safeguards Instruments. Section II. Proiect Monitoring Reporting and Evaluation The Recipient shall cause each Project Implementing Entity to furnish to the Association (with a copy to the Recipient) each Project Report in respect of its Respective Part of the Project not later than forty-five days after the end of each calendar semester, covering the calendar semester. Section III. Withdrawal of the Proceeds of the Credit 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: (1) Credit 6517-BO to: (a) finance Eligible Expenditures; and (b) pay: (i) the Front-end Fee; and (ii) each Interest Rate Cap or Interest Rate Collar premium; and (2) Credit 6516-BO to finance Eligible Expenditures, all in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: -12- Category Amount of Credit Amount of Credit Percentage of 6517-BO 6516-BO Expenditures to Allocated Allocated be financed (expressed in USD) (expressed in USD) (inclusive of Taxes) (1) Goods, works, 46,049,300 0 100% non-consulting services, and consulting services under Part I of the Project (2) Goods, works, 0 19,300,000 100% non-consulting services, and consulting services under Part 2 of the Project (3) Goods, non- 3,825,700 0 100% consulting services, consulting services, Training and Operating Costs under Part 3.1 of the Project (4) Goods, non- 0 700,000 100% consulting services, consulting services, Training and Operating Costs under Part 3.2 of the Project (5) Front-end Fee 125,000 to be financed out of Amount payable Recipient's own pursuant to resources Section 2.03 of this Agreement in accordance with Section 3.08 (b) of the General Conditions -13- -- (6) Interest Rate 0 - to be financed out ofT Amount due Cap or Interest Recipient's own pursuant to Rate Collar resources Section 4.06 (c) premium of the General Condi tions TOTAL I 50,000,000 I 20,000,000 C AMOUNT K _ - ..- - B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A above, no withdrawal shall be made: (a) For payments made prior to the Signature Date, except that: (i) withdrawals up to an aggregate amount not to exceed ten million dollars ($10,000,000) from Credit 6517-BO may be made for payments made during the period between one year prior to the Signature Date and the Signature Date, for Eligible Expenditures under Categories (1) and (3); and (ii) withdrawals up to an aggregate amount not to exceed four million dollars ($4,000,000) from Credit 6516-BO may be made for payments made during the period between one year prior to the Signature Date and the Signature Date, for Eligible Expenditures under Categories (2) and (4); or (b) Under Categories (1) and (3), or (2) and (4) unless the pertinent Subsidiary Agreement has been signed by the parties thereto, delivered, and all conditions precedent to its effectiveness have been fulfilled. 2. The Closing Date is June 30, 2025. -14- SCHEDULE 3 Section A Commitment-Linked Amortization Repayment Schedule The following table sets forth the Principal Payment Dates of Credit 6517-BO and the percentage of the total principal amount of the Credit payable on each Principal Payment Date ("Installment Share"). Level Principal Repayments Principal Payment Date -Installment Share On each April 15 and October 15 5.0% Beginning April 15, 2025 through October 15, 2034 Section B Commitment-Linked Amortization Repayment Schedule The following table sets forth the Principal Payment Dates of Credit 6516-BO and the percentage of the total principal amount of the Credit payable on each Principal Payment Date ("Installment Share"). Level Principal Repayments F'j principal Payment Date Installment Share On each March 15 and September 15 4.17% Beginning March 15, 2026 through March 15, 2037 - September 15, 2037 4.09% (5 -4.09% _____ -15- APPENDIX Section 1. Definitions "Affected Person" means a person or entity who, on account of the execution of the Project, has experienced or would experience direct economic and social impacts caused by: (i) the involuntary taking of land resulting in: (A) relocation or loss of shelter; (B) loss of assets or access to assets; or (C) loss of income sources or means of livelihood, whether or not such person must move to another location; or (ii) the involuntary restriction of access to legally designated parks and protected areas, resulting in adverse impacts on the livelihood of such person; and "Affected Persons" means more than one such Affected Person. 2. "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. 3. "Category" means a category set forth in the table in Section Ill.A of Schedule 2 to this Agreement. 4. "City Center Area" means the area within the Municipality of Santa Cruz de la Sierra defined pursuant to Article 210 of the Town Planning and Works Code - C6digo de Urbanismo y Obras - adopted pursuant to Municipal Law (Ley Autondmica Municipal) No.1005!2018 dated December 3, 2018. 5. "Credit No. 6517-BO" means the amount specified in Section 2.01(a) of this Agreement 6. "Credit No. 6516-BO" means the amount specified in Section 2.01(b) of this Agreement. 7. "EHS Guidelines" means the World Bank Group Environmental, Health and Safety Guidelines published on www.ifc.org/ehsguidelines, as said guidelines are updated from time to time. 8. "Environmental Management Framework, La Paz" or "EMF-LP" means the Marco de Gesti6n Anibientalpara el Componente de La Paz, Prograina Cindades Resilientes prepared and adopted by GAMLP, satisfactory to the Association, dated August 2019, and disclosed in-country, and the Association's website on September 2, 2019, setting out the principles, rules, guidelines and procedures to screen and assess the potential adverse environmental risks and impacts (including health and safety issues) of Project activities, adopt measures to avoid, reduce, mitigate or offset environmental adverse risks and impacts, procedural, budget and institutional arrangements and actions needed to implement these measures, and -16- information on the agency or agencies responsible for addressing the Projects' risks and impacts; as well as for the preparation of Environmental Management Plans La Paz (EMP-LPs), as such framework may be amended by the GAMLP from time to time, with the prior written agreement of the Association. 9. "Environmental Management Framework, Santa Cruz" or "EMF-SC" means the Marco de Gesti6n Ainbienial, Prograna Ciudades Resilientes, para la chidad de Santa Cruz de la Sierra prepared and adopted by GAMSC, satisfactory to the Association, dated August 2019, and disclosed in-country, and the Association's website on September 2, 2019, setting out the principles, rules, guidelines and procedures to screen and assess the potential adverse environmental risks and impacts (including health and safety issues) of Project activities, adopt measures to avoid, reduce, mitigate or offset environmental adverse risks and impacts, procedural, budget and institutional arrangements and actions needed to implement these measures, and information on the agency or agencies responsible for addressing the Projects' risks and impacts; as well as for the preparation of Environmental Management Plans Santa Cruz (EMP-SCs), as such framework may be amended by the GAMSC from time to time, with the prior written agreement of the Association. 10. "Environmental Management Plan, La Paz" or "EMP-LP" means the instrument to be prepared by the GAMLP, satisfactory to the Association, and to be disclosed on the Association's website in accordance with the Safeguard Policies, which will detail: (a) the measures to be taken during the implementation of the Project to avoid, minimize, mitigate or offset adverse environmental impacts (including health and safety issues), or to reduce them to acceptable levels; (b) the measures that endeavor to prevent and respond to gender-based violence and sexual exploitation and abuse; and (c) the procedural, budget and institutional arrangements and actions needed to implement these measures, including any schedules to such plan, and as such plan may be amended by the GAMLP from time to time, with the prior written approval of the Association. 1. "Environmental Management Plan for the South West Eighth Ring" or "EMP-8" means the Evaluacin Ambienial de Sitio Especifico (EASE) - Canal Emisario Octavo Anillo Sur Oeste Programa "Cindades Resilientes" prepared and adopted by the GAMSC pursuant to the EMF-SC, satisfactory to the Association, and disclosed on the Association's website on September 2, 2019, which details: (a) the measures to be taken during the implementation of the Project to avoid, minimize, mitigate or offset adverse environmental impacts (including health and safety issues), or to reduce them to acceptable levels; (b) the measures that endeavor to prevent and respond to gender-based violence and sexual exploitation and abuse; and (c) the procedural, budget and institutional arrangements and actions needed to implement these measures, including any schedules to such plan, and as such plan may be amended by GAMSC from time to time, with the prior written approval of the Association. -17- 12. "Environmental Management Plan, Santa Cruz" or "EMP-SC" means any environmental management plan required to be prepared by the GAMSC pursuant to the EMF-SC, satisfactory to the Association, and to be disclosed on the Association's website pursuant to the Safeguard Policies once prepared and adopted, which details: (a) the measures to be taken during the implementation of the Project to avoid, minimize, mitigate or offset adverse environmental impacts (including health and safety issues), or to reduce them to acceptable levels; (b) the measures that endeavor to prevent and respond to gender-based violence and sexual exploitation and abuse; and (c) the procedural, budget and institutional arrangements and actions needed to implement these measures, including any schedules to such plan, and as such plan may be amended by GAMSC from time to time, with the prior written approval of the Association. 13. "GAMLP" means the Municipal Autonomous Government (Gobierno Aut6nomo Municipal) of La Paz, the capital of the Recipient's Department of La Paz. 14. "GAMSC" means the Municipal Autonomous Government (Gobierno Aut6nomo Municipal) of Santa Cruz de la Sierra, the capital of the Recipient's Department of Santa Cruz. 15. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated December 14, 2018, with the modifications set forth in Section II of this Appendix. 16. "Integral Management Plan for the Pirai Metropolitan River Park" means the plan to be prepared under Part 1.1(c) of the Project which will identify key stakeholders, opportunities for improved coordination across neighboring municipalities, issues and constraints related to the protection and management of the Park, and will provide a roadmap to maintain the protected area, including a proposed budget and the roles/responsibilities of the key actors; the upgrading of the city's flood early warning system; and, capacity building for operations and maintenance of public infrastructure in the Park. 17. "Landslide Area" means the area referred to in Article 1 of GAMLP Executive Resolution No. 131/2019 of April 30, 2019. 18. "Municipal Law No. 233" means the GAMLP's Ley Municipal Autondmica de Fiscalizaci6n Tgcnica Territorial, dated March 29, 2017. 19. "Municipal Secretariat of Administration and Finance" means the secretariat under GAMSC established pursuant to Municipal Decree No. 23 dated July 27, 201 8. 20. "Municipal Secretariat of Integral Risk Management" means the secretariat under GAMLP established pursuant to Municipal Decree No.21 dated August 22, 2014. -18- 21- "Operating Costs" means the incremental expenses incurred by the respective PlU on account of Project implementation, management, and monitoring and evaluation, including, inter alia, the reasonable costs for utilities and supplies, bank charges, communications, vehicle operation, maintenance, and insurance, office space rental, building and equipment maintenance, public awareness-related media expenses, travel and supervision, and salaries of contractual and temporary staff, but excluding salaries, fees, honoraria, and bonuses of members of the Recipient's or Project Implementing Entity's civil service. 22. "Operational Manual" means the manual referred to in Section LC of Schedule 2 to this Agreement, as the same may be amended from time to time with the approval of the Association. 23. "Participating Municipalities" means the Recipient's municipalities of La Paz and Santa Cruz de ]a Sierra, and any other municipality of the Recipient selected to participate in the Project with the prior agreement of the Association. 24. "Pirai Metropolitan River Park" or the "Park" means the municipal park established pursuant to Law No. 2913 of November 18, 2004, as amended by Law No. 1037 of March 28, 2018, in Santa Cruz de la Sierra. 25. "PIU" means indistinctively PIU-LP or PIU-SC as the case may be. 26. "PIU-LP" means the Project Implementing Entity unit under the Municipality of La Paz, in charge of implementation of Parts 2 and 3.2 of the Project. 27. "PIU-SC" means the Project Implementing Entity unit under the Municipality of Santa Cruz, in charge of implementation of Parts I and 3.1 of the Project. 28. "Procurement Regulations" means, for purposes of paragraph 85 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017 and August 2018. 29. "Project Implementing Entity" means GAMSC or GAMLP, as the case may be. 30. "Resettlement Action Plan" or "RAP" means the RAP-8 or any of the Recipient's action plans prepared and disclosed in accordance with the Resettlement Policy Framework with respect to an activity included under an annual work plan and budget, which, infer alia: (i) contains a census survey of Affected Persons and valuation of their assets; (ii) describes compensation and other resettlement assistance to be provided, consultation to be conducted with displaced persons about acceptable alternatives, institutional responsibilities for the implementation and procedures for grievance redress, and arrangements for monitoring and evaluation; and (iii) contains a timetable and budget for the implementation of such measures. -19- 31. "Resettlement Action Plan for the Eighth Ring" or "RAP-8" means the Plan de Reasentaniento Abreviado Proyecto Canal Emisario 8vo Anillo Suroeste adopted by GAMSC, satisfactory to the Association, and disclosed on the Association's website on September 2, 2019. 32. "Resettlement Policy Framework" or "RPF" means the RPF-SC or the RPF-LP, as the case may be. 33. "Resettlement Policy Framework La Paz" or "RPF-LP" means the Marco de Politicas de Reasentamiento Prograia Chidades Resilientes prepared and adopted by GAMLP, satisfactory to the Association, dated July 2019 and disclosed on the Association's website on September 2, 2019, which sets out the resettlement principles, guidelines, organizational arrangements (including consultation and budget), and design criteria for the preparation of RAPs under the Project, as such framework may be amended from time to time with the prior written agreement of the Association. 34. "Resettlement Policy Framework Santa Cruz" or "RPF-SC" means the Marco de Politicas de Reasentaniento Programa Chidades Resilienies prepared and adopted by GAMSC, satisfactory to the Association, dated August 2019 and disclosed on the Association's website on September 2, 2019, which sets out the resettlement principles, guidelines, organizational arrangements (including consultation and budget), and design criteria for the preparation of RAPs under the Project, as such framework may be amended from time to time with the prior written agreement of the Association. 35. "Safeguard Instruments" means collectively, the EMF-LP and EMF-SC, any EMP-LP or EMP-SC, and the EMP-8; the SMF-LP and SMF-SC, any SMP-LP or SMP-SC; the RPF-LP and RPF-SC, any RAP, and the RAP-8, and "Safeguard Instrument" means any of such Safeguards Instruments. 36. "Safeguard Policies" means the Operational Policies (Ops) and Bank Procedures (BPs) of the Association, namely OP/BP 4.01 (Environmental Assessment), OP/BP 4.04 (Natural Habitats), OP/BP 4.09 (Pest Management), OP/BP 4.10 (Indigenous Peoples), OP/BP 4.11 (Physical Cultural Resources), OP/BP 4.12 (Involuntary Resettlement), OP/BP 4.36 (Forests), and OP/BP 4.37 (Safety of Dams); they can be found at https://policies.worldbank.org. 37. "Selected Neighborhoods" means low income and underserved neighborhoods in the Municipality of La Paz, including: Barrio 3 De Mayo, Barrio Alto Delicias D- 2, Barr-io Alto Rosasani Sector A, Barrio Alto Tejar Koa Koa, Barrio Chapuma, Barrio Pokeni, Barrio Norte, Villa Copacabana Pacasa, Barrio San Jose Condorini, and Barrio San Juan Lazareto, as the foregoing may be revised from time to time to include new areas or reduce the list pursuant to criteria set forth in the Operational Manual in respect of implementation of Part 2.2 of the Project. -20- 38. "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. 39. "Social Management Framework La Paz" or "SMF-LP" means the Marco de Gesti6n Social y Evaluaciin Social - Progrania Ciudades Resilientes, prepared and adopted by the GAMLP, satisfactory to the Association, dated August 2019, disclosed in-country, and the Association's website on September 2, 2019, setting out the principles, rules, guidelines and procedures to screen and assess the potential adverse social risks and impacts (including health and safety issues) of Project activities, adopt measures to avoid, reduce, mitigate or offset social adverse risks and impacts, procedural, budget and institutional arrangements and actions needed to implement these measures, and information on the agency or agencies responsible for addressing the Projects' risks and impacts; as well as for the preparation of social management plans, as such framework may be amended by the GAMLP from time to time, with the prior written agreement of the Association. 40. "Social Management Framework Santa Cruz" or "SMF-SC" means the Marco y Evaluacidn de Gesli6n Social - Prograna Cindades Resilienles, prepared and adopted by the GAMSC, satisfactory to the Association, dated August 2019, disclosed in-country, and the Association's website on September 2, 2019, setting out the principles, rules, guidelines and procedures to screen and assess the potential adverse social risks and impacts (including health and safety issues) of Project activities, adopt measures to avoid, reduce, mitigate or offset social adverse risks and impacts, procedural, budget and institutional arrangements and actions needed to implement these measures, and information on the agency or agencies responsible for addressing the Projects' risks and impacts; as well as for the preparation of social management plans, as such framework may be amended by GAMSC from time to time, with the prior written agreement of the Association. 41. "Social Management Plan" or "SMP" means the instrument to be prepared by the Project Implementing Entity, satisfactory to the Association, and disclosed on the Association's website, which details: (a) the measures to be taken during the implementation of the Project to avoid, minimize, mitigate or offset adverse social impacts (including health and safety issues), or to reduce them to acceptable levels; (b) the measures that endeavor to prevent and respond to gender-based violence and sexual exploitation and abuse; and (c) the procedural, budget and institutional arrangements and actions needed to implement these measures, including any schedules to such plan, and as such plan may be amended by the Project Implementing Entity from time to time, with the prior written approval of the Association. 42. "South West Eighth Ring Drainage Channel" or the "Channel" means the approximately 6.4 kilometers of drainage infrastructure to be constructed along the south west 8th ring road in the Municipality of Santa Cruz, as further depicted in -21- the master plan (Plai Maestro de Drenaje Pluvial para la Ciudad de Santa Cruz de la Sierra; Gestidn 2017), prepared pursuant to Municipal Law No. 275/2016 dated May 24, 2016. 43. "Training" means the reasonable cost of training under the Project including costs associated with seminars, workshops, conference and study tours, travel and subsistence costs 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. Section I. Modifications to the General Conditions The General Conditions are hereby modified as follows: 1 . Section 1.03 (Definitions) is hereby modified in its entirety to read as follows: "Section 1.03. (Definitions) Capitalized terms used in these General Conditions have the meanings set out in the Appendix or in the Appendix to the Financing Agreement". 2. The definition of Credit in the Appendix to the General Conditions is hereby modified to read as follows: 25. "'Credit" means Credit No. 6517-BO and/or Credit No. 6516-BO (as the case may be) and which are repayable pursuant to the provisions of the Financing Agreement; it being understood that, when "Credit" is used in Specific Provisions, the terms "Financing" shall be replaced in the forgoing sentence by "Non- concessional Financing" or "Concessional Financing", as applicable under the considered Specific Provisions".