OFFICIAL
DOCUMENTS
ARTF GRANT NUMBER TFAS443-AF
Afghanistan Reconstruction Trust Fund
Grant Agreement
(Women's Economic Empowerment Rural Development Project)
between
ISLAMIC REPUBLIC OF AFGHANISTAN
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
acting as administrator of Afghanistan Reconstruction Trust Fund
Dated O20c18 RS   ,2o1s


ARTF GRANT NUMBER TFA8443-AF
AFGHANISTAN RECONSTRUCTION TRUST FUND
GRANT AGREEMENT
AGREEMENT dated (')COb(        (23       , 2018, entered into between:
ISLAMIC REPUBLIC OF AFGHANISTAN ("Recipient"); and INTERNATIONAL
DEVELOPMENT ASSOCIATION ("World Bank"), acting as administrator of
Afghanistan Reconstruction Trust Fund ("ARTF").
The Recipient and the World Bank hereby agree as follows:
Article I
Standard Conditions; Definitions
1.01.  The "Standard Conditions for Grants Made by the World Bank Out of Various
Funds", dated February 15. 2012 ("Standard Conditions"), constitute an integral
part of this Agreement.
1.02.  Unless the context requires otherwise, the capitalized terms used in this Agreement
have the meanings ascribed to them in the Standard Conditions or in this
Agreement.
Article [I
The Project
2.01. The Recipient declares its commitment to the objectives of the project described
in Schedule I to this Agreement ("Project"). To this end, the Recipient shall carry
the Project through its MRRD in accordance with the provisions of Article II of
the Standard Conditions.
2.02.  Without limitation upon the provisions of Section 2.01 of this Agreement, and
except as the Recipient and the World Bank shall otherwise agree, the Recipient
shall ensure that the Project is carried out in accordance with the provisions of
Schedule 2 to this Agreement.


Article IlI
The Grant
3.01.  The World Bank agrees to extend to the Recipient, on the terms and conditions
set forth or referred to in this Agreement, a grant in an amount not to exceed
seventy-five million United States Dollars ($75,000,000) ("Grant") to assist in
financing the Project.
3.02.  The Recipient may withdraw the proceeds of the Grant in accordance with
Section IV of Schedule 2 to this Agreement.
3.03.  The Grant is funded out of the abovementioned trust fund for which the World Bank
receives periodic contributions from the donors to the trust fund. In accordance with
Section 3.02 of the Standard Conditions, the World Bank's payment obligations in
connection with this Agreement are limited to the amount of funds made available to
it by the donors under the abovementioned trust fund, and the Recipient's right to
withdraw the Grant proceeds is subject to the availability of such funds.
Article IV
Recipient's Representative; Addresses
4.01.  The Recipient's Representative referred to in Section 7.02 of the Standard
Conditions is its Minister of Finance.
4.02.  The Recipient's Address referred to in Section 7.01 of the Standard Conditions is:
Ministry of Finance
Pashtunistan Watt
Kabul, Islamic Republic of Afghanistan
Facsimile:
+93202103259
4.03.  The World Bank's Address referred to in Section 7.01 of the Standard Conditions
is:
International Development Association
1818 Hl Street, N.W.
Washington, D.C. 20433
United States of America
Telex:              Facsimile:
248423 (MCI) or      1-202-477-6391
64145 (MCI)
3


AG   l-E) at K .ihul, A      ihanistan, a of teli day and year 1irst above written.
ISLAMIC REPUBLIC OF AFGHANISTAN
By
AuthorizeVRepresentative
Name:P<a\ý.
fitle: A¢          MiniS4er        -    'na    Ce
INTERNATIONAL DEVELOPMENT
ASSOCIATION
acting as administrator of Afghanistan Reconstruction Trust
Fund
By
Authorized Representative
Name:
TFitle: (..Oýný L(iOr


SCHEDULE I
Project Description
The objective of the Project is to increase social and economic empowerment of
poor rural women in selected communities.
The Project consists of the following parts:
Part 1: Community Mobilization and Institution Development
(a)    Providing technical assistance to support community mobilization for
establishing: (i) SHGs and federating them into VLSAs; and (ii) EGs and
federating them into PAs.
(b)    Carrying out a program of activities to strengthen capacity, quality, and
financial performance of SHGs, VSLAs, EGs, and PAs, including, inter alia,
developing capacity building modules, training aids, common accounting and
reporting systems, and grading and rating mechanisms.
Part 2: Access to Finance
(a)    Providing Seed Grants to eligible SHGs and VSLAs to establish long-term
revolving funds.
(b)    Facilitating access to financial services for rural women through, inter alia: (i)
partnerships with micro-finance institutions and commercial banks to promote
financial inclusion of women groups; (ii) developing relevant financial
products and services with commercial banks and micro-finance institutions;
(iii) eliminating institutional constraints on women's access to formal financial
services; (iv) exploring feasibility of piloting a system, enabled by information
technology. for delivery of financial products; and (v) financial capacity
building.
Part 3: Enterprise Development and Market Linkages
(a)    Providing technical assistance and supporting promotional activities to
strengthen the capacity of EGs, PAs, and individual women entrepreneurs to
access markets and manage their businesses.
5


(b)    Providing Catalytic Funds to eligible EGs and PAs in order to finance, inter
alia, quality inputs, post-production equipment, and/or small-scale
infrastructure.
(c)    Supporting EGs, PAs, and/or individual women entrepreneurs through
facilitating: (i) their partnerships with business enterprises to improve the
supply of business development services; and (ii) access to market.
Part 4: Project Management
Provision of overall Project implementation support to MRRD, including:
(a)    supporting training and technical assistance, acquisition ofequipment, and
operating costs to improve monitoring and evaluation, management
information, financial management, procurement, human resource
management, knowledge management and communication systems, and
environmental and social safeguards management of the Project;
(b)    providing technical assistance to inform implementation and policy
development and strengthening the capacity of relevant staff, and
(c)    promoting partnership arrangements with similar World Bank-funded
projects in other countries for overall technical and implementation
guidance.
6


SCHEDULE2
Project Execution
Section 1.   Institutional and Other Arrancements
A.     Institutional Arrangements.
I1.    The Recipient shall vest the overall responsibility for Project implementation in
MRRD, and to that end shall:
(a) maintain, throughout the period of implementation of the Project, the WEE-NPP
Steering Committee, with composition, resources, competencies, and mandate
satisfactory to the World Bank, to be responsible for, inter alia: providing overall
strategic guidance, support and oversight of Project implementation-
(b) maintain, throughout the period of implementation of the Project, a Project
Implementation Unit ("PlU"), headed by a qualified director and assisted by
competent staff, all with experience and qualifications, in numbers and under terms
of reference satisfactory to the World Bank; which Project Implementation Unit
shall be assigned with such functions and responsibilities, satisfactory to the World
Bank, as shall be required for the day-to-day implementation of the Project,
including, inter alia: (i) managing the overall Project; (ii) coordinating Project core
activities with Regional Offices; and (iii) reporting to the WEE-NPP Steering
Committee and MRRD on overall Project performance;
(c) maintain, throughout the period of implementation of the Project, at the district
level. District Offices (one such office in each district covered by the Project),
provided with qualified and competent officers, under terms of reference
satisfactory to the World Bank, to be responsible for, inter alia, managing,
coordinating  and  implementing  Project  support  activities, including
administration, finance, human resources and monitoring and evaluation;
(d) establish, by not later than March 31, 2019, and maintain throughout the period of
implementation of the Project, seven Regional Offices to be responsible for
coordinating implementation of the Project across the provinces within the relevant
region as covered by the Project;
7


(e) appoint, by not later than June 30, 2019, in accordance with the criteria and
qualifications requirement set out in the Operations Manual, and maintain
throughout the period of implementation of the Project, District Coordinators
(one such coordinator for each district), with experience and qualifications and
under terms of reference satisfactory to the World Bank, to be responsible for
coordinating implementation of the Project in their respective districts;
(f) appoint, by not later than June 30, 2019, in accordance with the criteria and
qualifications requirement set out in the Operations Manual, and maintain
throughout the period of implementation of the Project. Facilitating Partners in
selected districts, to be responsible for social and economic mobilization of SHGs,
VSLAs, EGs and PAs;
(g) engage the services of an independent third-party verification agency, with
qualifications and experience satisfactory to the World Bank and operating under
terms of reference acceptable to the World Bank, to review and verify the
comprehensive business plan stated in Section I.C. 1(b) of this Agreement in terms
of feasibility, fiduciary process and inclusion:
(h) with respect to CDCs covered by the Project, appoint by not later than three months
after the establishment of District Offices covering said CDCs. and in accordance
with the criteria and qualifications requirement set out in the Operations ManuaL
and maintain throughout the period of implementation of the Project, Social
Organizers to be responsible for, inter alia, mobilizing women into Self Help
Groups and federating them to VSLA with the support of VFs, the aggregate
number of which organizers may be modified in accordance with the Operations
Manual; and
(i) with respect to CDCs covered by the Project, appoint by not later than six months
after launching of Project in said CDCs, in accordance with the criteria and
qualifications requirement set out in the Operations Manual, and maintain
throughout the period of implementation of the Project, Village Facilitators to be
responsible for, inter alia, providing training support for SHGs, VSLAs, SHGEGs.
and PAs, the aggregate number of which facilitators may be modified in
accordance with the Operations Manual.
B.     Project Documents
The Recipient shall carry out the Project in accordance with the procedures.
principles and practices set forth in the Operations Manual, the Safeguards
Instruments, Community Procurement Manual, the Financial Management
Manual, and the Procurement Manual.
8


2.     The Recipient shall not assign, amend, abrogate or waive the Operations Manual,
the Safeguards Instruments, the Community Procurement Manual, the Financial
Management Manual, and the Procurement Manual or any provisions thereof if, in
the opinion of the World Bank, such assignment, amendment, abrogation or waiver
will materially and adversely affect the implementation of the Project. Any
amendments to the said documents shall be made with the prior agreement of the
World Bank. Without prejudice to the foregoing, if any provision of the Operations
Manual, the Community Procurement Manual, the Environmental Social
Safeguards Framework, the Financial Management Manual, and the Procurement
Manual are inconsistent with this Agreement the provisions of this Agreement
shall prevail.
C.     Catalytic Fund
1. (a) The Recipient shall provide, through MRRD, Catalytic Funds,from the proceeds
of the Financing, to eligible EGs or PAs in accordance with the provisions of this
Agreement and the provisions of the Operations Manual.
(b) To be eligible for a Catalytic Fund, an EG or a PA, as the case may be, must submit
to the respective Regional Office, a comprehensive business plan and evidence that
it meets the eligibility criteria set out in the Operations Manual including
compliance with the Safeguard Instruments.
2.     The Recipient shall, through MRRD, make the proceeds of the Catalytic Fund
available to an EG or a PA under a Catalytic Fund Grant Agreement entered into
between the EG and MRRD, or between the PA and MRRD, as the case may be,
on terms and conditions approved by the World Bank, which shall include
provisions enabling the Recipient to obtain rights adequate to protect its interests
and those of the World Bank, including the right to:
(a)    suspend or terminate the right of the EG or the PA, as the case may be, to
access the proceeds of the Catalytic Fund or obtain a refund of all or any
part of the Catalytic Fund then withdrawn, upon the EG's or the PA's
failure to perform any of its obligations under the Catalytic Fund Grant
Agreement; and
(b)    require each such EG or PA, as the case may be, to:
i.  manage its Catalytic Fund with due diligence and efficiency and in
accordance with sound technical, economic, financial, managerial,
environmental and social standards and practices satisfactory to the
9


World Bank and in accordance with the provisions of the Safeguard
Instruments and the Anti-Corruption Guidelines;
ii.   maintain adequate records to reflect the operations, resources and
expenditures related to the Catalytic Fund and permit the World
Bank, at its request, to inspect their accounts and records;
iii.   prepare and furnish to the Recipient and the World Bank all such
information as the Recipient and World Bank shall request related to
the Catalytic Fund;
;v.   ensure that the activities to be financed out of the proceeds of the
Catalytic Fund: (A) are used for enterprise related productive
purposes; and (B) will tnot finance or support the cultivation ofpoppy,
the purchase of military equipment or luxury goods and other items
on the negative list set out in the Environment and Social
Management Framework; and
V.   procure the goods, works and services to be financed out of the
Catalytic Fund in accordance with the provisions of this Agreement.
3.     The Recipient shall exercise its rights urder each Catalytic Fund Grant Agreement
in such manner as to protect the interests of the Recipient and the World Bank and
to accomplish the purposes of the Financing. Except as the World Bank shall
otherwise agree, the Recipient shall not assign, amend, abrogate or waive any
Catalytic Fund Agreement or any of its provisions.
D.     Seed Grants
1  (a) The Recipient shall, through MRRD, provide Seed Grants from the proceeds of
the Financing to eligible VSLAs and, through VSLAs, to eligible SHGs in
accordance with the provisions of this Agreement and the provisions of the
Operations Manual.
(b) To be eligible for a Seed Grant, a VSLA or a SHG, as the case may be, must submit
to the respective Regional Office evidence that it meets the eligibility criteria set
out in the Operations Manual. In addition to the foregoing, a VSLA must
submit: (i) evidence of accumulation of sufficient savings meeting the
requirements set out in the Operations Manual; and (ii) its constituent documents.
10


(c) In evaluating each VSLA or SHG, consideration shall be given to the VSLA's or
SHO's capacity to provide regular lending in conformity with appropriate
administrative, financial, technical and managerial standards.
2.     The Recipient shall, through MRRD, make the proceeds of the Seed Grant
available to a VSLA or a SHG, as the case may be, under a Seed Grant Agreement
with any such VSLA on terms and conditions approved by the World Bank, which
shall include provisions enabling the Recipient to obtain rights adequate to protect
its interests and those of the World Bank, including the right to:
(a)    suspend or terminate the right of the VSLA or the SHG, as the case may
be, to access the proceeds of the Seed Grant or obtain a refund of all or
any part of the Seed Grant then withdrawn, upon the VSLA's or the SHG's
failure to perform any of its obligations under the Seed Grant agreement;
and
(b)    require each such VSLA or SHG, as the case may be, to:
i.  manage its Seed Grant with due diligence and efficiency and in
accordance with sound technical, economic, financial, and managerial
standards and practices satisfactory to the World Bank, including
compliance with the Anti-Corruption Guidelines applicable to
recipients of grant proceeds other than the Recipient;
ii.  maintain adequate records to reflect the operations, resources and
expenditures related to the Seed Grant and permit the World Bank, at
its request, to inspect their accounts and records;
iii.  prepare and furnish to the Recipient and the World Bank all such
information as the Recipient and World Bank shall request related to
the Seed Grant; and
iv.  ensure that the activities to be financed out of the proceeds of the
Seed Grant: (A) are used fbr household consumption, or social safety
net purposes as well as for enterprise related productive purposes: and
(B) will not finance or support the cultivation of poppy and the
purchase of military equipment or luxury goods or other items on the
negative list set out in the Environmental and Social Management
Framework.


3.     The Recipient shall exercise its rights under each Seed Grant Agreement in such
manner as to protect the interests of the Recipient and the World Bank and to
accomplish the purposes of the Financing. Except as the World Bank shall
otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Seed
Grant Agreement or any of its provisions.
E.     Safeguards.
1I The Recipient shall:
(a)    ensure that the Project is carried out with due regard to appropriate health,
safety, social, and environmental standards and practices, and in
accordance with the Safeguards Instruments; and
(b)    refrain from amending, suspending, waiving, abrogating, and/or voiding
any provision of the Safeguards Instruments, in whole or in part, without
the prior written agreement of the World Bank.
2.     The Recipient shall:
(a)    take all necessary actions to avoid or otherwise minimize to the extent
possible, and to mitigate, any involuntary loss by persons of shelter,
productive assets or access to productive assets or income or means of
livelihood, temporarily or permanently, and the displacement of said
people in the carrying out of the Project or any part thereof;
(b)    by not later than March 31. 2019: (i) prepare a Pest Management Plan, in
a manner satisfactory to the World Bank and in accordance with the
provisions of the ESMF; (ii) have such plan furnished to the World Bank
for review and approval; and (iii) have such plan adopted and disclosed as
approved by the World Bank.
(c)    whenever a new or revised ESMP, PMP, or any additional or revised
Safeguards Instrument is required for any proposed activity under the
Project in accordance with the provisions of the ESMF:
(i)    prior to the commencement of such activity, proceed to have
such ESMP, PMP, or any additional or revised Safeguards
Instrument: (A) prepared in accordance with the provisions of the
ESMF; (B) furnished to the World Bank for review and approval:
12


and (C) thereafter adopted and disclosed as approved by the World
Bank, in a manner acceptable to the World Bank;
(ii)   thereafter take such measures as shall be necessary or appropriate
to ensure compliance with the requirements of such ESMP, PMP,
or any additional or revised Safeguards Instrument.
3.     The Recipient shall ensure that each contract for civil works under the Project
include the obligation of the relevant contractor to comply with the relevant
Safeguards Instruments applicable to such civil works commissioned/awarded
pursuant to said contract.
4.     The Recipient shall maintain, throughout Project implementation, and publicize
the availability of, a Project grievance redress mechanism, in form and substance
satisfactory to the World Bank, 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 World Bank.
i.     The Recipient shall maintain policies and procedures adequate to enable it to
monitor and evaluate, in accordance with guidelines acceptable to the World Bank,
the implementation of the Safeguards Instruments. Without limitation upon its
other reporting obligations under this Agreement, the Recipient shall take all
necessary measures on its part to regularly collect, compile and submit to the
World Bank, as part of the Project Reports and promptly in a separate report
whenever the World Bank may require, information on the status of compliance
with the Safeguards Instruments. Such information shall include:
(a)    measures taken in furtherance of the Safeguards Instruments;
(b)    conditions, if any, which interfere or threaten to interfere with the smooth
implementation of the Safeguards Instruments; and
(c)    remedial measures taken or required to be taken immediately to address
such conditions.
6.     Except as the World Bank shall otherwise agree. the Recipient shall ensure, and
cause to ensure, that none of the provisions of the Safeguard Instruments is
abrogated, amended. repealed, suspended or waived. In case of any inconsistencies
between the provisions of any of the Safeguard Instruments and the provisions of
this Agreement, the provisions of this Agreement shall prevail.
13


F.    Anti-Corruption
The Recipient shall ensure that the Project is carried out in accordance with the
provisions of 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 (Anti-
Corruption Guidelines")-
G.     Donor Visibility and Visit
1.     The Recipient shall take or cause to be taken all such measures as the World Bank
may reasonably request to identify publicly the Donor's support for the Project.
2.     For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall,
upon the World Bank's request, take all measures required on its part to enable the
representatives of the Donor(s) to visit any part of the Recipient's territory for
purposes related to the Project.
Section 11.   Project Monitoring, Reporting and Evaluation
A.     Documents; Records
In addition and without limitation to the obligations set forth in Section 2.05 of the
Standard Conditions, the Recipient shall ensure that:
(a)    all records evidencing expenditures under the Project are retained
for seven years and six months after the Closing Date, such records to
include: (i) this Agreement, all addenda thereof and any amendments
thereto; (ii) the Recipient's financial and narrative progress reports
submitted to the World Bank; (iii) the Recipient's financial information
related to the Grant, including audit reports, invoices and payroll
records; (iv) the Recipient's implementation documentation (including
sub-agreements, procurement files, contracts, purchase orders); and (v) the
corresponding supporting evidence referred to in Section 3.04 of the
Standard Conditions; and
(b)    the representatives of the World Bank are: (i) able to examine all records
referred to above in paragraph (a); (ii) provided all such information
concerning such records as they may from time to time reasonably request;
and (iii) able to disclose such records and information to the Donor(s).
14


B.     Project Reports; Completion Report
1.    The Recipient shall monitor and evaluate the progress of the Project and prepare
Project Reports in accordance with the provisions of Section 2.06 of the Standard
Conditions and on the basis of indicators acceptable to the World Bank. Each
Project Report shall cover the period of one calendar semester, and shall be
furnished to the World Bank not later than one month after the end of the period
covered by such report.
2.    The Recipient shall prepare the Completion Report in accordance with the
provisions of Section 2.06 of the Standard Conditions. The Completion Report
shall be furnished to the World Bank not later than six (6) months after the Closing
Date.
C.     Financial Management; Financial Reports; Audits
1.    The Recipient shall ensure that a financial management system is maintained in
accordance with the provisions of Section 2.07 of the Standard Conditions.
2.     The Recipient shall ensure that interim unaudited financial reports for the Project
are prepared and furnished to the World Bank not later than forty-five (45) after
the end of each calendar quarter, covering the quarter, in form and substance
satisfactory to the World Bank.
3.     The Recipient shall have its Financial Statements for the Project audited in
accordance with the provisions of Section 2.07 (b) of the Standard Conditions.
Each such audit of the Financial Statements shall cover the period of one fiscal
year of the Recipient. The audited Financial Statements for each such period shall
be furnished to the World Bank not later than six (6) months after the end of such
period.
Section IIL  Procurement
All goods, works, non-consulting services and consulting services required for the
Project and to be financed out of the proceeds of the Grant shall be procured in
accordance with the requirements set forth or referred to in the "World Bank
Procurement Regulations for IPF Borrowers" dated July 2016, revised November
2017 and August 2018 ("Procurement Regulations"), and the provisions
of the Recipient's procurement plan for the Project ("Procurement Plan") dated
September I1, 2018 provided for under Section IV of the Procurement
Regulations, as the same may be updated from time to time in agreement with the
World Bank.


Section IV.  Withdrawal of Grant Proceeds
A.     General
I.    The Recipient may withdraw the proceeds of the Grant in accordance with the
provisions of: (a) Article Ill of the Standard Conditions; (b) this Section; and (c)
such additional instructions as the World Bank may specify by notice to the
Recipient (including the "Disbursement Guidelines for Investment Project
Financing" dated February 2017, as revised from time to time by the World Bank
and as made applicable to this Agreement pursuant to such instructions), to finance
Eligible Expenditures as set forth in the table in paragraph 2 below.
2.     The following table specifies the categories of Eligible Expenditures that may be
financed out of the proceeds of the Grant ("Category"), the allocations of the
amounts of the Grant to each Category. and the percentage of expenditures to be
financed for Eligible Expenditures in each Category:
Amount of the          Percentage of
Grant Allocated       Expenditures to be
Category           (expressed in USD)          Financed
(inclusive of Taxes)
(1) Goods, works, non-          41,250,000               100%
consulting services, consulting
services, Training, and
Incremental Operating Costs
for the Project
(2) Seed Grants under Part 2    27,000,000      100% as allocated under
(a) of the Project                             Section IV.B.1(b) of
Schedule 2 to this
Agreement
(3) Catalytic Fund under Part 3  6,750,000      100% as allocated under
(b) of the Project                             Section IV.B.1(b) of
Schedule 2 to this
Agreement
TOTAL AMOUNT                    75,000,000


B.     Withdrawal Conditions; Withdrawal Period
1.    Notwithstanding the provisions of Part A of this Section no withdrawal shall be
made:
(a) for payments made prior to the date of this Agreement; or
(b) under Categories (2) and (3) until and unless, to the satisfaction of the World
Bank, the Recipient, through MRRD, shall have developed, tested, and verified an
integrated management information system.
2.     The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is June
30, 2023.
17


APPENDIX
Definitions
1.    'AREDP" means Afghanistan Rural Enterprise Development Project, financed by
the Association.
2.     "Catalytic Fund" means financial resources provided to eligible EGs and PAs, for
the purpose of providing catalytic support for the growth of viable economic
activities, to finance common assets of public goods, including, inter alia: quality
inputs;     small-scale     primary       processing     equipment;
post-production equipment or small-scale infrastructure, such as drying floors,
pack house, milk testing equipment. bulk milk coolers, weighing machines, and
moisture meters; marketing infrastructure with cleaning, grading, sorting, cold
storage; and other similar facilities.
3.     "Catalytic Fund Grant Agreement" means a written agreement for the provision of
the Catalytic Fund, to be entered into between MRRD and an eligible EG or PA in
accordance with terms and conditions satisfactory to the World Bank.
4.    "Category" means a category set forth in the table in Section III.A of Schedule 2
to this Agreement.
5.    "CCAP" means the Citizens' Char.er Afghanistan Project, financed by the
Association.
6.    "Community    Development    Councils"  means   a    community-based
decision-making body responsible for, inter alia, preparing and implementing
development projects at a local community level.
7.     "Community Procurement Manual" means the community procurement manual
developed for CCAP, as updated to serve the purpose of the Project, containing
detailed provisions and instructions to guide procurement by SHGs, VSLAs, EGs,
and PAs when using Seed Grants and Catalytic Funds respectively.
8.     "District Coordinator" means a staff member recruited by MRRD, as referred to
in Section I.A.l(e), to be responsible for coordinating and supervising the
implementation of the Project at the district level.
9.     "District Office" means the office established pursuant to the provision of
Section L.A(l)(c) of Schedule 2 to this Agreement. to be responsible for
(8


coordinating implementation ofthe Project in the district level, and "District
Offices" means, collectively, more than one District Office.
10.   "Enterprise Group" or "EG" means a group established with the facilitation
of MRRD and FPs, at the community level, involving between five to
fifteen members, formed around a common enterprise activity and usually
not for the conduct of financial activities, and "Enterprise Groups" mean,
collectively, more than one Enterprise Group.
I1.   "Environmental and Social Management Framework" or "ESMF" means
the environmental and social framework for the Project, prepared by the
Recipient, satisfactory to the World Bank, and disclosed on World Bank's
website on August 25, 2018, setting out the principles, rules, guidelines and
procedures to screen and assess the environmental and social impacts
(including health and safety issues) of the Project activities, including those
financed out of the Catalytic Funds, and containing measures and plans to
avoid, minimize, mitigate and/or offset adverse impacts and/or reduce said
adverse impacts to acceptable levels, and enhance positive impacts,
provisions for estimating and budgeting the costs of such measures, and
information on the agency or agencies responsible for addressing project
impacts, as said instrument may be amended from time to time with the
World Bank's prior written agreement,
12.   "Environment and Social Management Plan" or "ESMP" means,
individually, each environmental and social management plan, as may be
required to be prepared by the Recipient, in accordance with the ESMF and
Section 1.E.2(c) of Schedule 2 to this Agreement, acceptable to the World
Bank, setting forth mitigation, enhancement, monitoring, and institutional
measures, to eliminate any adverse environmental impacts of activities to
be implemented under the Project, offset them, or reduce them to acceptable
levels, or enhance positive impacts, as the same may be modified from time
to time with the prior written agreement of the World Bank, and such term
includes any annexes or schedules to such plan, and "Environmental and
Social Management Plans" and "ESMPs" means, collectively, all such
plans.
13.   "Facilitating Partners" or "FPs" means international and/or national
non-yovernmental organizations and agencies, as well as United Nations
agencies that will assist the Recipient in carrying out the Project, as
provided for in Section I.A.1(g) of Schedule 2 to this Agreement.
19


14.    -Financial Management Manual" means the manual prepared by the Recipient on
August 27, 2018, containing detailed financial management arrangements
necessary for the effective implementation of the Project.
15.   "Incremental Operating Costs" means the incremental expenses incurred on
account of Project implementation and management, including vehicle rental and
other  transportation  costs.  office  rental  and  maintenance, utilities,
telecommunications and other incidental costs, office consumable supplies, bank
charges and advertising costs and salaries. benefits, travel costs and per diem of
staff contracted by MRRD to support the Project, as agreed with the World Bank,
but excluding salaries of the officials of the Recipient's civil service.
16.   "MRRD" means the Recipient's Ministry of Rural Rehabilitation and
Development or any successor entity thereto.
17.   "National Solidarity program" means the Recipient's program launched in 2003
for the purpose of providing basic rural infiastructure and expanding outreach to
rural communities through a community driven approach.
18.   "Operations Manual" means the manual adopted by MRRD, in a manner
satisfactory to the World Bank, dated, setting out policies and procedures for the
implementation of the Project, including, inter alia, criteria and procedures for: (i)
the selection of Village Facilitators, establishment of SHGs. EGs and VSLAs; (ii)
management of procurement; and (iii) the provision of Seed Grants and Catalytic
Funds, as the same may be updated from time to time.
19.   "Part" means a Part of the Project described in Schedule I to this Agreement. and
"Parts" means, collectively, more than one Part.
20.    *PMP" or "Pest Management Plan" means the pest management plan to be
prepared by the Recipient, satisfactory to the World Bank, setting out measures to
develop and implement integrated pest management and safe handling of
pesticides in the course of Project implementation, as said instrument may be
updated from time to time with the prior written agreement of the World Bank.
21.    "Procurement Manual" means the procurement manual, developed by the
Recipient for AREDP, as updated to serve the purposes of the Project, containing
all procurement arrangements necessary for the effective implementation of the
Project.
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22.   -Producer Association" or "PA" means an association of several Enterprise
Groups of common value chains, formed, in accordance with provisions of the
Operations Manual, to aggregate production, marketing and sales.
23.   "Project Implementation Unit" means the unit in MRRD, as referred to in Section
L.A(1)(b) of Schedule 2 to this Agreement, that has been established for the purpose
of managing the implementation of the Project.
24.    "Regional Office" means the office established with MRRD's structure, as
referred to in Section LA(l)(d of Schedule 2 to this Agreement, to be responsible
for coordinating implementation of the Project across the provinces, and "Regional
Offices" means, collectively, more than one Regional Office.
25.    "Safeguards Instruments" means, collectively, the ESMF, the ESMP(s), the PMP,
and "Safeguard Instrument" means any of such Safeguards Instruments.
26.   "Seed Grant" means the provision of capital by the Recipient through MRRD to
an eligible VSLA or, through such VSLA, to an eligible SIG, for the purpose of
providing loans to eligible members of the VSLA, or to eligible members of the
SHG, as the case may be, for enterprise related productive purposes, and "Seed
Grants" mean. collectively, more than one Seed Grant.
27.    "Seed Capital Grant Agreement" means a written agreement for the provision of
the Seed Grant, to be entered into between MRRD and an eligible VSLA in
accordance with terms and conditions satisfactory to the World Bank.
28.    "Self Help Group" or "SHG" means groups promoted by MRRD at the community
level to receive training in financial services and start common savings and inter-
lending activities, and "Self Help Groups" or "SHGs" means, collectively, more
than one Self Help Group.
29.    "Signature Date" means the later of the two dates on which the Recipient and the
World Bank signed this Agreement and such definition applies to all references to
"the date of the Grant Agreement" in the Standard Conditions.
30.    "Social Organizer" means a contracted stalT hired by MRRD or FPs, as referred to
in Section LA.l(g) of Schedule 2 to this Agreement.
31.   "Training" means non-consultant expenditures incurred by MRRD in connection
with -he carrying out of workshops and the provision of training under the Project
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including training institution fees, logistics. materials, study tours, and the cost of
travel and per diem of trainers and trainees.
32.    "Village Facilitator" means male or female facilitators selected based on criteria
set out in the Operations Manual, responsible for, inter alia, facilitating the
formation of Enterprise Groups, Self Help Groups, and Village Savings and Loan
Associations; and "Village Facilitators" means. collectively. more than one
Village Facilitator.
33.   "Village Savings and Loan Association" or "VSLA" means an association formed
to administer savings of Self Help Groups once the latter has crossed a threshold
level. and has had a certain period of internal lending as specified in the Operations
Manual, and "Village Savings and Loan Associations" or "VSLAs" means,
collectively, more than one Village Saving and Loan Association or VSLA.
34.    "WEE-NPP" or "Women Economic Empowerment National Priority Program"
means Recipient's national program developed in December 2016 to build poor
women's capacity to improve the economy of their households and communities
through provision of technical and financial resources.
35.    "WEE-NPP Steering Committee" means a steering committee, established under
WEE-NPP, composed of on-budget and off-budget implementing agencies of the
WEE-NPP, responsible for overall coordination and implementation of the WEE-
NPP.