OFFICIAL DOCUMENTS CREDIT NUMBER 6513-NE GRANT NUMBER D537-NE Financing Agreement (First Laying the Foundation for Inclusive Development Policy Financing) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER 6513-NE GRANT NUMBER D537-NE FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF NIGER ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION 'Association") for the purpose of providing financing in support of the Program (as defined in the Appendix to this Agreement). The Association has decided to provide this financing on the basis, inier alia, of: (i) the actions which the Recipient has already taken under the Program and which are described in Section I of Schedule I to this Agreement; and (ii) the Recipient's maintenance of an adequate macroeconomic policy framework. The Recipient and the Association therefore 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 1I -FINANCING 2.01. The Association agrees to extend to the Recipient a grant and a credit, which are deemed as Concessional Financing for purposes of the General Conditions (collectively, "Financing") in the following amounts: (a) an amount equivalent to one hundred twenty-six million nine hundred thousand Special Drawing Rights (SDR 126,900,000) ("Grant"); and (b) the amount of one hundred fifty-six million nine hundred thousand Euros (EUR 156,900.000) (*Credit"). 2.02. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.03. The Service Charge is the greater of: (a) the sum of three-fourths of one percent (3 4 of loo) per annum plus the Basis Adjustment to the Service Charge; and (b) three-fourths of one percent (3/4 of 1%) per annum: on the Withdrawn Credit Balance. 2.04. The Payment Dates are May 15 and November 15 in each year. 2.05. [he principal amount of the Credit shall be repaid in accordance with the repaNment schedule set forth in Schedule 2 to this Agreement. 2.06. The Payment Currency is Euro. 2.07. Without limitation upon the provisions of Section 5.05 of the General Conditions, the Recipient shall promptly furnish to the Association such information relating to the provisions of this Article II as the Association may, from time to time, reasonably request- ARTICLE III - PROGRAM 3.01. The Recipient declares its commitment to the Program and its implementation. To this end, and further to Section 5.05 of the General Conditions: (a) the Recipient and the Association shall from time to time, at the request of either party, exchange views on the Recipient's macroeconomic policy framework and the progress achieved in carrying out the Program- (b) prior to each such exchange of views, the Recipient shall furnish to the Association for its review and comment a report on the progress achieved in carrying out the Program. in such detail as the Association shall reasonably request: and (c) without limitation upon the provisions of paragraphs (a) and (b) of this Section. the Recipient shall promptly inform the Association of any situation that would have the effect of materially reversing the objectives of the Program or any action taken under the Program, including any action specified in Section I of Scfiedule I to this Agreement. ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.01. The Additional Event of Suspension consists of the following, namely that a situation has arisen which shall make it improbable that the Program. or a significant part ofit, wif be carried out. 4.02. The Additional Event of Acceleration consists of the following. namely that the event specified in Section 4.01 of this Agreement occurs and is continuing for a period of sixtx (60) days after notice of the event has been given b% the Association to the Recipient. ARTICLE V - EFFECTIVENESS; TERMINATION 5.01. The Additional Condition of Effectiveness consists of the following. namely that the Association is satisfied with the progress achieved by the Recipient in carrying out the Program and with the adequacy of the Recipient's macroeconomic policy framework. 5.02. The Effecti%eness Deadline is the date ninety (90) days after the Signature Date. 5.03. For purposes of Section 10.05 (b) of the General Conditions, the date on which the obligations of the Recipient tinder this Agreement (other than those providing for payment obligations) shall terminate is twenty years after the Signature Date. ARTICLE VI- REPRESENTATIVE, ADDRESSES 6,01. The Recipient's Representative is the Minister in charge of planning. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Ministere du Plan B.P. 862 Niamey Republic of Niger; and (b) the Recipient's Electronic Address is: Facsimife: +227 20 72 53 22 or +227 20 72 40 20 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 (b) the Association's Electronic Address is: Telex: Facsimile: 248423 (MCI) 1-202-477-6391 AGRILD as of the Signature Dite. O REP:BLIC OF NIGER Appröved By: ' Autborized Re&ato4" Name: ) Title: iftlz cdý Signed By: 4utho Repee de Name: ( åL4 A Title: i uJ L.TflE L M...44tJ Date: Ä(leLEri 9AJ 3 INTERNATIONAL, DFVELOPMENT ASSOCIATION By Authorized Representative Name: Jör Title: -AirAt Date: é t SCHEDULE I Program Actions, Aiailability of Financing Proceeds Section 1. Actions Taken Under the Program The actions taken bN the Recipient under the Program include the following: Pillar . Reducing Gender Gaps 1. The Recipient, through its President, has issued Decree no. 2019- 369/PRN/MPF/PE dated July 19, 2019 establishing Child Protection Committees at the national, regional, departmental, commune, and village levels, promoting the abandonment of child marriage. 2. The Recipient, through its MinistrN of Public Health. has issued a Ministerial Order (Arritd) no. 000897/MSP/SG/DGSR/DSME of August 15, 2019 allowing access to family planning assistance to married adolescent girls %Nithout parents or husbands' mandatory accompanincrt, to improve their access to health services. 3. The Recipient. through its Ministr\ of Primar- Education Literacy. Promotion of National Languages and Civic Education. its Ministry of Secondary Education and its Ministry of Technical and Vocational Education and Training. has issued Joint Miinisterial Order (Arrtd) no. 335 dated August 22, 2019 allowing adolescent girls to remain enrolled in school in the event of pregnancy or marriage. to improve educational attainment. PiJWr IJ. ExpanJing .4Ares to EJeetricily and Polale Waler 4. The Recipient, through its President, has issued a Decree no. 2019-406/PRN/ME dated July 26. 2019 establishing the regulator% framework governing off-grid autonomous ruraf electrification projects wNhich promotes private sector involvement and prioritizes renewable energy. to increase access to electricity. 5. The Recipient. through its President, has issued a Decree no. 2019462/PRN/ME dated August 23, 2019. adopting a national Llecticity Transmission Grid Code, governing inter alia grid connection. commissioning of new electric infrastructure, and integration of renewable energy to promote private sector participation, in the electricits sector. 6. The Recipient. through its Ministry of Energy and its MinistrN of Finance. has issued a Joint Ministerial Order (Arrt) no. 006WME'MF dated February 28, 2019 approving the performance contract entered bet%keen the Recipient and NIGELEC- SA in March 26, 2019 to improve service quality and key performance indicators of the electricity sector and increase the share of renewable energies in the energy mix. 7. The Recipient. through its President. has enacted Law no. 2019-15 dated May 24. 2019. establishing a national water regulatory authority to strengthen the institutional framew%ork of the wvater sector. 8. The Recipient. through its Ministry of Water and Sanitation and its Ministry of Finance, has entered into an agreement (Contrai-Plan) with SPEN. on August 29, 2019. requiring SPEN to develop a master plan and investment programs. to improve access to basic water services. Pillar Ill. Improving Transparency and Debt Management Capacity 9, The Recipient. through its President, has issued Decree no. 2019-598/PRN/MF dated October 18. 2019, centralizing all public debt management responsibilities in a dedicated unit within the Treasury, to improve the efficiency of debt management operations. 10. The Recipient. through its Ministry of Finance, has issued Ministerial Order (Arretd) no. 000401 /MF/SG dated October 18, 2019. expanding the scope of debt- reporting requirements to PPPs and state-owned enterprises' debt including by instrument and debt holder on a quarterly basis, to improve the comprehensiveness of debt reporting. Section it. Availability of Financing Proceeds A. General. The Recipient ma, withdraw the proceeds of the Financing in accordance with the provisions of this Section and such additional instructions as the Association may specify by notice to the Recipient. B. Alkication of Finacing Amounts. The Financing is 31cted irn a single withdrawal tranche. from which the Recipient may make withdrawals of the Financing proceeds. The allocation of the amounts of the Financing to this end is set out in the table below: Allocations Amount of the Credit Amount of the Allocated Grant Allocated (expressed in Euros) (expressed in SDR) (1) Single Withdrawal 156900,000 126,900.000 Tranche TOTAL AMOUNT 156.900.000 126.900.000 C. Withdrawal Tranche Release Conditions. I No withdrawal shall be made of the Single Withdrawal Tranche unless the Association is satisfied: (a) with the Program being carried out by the Recipient- and (b) with the adequacy of the Recipients macroeconomic policy framework. D. Deposit of Financing Amounts. 1. The Recipient, within thirty (30) days after the withdrawal of the Financing from the Financing Account shall report to the Association: (a) the exact sum received into the account referred to in Section 2.03 (a) of the General Conditions: (b) the details of the account to which the CFA Francs equivalent of the Financing proceeds will be credited; (c) the record that an equivalent amount has been accounted for in the Recipient's budget management systems; and (d) the statement of receipts and disbursement of the account referred to in Section 2.03 (a) of the General Conditions. E. Audit. Upon the Association's request the Recipient shall: I. have the account referred to in Section 2.03 (a) of the General Conditions audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association: 2. furnish to the Association as soon as available, hut in any case not later than four months after the date of the Association's request for such audit, a ceTiFed copy ofthe repon of such audit of such scope and in such deai as the Association shall reasonably request, and make such report publicly available in a timely fashion and in a manner acceptable to the Association and 3. furnish to the Association such other information concerning the account referred to in Section 2.03 (a) of the General Conditions and their audit as the Association shaJl reasonabJY request. F. Closing Date. The Closing Date is December 31, 2020. SCHEDULE 2 Repayment Schedule Principal Amount of the Date Payment Due Credit repayable (expressed as a percentage)* On each MaN 15 and November 15, commencing May 1.5625% 15, 2026to and including November 15, 2057 * The percentages represent the percentage of the principal amount of the Credit to be repaid, except as the Association may otherwise specify pursuant to Section 3.05 (b) of the General Conditions. APPENDIX Definitions 1 Basis Adjustment to the Service Charge" means the Association's standard basis adjustment to the Service Charge for credits in the currency of denomination of the Credit. in effect at 12:01 a.m. Washington. D.C. time, on the date on which the Credit is approved by the Executive Directors of the Association, and expressed either as a positive or negative percentage per annum. 2. "CFA Francs" means the Recipient's local currency. 3. "Child Protection Committees" means committees established at the national, regional. departmental and commune levels, by Ministerial Decree no. 2019-369 of July 19, 2019. to encourage to abandon the practice of child marriage among communities including traditional and religious leaders. 4. 'Electricity Transmission Grid Code" means the Recipient's national code governing transportation networks for electricity, adopted by Decree n2019- 462/PRN/ME of August 23, 2019. 5. "General Conditions" means the "International Development Association General Conditions for IDA Financing. Development Policy Financing", dated December 14, 2018. 6. "Micrtistrv of Energy" rirearts the Recipiertt's ministry rcsponsible for the energy sector, or any successor thereto. 7. "Ministry of Finance" means the Recipient's ministry responsible for finance, or any successor thereto. 8. "Ministry of Primary Education Literacy. Promotion of National Languages and of Civic Education" means the Recipients ministiy responsible for primary education, or any successor thereto. 9. "Ministry of Public Health- means the Recipient's ministry responsible for public health. or any successor thereto. 10. "Ministry of Secondary Education- means the Recipient's ministry responsible for secondary education, or any successor thereto. IL "Ministry of Technical and Vocational Education and Training" nwans the Recipient's ministry responsible for technical and vocational education, or any s'uccessor theeto,~ 12. "Ministry of Water and Sanitation" means the Recipient's ministry responsible for the water sector, or any successor thereto. 13. NIGELEC SA" means a majority Recipient-owned limited liability company established pursuant to its statutes dated July 20, 1968 and recorded with the Recipient's business registry on September 7. 1968 under number 720 as the same may be amended from time to time. and which is responsible for the distribution of electricity in Niger, 14. "PPPs- means public-private partnerships. 15. "Program" means: the program of objectives, policies. and actions set forth or referred to in the letter dated November 7. 2019 from the Recipient to the Association declaring the Recipient's commitment to the execution of the Program. and requesting assistance from the Association in support of the Program during its execution and comprising actions taken, including those set forth in Section I of Schedule I to this Agreement, and actions to be taken consistent with the program's objectives. 16. "SPEN" means "Societe de Patrimoine des Eaux du Niger ", a majority Recipient- owned limited liability company established pursuant to the Recipient's Law no. 2000-12 dated August 14. 2000 (as the same may be amended from time to time). and which is responsible for water production, transmission, and distribution in Niger. 17. "Signature Date" means the later of the two dates on which the Recipient and the Association signed this Agreement and such definition appfies to aff references to -the date of the Financing Agreement" in the General Conditions. 39. "Singk Withdrawa) Tranche means the amont of the Financing a)docated to the category entitled "Single Withdrawal Tranche" in the table set forth in Part B of Section It of Schedule I to this Agreement.