b,bJ cu-~ 2.,l , 2019 H .E. Cheikh El Kebir Ould Moulaye Taher Minister of Economy and Industry Ministry of Economy and Industry BP 238 Nouakchott Islamic Republic of Mauritania Re: Islamic Republic of Mauritania: Advance Agreement for Preparation of Proposed Youth Employability Project Project Preparation Advance No. IDA V3030 Excellency: In response to the request for financial assistance made on behalf of the Islamic Republic of Mauritania ("Recipient"), I am pleased to inform you that the International Development Association ("World Bank") proposes to extend to the Recipient an advance out of the World Bank' s Project Preparation Facility in an amount not to exceed five hundred twenty thousand Dollars ($520,000) ("Advance") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in financing the activities described in the Annex ("Activities"). The objective of the Activities is to facilitate the preparation of a proposed project designed to promote the employability of vulnerable youth in selected areas of the Recipient ("Project"), for the carrying out of which the Recipient has requested the World Bank' s financial assistance. The Recipient represents, by confirming its agreement below, that: (a) it understands that the provision of the Advance does not constitute or imply any commitment on the part of IBRD or IDA to assist in financing the Project; and (b) it is authorized to enter into this Agreement and to carry out the Activities, repay the Advance and perform its other obligations under this Agreement, all in accordance with the provisions of this Agreement. 1818 H Street NW · Washington, DC 2043 3 USA -2- Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date of the countersignature; provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received this countersigned copy within 90 days after the date of signature of this Agreement by the World Bank, unless the World Bank has established a later date for such purpose. · Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION B y ~ Country Manager for the Islamic Republic of Mauritania Africa Region AGREED: ISLAMIC REPUBLIC OF MAURITANIA By , t4, t ) / U(,{)Q.l - (.,~ Authorized Representative Title: M U,,.l\ s"TER_ o+=" t:Col'Jo~, Ar-ft::> Tu'ty_J.STR.'/ Date: "> ~ a · '. J' I ?019 Enclosures: (1) "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility", dated July 31, 2010; and (2) Disbursement Letter for the Advance of the same date as this Agreement, together with "Disbursement Guidelines for Investment Project Financing", dated February 2017. (3) "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- PPA No. IDA V3030 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility", dated July 31, 20 IO ("Standard Conditions"), constitute an integral part of this Agreement. 1.02. Definitions. 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, and the following additional terms shall have the following meanings: (a) "DPEF" means Direction des Projets Education Formation, the directorate of education projects in the Recipient's ministry of economy and industry, or any successor thereto. (b) "Environmental and Social Commitment Plan" or the acronym "ESCP" means the Recipient's environmental and social commitment plan, acceptable to the Bank, which sets out a summary of the material measures and actions to address the potential environmental and social risks and impacts of the Activities, including the timing of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any instruments to be prepared thereunder; as the ESCP may be revised from time to time, with prior written agreement of the Bank , and such term includes any annexes or schedules to such plan. (c) "Environmental and Social Standards" means, collectively: (i) "Environmental and Social Standard 1: Asses~ment and Management of Environmental and Social Risks and Impacts"; (ii) "Environmental and Social Standard 2: Labor and Working Conditions"; (iii) "Environmental and Social Standard 3: Resource Efficiency and Pollution Prevention and Management"; (iv) "Environmental and Social Standard 4: Commwrity Health and Safety"; (v) "Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement"; (vi) "Environmental and Social Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources"; (vii) "Environmental and Social Standard 7: Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local Communities"; (viii) "Environmental and Social Standard 8: Cultural Heritage"; (ix) "Environmental and Social Standard 9: Financial Intermediaries"; and (x) "Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure"; effective on October 1, 2018, as published by the Bank at http://pubdocs.worldbank.org/en/9365315253681939 l 3/Environmental-Social- Framework-French2.pdf. (d) "Implementation Unit" means a technical Project preparation team set up under the leadership of the general director of employment in the Ministry of Employment, Youth, and Sports (MoEYS) comprising of representatives from the main implementing agencies including the National Employment Agency (ANAPEJ) . .... -4- and TVET Agency (INAP-ITP). (e) "IN AP-FTP" means the Recipient' s Technical and Vocational Training Promotion Institute established by Decree No. 2002-053 of June 16, 2002, as amended inter alia by Decree No. 2019-037 as published in the Official Gazette of March 15, 2019. (f) "Ministry of Employment, Youth and Sports" or "MoEYS" means Recipient' s ministry of employment, youth and sports, or any successor thereto. (g) "Operating Costs" means the incremental expenses incurred on account of the Activities ' implementation, management and monitoring, consisting of the cost of operation and maintenance of offices, vehicles and office equipment, water and electricity utilities charges, telephone charges, bank charges, travel and per diem, and salaries of contractual staff, but excluding the salaries of officials and public servants of the Recipient's civil service. (h) "Training" means the reasonable costs associated with trammg, study tours, seminars and workshops (other than for consultants' services), including: (i) travel, room, board and per diem expenditures incurred by trainers and trainees in connection with their training; (ii) course fees; (iii) training facility rentals; and (iv) training material preparation, acquisition, reproduction and distribution expenses. (i) "TVET" means technical and vocational education training. Article II Execution of the Activities 2.01. Description of the Activities. The Activities for which the Advance is provided consist of the following parts: (a) Provision of technical assistance to develop the operations manual and the technical specifications for key delivery systems and tools required for the initial roll out of the main interventions supported by the Project, including the communications strategy, the identification of skills and manpower needs, and the development of training materials. (b) Setting up the Project coordination unit with key staff. (c) Preparation of safeguards instruments including consultations with stakeholders to refine the Project design and raise awareness before implementation. (d) Establishment of information systems for enrollment of beneficiaries; and development of monitoring and evalutation sytem to track progress of the Project. ( e) Provision ofTraining to build capacity for the Project, including the fiduciary aspects. 2.02. Execution of the Activities Generally. The Recipient declares its commitment to the objectives of the Activities. To this end, the Recipient shall carry out the Activities through the -5- Ministry of Employment, Youth and Sports, in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) this Article II; and(~) 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 ofJuly 1, 2016. 2.03 . I11stitutional and Other Arrangeme11ts. Without limitation upon Section 2.02 above: (a) the Recipient shall, throughout the Refinancing Date, maintain the Implementation Unit with structure, functions and responsibilities acceptable to the World Bank, and with competent staff, in adequate numbers, with qualification and experience satisfactory to the World Bank to be responsible for the overall implementation of the Activities. (b) The Recipient shall, throughout the Refinancing Date, maintain DPEF to be responsible for the procurement and fiduciary aspects of the Activities. (c) without limitation on the foregoing under paragraphs (a) and (b) above, the Recipient shall maintain appropriate administrative and regulatory arrangements throughout the implementation of the Activities to ensure smooth collaboration between the Implementation Unit and DPEF, to ensure prompt and efficient implementation of the Activities. 2.04. Environmental and Social Standards. (a) The Recipient shall ensure that the Activities are carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Bank. (b) Without limitation upon paragraph {a) above, the Recipient shall ensure that the Activities are implemented in accordance with the Environmental and Social Commitment Plan ("ESCP"), in a manner acceptable to the Bank. To this end, the Recipient shall ensure that: (i) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, and as further specified in the ESCP; (ii) sufficient funds are available to cover the costs of implementing the ESCP; (iii) policies, procedures and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP; and (iv) the ESCP or any provision thereof, is not amended, revised or waived, except as the Bank shall otherwise agree in writing and the. Recipient has, thereafter, disclosed the revised ESCP. In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions of this Agreement shall prevail. (c) The Recipient shall: (i) take all measures necessary on its part to collect, compile, and furnish to the Bank through regular reports, with the frequency specified in the ESCP, and promptly in a separate report or reports, if so requested by tlie Bank, information on the - -6- status of compliance with the ESCP and the management tools and instruments referred to therein, all such reports in form and substance acceptable to the Bank, setting out, inter alia: (A) the status of implementation of the ESCP; (B) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (C) corrective and preventive measures taken or required to be taken to address such conditions; and (ii) promptly notify the Bank of any incident or accident related to or having an impact on the Activities which has, or is likely to have, a significant adverse effect on the environm<;:nt, the affected communities, the public or workers in accordance with the ESCP, the instruments referenced therein and the Environmental and Social Standards. (d) The Recipient shall maintain ,and publicize the availability of a grievance mechanism, in form and substance satisfactory to the Bank, to hear and determine fairly and in good faith all complaints raised in relation to the Activities, and take all measures necessary to implement the determinations made by such mechanism in a manner satisfactory to the Bank. 2.05. Monitoring, Reporting and Evaluation of the Activities. The Recipient shall monitor and evaluate the progress of the Activities in accordance with the ptovisions of Section 2.08 of the Standard Conditions. 2.06. Financial Management. (a) The Recipient shall ensure that a financial management system is maintained~ accordance with the provisions of Section 2.09 of the Standard Conditions. (b) The Recipient shall ensure that interim un-audited financial reports for the Activities are prepared and furnished to the World Bank not later than one month after the end of each calendar quarter, covering the quarter, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Sections 2.09 (b) of the Standard Conditions . (i) If, on or before the Refinancing Date, a Refinancing Agreement has been executed by all of its parties, the Recipient shall have the Financial Statements included in the first audit of financial statements required under the Refinancing Agreement. (ii) If, by the Refinancing Date, no Refinancing Agreement has been executed by all of its parties, such audit of the Financial Statements shall cover the period of the Advance, commencing with the fiscal year in which the first withdrawal under the Advance was made. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the end of the Recipient's fiscal year in which the Refinancing Date occurs. (iii) Notwithstanding the provisions of paragraphs (i) and (ii) of this Section, the World Bank may request an audit of the Financial Statements prior to the Refinancing Date, covering such period as is indicated in its request. The audited Financial Statements for such period shall be furnished to the World Bank not later than six months after the end of such period. -7- 2.07. Procurement All goods, non-consulting services and consulting services required for the Activities and to be financed out of the proceeds of the Advance 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 20 17 and August 2018 ("Procurement Regulations") and the provisions of the Recipient' s procurement plan for the Activities dated October 18, 2019 ("Procurement Plan") 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. Article m Withdrawal of the Advance 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Advance in accordance with the provisions of: (a) Article III 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 following table. The table specifies each category of Eligible Expenditures that may be financed out of the proceeds of the Advance ("Category"), the amount of the Advance allocated to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Category Amount of the Advance Percentage of Allocated Expenditures to be (expressed in· Dollars) Financed (inclusive of Taxes) Goods, non-consulting 520,000 100% services,consulting services, Training and Operating costs under the Activities TOTAL AMOUNT 520,000 3.02. Withdrawal Conditions. Notwithstanding the prov1S1ons of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of countersignature of this Agreement by the Recipient. 3.03 . Refinancing Date. The Refinancing Date is January 18, 202 1. Article IV Terms of the Advance 4.01. Refinancing under the Refinancing Agreement: If, on or before the Refinancing Date, a Refinancing Agreement has been executed by all of its parties, then the full amount of the Withdrawn Advance Balance shall be paid to the World Bank as soon as the Refinancing -8- Agreement becomes effective, by means of a withdrawal by the World Bank of such amount of the Refinancing Proceeds, in accordance with the provisions of the Refinancing Agreement. 4.02. No Repayment in the absence ofa Refinancing Agreement: Notwithstanding any provision to the contrary in the Standard Conditions, if, on or before the Refinancing Date, no Refinancing Agreement has been executed by all of its parties, or if, by such date, it has been so executed but terminates without becoming effective, then the Recipient shall not be obligated to repay the Withdrawn Advance Balance. Article V Recipient's Representative; Addresses 5.01. Recipie11t's Represe11tative. The Recipient' s Representative referred to in Section 9.02 of the Standard Conditions is its Minister in charge of economy. 5.02. Recipie11t'sAddress. The Recipient' s Address referred to in Section 9.01 of the Standard Conditions is: Ministry of Ministry of Economy and Industry BP 238 Nouakchott Mauritania Facsimile: 222-45-25-33-35 5.03. World Bank's Address. The World Bank' s Address referred to in Section 9.0 I of the Standard Conditions is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI)