The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION ANE DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS y' 1 ,2015 H.E. Jean Gustave Sanon Minister of Economy and Finan -e Ministry of Economy and Finarce 03 B.P. 7008 Ouagadougou 03 Burkina Faso Re: Burkina Faso: Advance Agreement for Preparation of Proposed Public Sector Modernization Program Supplemental Program Preparation Advance No. IDA Q9730 Excellency: In response to the req iest for financial assistance made on behalf of Burkina Faso ("Recipient"), I am pleased to ini orm you that the International Development Association ("World Bank") proposes to extend to the Recipient an Additional advance out of the World Bank's Project Preparation Facility in an amcunt not to exceed two million five hundred thousand Dollars ($2,500,000) ("Advance") on the terms and conditions set forth or referred to in this letter agreement, which includes the attached Annex ("Agreement"), to assist in financing the activities described in the Annex ("Activit es"). The objective of the Activities is to facilitate the preparation of a proposed program designed to improve selected service standards in targeted regions of the Recipient's ministries responsible for primary education, justice, labor and civil service ("Program"), for the carrying ou: 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 n ot constitute or imply any commitment on the part of IBRD or IDA to provide financing in support of the Program; 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 wiih the provisions of this Agreement. Please confirm the Re -ipient'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 'he World Bank of the 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effective as of the date of the countersignature; provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received this countersigned copy within ninety (90) days alter the date of signature of this Agreement by the World Bank, unless the World Bank has esta)lished a later date for such purpose. Very truly yours, INTERNATIONAL DEVELOPMENT OCIATION B Ousman ia x, Country Dir o r B kina Faso AGREED:rica Region BURKINA FA By Aut 9zed Representative Name -i &, " e Anv Title IA,, CA.. Date: A IS Enclosures: (1) "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility", dated July 31, 2010; ard (2) Disbursement Letter for the Advance of the same date as this Agreement, together with "World Bank Disbursement Guidelines for Projects", dated May 1, 2006. 2 PPA No. IDA Q9730 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Advances Made by the World Bank under its Project Preparation F,icility dated July 31, 2010 ("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 ter ns shall have the following meanings: (a) "Local Government Support Project" means the Local Government Support Project described in the Fina,cing Agreement between Burkina Faso and the International Development Association datec December 8, 2011 (GRANT NUMBER H736-BF). (b) "Ministry of Civil Service" means the Recipient's Minist re de la fbnction publique du travail et de la sicaritd sociale, or any successor thereto. (c) "Operating Cots" means the reasonable expenditures incurred by the recipient to finance the Activities, including office supplies, vehicle operation and maintenance, communication and printing ser vices, insurance costs, banking charges, rental expenses, office and office equipment maintenance, utilities, document duplication/printing, consumables, travel cost and per diem for Recipient staff for travel linked to the implementation of the Program, and salaries of contractual staff for the Act vities (but excluding salaries of officials of the Recipient's civil service). (d) "Training" means the reasonable costs associated with training and workshop participation under the Activities, consisting of travel and subsistence costs for training participants, costs (other than c nsulting services) associated with securing the services of trainers, rental of training facilities, preparation and reproduction of training materials, and other costs directly related to course or workshop preparation and implementation. 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) Preparation of Program Activities. (b) Conducting diagnostic studies and holding workshops (c) Developing monitoring and evaluation systems. (d) Institutional strengthening of the implementation of the Program. 3 (e) Preparation of Program implementation manuals. (f) Other activities related :o the Program preparation. 2.02. Execution of the Actiities Generally. The Recipient declares its commitment to the objectives of the Activities. To this end, the Recipient shall carry out the Activities through the Ministry of Civil Service in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) this Article II; and (c) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Finance( by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011. 2.03. Institutional and Other Arrangements. In order to achieve the objectives of the Program, the Ministry of Civil Service shall sign a memorandum of understanding with the project coordination unit of the Local Government Support Project to receive support by said coordination unit in managing the Activities, including procurement and financial management support. 2.04. Monitoring, Reporting and Evaluation of the Activities. The Recipient shall monitor and evaluate the progress of the Activities in accordance with the provisions of Section 2.08 of the Standard Conditions. 2.05. Financial Management. (a) The Recipient shall ensure that a financial management system is maintained in accorda ice 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 furn shed to the World Bank not later than forty five (45) days after the end of each calendar quarter, cc vering 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, tl e Recipient shall have the Financial Statements included in the first audit of financial statements reqL ired under the Refinancing Agreement. (ii) If, by tl e 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 yea- of the Recipient 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) Notwit'istanding 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 3ank not later than six months after the end of such period. 4 2.06. Procurement (a) General. All goods, non-consulting services and consultants' 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: (i) Section I of the "Guidelines: Procurement of Goods, Works and Non- consulting Services under IBR) Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 (revised July 2014) ("Procurement Guidelines"), in the case of goods and non- consulting services; (ii) Sections I and IV of the "Guidelines: Selection and Employment of Consultants under IBRD Loan and IDA Credits and Grants by World Bank Borrowers" dated January 2011 (revised July 2014) "Consultant Guidelines") in the case of consultants' services; and (iii) the provisions of this Section, as the same shall be elaborated in the procurement plan prepared and updated from time to time by the Recipient for the Activities in accordance with paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines ("Procur:ment Plan"). (b) Definitions. The capitalized terms used in the following paragraphs of this Section to describe particular procuremint methods or methods of review by the World Bank of particular contracts, refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, FV and V of the Consultant Guidelines, as the case may be. (c) Particular Metl ods of Procurement of Goods and Non-consulting Services (i) Except as otherwise provided in sub-paragraph (ii) below, goods and non- consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. (ii) The fo lowing methods, other than International Competitive Bidding, may be used for procurement ol goods and non-consulting services for those contracts specified in the Procurement Plan: (A) National Competitive Bidding, subject to the use of bidding documents acceptable to IDA; (B) Shoppin 2; (C) Direct Contracting. (d) Particular Met' ods of Procurement of Consultants' Services (i) Except as otherwise provided in item (ii) below, consultants' services shall be procured under contracts aw; rded on the basis of Quality- and Cost-based Selection. (ii) The following methods, other than Quality- and Cost-based Selection, may be used for the procuremen: of consultants' services for those assignments which are specified in the Procurement Plan: (A) Least Cost Selection; (B) Selection based on Consultants' Qualifications; (C) Single-source Selection of consulting firms; (D) Selection of Individual Consultants; and (E) Single-source procedures for the Selection of Individual Consultants. 5 (e) Review by the World Bank of Procurement Decisions. The Procurement Plan shall set forth those contracts whicli shall be subject to the World Bank's Prior Review. All other contracts shall be subject to Pos: Review by the World Bank. Article III Withdrawal of the Advance 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Advance in accordance with the provisions )f: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions z s the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance 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 Expenditu!es in each Category: Category Amount of the Advance Percentage of Allocated Expenditures to be (expressed in Dollars) Financed (inclusive of Taxes) (1) Goods, non-consulting $2,400,000 100% services, consultants' services and Training (2) Operating Costs $100,000 100% TOTAL AMOUNT $2,500,000 3.02. Withdrawal Conditions. Notwithstanding the provisions 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, except that withdrawals up to an aggregate amount not to exceed USD 80,000 equivalent may be made for payments made prior to this date for Eligible Expenditure. 3.03. Refinancing Date. The Refinancing Date is December 30, 2015. Article IV Terms of the Advance 4.01. Service Charge. The IZecipient shall pay a service charge on the Withdrawn Advance Balance at the rate of three-fourihs of one percent (3/4 of 1%) per annum. The service charge shall accrue from the respective dates on which amounts of the Advance are withdrawn and shall be paid 6 in arrears in accordance with the provisions of Section 4.02 of this Agreement. Service charges shall be computed on the basis of a 360-day year of twelve 30-day months. 4.02. Repayment. The Witt drawn Advance Balance shall be repaid by the Recipient to the World Bank (together with any ;ervice charges accrued thereon) in accordance with the provisions of Article IV of the Standard Conditions and the following provisions: (a) 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 sEall be repaid to the World Bank (together with any service charges accrued on the Advance to the date of repayment) as soon as the Refinancing Agreement becomes effective, by means of a withdrawal by the World Bank of an amount of the Refinancing Proceeds equivalent to the Withdrawn Advance Balance plus such service charges, in accordance with the provisions of the Refinancing A greement. (b) Repayment in he absence of a Refinancing Agreement: If, on or before the Refinancing Date, no Refinanciiig Agreement has been executed by all of its parties, or if, by such date or at any time thereafter, ii has been so executed but terminates without becoming effective, then: (i) if the amount ol the Withdrawn Advance Balance does not exceed $50,000, it shall be repaid by tie Recipient to the World Bank (together with service charges accrued on the Withdrawn Advance Balance to the date of repayment) on such date as the Wor[d Bank shall specify in a notice to the Recipient, which shall in no event be earlier than 60 days following the date of dispatch of such notice; and (ii) if the amount cf the Withdrawn Advance Balance exceeds $50,000, it (together with service charges accrued on the Withdrawn Advance Balance to the Notice Date) (the "Ag:regate Balance") shall be paid by the Recipient to the World Bank in ten approximately equal semiannual installments, in the amounts and on the dates ("Paymer t Dates") which the World Bank shall specify in a notice to the Recipient. In no event shall the first Payment Date be set earlier than 60 days following the d.ite ("Notice Date") of dispatch of such notice. The Recipient shall pay a service cl arge on the Aggregate Balance at the rate of three-fourths of one percent (3/4 of 1%) per annum, payable in arrears on each Payment Date. The service charge ;hall be computed on the basis of a 360-day year of twelve 30-day months. Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative referred to in Section 9.02 of the Standard Conditions is its minister responsible for finance. 7 5.02. Recipient's Address. I he Recipient's Address referred to in Section 9.01 of the Standard Conditions is: Minister of Economy aid Finance Minist re de l'Economi? et des Finances 03 BP 7050 Ouagadougou 03 Burkina Faso Cable: Telex: Facsimile: SEGEGOUV 5555 226-50-31-27-15 5.03. World Bank's Address. The World Bank's Address referred to in Section 9.01 of the Standard Conditions is: International Developr ent Association 1818 H Street, N.W. Washington, D.C. 20433 United States of Ameri:a Cable: Telex: Facsimile: INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI) 8