OFFICIAL DOCUMENTS ARTF GRANT NUMBER TFOB3535 Afghanistan Reconstruction Trust Fund Grant Agreement (Emergency Agriculture and Food Supply Project) between ISLAMIC REPUBLIC OF AFGHANISTAN and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as administrator of Afghanistan Reconstruction Trust Fund ARTF GRANT NUMBER TFOB3535 AFGHANISTAN RECONSTRUCTION TRUST FUND GRANT AGREEMENT AGREEMENT dated as of the Signature Date between ISLAMIC REPUBLIC OF AFGHANISTAN ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Bank"), acting as administrator of the Afghanistan Reconstruction Trust Fund. WHEREAS: (A) the Recipient, having satisfied itself as to the feasibility and priority of the Project described in Schedule I to this Agreement ("Project"), has requested the Bank to extend a grant from the ARTF to assist in the financing of the Project; and (B) the Recipient has also requested International Development Association to provide assistance and make available a grant in the amount of SDR 40,000,000 (the "Financing"), to assist in the financing of the Project, under a financing agreement between the Recipient and the Bank, dated as of the Signature Date (the "Financing Agreement"); NOW THEREFORE, the Recipient and the Bank hereby agree as follows: Article I Standard Conditions; Definitions 1.01. The Standard 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 shall have the meanings ascribed to them in the Standard Conditions or in the Appendix to this Agreement. Article II 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 out the Project in accordance with the provisions of Article II of the Standard Conditions and Schedule 2 to this Agreement. 2 Article III The Grant 3.01. The Bank agrees to extend to the Recipient a grant in an amount not to exceed forty-five million United States Dollars ($45,000,000) ("Grant") to assist in financing the Project. 3.02. The Recipient may withdraw the proceeds of the Grant in accordance with Section III of Schedule 2 to this Agreement. 3.03. The Grant is funded out of the abovementioned trust fund for which the Bank receives periodic contributions from the donors to the trust fund. In accordance with Section 3.02 of the Standard Conditions, the 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 Effectiveness; Termination 4.01 This Agreement shall not become effective until evidence satisfactory to the Bank has been furnished to the Bank that the condition specified below has been satisfied, namely, that the Financing Agreement has been executed and delivered and all conditions precedent to its effectiveness (other than the effectiveness of this Agreement) have been fulfilled. 4.02. By signing the Grant Agreement, the Recipient shall be deemed to represent and warrant that on the Signature Date, the Grant Agreement has been duly authorized by, and executed and delivered on behalf of, the Recipient and is legally binding upon the Recipient in accordance with its terms, except where additional action is required to make such Grant Agreement legally binding. Where additional action is required following the Signature Date, the Recipient shall notify the Bank when such additional action has been taken. By providing such notification, the Recipient shall be deemed to represent and warrant that on the date of such notification the Grant Agreement is legally binding upon the Recipient in accordance with its terms. 4.03. Except as the Recipient and the Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the Bank dispatches to the Recipient notice of its acceptance of the evidence required pursuant to Section 4.01 ("Effective Date"). If, before the Effective Date, any event has occurred which would have entitled the Bank to suspend the right of the Recipient to make withdrawals from the Grant Account if this Agreement had been effective, the 3 Bank may postpone the dispatch of the notice referred to in this Section until such event (or events) has (or have) ceased to exist. 4.04. Termination for Failure to Become Afftctive. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date ninety (90) days after the Signature Date, unless the Bank, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section. The Bank shall promptly notify the Recipient of such later date. Article V Recipient's Representative; Addresses 5.01. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Minister of Finance. 5.02. For purposes of Section 7.01 of the Standard Conditions: (a) the Recipient's address is: Ministry of Finance Pashtunistan Watt Kabul, Islamic Republic of Afghanistan; and (b) the Recipient's Electronic Address is: Facsimile: 93-202-103-259 5.03. For purposes of Section 7.01 of the Standard Conditions: (a) the Bank's address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Bank's Electronic Address is: Facsimile: 1-202-477-6391 4 AGREED as of the Signature Date. ISLAMIC REPUB C OF AFGHA ISTAN By A orized Repres e N me: Title: Date: INTERNATIONAL DEVELOPMENT ASSOCIATION acting as administrator of the Afghanistan Reconstruction Trust Fund By Authorized Representative Name: Title: Date: 5 SCHEDULE 1 Project Description The provisions of Schedule I to the Financing Agreement are incorporated herein by reference and apply to the Project, mutatis mutandis. 6 SCHEDULE 2 Project Execution Section 1. Institutional and Other Arrangements The provisions of Sections I of Schedule 2 to the Financing Agreement, comprising of Section L.A (Institutional Arrangements), Section I.B (Project Documents), Section I.C (CDC Grants and Sub-Grants), Section I.D (Eligible Farmers), Section I.E (Annual Work Plans and Budgets), Section I.F (Contingent Emergency Response), and Section I.G (Environmental and Social Standards), are incorporated herein by reference and shall apply, mutatis mutandis, to the Project, with the following modifications: (a) The term "Association" wherever used in Section I of Schedule 2 to the Financing Agreement shall mean the "Bank" as defined in this Agreement. (b) The term "Financing" wherever used in Section I of Schedule 2 to the Financing Agreement shall mean the "Grant" as defined in this Agreement. Section II. 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 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 7 (b) the representatives of the 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). B. Project Reports The Recipient shall ensure that each Project Report is furnished to the Bank not later than one month after the end of each calendar quarter, covering the calendar quarter. Section III. Withdrawal of Grant Proceeds A. General I. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; and (b) this Section; to finance Eligible Expenditures in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table. Amount of the Percentage of Grant Allocated Expenditures to be Category (expressed Financed in USD) (inclusive/exclusive of Taxes (1) Goods, works, non-consulting 16,200,000 45% services, consulting services, Training and Incremental Operating Costs, and Sub- Grants under Parts A, B, and C of the Project (Except for CDC Grants under Parts A. 1(b), A.2(d), and B.2(c)) (2) CDC Grants under Parts A. 1(b), 23,400,000 45% A.2(d), and B.2(c) of the Project (3) Project Implementation Staff 5,400,000 45% (4) Contingent Emergency Expenditures 0 under Part D of the Project TOTAL AMOUNT 45,000,000 8 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 Signature Date; (b) under Category (2) until and unless the Bank is satisfied, and notified the Recipient of its satisfaction, that the Recipient has: (i) adopted the CDC Grants Manual in form and substance satisfactory to the Bank; and (ii) developed and implemented a monitoring and information system for the CDC Grants, in a manner satisfactory to the Bank, to register Eligible CDCs and record disbursements and expenditure by each Eligible CDC; or (c) for Contingent Emergency Expenditures under Category (4), unless and until the Bank is satisfied that all of the following conditions have been met in respect of said expenditures: (i) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Bank a request to include said activities in the Contingent Emergency Response Part in order to respond to said crisis or emergency, and the Bank has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has ensured that all safeguards instruments required for said activities have been prepared and disclosed, and the Recipient has ensured that any actions which are required to be taken under said instruments have been implemented, all in accordance with the provisions of Sections I.F of this Schedule; (iii) the entities in charge of coordinating and implementing the Contingent Emergency Response Part have adequate staff and resources, in accordance with the provisions of Section I.F of this Schedule, for the purposes of said activities; and (iv) the Recipient has adopted the CERM, in form and substance acceptable to the Bank, and the provisions of the CERM remain, or have been updated in accordance with the provisions of Section I.F of this Schedule so as to be, appropriate for the inclusion and implementation of the Contingent Emergency Response Part. 2. The Closing Date is August 31, 2022. 9 APPENDIX Definitions 1. "Anti-Corruption Guidelines" means, for purposes of paragraph 2 of the Appendix to the Standard 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. 2. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 3. "CDC Grant" means a grant made available by the Recipient, pursuant to a CDC Grant Agreement, to an Eligible CDC out of the proceeds of the Grant in order to finance the costs of goods, works, and services to carry out a Sub-project under Parts A.1(a), A.2(d), and B.2(c) of the Project; and "CDC Grants" means, collectively, all such CDC Grants. 4. "CDC Grant Agreement" means the agreement to be entered into between representatives of an Eligible CDC and MAIL, in accordance with Section I.C.3 of Schedule 2 to this Agreement and the CDC Grant Manual, and "CDC Grant Agreements" means, collectively, all such CDC Grant Agreements. 5. "CDC Grants Manual" means the manual for the CDC Grants to be adopted by the Recipient pursuant to Section III.B.1(c) of the Schedule 2 to this Agreement, containing detailed criteria and selection procedures of an Eligible CDC, implementation procedures and requirements for the Sub-projects, including procurement, financial management, and environmental and social requirements and procedures, and the template agreement for CDC Grants. "Signature Date" means the later of the two dates on which the Recipient and the Bank signed this Agreement and such definition applies to all references to "the date of the Grant Agreement" in the Standard Conditions. 6. "Contingent Emergency Expenditure" means any of the eligible expenditures set forth in the Contingent Emergency Response Manual in accordance with the provisions of Section I.F of Schedule 2 to this Agreement and required for the Contingent Emergency Response Part. 7. "Contingent Emergency Response Manual" or "CERM" means the manual referred to in Section I.F of Schedule 2 to this Agreement, in form and substance satisfactory to the Association, to be adopted for the Contingent Emergency Response Part in accordance with the provisions of said Section. 10 8. "Contingent Emergency Response Part" means a specific activity or activities to be carried out in the event of an Eligible Crisis or Emergency under Part D of the Project. 9. "Eligible CDC" means a CDC selected by MAIL to carry out a Sub-project in accordance with the provisions of the CDC Grants Manual; and "Eligible CDCs" means, collectively, all such Eligible CDCs. 10. "Eligible Crisis or Emergency" means an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact to the Recipient, associated with a natural or man-made crisis or disaster. 11. "Eligible Farmer" means a farmer selected by MAIL for the purposes of Part B.1(i) of the Project in accordance with the eligibility criteria set out in the Project Operations Manual; and "Eligible Farmers" means, collectively, all such Eligible Farmers. 12. "Eligible Sub-Grant Beneficiary" means a commercial agribusiness entities, small and medium enterprise, or an association thereof selected by MAIL for the purpose of Part B.2(b) of the Project, in accordance with the provisions of the Project Operations Manual; and "Eligible Sub-Grant Beneficiaries" means, collectively, all such Eligible Sub-Grant Beneficiaries. 13. "Incremental Operating Costs" means the reasonable costs incurred by the Project Implementing Entity for the purpose of Project management and implementation on account of, inter alia, office rental, supplies and consumables, utilities, bank charges, communications, mass media and printing services, interpretation and translation services, vehicle rental, operation, maintenance, fuel and insurance, building and equipment maintenance, local transportation, domestic travel, lodging, remuneration of Project staff (other than consultants procured under the Project), payments to intems recruited under the Project, and subsistence allowances, but excluding salaries and salary supplements of members of the Recipient's civil service. 14. "MAIL" or "Ministry of Agriculture, Irrigation, and Livestock" means the Recipient's ministry responsible for agriculture, irrigation, and livestock, or any successor thereto. 15. "Project Implementation Staff' means additional staff recruited by the Recipient for the purposes of the Project implementation on a contractual and temporary basis in compliance with the detailed hiring procedure as set forth in the Project 11 Operations Manual, and such term does not include any members of the Recipient's civil service. 16. "Project Management Unit" means the Project Management Unit established pursuant to Section 2.03(1)(b) of the Project Preparation Grant Agreement, dated April 6, 2020, entered into between the Recipient and the Association, acting as administrator of the Afghanistan Reconstruction Trust Fund, for providing Grant No. TF OB2475 in support of financing activities for the preparation of the Project, and strengthened pursuant to Section I.A.2(b) of Schedule 2 to this Agreement. 17. "Project Operations Manual" means Recipient's operational manual to be adopted pursuant to Section III.B(1)(b) of Schedule 2 to this Agreement, containing detailed arrangements and procedures necessary for the effective implementation of the Project, including: (i) the details of the Project activities, including results framework and overall budget; (ii) the Project implementation arrangements, including the composition of the Project Management Unit, Project Steering Committee, and terms or reference therefor; (iii) the criteria, guidelines and procedures for implementation of the Sub-grants, including the selection of Eligible Sub-Grant Beneficiaries, conditionality requirements and verification protocols therefor, disbursement of the Sub-grants, and the template sub-grant agreement; (iv) detailed eligibility criteria and procedures for seed distribution to Eligible Farmers, including collection of Eligible Farmer's contribution; (v) detailed procedures and requirements for personal data collection and processing in accordance with good international practice; (vi) minimum qualifications and detailed hiring procedure and requirements for the recruitment of Project Implementation Staff; and (vii) the monitoring and evaluation and reporting requirements for the Project. 18. "Signature Date" means the later of the two dates on which the Recipient and the Bank signed this Agreement and such definition applies to all references to "the date of the Grant Agreement" in the Standard Conditions. 19. "Standard Conditions" means the "International Bank for Reconstruction and Development and International Development Association Standard Conditions for Grant Financing Made by the Bank out of Trust Funds", dated February 25, 2019. 20. "Sub-grant" means a grant to be provided by MAIL out of the proceeds of the Financing to an Eligible Sub-Grant Beneficiary under Part B.2(b) of the Project and in accordance with the Project Operations Manual; and "Sub-Grants" means, collectively, all such Sub-Grants. 12 21. "Sub-grant Agreement" means the agreement to be entered into between representatives of an Eligible Sub-grant Beneficiary and MAIL, in accordance with Section I.C.6 of Schedule 2 to this Agreement and the Project Operations Manual, and "Sub-grant Agreements" means, collectively, all such Sub-grant Agreements. 22. "Sub-project" means the maintenance or construction activities under Parts A.1(a), A.2(d), and B.2(c) of the Project; and "Sub-projects" means, collectively, all such Sub-Projects. 23. "Training" means the cost of trainings, seminars and workshops, conferences and study tours, considered to be reasonable by the Association, including: (i) the fees of training institutions and courses; (ii) domestic or international travel costs, lodging costs, and subsistence/per diem allowances both for trainers and trainees; (iii) the rental of training facilities; and (iv) preparation, purchase or reproduction of training materials. 13