GRANT NUMBER D806-TD Financing Agreement (Additional Financing for the Climate Resilient Agriculture and Productivity Enhancement Project) between REPUBLIC OF CHAD and INTERNATIONAL DEVELOPMENT ASSOCIATION GRANT NUMBER D806-TD FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF CHAD ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing additional financing for activities related to the project described in the financing agreement for a Climate Resilient Agriculture and Productivity Enhancement Project ("Original Project") between the Recipient and the Association, dated June 19,2018 (GrantNo. D302-TD) ("Original Financing Agreement"). WHEREAS: (A) under the Original Financing Agreement, the Association decided to provide the Recipient with a grant in an amount equivalent to twenty-eight million four hundred thousand Special Drawing Rights (SDR 28,400,000) ("Original Financing") to assist in financing the Original Project; and (B) the Recipient has requested the Association to provide additional financial assistance in support of activities related to the Original Project and described in Schedule 1 to this Agreement ("Project") by providing a grant in an amount equivalent to fifteen million United States Dollars ($15,000,000) ("Additional Financing"). The Recipient and the Association 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 II - FINANCING 2.01. The Association agrees to extend to the Recipient a grant, which is deemed as Concessional Financing for purposes of the General Conditions, in an amount equivalent to ten million five hundred thousand Special Drawing Rights (SDR 10,500,000) ("Financing"), to assist in financing the project described in Schedule 1 to this Agreement ("Project"). 2.02. The Recipient may withdraw the proceeds of the Financing in accordance with Section III of Schedule 2 to this Agreement. -2- 2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.04. The Payment Dates are June 15 and December 15 in each year. 2.05. The Payment Currency is Dollar. ARTICLE III - PROJECT 3.01. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out Parts A.1(a) and (b), A.2, A.3, B, C and D of the Project, and shall cause Part A.1(c) to be carried out by the Project Implementing Entity, in accordance with the provisions of Article V of the General Conditions, Schedule 2 to this Agreement and the Project Agreement. ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.01. The Additional Event of Suspension consists of the following, namely that the CORAF Legislation has been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely the ability of the Project Implementing Entity to perform any of its obligations under the Project Agreement. ARTICLE V - EFFECTIVENESS; TERMINATION 5.01. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 5.02. For purposes of Section 10.05 (b) of the General Conditions, the date on which the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is twenty (20) years after the Signature Date. ARTICLE VI- REPRESENTATIVE; ADDRESSES 6.01. The Recipient's Representative is the minister in charge of economy, development planning and international cooperation. 6.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Ministry of Economy and Development Planning and International Cooperation B.P. 286 N'Djamena Republic of Chad; and -3- (b) the Recipient's Electronic Address is: Facsimile: (235) 22 51 51 85; (235) 22 51 45 87 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: Facsimile: (1) 202 477 6391 -4- AGREED as of the Signature Date. REPUBLIC OF CHAD By Authorize esentative Name: Title: fLL4 \ Date: 23 M01T 2021 INTERNATIONAL DEVELOPMENT ASSOCIATION By AuthorizedRepresentative Name: ___ P_______ Title: VVj Kc, 4 Date: 2-2v Z')i -5- SCHEDULE 1 Project Description The objective of the Project is to promote the adoption of improved technologies leading to increased productivity and to enhance the climate resilience of agricultural production systems in the areas targeted by the Project. The Project consists of the following parts: Part A. Institutional Support for Sustainable Agriculture Development and Climate Resilience 1 . Strengthening the agricultural research and development (AR&D) system (a) Support for adaptive research systems including, inter alia: (i) the rehabilitation of the infrastructure (laboratories and facilities) and equipment of selected facilities for the Chadian Institute for Agriculture Research and Development (ITRAD); (ii) specialized short and long term training of researchers; (iii) support to the setting-up of an innovative and sustainable AR&D funding system; (iv) the production of high-quality breeder and foundation seeds for targeted crops; and (v) competitive research and development (R&D) funding. (b) Support for strengthening research-extension-farmer linkages including, inter alia, for consultation and cooperation among the stakeholders in agricultural R&D. (c) Support for the Recipient's participation and integration in regional networks and cooperation in agriculture, including, inter alia, through: (i) extension to the Recipient of CORAF's technical networks on strengthening regional cooperation and sharing of experience, knowledge and training; (ii) development and implementation of annual communication action plans based on the regional communication strategy prepared by CORAF, including the networking of knowledge management, information, and communications systems to accelerate the sharing of agricultural technology, tools, and best practices; (iii) support to the Recipient in preparing and implementing an action plan to mainstream climate change considerations in R&D programs; (iv) support for developing and implementing an action plan to mainstream gender considerations in R&D programs based on the gender strategy prepared by CORAF; (v) expansion of CORAF's regional competitive agricultural research grant scheme to the Recipient; and (vi) technical assistance for the creation and implementation of a national competitive agriculture research grant mechanism. 4VK -6- 2. Strengthening of national support services for sustainable agricultural development and climate resilience (a) Support for revitalizing agricultural advisory support services and mainstreaming ICT including, inter alia, support to the Recipient's National Agency for Rural Development (ANADER). (b) Support for strengthening the capacity of producer organizations and the federation of producer organizations, through inter alia: (i) training of trainers; (ii) short and specialized training courses; (iii) workshops, showcase events and study tours; (iv) linkage with development partners and the private sector; and (v) acquisition of equipment. (c) Support for developing farmer-oriented agro-climatic services including, inter alia, support for the operation of the agro-meteorological multidisciplinary working group (GTP) and the acquisition of weather forecasting digital solutions. 3. Strengthening the framework for sectoral strategies and reforms preparation and monitoring Support for development and dissemination of sector policies and strategies, preparation of studies, gender impact evaluation and training in policy analysis and evaluation for the staff of the Recipient's Ministry of Agriculture. Part B. Supporting Adoption of Demand Driven Technologies and Climate-Smart Agriculture 1. Improving the efficiency of agricultural support services in the targeted areas (a) Support for fostering demand-driven agricultural advisory services, including, inter alia: (i) financing the implementation of innovation platforms; (ii) capacity building of producer organizations; (iii) capacity building of public and private local extension services; and (iv) supporting agro-climatic services delivery. (b) Support for effective technical support services for sustainable agriculture through the provision of Matching Grants to finance Sub-projects focusing on, inter alia: (i) planning and production of improved seeds and seedlings for the targeted crops; (ii) multiplication and dissemination of improved livestock breeds and fish fingerlings; and (iii) access to inputs and small mechanization services. -7- 2. Accelerating adoption of improved technologies and innovations (a) Support for improved technology adoption and innovation to promote sustainable intensification of targeted local production systems including, inter alia, through provision of Matching Grants for Sub-projects. (b) Support for diversification and value addition through the provision of Matching Grants to selected private sector entities, for the use of technologies and innovations. 3. Support to the Implementation of Climate-SmartAgriculture Plans (CSA-Plans) Support for the preparation of local community investment plans and implementation of climate-smart agriculture activities, including through the provision of Matching Grants for Sub-projects. 4. Resilience building of targeted refugees, returnees and selected host communities Building the resilience capacity of targeted refugees, returnees and vulnerable members of host communities through the provision of: (a) CfW Transfers; and (b) training, aimed at: (i) contributing to their purchasing power; (ii) increasing their financial management capacity; and (iii) contributing to productive asset building. Part C. Contingent Emergency Response Provision of rapid response to an Eligible Crisis or Emergency, as needed. Part D. Project Management, Coordination, Monitoring and Evaluation, and Knowledge Management Support for Project implementation, including, inter alia: (i) coordination and management, including human resources, financial management and procurement; (ii) monitoring and evaluation and technical studies; (iii) knowledge management and communication; (iv) safeguards and citizen engagement, including piloting an iterative beneficiary monitoring (IBM) system for obtaining feedback and informing on Project implementation; (v) establishing a grievance redress mechanism; (vi) financing of Incremental Operating Costs; (vii) rehabilitation of office space required for Project management; and (viii) equipment required for Project management and supervision. -8- SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. 1. The Recipient shall carry out the Project through its Ministry of Agriculture, and shall maintain the following functions throughout Project implementation, all with functions, compositions, terms of reference, resources and staffing as further set forth in the Project Manuals: (a) the National Steering Committee, to be responsible for, inter alia, providing strategic guidance, as further set forth in the Project Manuals; (b) the CCP, to be responsible for, inter alia, coordination of projects, program policies and strategies in the agriculture sector, and communication and knowledge management, as further set forth in the Project Manuals; and (c) the UCTF, to be responsible for, inter alia, day-to-day implementation of the Project, including management, coordination, performance monitoring and evaluation, documentation of Project progress and results, and supervision of Project implementation, and Project fiduciary, procurement, disbursement, monitoring and evaluation, and safeguards functions, all as further set forth in the Project Manuals. 2. The Recipient shall also maintain throughout Project implementation: (a) the RTSU, with functions, compositions, terms of reference, resources and staffing satisfactory to the Association, to be responsible for, inter alia, support to the day-to-day Project implementation at the local level, as further set forth in the Project Manuals; (b) a Project coordinator, a financial management specialist, a procurement specialist, an accountant and an internal auditor as part of the UCTF; (c) an installed computerized accounting software capable of correctly recording and automatically generating financial statements (interim and annual); (d) an external auditor; and (e) the Administrative, Accounting, and Financial Manual of Procedures. -9- B. Subsidiary Agreement 1. For the purposes of carrying out Part A. 1(c) of the Project, the Recipient shall make the proceeds of the Financing allocated from time to time to Category (2) available to CORAF on a grant basis under the Subsidiary Agreement under terms and conditions approved by the Association, which shall include, inter alia: (a) the obligation of the Recipient to: (i) make the funds of Category (2) available to CORAF in the form of a non-reimbursable grant; (ii) take all actions necessary to permit CORAF to carry out the Project Implementing Entity's Respective Part of the Project and ensure the achievement of the objective thereof; and (iii) suspend or terminate the right of CORAF to use the proceeds of the Financing upon CORAF's failure to perform any of its obligations under the Subsidiary Agreement or Project Agreement. (b) the obligation of CORAF to: (i) carry out the Project Implementing Entity's Respective Part of the Project in accordance with this Agreement, the Project Agreement, the Subsidiary Agreement, the Project Manuals, the CORAF's Manual of Procedures for Management of Competitive Funds, the Anti-Corruption Guidelines, the Procurement Regulations, the Annual Work Plans and Budgets, and the Safeguards Instruments (if applicable); (ii) promptly refund to the Recipient for further refund to the Association any proceeds from the Financing not used for purposes of carrying out the Project Implementing Entity's Respective Part of the Project or for achieving the objective thereof, or otherwise utilized in a manner inconsistent with the provisions of this Agreement, the Subsidiary Agreement or the Project Agreement; (iii) at the request of the Recipient or the Association, exchange views with the Recipient and the Association with regard to the progress of the Project Implementing Entity's Respective Part of the Project and the achievement of the objective thereof, and CORAF's performance of its obligations under the Project Agreement, the Subsidiary Agreement, Project Manuals, the CORAF's Manual of Procedures for Management of Competitive Funds, the Anti- Corruption Guidelines, the Procurement Regulations, the Annual -10- Work Plans and Budgets, and the Safeguards Instruments (if applicable); and (iv) promptly inform the Recipient of any condition which interferes or threatens to interfere with the implementation of the Project Implementing Entity's Respective Part of the Project and the achievement of the objective thereof, and (c) a provision stipulating that, in case of conflict between any of the provisions contained in the Subsidiary Agreement, the PIM, the Administrative, Accounting, and Financial Manual of Procedures, the CORAF's Manual of Procedures for Management of Competitive Funds, on one hand, and those set forth in this Agreement and the Project Agreement, on the other hand, the provisions of this Agreement and the Project Agreement shall prevail. 2. The Recipient shall exercise its rights and carry out its obligations under the Subsidiary Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any of its provisions. C. Matching Grants and Sub-Projects 1 . The Recipient shall make Matching Grants to Eligible Beneficiaries for Sub- projects in accordance with eligibility and selection criteria and procedures and transaction mechanisms acceptable to the Association and set forth in the Project Manuals. 2. The Recipient shall make each Matching Grant under a Matching Grant Agreement with the respective Eligible Beneficiary on terms and conditions approved by the Association, which shall include the following: (a) Each Eligible Beneficiary shall make a contribution to the Sub-project, in cash or in kind, in accordance with the contribution requirements and up to the percentage of Eligible Beneficiary contribution indicated in the Project Manuals for the relevant type of Sub-project. (b) The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Eligible Beneficiary to use the proceeds of the Matching Grant, or obtain a refund of all or any part of the amount of the Matching Grant then withdrawn, upon the Eligible Beneficiary's failure to perform any of its obligations under the Matching Grant Agreement; and (ii) require each Eligible Beneficiary to: (A) carry out its Sub-project with due diligence -11- and efficiency and in accordance with sound technical, economic, engineering, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient, the Safeguards Instruments, and the Project Manuals, as applicable; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works and services to be financed out of the Matching Grant in accordance with the provisions of this Agreement; (D) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub-project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (2) at the Association's or the Recipient's request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-project, its operation and any relevant records and documents; and (G) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 3. The Recipient shall exercise its rights under each Matching Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Credit. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Matching Grant Agreement or any of its provisions. D. Project Manuals 1. The Recipient shall implement the Project in accordance with the Project Manuals, setting forth rules, methods, guidelines, and procedures for the carrying out of the Project, including, inter alia: (a) detailed description of Project, institutional arrangements and responsibilities for implementing the Project; (b) (i) the operating procedures governing investments under the Project, including, inter alia, specific criteria for investments to be eligible for financing under the Project, selection criteria for beneficiaries to participate in investments, eligibility and selection criteria for Eligible Beneficiaries for Matching Grants, contribution requirements and amounts -12- for Matching Grants, and transaction processes related to Sub-projects; and guidelines for selection, approval, implementation, monitoring and evaluation of investment, Matching Grants and Sub-projects; (ii) requirements to be fulfilled by targeted CfW Beneficiaries as conditions for the provision of CfW Transfers and the mechanisms for verification of compliance with CfW Transfers; and (iii) the detailed procedures for coordination and collaboration among different sector actors involved in the carrying out of the Project; (c) a code of conduct consistent with youth-based violence protocols that will be factored into the contracts for any contractors/sub-contractors or consultants hired by the Recipient, to carry out activities under the Project; (d) monitoring, evaluation, reporting, and governance procedures for the Project; and (e) disbursement, financial management, auditing and procurement procedures for the Project. 2. In the event that any provision of the Project Manuals shall conflict with any provision of this Agreement, the provisions of this Agreement shall prevail. The Recipient shall not amend the Project Manuals without the Association's prior written approval. E. Environmental and Social Safeguards 1. The Recipient shall carry out the Project in accordance with the Safeguards Instruments, in a manner satisfactory to the Association. 2. Whenever an ESIA and/ or ESMP and/or RAP shall be required for any proposed activity under the Project in accordance with the provisions of the ESMF and/or the RPF, the Recipient shall: (a) prior to the commencement of such activity, proceed to have an ESIA and/or ESMP satisfactory to the Association: (i) prepared and disclosed in accordance with the provisions of the ESMF; (ii) consulted upon adequately with people affected by the Project as per the ESMF, and submitted to the Association for review and approval; and (iii) thereafter adopted and disclosed, in a manner acceptable to the Association prior to implementation of the activity; (b) prior to the commencement of such activity, proceed to have a RAP, satisfactory to the Association: (i) prepared and disclosed in accordance with the provisions of the RPF; (ii) consulted upon adequately with people affected by the Project as per the RPF, and furnished to the Association -13- for review and approval; and (iii) thereafter adopted and disclosed as approved by the Association, in a manner acceptable to the Association, prior to implementation of the activity; (c) take such measures as shall be necessary or appropriate to ensure compliance with the requirements of such ESIA and/or ESMP and/or RAP; and (d) in the case of any resettlement activity under the Project involving Affected Persons, ensure that no displacement (including restriction of access to legally designated parks and protected areas) shall occur before necessary resettlement measures consistent with the relevant RAP have been executed, including, in the case of displacement, full payment to Affected Persons of compensation and of other assistance required for relocation, prior to displacement. 3. The Recipient shall not amend, abrogate or waive, or permit to be amended, abrogated or waived, the Safeguards Instruments, unless the Association has provided its prior approval thereof in writing, and the Recipient has complied with the same consultation and disclosure requirements as applicable to the original adoption of the said instruments. 4. Without limitation on its other reporting obligations under this Agreement, the Recipient shall collect, compile and submit to the Association each calendar semester (or at such other frequency as may be agreed with the Association) consolidated reports on the status of compliance with the Safeguards Instruments, giving details of: (a) measures taken in furtherance of the said instruments; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the said measures; and (c) remedial measures taken or required to be taken to address such conditions. 5. The Recipient shall ensure that: (i) all consultancies related to technical assistance, design and capacity building under the Project, the application of whose results could have environmental or social implications, shall only be undertaken pursuant to terms of reference reviewed and found satisfactory by the Association; and (ii) such terms of reference shall duly incorporate the requirements of the Association's applicable safeguards policies and procedures then in force and shall require the technical assistance, design and capacity building activities to take into account the requirements of said policies. 6. Without limitation on its other reporting obligations under this Agreement, the Recipient shall notify (and no later than 48 hours after becoming aware of the incident or accident) the Association of any incident or accident related to or having an impact on the Project, including but not limited to any Project-related allegation of gender-based violence or alleged violation of Project-related labor -14- and working conditions, which has, or is likely to have, a significant or adverse effect on the environment, the affected communities, the public or workers, including, in accordance with the Safeguards Instruments, and the instruments referenced therein. F. Contingent Emergency Response Mechanism. 1. In order to ensure the proper implementation of Part C of the Project ("Contingent Emergency Response") ("IRM Part"), the Recipient shall take the following measures: (a) maintain and update (if necessary), in accordance with terms of reference acceptable to the Association, an operations manual which shall set forth detailed implementation arrangements for the IRM Part, including: (i) designation of, terms of reference for and resources to be allocated to, the entity to be responsible for coordinating and implementing the IRM Part ("Coordinating Authority"); (ii) specific activities which may be included in the IRM Part, Eligible Expenditures required therefor ("Emergency Expenditures"), and any procedures for such inclusion; (iii) financial management arrangements for the IRM Part; (iv) procurement methods and procedures for Emergency Expenditures to be financed under the IRM Part; (v) documentation required for withdrawals of Emergency Expenditures; (vi) environmental and social safeguard management frameworks for the IRM Part, consistent with the Association's policies on the matter; and (vii) any other arrangements necessary to ensure proper coordination and implementation of the IRM Part; (b) afford the Association a reasonable opportunity to review said proposed operations manual; (c) promptly adopt such operations manual for the IRM Part as shall have been approved by the Association ("IRM Operations Manual") no later than six (6) months after the Effective Date; (d) ensure that the IRM Part is carried out in accordance with the IRM Operations Manual; provided, however, that in the event of any inconsistency between the provisions of the IRM Operations Manual and this Agreement, the provisions of this Agreement shall prevail; and (e) not amend, suspend, abrogate, repeal or waive any provision of the IRM Operations Manual without prior approval by the Association. -15- 2. The Recipient shall, throughout the implementation of the IRM Part, maintain the Coordinating Authority, with adequate staff and resources satisfactory to the Association. 3. The Recipient shall undertake no activities under the IRM Part (and no activities shall be included in the IRM Part) unless and until the following conditions have been met in respect of said activities: (a) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the IRM Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (b) the Recipient has prepared and disclosed all safeguards instruments required for said activities, in accordance with the IRM Operations Manual, the Association has approved all such instruments, and the Recipient has implemented any actions which are required to be taken under said instruments. G. Annual Work Plan and Budgets 1. The Recipient shall, not later than November 30 of each year, prepare and furnish to the Association, an annual program of activities proposed for implementation under the Project (including Training and Operating Costs) during the following year, together with a proposed budget for the purpose. 2. The Recipient shall exchange views with the Association on each such proposed annual work plan, and shall thereafter adopt, and carry out such activities for such following year as shall have been approved by the Association ("Annual Work Plan and Budget"). Only those activities that are included in an Annual Work Plan and Budget shall be eligible for financing out of the proceeds of the Financing. 3. The Recipient shall ensure that the Project is carried out in accordance with the Annual Work Plans and Budgets. 4. Annual Work Plans and Budgets may be revised as needed during Project implementation subject to the Association's prior written approval. H. Service Provider In order to ensure the proper carrying out of Part B.4(a) of the Project, the Recipient shall: -16- (a) enter into an agreement ("Service Provider Agreement") with a service provider ("Service Provider"), in form and substance satisfactory to the Association; (b) ensure that all activities to be undertaken by said Service Provider under the Service Provider Agreement shall be carried out with due diligence and efficiency and in accordance with sound technical, financial, and managerial standards and practices acceptable to the Association; and (c) ensure that the Service Provider exercise its rights and carry out its obligations under the Service Provider Agreement in such a manner as to protect the interests ofthe Recipient and the Association and to accomplish the purposes of the Grant. I. CfW Transfers In order to achieve the objectives of Part B.4(a) of the Project, the Recipient shall provide CfW Transfers to targeted CfW Beneficiaries in accordance with eligibility criteria and procedures acceptable to the Association and further detailed in the Project Implementation Manual and as set forth below: (a) said eligibility criteria to include, inter alia, that the CfW Beneficiary shall: (i) be identified as either a refugee, a returnee or a vulnerable member of the host community; (ii) participate in sustainable productive asset-rehabilitation; and (iii) enter into a contract with the Service Provider; (b) each CfW Transfer shall be: (i) in an amount acceptable to the Association and the Recipient; and (ii) in the form of monetary transfer from the Service Provider to the CfW Beneficiary. Section II. Project Monitoring, Reportinig and Evaluation The Recipient shall furnish to the Association each Project Report not later than one month after the end of each calendar semester, covering the calendar semester. Section III. Withdrawal of the Proceeds of the Financing A. General Without limitation upon the provisions of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures, in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: -17- Category Amount of the Percentage of Grant Allocated Expenditures to be (expressed in SDR) Financed (inclusive of Taxes) (1) Goods, works, non- 7,000,000 100% consulting services, consulting services, Incremental Operating Costs and Training for all Parts of the Project except Part A.1(c), Part B.4 and Part C (2) Goods, works, non- 0 100% consulting services, consulting services, Incremental Operating Costs and Training for Part A. 1(c) of the Project (3) Emergency Expenditures 0 100% under Part C of the Project (4) Matching Grants under Parts 3,500,000 100% B.1(b), B.2(a), B.2(b) and B.3 of the Project (5) Goods, works, non- 0 100% consulting services, consulting services, Incremental Operating Costs, Training and Cash -for- Works Transfers under Part B.4 of the Project TOTAL AMOUNT 10,500,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A above, no withdrawal shall be made: (a) for payments made prior to the Signature Date; -18- (b) under Category (1) and Category (4), unless and until the proceeds of the Original Financing are fully disbursed; or (c) under Category (3), unless and until the Association is satisfied, and notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said activities: (i) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the Project in order to respond to said Eligible Crisis or Emergency, and the Association 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 that any actions which are required to be taken under said instruments have been implemented, all in accordance with the provisions of Section I.F.3 of Schedule 2 to this Agreement; (iii) the Recipient's Coordinating Authority has adequate staff and resources, in accordance with the provisions of Section I.F.2 of Schedule 2 to this Agreement, for the purposes of said activities; and (iv) the Recipient has adopted an IRM Operations Manual in form, substance and manner acceptable to the Association and the provisions of the LRM Operations Manual remain-or have been updated in accordance with the provisions of Section I.F.1 of Schedule 2 to this Agreement so as to be appropriate for the inclusion and implementation of said activities under the IRM Part. 2. The Closing Date is December 31, 2023. -19- APPENDIX Definitions 1. "Administrative, Accounting, and Financial Manual of Procedures" or "AAFMP" means the administrative, accounting, and financial manual of procedures referred to in and prepared and adopted by the Recipient in accordance with, Section I.A.2(b)(ii) of Schedule 2 to this Agreement, containing administrative, accounting and financial procedures for purposes of implementation of the Project, as the same may be amended from time to time with the prior written agreement of the Association, and such term includes any annexes or schedules to such manual. 2. "Affected Persons" means any person who, on account of the execution of the Project, has experienced or would experience direct economic and social impacts caused by: (a) the involuntary taking of land, resulting in: (i) relocation or loss of shelter; (ii) loss of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not such person must move to another location; or (b) the involuntary restriction or access to legally designated parks and protected areas, resulting in adverse impacts on the livelihood of such person. 3. "Annual Work Plan and Budget" means the work plan and budget prepared annually by the Recipient in accordance with Section I.G of Schedule 2 to this Agreement 4. "Anti-Corruption Guidelines" means, for purposes of paragraph 5 of the Appendix to the General 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. 5. "APO" means an agricultural producer organization. 6. "AR&D" means agricultural research and development. 7. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 8. "CCP" means the Recipient's Project Coordination Department under the Ministry of Agriculture, referred to in Section I.A. 1(b) of Schedule 2 to this Agreement established pursuant to Decree No.9l/PR/PM/MPIEA/SE/SG /2017. 9. "CfW Beneficiary" means a person selected in accordance with the eligibility criteria and procedures set out in the Project Implementation Manual and deemed eligible to receive a CfW Transfer under Part B.4(a) of the Project. -20- 10. "CfW Transfer" means the proceed of the Grant paid to CfW Beneficiaries participating in activities under Part B.4(a) of the Project and referred to in Section I.I of Schedule 2 to this Agreement. 11. "CORAF" means the West and Central Africa Council for Agricultural Research and Development, a sub-regional organization aimed at contributing to a sustainable reduction of poverty and food insecurity in West and Central Africa, and working to increase the economic growth generated by agriculture and to improve the agricultural research system in the sub-region. 12. "CORAF's Legislation" means collectively the Registration Act (enregistrement) of the Republic of Senegal MAE No. 0892 MAESE dated December 20, 1989, CORAF's Statutes dated June 2008, and CORAF's Governance Manual dated June 20, 2008, pursuant to which CORAF has been established and is functioning. 13. "CORAF's Manual of Procedures for Management of Competitive Funds" means the Manual of Procedures for Management of Competitive Funds adopted by CORAF in March 2004, as the same may be amended from time to time in a manner satisfactory to the Association. 14. "Coordinating Authority" means the entity or entities designated by the Recipient in the IRM Operations Manual and approved by the Association pursuant to Section I.F.2 of Schedule 2 to this Agreement, to be responsible for coordinating the IRM Part of the Project. 15. "Eligible Beneficiary" means an individual, SME, local community, canton, APO, women association, youth association, interest economic group who, or which, has met the criteria specified in the Project Manuals for being eligible to receive a Matching Grant for a Sub-Project. 16. "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. 17. "Emergency Expenditure" means any of the Eligible Expenditures set forth in the IRM Operations Manual in accordance with the provisions of Section I.F.1 of Schedule 2 to this Agreement and required for the activities included in the IRM Part of the Project. 18. "Environmental and Social Management Framework" or "ESMF" means the Recipient's framework to be updated and redisclosed in the Recipient's territory and on the Association's website in a manner satisfactory to the Association, setting forth an environmental and social screening process that will enable the Recipient to identify and assess potential adverse environmental and social impacts, and offset and reduce them to acceptable levels, or enhance positive -21- impacts, and in accordance with which ESIAs and ESMPs will be prepared and submitted to the Association for its approval, as the same may be amended from time to time with the prior written approval of the Association. 19. "Environmental and Social Impact Assessment" means any site-specific environmental and social impact assessment prepared pursuant to the ESMF pursuant to Section I.E.2(a) of Schedule 2 to this Agreement for Project activities, in each case describing a set of mitigation, enhancement, monitoring, and institutional measures to be taken during implementation of the Project to mitigate adverse environmental and social impacts, offset them, or reduce them to acceptable levels, or to enhance positive impacts; as the said environmental impact and social assessments may be amended and/or supplemented from time to time with the prior written concurrence of the Association, and "ESIAs" means, collectively, all such plans. 20. "ESMP" means any site-specific environmental and social management plan, acceptable to the Association and prepared by the Recipient in accordance with the ESMF and pursuant to Section I.E.2 (a) of Schedule 2 to this Agreement, each such plan in form and substance satisfactory to the Association, setting out, inter alia, details of measures to manage potential environmental and social risks and avoid, minimize, mitigate and/or compensate any adverse environmental and social impacts associated with the implementation of Project/Program activities (including measures designed to prevent gender-based violence and sexual exploitation and abuse, and to handle those events and report them to the relevant authorities and to the Association should they occur), together with appropriate grievance redress mechanisms, adequate budget, institutional, monitoring and reporting arrangements capable of ensuring proper implementation of, and regular feedback on compliance with, its terms, as said plan may be modified from time to time with the prior written no-objection of the Association, and such term includes any annexes and schedules to such plan, and "ESMPs" means, collectively, all such plans. 21. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated December 14, 2018 (revised on August 1, 2020). 22. "ICT" means information communication technologies. 23. "Immediate Response Mechanism Operations Manual" and "IRM Operations Manual" each means the operations manual referred to in Section I.F. 1 of Schedule 2 to this Agreement, to be adopted by the Recipient for the IRM Part of the Project in accordance with the provisions of said Section. 24. "Incremental Operating Costs" means incremental costs incurred by the Recipient's entities involved in Project implementation and CORAF on account of -22- implementation of the Project and on the basis of the annual budget and work plans acceptable to the Association, including for fuel, maintenance of vehicles, office supplies, utilities, consumables, bank charges, communication expenses, travel per diems, accommodation and subsistence allowances for authorized travel, but excluding salaries of the Recipient's civil servants. 25. "IPMP" means the Recipient's Integrated Pest Management Plan, disclosed on February 23, 2018, which: (i) addresses the concerns relating to the Project risks associated with potential increases in the use of pesticides for agricultural production, intensification and diversification and controlling disease vector populations arising from irrigation schemes; (ii) sets forth mitigation and monitoring measures to be taken during Project implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels; (iii) recommends institutional measures to strengthen national capacities to implement the mitigation and monitoring measures; and (iv) as part of the implementation arrangements, identifies national agencies and other partners that could play a vital role in the success of the Project, as said Plan may be revised from time to time with the prior approval of the Association. 26. "IRM Part of the Project" and "IRM Part" each means Part C of the Project. 27. "Ministry of Agriculture" means the Recipient's ministry responsible for agriculture, and any successor thereto. 28. "Matching Grants" means a grant made or proposed to be made by the Recipient to an Eligible Beneficiary out of the proceeds of the Financing for the purpose of financing a Sub-project implemented or to be implemented by an Eligible Beneficiary. 29. "Matching Grant Agreement" means an agreement between the Recipient and an Eligible Beneficiary, setting forth the terms and conditions under which the proceeds of a Matching Grant shall be made available to the Eligible Beneficiary for the purpose of financing a Sub-project. 30. "National Steering Committee" means the Recipient's national steering committee, referred to in Section I.A. 1(a) of Schedule 2 to this Agreement. 31. "NcOS" means national centers of specialization. 32. "Operating Costs" means the reasonable incremental operating expenses, based on Annual Work Programs and Budgets approved by the Association, incurred by UCTF, RTSU and CORAF for the purposes of Project implementation, management and monitoring, including office supplies, vehicle operation and maintenance, office equipment maintenance, communication costs, rental expenses, utilities expenses, consumables, transport, travel and accommodation, -23- per diem, supervision costs and salaries of locally contracted staff, but excluding the salaries of officials and public servants of the Recipient's civil service. 33. "Project Implementing Entity" means CORAF. 34. "Project Implementing Entity's Respective Part of the Project" means Part A. 1(c) of the Project. 35. "Project Implementation Manual" or "PIM" means the manual referred to in Section I.D of Schedule 2 to this Agreement, as revised and updated, specifying, inter alia, the procedures for procurement, disbursement, financial management, accounting, reporting, monitoring and evaluation, environmental and social management, and such other administrative, financial, technical and organizational arrangements and procedures as shall be required for the Project, as the same may be amended from time to time with the approval of the Association and such term includes any annexes to said manual. 36. "Project Manuals" means the PIM and Administrative, Accounting, and Financial Manual of Procedures. 37. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated November 2020. 38. "R&D" means research and development. 39. "Resettlement Action Plan" or "RAP" means each site-specific resettlement action plan prepared and to be prepared pursuant to the RPF pursuant to Section I.E.2(b) of Schedule 2 to this Agreement, for a set of activities included under the Project, giving details of the specific actions, measures and policies required to provide compensation, rehabilitation and resettlement assistance to Affected Persons, along with the procedural and institutional measures needed to implement such actions, measures and policies; and the term "RAPs" or "Resettlement Action Plans" means, collectively, all such plans. 40. "Resettlement Policy Framework" or "RPF" means the resettlement policy framework, disclosed on February 23, 2018, adopted by the Recipient and providing procedures and guidelines for the preparation, adoption, and implementation and monitoring of a Resettlement Action Plan or Plans, and referred to in Section I.E.2(b) of Schedule 2 to this Agreement. 41. "RTSU" means the Recipient's regional and technical support unit, to be established and responsible to support Project implementation at the local level and referred to in Section I.A.2(a)(i) of Schedule 2 to this Agreement. -24- 42. "Safeguards Instruments" means collectively the ESMF, the RPF, any ESMPs, ESIAs, RAPs, and any other plan derived from the RPF or ESMF, and the IPMP, and any other instruments prepared for the IRM Part of the Project pursuant to Section I.F. 1(a) and 1.F.3(b) of Schedule 2 to this Agreement, as applicable. 43. "Service Provider" means the provider selected and hired by the Recipient pursuant to the Procurement Regulation of the Association. 44. "Service Provider Agreement" means the agreement to be entered between the Recipient and the Service Provider governing the terms and conditions under which the Service Provider shall render services to the Recipient, including payment methods and reporting and transparency arrangements. 45. "Signature Date" means the later of the two dates on which the Recipient and the Association signed this Agreement and such definition applies to all references to "the date of the Financing Agreement" in the General Conditions. 46. "SMEs" means small and medium size enterprises. 47. "Sub-project" means one or more specific activities carried out or to be carried out by a Eligible Beneficiary and financed or proposed to be financed through a Matching Grant under Part B.l(b), B.2(a), B.2(b) and B.3 of the Project. 48. "Subsidiary Agreement" means the agreement referred to Section I.B of Schedule 2 to this Agreement, between the Recipient and CORAF, pursuant to which the Recipient shall make a portion of the proceeds of the Financing available to CORAF for implementation of Part A. 1(c) of the Project. 49. "Training" means expenditures directly related to the Project for study tours, training courses, seminars, workshops and other training activities, not included under service providers' contracts, including costs of training materials, space and equipment rental, travel, accommodation and per diem costs of trainees and trainers, trainers' fees, and other training related miscellaneous costs, all on the basis of the annual budget and work plans acceptable to the Association. 50. "UCTF" means the Recipient's technical and fiduciary coordination unit, to be established under the CCP, responsible for day to day management of the Project and referred to in Section I.A. 1(c) of Schedule 2 to this Agreement.