OFFICIAL DOCUMENTS GRANT NUMBER D1850-ZR AMENDMENT TO GRANT NUMBER H897-ZR Financing Agreement (Additional Financing for Public Service Reform and Rejuvenation Project) between DEMOCRATIC REPUBLIC OF CONGO and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated _,_ 2017 GRANT NUMBER D1850-ZR AMENDMENT TO GRANT NUMBER H897-ZR FINANCING AGREEMENT AGREEMENT dated 1 LU2, t 4U , 2017, entered into between the DEMOCRATIC REPUBLIC OF CONGO ("Recipient") and the INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing additional financing for activities related to the Original Project (as defined in the Appendix to this Agreement). 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) constitute an integral 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, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount equivalent to thirty- three million three hundred thousand Special Drawing Rights (SDR 33,300,000) ("Financing"), to assist in financing the project described in Schedule I to this Agreement ("Project"). 2.02. The Recipient may withdraw the proceeds of the Financing in accordance with Section TV of Schedule 2 to this Agreement. 2.03. The Maximum Commitment Charge Rate payable by the Recipient on the Unwithdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) per annum. 2.04. The Payment Dates are April, 15 and October, 15 in each year. 2.05. The Payment Currency is Dollar. ARTICLE III - PROJECT 3.01. The Recipient declares its commitment to the objective of the Project and the Program. To this end, the Recipient shall carry out the Project through the Ministere de la Fonction Publique (MPS) in accordance with the provisions of Article IV of the General Conditions. -2- 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Recipient and the Association shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 to this Agreement. ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.01. The Additional Events of Suspension consist of the following: (a) The CPMAP Legislation has been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely the ability of the Recipient to perform any of its obligations under this Agreement. (b) The CMRAP Legislation has been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely the ability of the Recipient to perform any of its obligations under this Agreement. (c) As a result of events which have occurred after the date of this Agreement, an extraordinary situation has happened which makes it improbable that the Program or a substantive part thereof will be carried out. ARTICLE V- EFFECTIVENESS; TERMINATION 5.01. The Effectiveness Deadline is the date one hundred and twenty (120) days after the date of this Agreement. 5.02. For purposes of Section 8.05(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 years after the date of this Agreement. ARTICLE VI - REPRESENTATIVE; ADDRESSES 6.01. The Recipient's Representative is the minister responsible for finance. 6.02. The Recipient's Address is: Ministry of Finance Boulevard du 30 Juin - Commune de la Gombe Kinshasa 1 Democratic Republic of Congo Email: cabfinances@minfinrdc.com Tel.: +243 82 58 522 40 6.03. The Association's Address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Telex: Facsimile: 248423 (MCI) 1-202-477-6391 -4- AGREED at kin_dLs__ , 'kL , as of the day and year first above written. DEMOCRATIC REPUBLIC OF CONGO By: Authorized Representative Name: V Title: A INTERNATIONAL DEVELOPMENT ASSOCIATION By: Authorized Representative Name: .A(0t6i'v Title: 44 ety -5- SCHEDULE 1 Project Description The objective of the Project is to strengthen and rejuvenate the civil service in selected ministries at the central and provincial levels. The Project consists of the Original Project and the following additional parts: Part A. Supporting Public Service Reform in Selected Ministries and A2encies 1 . Sustaining the capacity building for human resource management and functional reviews of targeted entities, and operationalizing the restructuring of said entities, including: (a) provision of technical assistance to implement the reorganized units; (b) carrying out competitive and merit-based recruitment to staff of the reorganized units; (c) developing and delivery of a training program for new recruits; (d) carrying out organizational review of archiving systems; (e) conducting coaching of reorganizing units, to clarify respective units mandate and delineation of competencies from other entities; and (f) deploying the integrated human resource management system. 2. Expanding the young professional program at the provincial and central levels, including: (a) carrying out the recruitment and payment of about 520 young professionals that integrate both targeted and decentralized ministries and decentralized units; (b) carrying out the recruitment and payment of about 450 mid-career civil servants between the ages of 35 and 55 years; (c) Strengthening the Ecole Nationale dAdministration; and (d) carrying out the recruitment of professionals as coaches to ensure a successful integration of graduates, including the young professionals and mid-career networking activities. 3. Facilitating a structured consultation process that includes public sector unions, including: (a) carrying out the design and technical implementation of the ICT- based data-dashboard, including ongoing data collection; (b) developing the capacity and facilitating knowledge exchange on open data approaches including training of academia and civil society on these approaches; (c) facilitating the change of units that are established under the reform program, and acquisition of ICT equipment for such units; and (d) facilitating a structured dialogue of the key stakeholder around the dashboard. Part B. Supporting the Retirement Process 1. Strengthening the capacity to operationalize the public sector pension fund, including: (a) provision of technical assistance during the first twelve (12) months of the operation of the public sector pension fund; and (b) carrying out the rehabilitation of the building of the public pension fund. -6- Part C. Building Capacity throu2h an Infrastructure of Training Centers 1. Developing a national capacity development plan, including: (a) developing a national capacity building program (Programme Nationale de Renforcement de Capacites (PRONAREC 2); (b) carrying out training needs assessment and developing training plans at targeted central and provincial level entities. 2. Improving training quality, including: (a) managing the periodic accreditation of training programs countrywide; (b) managing the certification of rapid results coaches; and (c) conducting tracer studies to review the usefulness of training on the job. 3. Strengthening the capacity of civil servants' and carrying out rehabilitation of training facilities, including: (a) carrying out the rehabilitation and acquisition of equipment for about two training centers; (b) carrying out the maintenance of about ten training centers and respective center facilities and IT infrastructure on a decreasing scale basis; (c) organizing competitions for training centers and rapid results coaches; (d) building a mechanism for efficient tracking of respective performance contracts (lettres de mission) between the Prime Minister and respective ministries; and (e) provision of leadership and results-based management training. Part D. Supporting Public Service Reform at the Provisional Level 1 . Facilitating the finalization and implementation of the legal framework to facilitate the decentralization reform process, including: (a) provision of legal advisory services for preparation and adoption processes of missing key legislation; (b) review and drafting of sector laws and regulations, and preparation of a road map for their implementation; and (c) provision of technical assistance to establish a national equalization fund (Caisse Nationale de Perequation). 2. Conducting organizational reviews and developing new organizational charts, including: (a) provision of technical assistance to conduct an organizational review of selected priority provinces, and a staffing needs assessment; (b) developing and implementing new organograms, and conceptualizing standardized units, and core job descriptions; (c) provision of technical assistance for elaboration of provincial training plans in line with the respective province staffing assessment needs; and (d) provision of technical assistance to establish viable consolidated administrations. 3. Improving the coordination and monitoring of the decentralization reform process, including: (a) provision of technical assistance to conduct diagnostics; (b) carrying out refurbishment of the office space, and acquisition of logistics equipment for the Technical Unit for Support to Decentralization (Cellule Technique d'Appui a la Deentralisation); (c) carrying out the design and implementation of provincial -7- level data-dashboards; (d) provision of technical assistance for elaboration of a communication strategy; (e) provision of training to civil servants on decentralization, and creating effective provincial response capacity to move from analysis to doing; (f) organizing a national forum dedicated to the assessment of the strategic framework for the implementation of decentralization (Cadre Strategique de Mise Oeuvre de la Decentralisation); and (g) conducting translation of the governing law and legal texts into the four national languages. Part E. Project Management and Core Support to Government Agencies in Charge of Steering the Reform 1 . Strengthening the capacity of the relevant ministries and agencies responsible for delivery of the reform on, inter alia, coordination, administration, communication, financial management, procurement, monitoring and evaluation of project activities. -8- SCHEDULE 2 Project Execution Section 1. Implementation Arrangements A. Institutional Arrangements 1 Comite de Pilotage et de Coordination de la Modernisation de l'Administration Publique (CPMAP) (a) The Recipient shall at all times during the implementation of the Project maintain the CPMAP as the Project steering committee, with a composition, mandate, functions and resources satisfactory to the Association, as set forth in the Project Operations Manual. (b) Without limitation to sub-paragraph 1(a) of immediately above, CPMAP shall meet at least every six (6) calendar months (on a semi-annual basis), and minutes of said meetings shall be sent to the Association as part of the progress reports referred to in Section II.A. 1 of this Schedule. CPMAP shall be responsible for, inter alia: (i) providing strategic guidance and ensure effective coordination across ministries and agencies at the central and provincial government levels, CTAD and SENAREC; (ii) taking key policy decisions to ensure smooth implementation of the Project and achievement of its objective; (iii) facilitating the coordination of Project, and making recommendations for removal of any obstacles to the implementation of the Project; and (iv) reviewing and approving the Project reports prepared by CMRAP. 2. Cellule de Mise en Oeuvre de la Reforme de l'Administration Publique (CMRAP) (a) The Recipient shall at all times during the implementation of the Project, maintain CMRAP as the project implementation unit with functions, staffing , resources and responsibilities satisfactory to the Association, as set forth in the Project Operations Manual, for purposes of day-to-day management and implementation of the Project, and efficient communication and coordination of the Project implementation with the participating ministries and agencies at the central and provincial levels, CTAD and SENAREC. (b) Without limitation to the provisions of paragraph 2(a) immediately above, CMRAP shall be responsible for, inter alia: (i) fiduciary (i.e., procurement, disbursement and financial management); (ii) day-to-day administration of overall planning, coordination, monitoring, evaluation, reporting and communication of the activities under the Project; -9- (iii) providing secretariat services to CPMAP; (iv) monitoring overall progress of implementation on a monthly basis and evaluating Project performance; and (v) acting as the main focal point for communication with technical teams within respective ministries and agencies at the central and provincial government levels, CTAD and SENAREC, all in accordance with the provisions of this Agreement and the Project Operations Manual. B. Anti-Corruption The Recipient shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines. C. Project Operations Manual (a) The Recipient shall carry out the Project in accordance with the Project Operations Manual. (b) The Recipient shall not amend the Project Operations Manual without the prior written approval of the Association. (c) In the event of any conflict between the provisions of the Project Operations Manual and this Agreement, the provisions of this Agreement shall prevail. Section II. Project Monitorin2, Reporting and Evaluation A. Project Reports 1 . The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and on the basis of indicators set forth in the Project Operations Manual and found acceptable to the Association. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the Association not later than one month after the end of the period covered by such report. 2. The Recipient shall not later than December 31, 2018, undertake in conjunction with the Association a comprehensive midterm review of the Project, during which the Recipient shall exchange views generally on all matters relating to the progress of the Project and the performance by the Recipient of its obligations under this Agreement, having regard to the performance indicators referred to in paragraph 1 immediately above. - 10 - B. Financial Management, Financial Reports and Audits 1. The Recipient shall maintain or cause to be maintained a financial management system in accordance with the provisions of Section 4.09 of the General Conditions. 2. Without limitation on the provisions of Part A of this Section, the Recipient shall prepare and furnish to the Association not later than forty-five days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the Association. 3. The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 4.09(b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the Association not later than six months after the end of such period. Section III. Procurement A. General I. Goods, Works and Non-Consulting Services. All goods, works and non- consulting services required for the Project and to be financed out of the proceeds of the Financing shall be procured in accordance with the requirements set forth or referred to in Section I of the Procurement Guidelines, and with the provisions of this Section. 2. Consultants' Services. All consultants' services required for the Project and to be financed out of the proceeds of the Financing shall be procured in accordance with the requirements set forth or referred to in Sections I and IV of the Consultant Guidelines, and with the provisions of this Section. 3. Definitions. The capitalized terins used below in this Section to describe particular procurement methods or methods of review by the Association of particular contracts, refer to the corresponding method described in the Procurement Guidelines, or Consultant Guidelines, as the case may be. B. Particular Methods of Procurement of Goods, Works and Non-Consulting Services I. International Competitive Bidding. Except as otherwise provided in paragraph 2 below, goods, works and non-consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. 2. Other Methods of Procurement of Goods, Works and Non-Consulting Services. The following methods, other than International Competitive Bidding, -Il- may be used for procurement of goods, works and non-consulting services for those contracts specified in the Procurement Plan: (a) Limited International Bidding; (b) National Competitive Bidding, subject to the additional provisions referred to in subparagraph 3 below; (c) Shopping; (d) procurement under Framework Agreements in accordance with procedures which have been found acceptable to the Association; and (e) Direct Contracting. 3. Additional Provisions for National Competitive Bidding. National Competitive Bidding may be used subject to using the open procedure ("appeld'offres ouvert") set forth in the Recipient's Public Procurement Law No. 10/010 dated April 27, 2010 (the "PPL") and the Manual of Procedures of the PPL as per Recipient's Decree No 10/22 dated June 2, 2010 (the "Manual of Procedures"); provided, however, that such procedure shall be subject to the provisions of Section I and Paragraphs 3.3 and 3.4 of Section III of the Procurement Guidelines and the additional following modifications: (a) Standard Bidding Documents: All standard bidding documents to be used for the Project under NCB shall be found acceptable to the Association before their use during the implementation of Project; (b) Eligibility: Eligibility of bidders and acceptability of their goods and services shall not be based on their nationality and/or their origin; and association with a national firm shall not be a condition for participation in a bidding process; (c) Advertising and Bid Preparation Time: Bidding opportunities shall be advertised at least in a national newspaper of wide circulationand on the website of the Recipient's Procurement Regulator (Autorite de Rdgulation des Marches Publics) and bidders should be given at least 30 days from the date of invitation to bid or the date of availability of the bidding documents, whichever is later; (d) Criteria for Qualification of Bidders: Qualification criteria shall only concern the bidder's capability and resources to perform the contract taking into account objective and measurable factors. Such criteria for qualification of bidders shall be clearly specified in the bidding documents; (e) Bid Evaluation and Contract Award: A contract shall be awarded to the substantially responsive and lowest evaluated bidder provided that such bidder meets the qualification criteria specified in the bidding documents. No scoring system shall be allowed for the evaluation of bids, and no "blanket" limitation to the number of lots which can be awarded to a bidder shall apply. The criteria for bid evaluation and the contract award conditions shall be clearly specified in the bidding documents; - 12- (f) Preferences: No preference shall be given to domestic/regional bidders; to domestically/regionally manufactured goods; and to bidders forming a joint venture with a national firm or proposing national sub-contractors or carrying out economic activities in the territory of the Recipient; (g) Publication of Contract Award: Information on all contract awards shall be published in at least a national newspaper of wide circulation or in the Recipient's Procurement Regulator (Autorite de Regulation des Marches Publics) web-site; (h) Fraud and Corruption: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating the Association's policy to sanction firms or individuals found to have engaged in fraud and corruption as set forth in the Procurement Guidelines; (i) Inspection and Audit Rights: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating the Association's policy with respect to inspection and audit of accounts, records and other documents relating to the bid submission and contract performance; (j) Requirement for administrative documents and/or tax clearance certificate: The bidding documents shall not require foreign bidders to produce any administrative or tax related certificates prior to confirmation of awarding a contract; (k) Modifications of a Signed Contract: Any change in the contract amount which, singly or combined with all previous changes, increases the original contract amount by 15% (fifteen percent) or more must be done through an amendment to the signed contract instead of signing a new contract. C. Particular Methods of Procurement of Consultants' Services 1 . Quality- and Cost-based Selection: Except as otherwise provided in paragraph 2 below, consultants' services shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. 2. Other Methods of Procurement of Consultants' Services. The following methods, other than Quality- and Cost-based Selection, may be used for procurement of consultants' services for those contracts which are specified in the Procurement Plan: (a) Quality-based Selection; (b) Selection under a Fixed Budget; (c) Least Cost Selection; (d) Selection based on Consultants' Qualifications; (e) Single-source Selection of consulting firms; (f) Procedures set - 13 - forth in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the Selection of Individual Consultants; and (g) Single-source procedures for the Selection of Individual Consultants. D. Review by the Association of Procurement Decisions The Procurement Plan shall set forth those contracts which shall be subject to the Association's Prior Review. All other contracts shall be subject to Post Review by the Association. All other contracts shall be subject to Post Review by the Association. Section IV. Withdrawal of the Proceeds of the Financing A. General 1. The Recipient may withdraw the proceeds of the Financing in accordance with the provisions of Article II of the General Conditions, this Section, and such additional instructions as the Association shall specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Investment Project Financing" dated February 2017, as revised from time to time by the Association and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the table in paragraph 2 below. 2. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Financing ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Percentage of Amount of the Grant Expenditures to be Allocated Financed Category (expressed in SDR) (inclusive of Taxes) (1) Goods, Works, Non- 29,600,000 100% Consulting Services, Consultants' Services, Operating Costs, and Training for the Project (2) Payment of Retirement 3,700,000 100% of amounts Benefits to Eligible indicated in the Retirees Verification Reports TOTAL AMOUNT 33,300,000 - 14- B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for: (a) payments made prior to the date of this Agreement; or (b) under Category (2) unless: the Association has received: (i) the Payment Agency's executed contract, in form and substance satisfactory to the Association; (ii) the first list of eligible civil servants (first cohort) established through biometric identification, in form and substance satisfactory to the Association; and (iii) the contract of the technical audit firm in charge of verifying the list of eligible civil servants, executed in form and substance satisfactory to the Association." 2. The Closing Date is December 31, 2021. - 15 - APPENDIX Definitions I. "Anti-Corruption Guidelines" means 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. 2. "Caisse Nationale de P rjquation " means the Recipient's proposed national equalization fund referred to in Part D.1(c) of the Project. 3. "Cellule Technique d'Appui a la Dicentralisation" and "CTAD" mean the Recipient's Technical Unit for Support to Decentralization. 4. "Category" means a category set forth in the table in Section IV of Schedule 2 to this Agreement. 5. "CMRAP" means Cellule de Mise en Oeuvre de la Riforme de l'Administration Publique, the Recipient's implementation unit for the public administration reform in charge of the day-to-day management of the Project. 6. "CMRAP Legislation" means the Recipient's Arrete ministerial (referenced CAB.MIN/FP/J-CK/GELB/FMD/GMK/-82/2012) dated December 12, 2012. 7. "CPMAP" means Comit6 de Pilotage et de Coordination de la Modernisation de l'Administration Publique, the Recipient's public administration and modernization steering committee. 8. "CPMAP Legislation" means the Recipient's Prime Minister's Decree (Deret du Premier Ministre No.12/028) dated August 3, 2012. 9. "Consultant Guidelines" means the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 (revised July 2014). 10. "Eligible Retirees" means the retired staff of the Recipient's civil service who are eligible for retirement benefits under the Project, in accordance with the eligibility criteria detailed in a plan under Project Operations Manual. i. "General Conditions" means the "International Development Association General Conditions for Credits and Grants", dated July 31, 2010. 12. "ICT" and "IT" mean, respectively, information communication technology, and information technology. - 16 - 13. "MPS" means Ministere de la Fonction Publique, the Recipient's Ministry of Public Services. 14. "Organic Law on Public Service" means Loi Organique de la fonction publique regissant la Fonction Publique. 'organisation et le fonctionnement des services publics du pouvoir central et des provinces, et des entitWs territoriales dccentralisees, The Recipient's legal framework that rules and regulates the civil service and the central provincial and local. 15. "Operating Costs" means recurrent costs of the Project to include: (a) operation and maintenance of vehicle, repairs, fuel and spare parts; (b) equipment and computer maintenance, including software; (c) communication costs and shipment costs (whenever these costs are not included in the cost of goods); (d) office supplies; (e) rent for office facilities; (f) utilities and insurances; (g) travel and per diem costs for technical staff carrying out training, supervisory and quality control activities; and (h) salaries of support staff for CMRAP, but excluding salaries of the Recipient's civil servants. 16. "Original Financing Agreement" means the financing agreement for a Public Service Reform and Rejuvenation Project between the Recipient and the Association, dated February 1, 2014, as amended to the date of this Agreement Grant No. H897-ZR). 17. "Original Project" means the Project described in Schedule 1 to the Original Financing Agreement. 1 8. "Payment Manager" means the private company to be selected by the Recipient to manage payments of Retirement Benefits to eligible retirees, as contracted in accordance with Section III of Schedule 2 to this Agreement. 19. "Procurement Guidelines" means the "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 (revised July 2014). 20. "Procurement Plan" means the Recipient's procurement plan for the Project, dated March, 24, 2017, and referred to in paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines, as the same shall be updated from time to time in accordance with the provisions of said paragraphs. 21. "Project Operations Manual" means a manual dated October 29, 2013, satisfactory to the Association, and which shall contain, inter alia: (a) the terms of reference, functions and responsibilities for the personnel of CMRAP and of the members of CPMAP; (b) the procedure manuals for the recruitment of young professionals and for the recruitement of senior professionals for coaching and mentoring said young professionals; (c) the procedures for procurement of goods, works, non-consulting - 17- services, consultants' services, Operationg Costs, and Training, as well as for financial management and audits under the Project; (d) an anti-corruption action plan; (e) the grievance mechanism under Component 2 of the Original Project; (f) the indicators to be used in the monitoring and evaluation of the Project; (g) flow and disbursement arrangements of Project funds; and (h) the procedures to be followed for the preparation of the Verification Report; as said manual may be amended from time to time with the Bank's prior approval. 22. "Program" means the Recipient's public administration reform program, (Stratigie revisie de la mise en oeuvre de la riforme de l'administration publique) designed to reform the public administration of the Recipient, as validated by CPMAP in a document dated January 25, 2013. 23. "PRONAREC" means the Recipient's National Capacity Building Program (Programme National de Renforcement des Capacits), as established and adopted by the Recipient's Economic Commission on December 14, 2010. 24. "SENAREC" meansthe Recipient's National Secretariat for Capacity Building (Secretariat National du Renforcement des Capacits), as established and operating under the Recipient's Decree of the Prime Minister No. 011/35 dated August 13, 2011. 25. "Retirement Benefits" means the end-of-career allocations as defined in Title V, Chapter I of the Recipient's Law for Civil Servants published in the Recipient's Official Gazette on August 15, 2004 as well as the repatriation fees as defined by the Recipient's Inter-Ministerial Order referenced CAB. MIN/FP/BUDGET/FIN/004/2010 dated May 12, 2010. 26. "Targeted Ministries and Agencies" means the Recipient's ministries at the time in charge of finance, budget, planning, state owned enterprises and public services, and any other Recipient's ministry or agency as may be agreed from time to time between the Association and the Recipient. 27. "Technical Auditor" means the private company to be selected by the Recipient to audit the payments of Retirement Benefits to eligible retirees, as contracted in accordance with Section III of Schedule 2 to this Agreement. 28. "Training" means the training of persons involved in Project-supported activities, based on annual budgets approved by the Association, such term including seminars, workshops, and study tours, and costs associated with such activity including travel and subsistence costs for training participants, costs associated with securing the services of trainers, rental of training facilities, preparation and reproduction of training materials, and other costs directly related to training preparation and implementation. -18- 29. "Verification Report" means a report to be presented by the Recipient prior to any disbursement under Category (2) of the table under Section IV.A.2 of Schedule 2 to this Agreement for the verification of the Eligible Retirees under the Project and for the calculation of their Retirement Benefits. - 19- ANNEX AMENDMENT TO THE ORIGINAL FINANCING AGREEMENT The Recipient and the Association hereby agree to amend the Original Financing Agreement (Agreement) as follows: 1. The objective of the Original Project referred to in the first paragraph of Schedule 1 to the Agreement is amended as follows: "The objective of the Project is to strengthen and rejuvenate the civil service in selected ministries at the central and provincial levels." 2. The Closing Date set forth in Section IV.B.2 of Schedule 2 to the Original Financing Agreement shall be the date December 31, 2021. 3. Section I.A of Schedule 2 to the Agreement is amended as follows: "A. Institutional Arrangements" "1. Comit de Pilotage et de Coordination de la Modernisation de l'Administration Publique (CMRAP)" (a) The Recipient shall at all times during the implementation of the Project maintain the CPMAP as the Project steering committee, with a composition, mandate, functions and resources satisfactory to the Association, as set forth in the Project Operational Manual. (b) Without limitation to sub-paragraph 1(a) of immediately above, CPMAP shall meet at least every six (6) calendar months (on a semi-annual basis), and minutes of said meetings shall be sent to the Association as part of the progress reports referred to in Section II.A. 1 of this Schedule. CPMAP shall be responsible for, inter alia: (i) providing strategic guidance and ensure effective coordination across ministries and agencies at the central and provincial government levels, CTAD and SENAREC; (ii) taking key policy decisions to ensure smooth implementation of the Project and achievement of its objective; (ii) facilitating the coordination of Project, and making recommendations for removal of any obstacles to the implementation of the Project; and (iii) reviewing and approving the Project reports prepared by CMRAP." "2. Cellule de Mise en Oeuvre de la R4forme de I'Administration Publique (CMRAP)" - 20 - "(a) The Recipient shall at all times during the implementation of the Project, maintain CMRAP as the project implementation unit with functions, staffing , resources and responsibilities satisfactory to the Association, as set forth in the Project Operational Manual, for purposes of day-to-day management and implementation of the Project, and efficient communication and coordination of the Project implementation with the participating ministries and agencies at the central and provincial levels, CTAD and SENAREC. (b) Without limitation to the provisions of paragraph 2(a) immediately above, CMRAP shall be responsible for, inter alia: (i) fiduciary (i.e., procurement, disbursement and financial management); (ii) day-to-day administration of overall planning, coordination, monitoring, evaluation, reporting and communication of the activities under the Project; (iii) providing secretariat services to CPMAP; (iv) monitoring overall progress of implementation on a monthly basis and evaluating Project performance; and (v) acting as the main focal point for communication with technical teams within respective ministries and agencies at the central and provincial government levels, CTAD and SENAREC, all in accordance with the provisions of this Agreement and the Project Operational Manual." 4. Section II.A of Schedule 2 to the Agreement is amended as follows: "A. Project Reports" "I. The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and on the basis of indicators set forth in the Project Operations Manual and found acceptable to the Association. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the Association not later than one month after the end of the period covered by such report." "2. The Recipient shall not later than December 31, 2018, undertake in conjunction with the Association a comprehensive midterm review of the Project, during which the Recipient shall exchange views generally on all matters relating to the progress of the Project and the performance by the Recipient of its obligations under this Agreement, having regard to the performance indicators referred to in paragraph limmediately above." Except as amended herein, all the other provisions of the Original Financing Agreement, shall remain in full force and effect.