OFFICIAL
DOCUMENTS
PROGRAM CREDIT NUMBER 6095-NG
PROJECT CREDIT NUMBER 6096-NG
Financing Agreement
(Better Education Service Delivery for All Operation)
between
FEDERAL REPUBLIC OF NIGERIA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated             2017


PROGRAM CREDIT NUMBER 6095-NG
PROJECT CREDIT NUMBER 6096-NG
FINANCING AGREEMENT
AGREEMENT      dated tP174, 2017, entered into
between the FEDERAL REPUBLIC ?F NIGERIA ("Recipient") and the
INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association"). 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 credit in an amount equivalent to four
hundred forty-five million seven hundred thousand Special Drawing Rights
(SDR 445,700,000), out of which: (a) the amount of four hundred twenty-one
million six hundred thousand Special Drawing Rights (SDR 421,600,000) shall be
allocated to the Program which constitutes an integral part of the Operation
(variously, "Program Credit" and "Program Financing"); and (b) the amount of
twenty-four million one hundred thousand Special Drawing Rights
(SDR 24,100,000) shall be allocated to the Project which constitutes an integral
part of the Operation (variously, the "Project Credit" and "Project Financing")
(collectively, "Operation Financing"), to assist in financing the operation
described in Schedule 1 to this Agreement ("Operation").
2.02.  The Recipient may withdraw: (a) the proceeds of the Program Financing in
accordance with Section IV of Schedule 2 to this Agreement; and (b) the proceeds
of the Project Financing in accordance with Section IV of Schedule 3 to this
Agreement. All withdrawals from the Program Financing Account and Project
Financing Account shall be deposited by the Association into an account specified
by the Recipient and acceptable to the Association. The Recipient's Representative
for purposes of taking any action required or permitted to be taken pursuant to this
Section is the director or deputy director, department of international economic
relations, Federal Ministry of Finance.


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2.03. The Maximum Commitment Charge Rate payable by the Recipient on the
Unwithdrawn Program Financing Balance and the Unwithdrawn Project Financing
Balance shall be one-half of one percent (1/2 of 1%) per annum.
2.04. The Service Charge payable by the Recipient on the Withdrawn Program Credit
Balance and the Withdrawn Project Credit Balance shall be equal to three-fourths
of one percent (3/4 of 1%) per annum.
2.05. The Interest Charge payable by the Recipient on the Withdrawn Program Credit
Balance and Withdrawn Project Credit Balance shall be equal to one and a quarter
percent (1.25%) per annum.
2.06. The Payment Dates are February I and August 1 in each year.
2.07. The principal amount of the Program Credit and the Project Credit shall be repaid
in accordance with the repayment schedule set forth in Schedule 4 to this
Agreement.
2.08. The Payment Currency is Dollar.
ARTICLE III - OPERATION
3.01. The Recipient declares its commitment to the objectives of the Operation. To this
end, the Recipient shall carry out the Operation or cause the Operation to be carried
out in accordance with the provisions of Article IV of the General Conditions.
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 Operation is carried out in accordance with the provisions of
Schedules 2 and 3 to this Agreement.
ARTICLE IV - REMEDIES OF THE ASSOCIATION
4.01. The Additional Event of Suspension consists of following, namely, that an action
has been taken or a policy has been adopted which results or may result in any
significant reversal of any part of the Operation and/or any activity implemented
pursuant to the Program Action Plan.
4.02. The Additional Event of Acceleration consists of the following, namely, that any
of the events specified in Section 4.01 of this Agreement occurs and is continuing
for a period of sixty (60) days after notice of the event has been given by the
Association to the Recipient.


ARTICLE V - TERMINATION
5.01. The Effectiveness Deadline is the date one hundred and eighty (180) 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 its minister responsible for finance.
6.02. The Recipient's Address is:
Federal Ministry of Finance
Ahmadu Bello Way
Abuja, Federal Republic of Nigeria
Facsimile:
234-9-6273609
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


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AGREED at                   ,      Os P-k      , as of the
day and year first above written.
FEDERAL REPUBLIC OF NIGERIA
By:
Authorized Representative
Name: I<e4   Abc.uN (MRs)
Title:   0M1
INTERNATIONAL DEVELOPMENT ASSOCIATION
By:
Authorized Re esentative
Name: MeQAI tkn        0d
Title:


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SCHEDULE 1
Operation Description
The objective of the Operation is to increase equitable access for out-of-school
children and improve literacy in Focus States, and strengthen accountability for results, in
basic education in the Recipient's territory.
The Operation consists of the following:
Part A: The Program
The Program forms part of the Recipient's UBE Program and consists of the
following activities:
I.    Increasing Equitable Access for Out-of-School Children in Focus States through a
mix of demand- and supply-side interventions targeting relevant Focus State out-
of-school populations, including inter alia, conditional cash transfers, school
feeding, gender-divided latrines, deployment of female teachers, integration of
core basic education subjects into non-formal education, provision of mobile
classrooms, and expansion, reconstruction, and rehabilitation of school
infrastructure.
2.    Improving Literacy in Focus States through launch or roll-out of intensive Primary
1-3 literacy programs, including provision of language textbooks and teachers'
guides, regular assessment of student progress, and regular coaching for teachers.
3.     Strengthening Accountability for Results in the Recipient's territory through
implementation of the Annual School Census, preparation of State progress reports
and plans on UBE implementation, and evidence-based UBE program strategic
planning, progress reports, and evaluation.
Part B: The Project - Technical Assistance
Provision of goods, technical assistance, Training, and Operating Costs, to support
implementation of the Program and strengthen capacity of the Recipient (including the
States) to: (a) improve monitoring and evaluation systems and data utilization (including
hiring the Independent Verification Agent(s) responsible for verifying DLRs); (b) increase
effectiveness and transparency in Program management (including focusing on results and
budgeting); (c) strengthen intergovernmental coordination in areas of policy formulation,
strategic planning, and Program implementation; and (d) support for: (i) the design and
implementation of a national learning assessment; (ii) a research agenda to inform the
current Program and provide the analytical underpinning for future initiatives focused on
out-of-school children and improving the quality of basic education; and (iii) a
communication and outreach agenda.


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SCHEDULE 2
Program Execution
Section I.   Implementation Arran2ements
A.     Program Fiduciary, Environmental and Social Systems
Without limitation upon the provisions of Article IV of the General Conditions,
the Recipient shall carry out the Program, or cause the Program to be carried out,
in accordance with financial management, procurement and environmental and
social management systems acceptable to the Association, including those set forth
in the ESSA and the Program Action Plan ("Program Fiduciary, Environmental
and Social Systems") which are designed to ensure that:
1. the Program Financing proceeds are used for their intended purposes, with due
attention to the principles of economy, efficiency, effectiveness, transparency, and
accountability; and
2.     the actual and potential adverse environmental and social impacts of the Program
are identified, avoided, minimized, or mitigated, as the case may be, all through an
informed decision-making process.
B.     Anti-Corruption
Without limitation upon the provisions of Part A of this Section, the Recipient shall
carry out the Program, or cause the Program to be carried out, in accordance with
the provisions of the Association's "Guidelines on Preventing and Combating
Fraud and Corruption in Program-for Results Financing", dated February 1, 2012,
and revised July 10, 2015 ("Program Anti-Corruption Guidelines").
C.     On-financing Arrangements
1 .   To facilitate the carrying out of the Program, the Recipient shall make the proceeds
of the Program Financing available to institutions and entities involved in Program
implementation, including the States, on a non-reimbursable grant basis, in
accordance with the Recipient's standard arrangements for education sector
financing.
2.     Notwithstanding paragraph I above, in the event that any provision of this
Agreement, including the instructions that the Association shall have specified by
notice to the Recipient pursuant to Section IV.A.1 of this Schedule, were to be
found inconsistent with the Recipient's standard arrangements for education sector
financing, the provisions of this Agreement and related instructions shall gover.


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3.     The Recipient shall protect its own interests and the interests of the Association
while implementing the on-financing arrangements, in order to accomplish the
purposes of the Program.
D.     Other Program Institutional and Implementation Arrangements
1. Program Institutions
Without limitation upon Part A of this Section, the Recipient shall maintain or
cause to be maintained at all times during Program implementation, adequate
institutional arrangements satisfactory to the Association as necessary, to achieve
the objectives of the Program as further detailed in the Operation Implementation
Manual, including the following:
(a)    FME shall be responsible for overall policy formulation and coordination
for the Program;
(b)    a National Policy and Monitoring Team ("NPMT") shall be constituted by
the FME no later than three (3) months after the Effective Date to be
responsible for overseeing the Operation;
(c)    UBEC shall be responsible for overall implementation of the Program;
(d)    a UBEC National Coordination Team shall provide overall guidance for
implementation of the Operation with support from a Coordination
Support Team (CST); and
(e)    State Implementation Teams at the SUBEBs shall perform the respective
monitoring, reporting, and implementation functions.
E.     Operation Implementation Manual
1.     No later than three (3) months after the Effective Date, the Recipient shall prepare
an Operation Implementation Manual in form and substance satisfactory to the
Association, containing detailed arrangements and procedures for implementation
of the Program and the Project including inter alia: (a) disbursement and flow of
funds arrangements; (b) institutional arrangements; (c) financial management,
governance and procurement systems; (d) environmental and social management
systems including the ESSA and operation of grievance redress mechanism;
(e) monitoring and evaluation, reporting and communication, including Program
and Project indicators; (f) Program Action Plan; (g) detailed arrangements for
verification of achievement of DLRs (including the Verification Protocol); and (h)
such other administrative, financial, technical and organizational arrangements and
procedures as shall be required for the Operation.


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2.     The Recipient shall: (a) furnish to and exchange views with the Association on
such manual promptly upon its preparation; and (b) thereafter adopt such manual
as shall have been approved by the Association ("Operation Implementation
Manual").
3.     The Recipient shall ensure, and shall cause each State to ensure, that the Program
is carried out in accordance with the arrangements and procedures set out in the
OIM (provided, however, that in case of any conflict between the arrangements
and procedures set out in the OIM and the provisions of this Agreement, the
provisions of this Agreement shall prevail), and shall not amend, abrogate or
waive, or permit to be amended, abrogated or waived, the OIM or any of its
provisions without the prior approval in writing by the Association.
F.     Program Action Plan
Without limitation to the provisions of Section I.A of this Schedule, the Recipient
shall carry out the Program Action Plan, or cause the Program Action Plan to be
carried out in a manner satisfactory to the Association.
G.     DLR Verification Protocol
1 .    No later than three (3) months after the Effective Date or such later date as may be
agreed with the Association, the Recipient (through FMF) shall recruit one or more
organizations with experience, independence, and capacity and under terms of
reference acceptable to the Association ("Independent Verification Agent(s)" or
"IVA") to verify the data and other evidence supporting the achievement of one or
more Disbursement Linked Results (DLRs) as set forth in the DLI Verification
Protocol and recommend corresponding payments to be made.
2.     The Recipient shall: (a) ensure that the Independent Verification Agent(s) carries/
carry out verification process(es) in accordance with the Verification Protocol; and
(b) submit to the Association the corresponding verification reports in a timely
manner and in form and substance satisfactory to the Association.
3.     In the event there is a need for verification services prior to the recruitment of the
firm in accordance with sub-paragraph I above, the Recipient shall put in place
adequate interim arrangements satisfactory to the Association and approved in
writing by the Association for verification of the DLRs.
Section II.   Excluded Activities
The Recipient shall ensure that the Program excludes any activities which:
(a)    in the opinion of the Association, are likely to have significant adverse
impacts that are sensitive, diverse, or unprecedented on the environment
and/or affected people; or


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(b)    involve the procurement of: (i) works, estimated to cost fifty million
Dollars ($50,000,000) equivalent or more per contract; (ii) goods,
estimated to cost thirty million Dollars ($30,000,000) equivalent or more
per contract; (iii) non-consulting services, estimated to cost twenty million
Dollars ($20,000,000) equivalent or more per contract; or (iv) consulting
services, estimated to cost fifteen million Dollars ($15,000,000)
equivalent or more per contract.
Section HI.   Program Monitoring, Reporting and Evaluation; Audits
A.     Program Reports
For the purposes of the Program the Recipient shall monitor and evaluate the
progress of the Program and prepare Program Reports in accordance with the
provisions of Section 4.08 of the General Conditions. Each Program 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.
B.     Program Financial Audits
Without limitation upon the generality of Section L.A of this Schedule 2 and
Section 4.09 of the General Conditions, the Recipient shall have the Financial
Statements audited in accordance with the provisions of Section 4.09(b) of the
General Conditions. Unless otherwise agreed by the Association, 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 nine (9) months after the end of such period.
Section IV.   Withdrawal of Program Financing Proceeds
A.     General
1.     The Recipient may withdraw the proceeds of the Program Financing in accordance
with the provisions of Article II of the General Conditions applicable to the
Program, this Section, and such additional instructions as the Association may
specify from time to time by notice to the Recipient to: (a) finance the results
("Disbursement Linked Results" or "DLRs") achieved by the Recipient, as
measured against specific indicators ("Disbursement Linked Indicators" or
"DLIs"); all as set forth in the table in paragraph 2 of this Part A.
2.     The following table specifies each category of withdrawal of the proceeds of the
Program Financing (including the Disbursement Linked Indicators as applicable)
("Category for the Program"), the Disbursement Linked Results for each Category
for the Program (as applicable), and the allocation of the amounts of the Program
Financing to each Category for the Program:


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Amount of                      Disbursement-linked Results with Indicative timeline or DLIAchievement
Category for the     theivtieeorDI                                                                    heemn
Program
(inluin        Program
(micluding     Financing
Disbursement     Allocated              DLRs to be   DLRs to be   DLRs to be   DLRs to be   DLRs to be    DLRs to be
Linked Indicator  (expressed     DLI       achieved  achieved FY   achieved FY  achieved FY    achieved    achieved FY
as applicable)   in SDR      Baseline     FY2017       2018         2019         2020        FY2021          2022
(1) DLI 1                     Baselines   Mapping    Decrease in   Decrease in  Decrease in  Decrease in  Decrease in the
Reduced number   249,100,000  are based on  completed  the number  the number  the number   the number    number of out-
of out of school              NEDS 2015: of out-of-  of out-of-    of out-of-   of out-of-   of out-of-   of-school
children in Focus             Adamawa     school     school       school        school       school       children
States, by gender             239,562;    children by  children   children      children     children     relative to
Bauchi      LGA and     relative to  relative to  relative to  relative to  previous year
1,031,524;  type of     previous year previous year previous year previous year
Borno       population
1,229,425;  (girls,                  Minimum:                               Minimum: One
Gombe       almajiri    Minimum:     One Focus    Minimum:     Minimum:     Focus State
453,030;    children,   One Focus    State        One Focus    One Focus    decreases
Taraba      nomadic     State        decreases    State        State        number of out-
285,767;    children,   decreases    number of    decreases    decreases    of-school
Yobe        IDPs,       number of    out-of-school number of   number of    children by
658,770;    other);     out-of-school children by  out-of-school out-of-school 1,000 children
Jigawa      Target set  children by  1,000        children by  children by  in one year
764,586;    for         1,000        children in  1,000        1,000
Kaduna      reduction   children in  one year     children in  children in
727,766;    in number   one year                  one year     one year
Kano        of out-of-
1,307,106;  school
Katsina     children by
1,135,379;  LGA using
the ASC


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Kebbi       data and
814,945;    out-of-
Sokoto      school
925,621;    children
Zamfara     mapping
802,049;
Niger
513,693;
Ebonyi
52,759; Oyo
272,847;
Rivers
110,654
Allocated amount:                         SDR        SDR 73 per    SDR 73 per   SDR 73 per   SDR 73 per   SDR 73 per
1,460,000  female and    female and   female and   female and   female and
per Focus  SDR 58 per    SDR 58 per   SDR 58 per   SDR 58 per   SDR 58 per
State      male child    male         male child   male child   male child
attending    attending    attending     attending    attending
school       school       school        school       school
(2) DLI 2        87,500,000   0           States'    Number of    Number of     Number of    Number of    N/A
Schools adopting                          selected   students and  students and  students and  States with
Primary 1-3                              literacy    teachers      teachers     teachers     more than
intensive literacy                        program    participating  participating  participating  50% of
programs in Focus                         approved,  in intensive  in intensive  in intensive  primary
States                                    selection of literacy    literacy     literacy     schools
participatin  programs in  programs in  program in  adopting
g schools   Primary 1    Primary I    Primary 1, 2,  intensive
by LGA                   and 2        and 3        literacy
completed                                          programs in


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and                                                   Primary 1, 2
quantity of                                           and 3
student
textbooks
and
teachers'
guides
determined
for
procurerne
nt and
distribution
Allocated amount:                            SDR         SDR 3.6 per   SDR 3.6 per   SDR 3.6 per   States with
730,000     participating  participating  participating  more than
per Focus   student and   student and   student and   50% of
State       SDR 219 per   SDR 219 per   SDR 219 per   primary
participating  participating  participating  schools
teacher       teacher       teacher       adopting
intensive
literacy
programs in
P1-3 receive
SDR 219,000
per State
(3) DLI 3         43,800,000   Baselines    N/A          N/A           N/A           Two           N/A           Two
Improved literacy              are based on                                          percentage                  percentage
rates in Focus                 2015 NEDS                                             point                       point increase
States, by State               for Focus                                             increase in                in State literacy
States:                                              State literacy              rate above year
Adamawa                                              rate above                  3 NEDS value


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36.2; Bauchi                                      2015 NEDS
23.5; Borno                                       baseline
27.1;
Gombe
34.0; Taraba
19.7; Yobe
27.5; Jigawa
17.0;
Kaduna
44.2; Kano
28.5;
Katsina
23.1; Kebbi
31.6; Sokoto
21.8;
Zamnfara
18.7; Niger
3 6.3;
Ebonyi
48.3; Rivers
85.8; Oyo
60.9


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Allocated amount:                         N/A        N/A           N/A          SDR 730,000  N/A          SDR 730,000
per 2                     per 2
percentage                percentage
point                     point increase
increase in               in State literacy
State literacy            rate from year
rate from                 3, starting at a
baseline,                 minimum
starting at a             increase of 2
minimum                   percentage
increase of 2             points
percentage
points
(4) DLI 4        15,300,000   17          0          36 States and  36 States and  36 States and  36 States and  36 States and
Total States                                         FCT publish   FCT publish  FCT publish  FCT publish  FCT publish
implementing and                                     ASC           ASC          ASC          ASC          ASC
publishing the
Annual School                                                      States with at  States with at States with at
Census (ASC),                                                     least 10% of  least 10% of  least 10% of  States with at
verified by                                                        schools      schools      schools      least 10% of
SBMCs                                                              verified by  verified by  verified by  schools verified
SBMCs        SBMCs        SBMCs        by SBMCs
greater than  greater than  greater than  greater than the
the          the          the           percentage in
percentage in  percentage in  percentage in  year 4 receive
year 1       year 2       year 3       bonus
receive bonus receive bonus receive bonus


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Allocated amount:                         N/A        SDR 22 per    SDR 22 per   SDR 22 per   SDR 22 per   SDR 22 per
school       school       school        school       school
SDR 73,000   SDR 7,300    SDR 7,300     SDR 7,300    SDR 7,300 per
per State    per State    per State     per State    State
(5) DLI 5        25,900,000   0           N/A        UBEC          UBEC         UBEC         UBEC         UBEC
Total States                                         approves      approves     approves     approves     approves
completing State                                     States'       States'      States'      States'      States' annual
basic education                                      annual plans  annual plans  annual plans  annual plans  plans and
plan and progress                                    and progress  and progress  and progress  and progress  progress
report on UBE                                        reports using  reports using  reports using  reports using  reports using
program                                              the agreed   the agreed   the agreed   the agreed    the agreed
implementation,                                      template -    template -   template -   template -   template -
approved by                                          including    including    including    including     including
UBEC                                                 available data available data available data available data available data
from ASC,    from ASC,    from ASC,     from ASC,    from ASC,
budget data,  budget data,  budget data,  budget data,  budget data,
and data on  and data on  and data on   and data on  and data on
SBMC         SBMC         SBMC          SBMC         SBMC
functionality, functionality, functionality, functionality, functionality,
byQI         by Q1        by Q1         by QI 2021   by Q1 2022
Allocated amount:                         N/A        SDR 219,000   SDR 153,000  SDR 109,000  SDR 109,000  SDR 109,000
per State    per State    per State     per State    per State
TOTAL            SDR
AMOUNT:          421,600,000


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B.     Withdrawal Conditions; Withdrawal Period
1.    Notwithstanding the provisions of Part A of this Section, no withdrawal shall be
made:
(a)    for purposes of Section 2.03 of the General Conditions (renumbered as
such pursuant to paragraph 6 of Section II of the Appendix to this
Agreement and relating to Program Expenditures), for DLRs achieved
prior to the date of this Agreement, except that withdrawals up to an
aggregate amount not to exceed SDR 37,200,000 may be made for such
DLRs achieved prior to this date but on or after January 1, 2017;
(b)    for any DLR unless and until the Recipient has furnished evidence
satisfactory to the Association that said DLR has been achieved and
verified, all in accordance with the DLI Verification Protocol; or
(c)    for a DLR related to a DLI for a FY under Categories for the Program 1,
2, 3, 4, 5, unless the Recipient has furnished evidence satisfactory to the
Association that: (i) an aggregate amount equivalent to the amount of
Program Financing withdrawn in respect of the DLR under said Category
for the previous FY was, as applicable, transferred to the States, in a timely
manner in accordance with the provisions of this Agreement; and (ii) for
said FY each State has received the amount of the Program Financing
allocated to it based on the DLR(s) achieved by said State as verified by
the DLI Verification Protocol.
2.     Notwithstanding the provisions of Part B.1(c) of this Section, the Recipient shall
transfer to each State in a timely manner the proceeds of the Program Financing
allocated to the respective State on the basis of the DLR(s) achieved by said State
as verified by the DLI Verification Protocol, all in accordance with the provisions
of this Agreement.
3.     Notwithstanding the provisions of Part B.1(b) of this Section, the Recipient may
withdraw an amount not to exceed fifteen percent (15%) of the amount of the
Program Financing as an advance for achievement in DLIs 1, 2, and 3, in FY2017-
FY2018; provided, however, that if the DLR(s) in the opinion of the Association,
are not achieved (or only partially achieved) by the Closing Date, the Recipient
shall refund such advance (or portion of such advance as determined by the
Association) to the Association promptly upon notice thereof by the Association.
Except as otherwise agreed with the Recipient, the Association shall cancel the
amount so refunded. Any further withdrawals requested as an advance under any
Category for the Program shall be permitted only on such terms and conditions as
the Association shall specify by notice to the Recipient.


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4.     Notwithstanding the provisions of Part B.1(b) of this Section, if any of the DLRs
under Categories for the Program 1, 2, 3, 4, 5, has not been achieved by the date
by which the said DLR is set to be achieved, the Association may, by notice to the
Recipient: (a) authorize the withdrawal of such lesser amount of the unwithdrawn
proceeds of the Program Financing then allocated to said Category which, in the
opinion of the Association, corresponds to the extent of achievement of said DLR,
said lesser amount to be calculated in accordance with the table of paragraph
IV.A.2 of this Part B; (b) reallocate all or a portion of the proceeds of the Financing
then allocated to said DLR(s) to any other DLR(s); and/or (c) cancel all or a portion
of the proceeds of the Program Financing then allocated to said DLR.
5.     The Closing Date of the Operation is October 31, 2022.
6.     Notwithstanding the foregoing provisions of this Section IV, if at any time after
the Closing Date the Recipient has failed to provide evidence satisfactory to the
Association that the Withdrawn Financing Balance for the Program does not
exceed the total amount of Program Expenditures, the Recipient shall, promptly
upon notice from the Association, refund to the Association such excess amount
of the Withdrawn Financing Balance for the Program. The Association shall cancel
the refunded amount of the Withdrawn Financing Balance for the Program.


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SCHEDULE 3
Project Execution
Section I.    Implementation Arrangements
A.     Institutional Arrangements
The Recipient shall carry out the Project (including the procurement and financial
management aspects) through the FME and UBEC in accordance with the
procedures and arrangements set forth in the Operation Implementation Manual.
B.     Anti-Corruption
The Recipient shall ensure that the Project is carried out in accordance with the
provisions of the Association's "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
("Project Anti-Corruption Guidelines).
Section II.   Project Monitoring, Reporting and Evaluation
A.     Project Reports
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 on the basis of indicators 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 forty-five (45) calendar days after the end of the
period covered by such report.
B.     Financial Management, Financial Reports and Audits
1.     The Recipient shall maintain a financial management system in accordance with
the provisions of Section 4.09 of the General Conditions for the Project.
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 (45) calendar days
after the end of each calendar semester, interim unaudited financial reports for the
Project covering the semester, in form and substance satisfactory to the
Association.
Section III.  Procurement
All goods, non-consulting services and consulting services required for Part B of
the Project and to be financed out of the proceeds of the Project Financing shall be


- 19 -
procured in accordance with the requirements set forth or referred to in the
Procurement Regulations and the provisions of the Procurement Plan.
Section IV.  Withdrawal of Project Financing Proceeds
A.     General
1.    The Recipient may withdraw the proceeds of the Project 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 "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 Project Eligible Expenditures that
may be financed out of the proceeds of the Project Financing ("Eligible
Expenditures Category for the Project"), the allocations of the amounts of the
Project Financing to each Eligible Expenditure Category for the Project:
Amount of the        Percentage of
Project Financing    Expenditures to be
Allocated            Financed
Category for the Project  (expressed in SDR)   (inclusive of Taxes)
(1) Goods, non-consulting      24,100,000             100%
services, consulting
services, Training and
Operating Costs for the
Proj ect
TOTAL AMOUNT                   24,100,000
B.     Withdrawal Conditions; Withdrawal Period
1.    Notwithstanding the provisions of Part A of this Section, no withdrawal shall be
made for payments made prior to the date of this Agreement.


-20-
SCHEDULE 4
Repayment Schedule
Date Payment Due               Principal Amount of the Credit
repayable
(expressed as a percentage)*
On each February 1 and August 1:
commencing August 1, 2022 to and including            1.65%
February 1, 2032
commencing August 1, 2032 to and including            3.35%
February 1, 2042
* The percentages represent the percentage of the principal amount of the Credit to be
repaid, except as the Association may otherwise specify pursuant to Section 3.03(b) of the
General Conditions.


-21 -
APPENDIX
Section I.   Definitions
1.    "Annual School Census" or "ASC" each means the Recipient's collated State
report using a unified data questionnaire to collect data for every pre-primary,
primary, junior secondary, and senior secondary school in the Recipient's territory.
This report includes data on schools and their characteristics, student enrolment,
and staff.
2.     "Annual State Basic Education Plan and Progress Report" means a plan that is
informed by baseline information from the Annual School Census and data on
budget allocations, and lays out quantitative objectives on access and quality of
basic education based on progress achieved in previous years.
3.     "Category for the Program" means a category set forth in the table in Section
IV.A.2 of Schedule 2 to this Agreement.
4.     "Category for the Project" means a category set forth in the table in Section IV.A.2
of Schedule 3 to this Agreement.
5.     "Coordination Support Team" and "CST" each means the team referred to in
Section I.D.1(d) of Schedule 2 to this Agreement.
6.     "Disbursement Linked Indicator" or "DLI" each means in respect of a given
Category for the Program, the indicator related to said Category as set forth in the
table in Section IV.A.2 of Schedule 2 to this Agreement.
7.     "DLI Baseline" means the initial collection of data which serves as a basis for
comparison with the subsequently acquired data.
8.     "Disbursement Linked Result" or "DLR" each means in respect of a given
Category for the Program, the result under said Category as set forth in the table
in Section IV.A.2 of Schedule 2 to this Agreement, on the basis of the achievement
of which, the amount of the Program Financing allocated to said result may be
withdrawn in accordance with the provisions of said Section IV.
9.     "DLI Verification Protocol" means the protocol agreed by the Association and the
Recipient to verify the data and other evidence supporting the achievement of one
or more DLRs, as such protocol may be modified from time to time with the
agreement of the Association.
10.    "Education Sector Planning" means the Recipient's wider plan that covers all
levels of education, including basic education.


- 22 -
11.    "ESSA" means the Environmental and Social System Assessment dated May 15,
2017, and applicable to the Program which assesses the Recipient's environmental
and social management systems, detailing the Program's environmental and social
benefits, risks and impacts and recommending remedial measures to strengthen the
social and environmental systems performance.
12.    "FCT" means the Federal Capital Territory of the Recipient.
13.    "Fiscal Year" or "FY" each means the Recipient's fiscal year commencing January
I and ending December 31 in each year.
14.    "FME" means the federal ministry of the Recipient responsible for education or
any successor thereto.
15.    "Federal Ministry of Finance" or "FMF" each means the federal ministry of the
Recipient responsible for finance or any successor thereto.
16.    "Focus State" means a State eligible to participate in the Program (results areas I
and 2), and the Project, based on eligibility criteria set forth in the Operation
Implementation Manual and "Focus States" means more than one Focus State as
applicable.
17.    "General Conditions" means the "International Development Association General
Conditions for Credits and Grants", dated July 31, 2010, with the modifications set
forth in Sections II and III of this Appendix.
18.    "IDPs" means internally displaced persons.
19.    "Independent Verification Agent(s)" or "IVA" each means any agent referred to
in Section I.G.1 of Schedule 2 of this Agreement.
20.    "LGA" means local government authority established and operating in the territory
of each State pursuant to the laws of the Recipient and the State.
21.    "Medium Term Sector Strategy" or "MTSS" each means a 3-year sector financing
strategy that feeds into a country-wide medium-term expenditure framework.
22.    "Minister of Education" means the Recipient's Minister of Education.
23.    "MSP" means the Ministerial Strategic Plan 2016-2019 of FME.
24.    "NEDS" means the 2015 National Education Data Survey of the Recipient.
25.    "National Policy and Monitoring Team" or "NPMT" each means the team referred
to in Section I.D. 1(b) of Schedule 2 to this Agreement.


-23 -
26.    "Operation" means the activities financed under the Program and the Project, as
defined in Schedule I to this Agreement.
27.    "Operating Costs" means the incremental and reasonable expenditures incurred by
the Recipient and the States for the implementation, coordination and supervision
of the Project, including, inter alia, travel costs (i.e., accommodation,
transportation, travel insurance andper diem), operation and maintenance of office
equipment, rental of offices, office supplies, communication costs, bank charges,
utilities, car fuel, printing and publications (electronic and/or paper), translation
services, insurance for goods, and salaries of staff working for the Project, but
excluding salaries of the Recipient's civil servants and/or pennanent employees,
and such other expenditures as may be agreed upon by the Association.
28.    "Operation Financing" means the Program Credit and the Project Credit.
29.    "Operation Implementation Manual" or "O1M" each means the manual for the
implementation of the Program and the Project acceptable to the Association to be
prepared and adopted by the Recipient in accordance with the provisions of Section
I.E of Schedule 2 to this Agreement, as the same may be amended in accordance
with the provisions of said Section.
30.    "Primary 1-3" means the first 3 grades of primary education.
31.    "Procurement Plan" means the Recipient's procurement plan for Part B of the
Operation (the Project), dated May 5, 2017, and provided for under Section IV of
the Procurement Regulations, as the same may be updated from time to time in
agreement with the Association.
32.    "Procurement Regulations" means the "World Bank Procurement Regulations for
Borrowers under Investment Project Financing", dated July 1, 2016.
33.    "Program" means the activities described in Part A of Schedule 1 to this
Agreement.
34.    "Program Anti-Corruption Guidelines" means the Guidelines referred to in Section
I.B. of Schedule 2 to this Agreement.
35.    "Project Anti-Corruption Guidelines" means the Guidelines referred to in Section
I.B. of Schedule 3 to this Agreement.
36.    "Program Action Plan" means the set of priority actions agreed by the Association
and the Recipient for the strengthening of the Recipient's sectoral and institutional
framework referred to in Section I.F of Schedule 2 to this Agreement, as the same
may be amended from time to time with the prior written approval of the
Association.


- 24 -
37.    "Program  Fiduciary and Environmental and Social Systems" means the
Recipient's systems for the Program referred to in Section L.A of Schedule 2 to this
Agreement."
38.    "Project" means the activities described in Part B of Schedule 1 to this Agreement.
39.    "Q" means quarter.
40.    "SBMCs" means school-based management committees.
41.    "SME" means the Recipient's ministry of a State responsible for education or any
successor thereto.
42.    "State" means any of the thirty-six (36) states of the Recipient and the FCT, Abuja
as defined in Articles 2 and 3 of the Constitution of the Federal Republic ofNigeria
1999, eligible to participate in the Program (results area 3), and the Project, as set
forth in the OIM, and "States" refers to more than one State, as applicable.
43.    "State Implementation Teams" means the teams referred to in Section I.D.1(e) of
Schedule 2 to this Agreement.
44.    "SUBEB" means a State Universal Basic Education Board or any successor
thereto.
45.    "Training" means expenditures (other than those for consulting services) incurred
by the Recipient and the States to finance the reasonable travel costs (i.e.,
accommodation, transportation, travel insurance and per diem, inter alia) of
trainees and trainers (if applicable), training registration fees, catering, rental of
training facilities and equipment, logistics and printing services, as well as training
materials, all for the purposes of, and directly related to, the activities described in
the Project.
46.    "UBE" means universal basic education.
47.    "UBE Act of 2004", means the Recipient's act whereby the Recipient has
committed to free, compulsory, and universal basic education and earmarked fiscal
resources to such end, as further reiterated under the MSP.
48.    "UBE Program" means the Recipient's program enacted by the UBE Act of 2004.
49.    "UBEC" means the Universal Basic Education Commission, an executive agency
of the Recipient, established on October 7, 2004, and responsible for the
implementation of the UBE Program.
50.    "UBEC National Coordination Team" means the team referred to in Section
I.D.1(d) of Schedule 2 to this Agreement.


-25-
Section II.   Modifications to the General Conditions applicable to the Program
The modifications to the General Conditions are as follows:
1. Wherever used throughout the General Conditions, the term "the Credit" is
modified to read "the Program Credit", the term "the Credit Account" is modified
to read "the Program Credit Account", the term "the Financing" is modified to read
"the Program Financing", the term "the Financing Account" is modified to read
"the Program Financing Account", the term "the Financing Payment" is modified
to read "the Program Financing Payment", the term "the Project" is modified to
read "the Program", the term "the Project Agreement" is modified to read "the
Program Agreement", the term "Project Implementing Entity" is modified to read
"the Program Implementing Entity", the term "Project Report" is modified to read
"Program Report"; the term "Eligible Expenditures" is modified to read "Program
Expenditures", the term "the Unwithdrawn Credit Balance" is modified to read
"the Unwithdrawn Program Credit Balance", the term "the Unwithdrawn
Financing Balance" is modified to read "the Unwithdrawn Program Financing
Balance"; and the term "the Withdrawn Credit Balance" is modified to read "the
Withdrawn Program Credit Balance".
2.     The terms "Program Financing Account", "Withdrawn Program Credit Balance",
and "Program Financing Payments" have the meanings ascribed to them in the
General Conditions applicable to the Program. The terms "Withdrawn Project
Credit Balance", "Project Financing Payments", and "Project Financing Account"
have the meanings ascribed in the General Conditions applicable to the Project.
3.    In the Table of Contents, the references to Sections, Section names and Section
numbers are modified to reflect the amendments set out below.
4.     Section 2.02, Special Commitment by the Association, is deleted in its entirety,
and the subsequent Sections in Article II are renumbered accordingly.
5.    In Section 2.02 (originally numbered as Section 2.03), the heading "Applications
for Withdrawal or for Special Commitment" is replaced with "Applications for
Withdrawal", and the phrase "or to request the Association to enter into a Special
Commitment" is deleted.
6.     The section 2.03 (originally numbered as Section 2.04), Designated Accounts is
deleted in its entirety, and the subsequent Sections in Article II are renumbered
accordingly.
7.     Paragraph (a) of Section 2.03 (originally numbered as Section 2.05), Eligible
Expenditures (renamed "Program Expenditures" in accordance with paragraph I
of this Section II), is modified to read: "(a) the payment is for the financing of the
reasonable cost of expenditures required for the Program and to be financed out of


-26-
the proceeds of the Program Financing in accordance with the provisions of the
Legal Agreements;"
8.    The last sentence of Section 2.04 (originally  numbered as Section 2.06),
Financing Taxes, is modified to read: "To that end, if the Association at any time
determines that the amount of any such Tax is excessive, or that such Tax is
discriminatory or otherwise unreasonable, the Association may, by notice to the
Recipient, exclude such amount or such Tax from the Program Expenditures to
be financed out of the proceeds of the Financing, as required to ensure
consistency with such policy of the Association."
9.     Section 2.06 (originally numbered as Section 2.08), Rea/location, is modified to
read: "Notwithstanding any allocation of an amount of the Program Financing to a
withdrawal category under the Financing Agreement, the Association may, by
notice to the Recipient, reallocate any other amount of the Program Financing to
such category if the Association reasonably determines at any time that such
reallocation is appropriate for the purposes of the Program.
10.   Section 3.02 is modified to read as follows:
"Section 3.02. Service Charge and Interest Charge
(a)   Service Charge. The Recipient shall pay the Association a service charge
on the Withdrawn Program Credit Balance at the rate specified in the
Financing Agreement. The Service Charge shall accrue from the
respective dates on which amounts of the Program Credit are withdrawn
and shall be payable semi-annually in arrears on each Payment Date.
Service Charges shall be computed on the basis of a 360-day year of
twelve 30-day months.
(b)   Interest Charge. The Recipient shall pay the Association interest on the
Withdrawn Program Credit Balance at the rate specified in the Financing
Agreement. Interest shall accrue from the respective dates on which
amounts of the Program Credit are withdrawn and shall be payable semi-
annually in arrears on each Payment Date. Interest shall be computed on
the basis of a 360-day year of twelve 30-day months."
11.   Section 6.01, Cancellation by the Recipient, is modified to read: "The Recipient
may, by notice to the Association, cancel any amount of the Unwithdrawn Program
Financing Balance."
12.   The first paragraph of Section 6.02, Suspension by the Association, is modified to
read: "If any of the events specified in paragraphs (a) through (m) of this Section
occurs and is continuing, the Association may, by notice to the Recipient, suspend
in whole or in part the right of the Recipient to make withdrawals from the Program


- 27 -
Financing Account and the Project Financing Account. Such suspension shall
continue until the event (or events) which gave rise to suspension has (or have)
ceased to exist, unless the Association has notified the Recipient that such right to
make withdrawals has been restored."
13.   Paragraph (d) of Section 6.03, Cancellation by the Association, entitled
"Misprocurement", is deleted, and subsequent paragraphs are re-lettered
accordingly.
14.    Section 6.04, Amounts Subject to Special Commitment not Affected by
Cancellation or Suspension by the Association, is deleted in its entirety, and
subsequent Sections in Article VI and references to such Sections are renumbered
accordingly.
15.   The first paragraph of Section 6.05, (originally numbered as Section 6.06), Events
of Acceleration, is modified to read: "If any of the events specified in paragraphs
(a) through (f) of this Section occurs and continues for the period specified (if any),
then at any subsequent time during the continuance of the event, the Association
may, by notice to the Recipient, declare all or part of the Withdrawn Program
Credit Balance and Withdrawn Project Credit Balance as at the date of such notice
to be due and payable immediately together with any other Program Financing
Payments and Project Financing Payments due under the Financing Agreement or
these General Conditions. Upon any such declaration, such Withdrawn Program
Credit Balance, Withdrawn Project Credit Balance, Program Financing Payments
and Project Financing Payments shall become immediately due and payable."
16.    Section 8.05(a), Termination of Legal Agreements on Full Payment, is modified
to read: Subject to the provisions of paragraphs (b) and (c) of this Section, the
Legal Agreements and all obligations of the parties under the Legal Agreements
shall forthwith terminate upon full payment of the Withdrawn Program Credit
Balance, the Withdrawn Project Credit Balance and all other Program Financing
Payments and Project Financing Payments due.
17.   Paragraph 28 of the Appendix ("Financing Payment") is modified by inserting the
words "the Interest Charge" between the words "the Service Charge" and "the
Commitment Charge".
18.   The Appendix is modified by inserting a new paragraph 32 with the following
definition of "Interest Charge", and renumbering the remaining paragraphs
accordingly:
"32. "Interest Charge" means the interest charge specified in the Financing
Agreement for the purpose of Section 3.02(b)."
19.    Renumbered paragraph 37 (originally paragraph 36) of the Appendix ("Payment


-28-
Date") is modified by inserting the words "Interest Charges" between the words
"Service Charges" and "Commitment Charges".
20.    Renumbered paragraph 50 (originally paragraph 49) of the Appendix ("Service
Charge") is modified by replacing the reference to Section 3.02 with Section
3.02(a).
21.    Paragraph 50 of the Appendix ("Special Commitment") is deleted in its entirety,
and all subsequent paragraphs are renumbered accordingly.
Section III.  Modifications to the General Conditions applicable to the Project
The modifications to the General Conditions for the Project are as follows:
1 .    Wherever used throughout the General Conditions, the term "the Credit" is
modified to read "the Project Credit", the term "the Credit Account" is modified
to read "the Project Credit Account", the term "the Financing" is modified to read
"the Project Financing", the term "the Financing Account" s modified to read "the
Project Financing Account", the term "the Financing Payment" is modified to read
"the Project Financing Payment", the term "the Unwithdrawn Credit Balance" is
modified to read "the Unwithdrawn Project Credit Balance", the term "the
Unwithdrawn Financing Balance" is modified to read "the Unwithdrawn Project
Financing Balance"; and the term "the Withdrawn Credit Balance" is modified to
read "the Withdrawn Project Credit Balance".
2.     The terms "Program Financing Account", "Withdrawn Program Credit Balance",
and "Program Financing Payments" have the meanings ascribed to them in the
General Conditions applicable to the Program. The terms "Withdrawn Project
Credit Balance", "Project Financing Payments", and "Project Financing Account"
have the meanings ascribed in the General Conditions applicable to the Project.
3.     Section 3.02 is modified to read as follows: "Section 3.02. Service Charge and
Interest Charge
(a)    Service Charge. The Recipient shall pay the Association a service charge
on the Withdrawn Project Credit Balance at the rate specified in the
Financing Agreement. The Service Charge shall accrue from the
respective dates on which amounts of the Project Credit are withdrawn and
shall be payable semi-annually in arrears on each Payment Date. Service
Charges shall be computed on the basis of a 360-day year of twelve 30-
day months.
(b)    Interest Charge. The Recipient shall pay the Association interest on the
Withdrawn Project Credit Balance at the rate specified in the Financing
Agreement. Interest shall accrue from the respective dates on which


- 29 -
amounts of the Project Credit are withdrawn and shall be payable semi-
annually in arrears on each Payment Date. Interest shall be computed on
the basis of a 360- day year of twelve 30-day months."
4.     The first paragraph of Section 6.02, Suspension by the Association, is modified to
read: "If any of the events specified in paragraphs (a) through (in) of this Section
occurs and is continuing, the Association may, by notice to the Recipient, suspend
in whole or in part the right of the Recipient to make withdrawals from the Program
Financing Account and the Project Financing Account. Such suspension shall
continue until the event (or events) which gave rise to suspension has (or have)
ceased to exist, unless the Association has notified the Recipient that such right to
make withdrawals has been restored."
5.     The first paragraph of Section 6.06, Events of Acceleration, is modified to read:
"If any of the events specified in paragraphs (a) through (t) of this Section occurs
and continues for the period specified (if any), then at any subsequent time during
the continuance of the event, the Association may, by notice to the Recipient,
declare all or part of the Withdrawn Program Credit Balance and Withdrawn
Project Credit Balance as at the date of such notice to be due and payable
immediately together with any other Program Financing Payments and Project
Financing Payments due under the Financing Agreement or these General
Conditions. Upon any such declaration, such Withdrawn Program Credit Balance,
Withdrawn Project Credit Balance, Program Financing Payments and Project
Financing Payments shall become immediately due and payable."
6.     Section 8.05(a), Termination of Legal Agreements on Full Payment, is modified
to read: Subject to the provisions of paragraphs (b) and (c) of this Section, the
Legal Agreements and al I obligations of the parties under the Legal Agreements
shall forthwith terminate upon full payment of the Withdrawn Program Credit
Balance, the Withdrawn Project Credit Balance and all other Program Financing
Payments and Project Financing Payments due."
7.     Paragraph 28 of the Appendix ("Financing Payment") is modified by inserting the
words "the Interest Charge" between the words "the Service Charge" and "the
Commitment Charge".
8.     The Appendix is modified by inserting a new paragraph 32 with the following
definition of "Interest Charge", and renumbering the remaining paragraphs
accordingly:
"32. "Interest Charge" means the interest charge specified in the Financing
Agreement for the purpose of Section 3.02(b)."
9.     Renumbered paragraph 37 (originally paragraph 36) of the Appendix ("Payment
Date") is modified by inserting the words "Interest Charges" between the words


-30-
"Service Charges" and "Commitment Charges".
10.    Renumbered paragraph 50 (originally paragraph 49) of the Appendix ("Service
Charge") is modified by replacing the reference to Section 3.02 with Section
3.02(a).