LDCF GRANT NUMBER TF016614 GFDRR GRANT NUMBER TF016425 Least Developed Countries Fund and Global Facility for Disaster Reduction and Recovery Grant Agreement (Community Resilience to Climate Change and Disaster Risk in Solomon Islands Project) between SOLOMON ISLANDS and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, acting as an Implementing Agency of the Least Developed Countries Fund and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT/ INTERNATIONAL DEVELOPMENT ASSOCIATION, acting as administrator of the Global Facility for Disaster Reduction and Recovery ("GFDRR") Dated ,2014 LDCF GRANT NUMBER TF016614 GFDRR GRANT NUMBER TF016425 LEAST DEVELOPED COUNTRIES FUND AND GLOBAL FACILITY FOR DISASTER REDUCTION AND RECOVERY GRANT AGREEMENT AGREEMENT dated, A rY I 1 2014, entered into between: SOLOMON ISLANDS ("Recipient"); and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("IBRD") acting as: (i) an implementing agency of the Least Developed Countries Fund (LDCF); and (ii) IBRD and INTERNATIONAL DEVELOPMENT ASSOCIATION ("IDA"), as administrator of grant funds provided by the European Union ("Donor") for the Africa - Caribbean - Pacific - European Union Natural Disaster Risk Reduction Program under the Global Facility for Disaster Reduction and Recovery ("GFDRR") (IBRD and IDA hereafter collectively referred to as "World Bank"). The Recipient and the World Bank hereby agree as follows: Article I Standard Conditions; Definitions 1.01. The Standard Conditions 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 Standard Conditions or in this Agreement. Article II The Project 2.01. The Recipient declares its commitment to the objectives of the project described in Schedule I to this Agreement ("Project"). To this end, the Recipient shall carry out the Project through its Ministry of Environment, Climate Change, Disaster Management and Meteorology ("MECDM") in accordance with the provisions of Article II of the Standard Conditions. 2.02. Without limitation upon the provisions of Section 2.01 of this Agreement, and except as the Recipient and the World Bank shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 to this Agreement. -2- Article III The Grant 3.01. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant from various sources in the following amounts, which in aggregate equal nine million one hundred thousand Dollars ($9,100,000) ("Grant"), to assist in financing the Project: (a) the amount of seven million three hundred thousand Dollars ($7,300,000) ("LDCF Portion of the Grant"); and (b) the amount of one million eight hundred thousand Dollars ($1,800,000) ("GFDRR Portion of the Grant"). 3.02. The Recipient may withdraw the proceeds of the Grant in accordance with Section IV of Schedule 2 to this Agreement. 3.03. The Grant is funded out of the abovementioned trust funds for which the World Bank receives periodic contributions from the donors to the trust fund. In accordance with Section 3.02 of the Standard Conditions, the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. Article IV Recipient's Representative; Addresses 4.01. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Minister responsible for finance. 4.02. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Ministry of Finance and Treasury P.O. Box 26 Honiara, Solomon Islands Facsimile: +677 27855 4.03. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development][International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America -3- Cable: Telex: Facsimile: INTBAFRAD INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI) AGREED at Sydney, Australia, as of the day and year first above written. SOLOMON ISLANDS By Authorized Representative Title: /Vn'(AS, 0+4 tylki ral INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, acting as an Implementing Agency of the Least Developed Countries Fund and IINTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND INTERNATIONAL DEVELOPMENT ASSOCIATION, acting as administrator of the Global Facility for Disaster Reduction and Recovery By Authorized Representative Name: Fro . o L. Zre -r) Title: crtc O cv' -4- SCHEDULE 1 Project Description The objective of the Project is to increase the capacity of selected rural communities to manage natural hazards and climate change risks. The Project consists of the following parts: Part 1. Integration of climate change adaptation and disaster risk reduction in government policies and operations Carrying out a program of activities designed to support the integration of climate change adaptation and disaster risk reduction in the Recipient's policies and operations, such program to include: (a) development of a national integrated climate change adaptation and a disaster risk management framework; and (b) strengthening the capacity of the Recipient for mainstreaming climate change adaptation and disaster risk management in sector planning and investments. Part 2. Strengthening of climate and disaster risk information and early warning systems Carrying out a program of activities designed to strengthen disaster early warning and risk information such program to include establishment of: (a) an early warning network for volcanic/seismic hazards; and (b) foundations of a national risk information system. Part 3. Climate change adaptation and disaster risk reduction investments Carrying out a program of activities designed to strengthen the design and implementation of structural and non-structural disaster risk and adaptation investments at the community and provincial level in selected Provinces, such program to include: (a) risk analysis, design, advisory and supervision services of rural infrastructure investments and disaster/climate risk management plans; (b) development and implementation of community-led rural investment projects through the provision of Community Grants; and (c) development and implementation of provincial-led rural investment projects in Participating Provinces. -5- Part 4. Project management and monitoring & evaluation Carrying out a program of activities designed to strengthen the Recipient for efficient and effective management, coordination, implementation and monitoring and evaluation of the Project. -6- SCHEDULE 2 Project Execution Section I. Institutional and Other Arrangements A. Institutional Arrangements 1 Ministry of Environment, Climate Change, Disaster Management and Meteorology The Recipient shall vest overall implementation responsibilities of the Project in MECDM. 2. Proiect Coordination Committee The Recipient shall maintain, throughout Project implementation period, the Project Coordination Committee, chaired by the permanent secretary of MECDM and comprised of, inter alia, representatives of the Ministry of Finance and Treasury, Ministry of Infrastructure Development, Ministry of Mines, Energy and Rural Electrification, Ministry of Development Planning and Aid Coordination, MECDM, Ministry of Provincial Government and Institutional Strengthening, and non-governmental organizations and a donor agency; with terms of reference and resources satisfactory to the World Bank to be responsible for overall Project oversight and strategic guidance for the Project. 3. Proiect Management Unit The Recipient shall, throughout Project implementation period, maintain a Project Management Unit, within MECDM, with terms of reference, adequate staffing and resources, to be responsible for day to day implementation of the Project. To this end, the Recipient shall ensure that the PMU shall be headed by a Project coordinator and comprised of staff, all with qualifications and experience satisfactory to the World Bank, such staff to include, inter alia: a finance officer, procurement officer, engineer and an environmental officer engaged full time to support project implementation B. Implementation Covenants 1 . Project Operational Manual (a) The Recipient shall: (i) by not later than three (3) months from the date of this Agreement, prepare, under terms of reference satisfactory to the World Bank, and furnish to the World Bank, a manual containing detailed guidelines and -7- procedures for the implementation of the Project, including, (A) terms of reference, functions and responsibilities for the PMU Staff; (B) the indicators for monitoring and evaluation of the Project; (C) disbursement arrangements for the Project funds; (D) procurement and financial management arrangements; (E) criteria, detailed rules and procedures for the selection and financing of the Community Subprojects and Provincial Subprojects; and (F) the model form for Community Grant Agreements; (ii) thereafter, adopt such manual as shall have been approved by the World Bank (Project Operation Manual). (b) The Recipient shall carry out the Project in accordance with the Project Operational Manual, and except as the World Bank shall otherwise agree in writing, not amend or waive, or permit to be amended or waived any provision of the Project Operational Manual. (c) In case of a conflict between the provisions of the Project Operational Manual and this Agreement, those of this Agreement shall prevail. C. Anti-Corruption The Recipient shall ensure that the Project is carried out in accordance with the provisions of the "Anti-Corruption Guidelines". D. Subprojects 1 . For purposes of implementation of Community Subprojects under Part 3(b) of the Project, the Recipient shall provide Community Grants to finance the implementation of the Community Subprojects in accordance with eligibility criteria and procedures acceptable to the World Bank and specified in the Project Operational Manual which shall include the following: (a) The Community Grants shall be provided on grant basis. (b) Eligible Beneficiaries for the Community Grants shall include community groups that shall have met the eligibility criteria including providing in-kind or cash contribution to the Community Subproject. (c) The Community Subprojects shall include specific development projects at community level designed to improve resilience to natural hazards and/or adapt to climate change effects, such as community shelters, improved water supply and storage systems, cyclone strengthening of buildings, foundation raising for flood alleviation, shoreline protection systems; and but shall exclude activities such as those involving land reclamation. -8- (d) if, on the basis of an environmental assessment conducted for a Subproject, an EMP and/or a RAP tailored to a Community Subproject is required, such EMP or RAP has been prepared pursuant to the ESMF and/or RPF and has been approved by the World Bank in accordance with Section I.E.2 and 3 of this Schedule 2. 2. Each Community Grant shall be made under a Community Grant Agreement with the respective Beneficiary on terms and conditions acceptable to the World Bank, which shall cover rights adequate to protect its interests and those of the World Bank, including the right to: (a) require each Beneficiary to: (i) carry out its Community Subproject with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the World Bank, including in accordance with the provisions of the Anti-Corruption Guidelines; (ii) provide, promptly as needed, the resources required for the purpose; (iii) procure the goods, works and services to be financed out of the Sub-grant in accordance with the provisions of this Agreement; (iv) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the World Bank, the progress of the Community Subproject and the achievement of its objectives; (v) (A) maintain adequate records to reflect, in accordance with sound accounting practices, the outputs, operations, resources and expenditures in respect of the Subproject; and (B) at the World Bank's or the Recipient's request, have such records and outputs audited by independent auditors acceptable to the World Bank, in accordance with consistently applied auditing standards acceptable to the World Bank, and promptly furnish the report of such audit to the Recipient and the World Bank; (vi) enable the Recipient and the World Bank to inspect the Community Subproject, its operation and any relevant records and documents; (vii) prepare and furnish to the Recipient and the World Bank all such information as the Recipient or the World Bank may reasonably request; and (viii) take such measures as shall be necessary or appropriate to comply with the requirements of the Safeguard Instruments; and (b) suspend or terminate the right of the Beneficiary to use the proceeds of the Community Grant, or obtain a refund of all or any part of the amount of the Community Grant then withdrawn, upon the Beneficiary's failure to perform any of its obligations under the Community Grant Agreement. 3. The Recipient shall exercise its rights and carry out its obligations under each Community Grant Agreement in such manner as to protect the interests of the Recipient and the World Bank and to accomplish the purposes of the Project. Except as the World Bank shall otherwise agree in writing, the Recipient shall not assign, amend, abrogate or waive any Community Grant Agreement or any of its provisions. -9- E. Safeguards 1. The Recipient shall carry out the Project in accordance with the provisions of the Safeguard Instruments. 2. If any Project activities would, pursuant to the ESMF, require the preparation of an EMP, the Recipient shall ensure that no such activities shall be implemented unless and until such EMP is prepared in accordance with the ESMF and furnished to the World Bank for review and approval, and is disclosed as required by the ESMF and approved by the World Bank. 3. If a RAP would be required for any Project activities on the basis of the RPF, the Recipient shall ensure that: (a) said RAP has been prepared in accordance with the requirements of the RPF, furnished to the World Bank for approval, and disclosed locally; and (b) no such activities shall commence until: (i) all measures required to be taken under said RAP prior to the initiation of said activities have been taken; (ii) a report, in form and substance satisfactory to the World Bank, on the status of compliance with the requirements of said RAP has been prepared and furnished to the World Bank; and (iii) the World Bank has confirmed that said activities may be commenced. 4. Without limitation upon its other reporting obligations under this Agreement, the Recipient shall, in accordance with terms of reference satisfactory to the World Bank: (a) monitor the status of compliance with the Safeguard Instruments; and (b) prepare and furnish to the World Bank, as part of each Project Report, a report on the results of such monitoring activities during the period covered by said Project Report, giving details of: (i) measures taken in furtherance of such Safeguard Instruments; (ii) conditions, if any, which interfere or threaten to interfere with the smooth implementation of such Safeguard Instruments; and (iii) remedial measures taken or required to be taken to address such conditions. 5. The Recipient shall afford the World Bank a reasonable opportunity to review the reports prepared under paragraph 2 of this Part E, and thereafter shall carry out with due diligence all remedial measures agreed with the World Bank so as to ensure the proper implementation of the Project in accordance with the Safeguard Instruments. - 10- F. Donor Visibility and Visit 1. The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the Donor' support for the Project. 2. For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank's request, enable the representatives of the Donor to visit any part of the Recipient's territory for purposes related to the Project. Section II. Project Monitoring, Reporting and Evaluation A. Project Reports; Completion Report I. The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank and set forth in the Project Operational Manual. Each Project Report shall cover the period of one (1) calendar semester, and shall be furnished to the World Bank not later than one (I) month after the end of the period covered by such report. 2. The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six (6) months after the Closing Date. In order to assist the Recipient in preparing the Completion Report, the Recipient shall employ consultants in accordance with the provisions of Section III of this Schedule. B. Financial Management; Financial Reports; Audits 1. The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. 2. The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank not later than forty five (45) days after the end of each calendar quarter, covering the quarter, in form and substance satisfactory to the World Bank. 3. The Recipient shall have its Financial Statements for the Project audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of one (1) fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the World Bank not later than six (6) months after the end of such period. -ll- 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 Grant 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 terms used below in this Section to describe particular procurement methods or methods of review by the World Bank of particular contracts, refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be. B. Particular Methods of Procurement of Goods, Works and Non-consulting Services 1. 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, may be used for procurement of goods, works and non-consulting services for those contracts specified in the Procurement Plan: (a) National Competitive Bidding, subject to the additional provisions set forth in the Annex to Schedule 2 to this Agreement; (b) Shopping; (c) Direct Contracting; and (d) Community Participation procedures which have been found acceptable to the World Bank. C. Particular Methods of Procurement of Consultants' Services I. 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 assignments which are specified in - 12- 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) Selection of Nongovernmental Organizations to facilitate sub-project implementation, in accordance with the provisions in paragraph 3.16 of the Procurement Guidelines; (g) Selection of Individual Consultants; and (h) Single-source procedures for the Selection of Individual Consultants. D. Review by the World Bank of Procurement Decisions The Procurement Plan shall set forth those contracts which shall be subject to the World Bank's Prior Review. All other contracts shall be subject to Post Review by the World Bank. Section IV. Withdrawal of Grant Proceeds A. General 1. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the 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 Grant ("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: - 13 - Amount of the LDCF Portion of Amount of the Percentage of the Grant GFDRR Portion of Expenditures to be Allocated the Grant Allocated Financed Category (expressed in USD) (expressed in USD) (Inclusive of Taxes) (1) Goods, 4,800,000 1,300,000 100% works, non- consulting services, consultants' services, Training and Operating Costs under the Project, except for Parts 3(b) of the Project (2) Goods, 2,500,000 500,000 100% of amount works and non- disbursed consulting services for Community Subprojects under Part 3(b) of the Project to be financed out of the proceeds of Community Grants. TOTAL 7,300,000 1,800,000 AMOUNT 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. 2. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is: May 31, 2019 for the LDCF Portion of the Grant; and December 31, 2016 for the GFDRR Portion of the Grant. -14- ANNEX to SECTION III of SCHEDULE 2 Special Procedures for National Competitive Bidding in Solomon Islands The procedure to be followed for National Competitive Bidding shall be those set forth in the provisions on competitive bidding in Chapter 7 of the "Financial Instructions" issued by Ministry of Finance and Treasury effective on July 1, 2010 (Supply Chain Management) with modifications set forth below in order to ensure economy, efficiency and transparency and broad consistency with the provisions of Section I of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the World Bank in January 2011 (the Guidelines), as required by paragraph 3.3 and 3.4 of the Guidelines. Eligibility (i) The eligibility of bidders shall be defined under Section I of the World Bank's Guidelines; accordingly, no bidder or potential bidder shall be declared ineligible for contracts financed by the World Bank for reasons other than those provided in Section I of the Guidelines. Foreign bidders shall be eligible to participate in bidding under the same conditions as national bidders. In particular, no domestic preference over foreign bidders shall be granted to national bidders in bid evaluation, nor shall foreign bidders be asked or required to form joint ventures with national bidders in order to submit a bid. Registration (ii) Registration shall not be used to assess bidders' qualifications. A foreign bidder shall not be required to register as a condition for submitting its bid and, if determined to be the lowest evaluated responsive bidder, shall be given reasonable opportunity of registering, without any let or hindrance. The registration process shall not be applicable for Sub-contractors. Bidding shall not be restricted to any particular class of contractors, and non-classified contractors shall also be eligible to bid. Advertising; Time for Bid Preparation (iii) Invitations to bid shall be advertised in at least one newspaper of national circulation, allowing a minimum of thirty (30) days for the preparation and submission of bids shall be allowed except for commodities and small goods contract. Potential bidders shall be allowed to purchase bidding documents up to any time prior to the deadline for submission of bids. Standard Bidding Documents (iv) Standard Bidding Documents, acceptable to the World Bank, shall be used. - 15 - Qualification Criteria (v) Qualification criteria shall be clearly specified in the bidding documents, and all criteria so specified, and only such specified criteria, shall be used to determine whether a bidder is qualified. Qualification shall be assessed on a pass or fail basis and merits points shall not be used. Such assessment shall only take into account the bidder's capacity and resources to perform the contract, specifically its experience and past performance on similar contracts, capabilities with respect to personnel, equipment and construction and manufacturing facilities, and financial capacity. The evaluation of the bidder's qualifications shall be conducted separately from the technical and commercial evaluation of the bid. Bid Submission, Bid Opening and Bid Evaluation (vi) Bidders may submit bids, at their option, either in person or by courier service or by mail. Bids shall be opened in public, immediately after the deadline for submission of bids. Bids received after the deadline for bid submission shall be rejected and returned to the bidders unopened. (a) All bidding for goods and works shall be carried out through a one-envelope procedure. (b) Evaluation of bids shall be made in strict adherence to the criteria that shall be clearly specified in the bidding documents and quantified in monetary terms for evaluation criteria other than price; merit points shall not be used in bid evaluation. (c) A contract shall be awarded to the technically responsive bid that offers the lowest evaluated price and no negotiations shall be permitted. (d) Bidders shall not be eliminated from detailed evaluation on the basis of minor, non-substantial deviations. (e) No bidder shall be rejected on the basis of a comparison with the employer's estimate and budget ceiling without the World Bank's prior concurrence. (f) A copy of the minutes of the public bid opening shall be promptly provided to all bidders, and to the World Bank with respect to contracts subject to prior review. Rejection of All Bids and Re-Bidding (vii) Neither shall all bids be rejected nor new bids solicited without the World Bank's prior written concurrence. - 16- Extension of the Validity of Bids (viii) Extension of validity of bids may be allowed in exceptional circumstances but there shall be no amendment of the price or any other condition of the bids. Bidders may refuse such an extension without forfeiting their bid securities, but bidders granting an extension shall provide extension of the validity of their bid securities. Complaints by Bidders and Handling of Complaints (ix) The Recipient shall establish and implement an effective and independent protest mechanism allowing bidders to protest and to have their protests handled in a timely manner. Fraud and Corruption (x) The World Bank shall declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by the World Bank, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for, or in executing, a contract financed by the World Bank. Right to Inspect/ Audit (xi) Each bidding document and contract financed from the proceeds of a Financing shall include a provision requiring bidders, suppliers, contractors and subcontractors to permit the World Bank at its request, to inspect their accounts and records relating to the bid submission and performance of the contract and to have said accounts and records audited by auditors appointed by the World Bank. The deliberate and material violation by the bidder, supplier, contractor or subcontractor o such provision may amount to obstructive practice. - 17- APPENDIX DEFINITIONS 1. "Affected Person" means a person who, on account of the execution of the Project, has experienced or would experience direct economic and social impacts caused by: (i) the involuntary taking of land, resulting in: (A) relocation or loss of shelter; (B) loss of assets or access to assets; or (C) loss of income sources or means of livelihood, whether or not such person must move to another location; or (ii) the involuntary restriction to access to legally designated parks and protected areas, resulting in adverse impacts on the livelihood of such persons; and "Affected Persons" means more than one Affected Person. 2. "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. 3. "Beneficiary" means community groups that meet the eligibility criteria specified in the Project Operational Manual for receiving Community Grants and to which or for whose benefit a Community Grant is made or proposed to be made; and the term "Beneficiaries" means more than one such Beneficiary. 4. "Category" means a category set forth in the table in Section IV of Schedule 2 to this Agreement. 5. "Community Grant" means a grant to finance part of the reasonable cost of goods, works, services, training and operating costs required for a Community Subproject to be carried out by a Beneficiary; "Community Grants" means more than one such Community Grant. 6. "Community Grant Agreement" means each agreement entered into between the Recipient and a Beneficiary pursuant to which a Community Grant shall be or has been made by the Recipient to such Beneficiary for a Community Subproject. 7. "Community Subproject" means specific development project to be carried out by a Beneficiary under Part 3(b) of the Project and which meets the eligibility criteria set out in the Project Operations Manual and the provisions of Section I. D of Schedule 2 to this Agreement; and "Community Subprojects" means two or more of such investments. 8. "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. - 18 - 9. "EMP" means an environmental management plan, in form and substance satisfactory to the World Bank, prepared or to be prepared by the Recipient on the basis of the ESMF, and giving details of measures to manage potential environmental risks and mitigate, reduce and/or offset adverse environmental impacts associated with the implementation of the Project, together with adequate institutional, monitoring and reporting arrangements capable of ensuring proper implementation of, and regular feedback on compliance with, its terms, as any such plan may be amended and/or supplemented from time to time with prior written approval of the World Bank; and "EMPs" means, collectively, all or several such plans. 10. "ESMF" means the Environmental and Social Management Framework prepared and adopted by the Recipient, disclosed in the Recipient's territory on October 30, 2013, defining the set of mitigation, enhancement, monitoring, and institutional measures to be taken during implementation of the Project to eliminate any adverse environmental and social impacts, offset them, reduce them to acceptable levels, or to enhance positive impacts of the Project activities, as such framework may be amended by the Recipient from time to time, with the prior written agreement of the World Bank. 11. "MECDM" means the Recipient's Ministry of Environment, Climate Change and Disaster Management and Meteorology, or any successor thereto. 12. "Ministry of Finance" means the Recipient's ministry responsible for finance, or any successor thereto. 13. "Operating Costs" means the recurrent operating costs of the Project incurred by the Recipient on account of Project implementation, monitoring, evaluation, coordination and supervision, as approved by the World Bank based on annual budgets acceptable to the World Bank, which would not have been incurred but for the Project, including: (a) operation and maintenance of vehicle, registration, insurance, repairs, fuel and spare parts; (b) equipment and computer maintenance, including hardware and software; (c) communication costs and shipment costs (whenever these costs are not included in the cost of goods); (d) office supplies and non-procurable equipment; (e) rent for office facilities; (f) utilities and insurances; (g) travel and per diem costs for technical staff carrying out training, supervisory, data collection and quality control activities; (h) bank charges; (i) consumables; (j) costs for Project management meetings but excluding sitting allowance, and (k) salaries of local Project administrative staff but excluding salaries of the Recipient's civil servants. 14. "Participating Province" means each Province designated by the Recipient for purposes of carrying out a Provincial Subproject. - 19 - 15. "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. 16. "Procurement Plan" means the Recipient's procurement plan for the Project dated December 6, 2013 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. 17. "Project Coordination Committee" means the committee referred to in Section I.A.2 of Schedule 2 to this Agreement. 18. "Project Management Unit" or "PMU" means the office referred to Section I.A.3 of Schedule 2 to this Agreement. 19. "Project Operational Manual" means the manual referred to in Section I.B.1 of Schedule 2 to this Agreement setting forth detailed guidelines and procedures for the implementation of the Project, including in the areas of monitoring and evaluation, procurement, coordination, social and environmental safeguards, financial, administrative and accounting procedures, corruption and fraud mitigation measures, and such other arrangements and procedures as shall be required for the Project. 20. "RAP" means the resettlement action plan, in form and substance satisfactory to the World Bank, prepared or to be prepared by the Recipient on the basis of the RPF, and giving details of the specific actions, measures and policies designed to facilitate the achievement of the objectives of the RPF, along with the procedural and institutional measures needed to implement such actions, measures and policies, as such RAP may be amended from time to time with the prior written agreement of the World Bank. 21. "Resettlement Policy Framework" or "RPF" means the Recipient's framework acceptable to the World Bank, and annexed to the ESMF, adopted by the Recipient, and giving details of provisions for compensation, rehabilitation and resettlement assistance to Affected Persons, measures to ensure land-based livelihoods for the indigenous population are protected and benefits are equitably shared, as such RPF may be amended from time to time with the prior written agreement of the World Bank. 22. "Safeguard Instruments" means the ESMF, RPF, any EMPs and any RAPs. 23. "Standard Conditions" means the "Standard Conditions for Grants Made by the World Bank out of Various Funds", dated February 15, 2012. - 20 - 24. "Training" means incremental reasonable expenditures, on account of the Project, to finance the cost of training activities, workshops and seminars related to the Project including expenses for rental of conference rooms, acquisition of materials and supplies, course fees and travel and subsistence for trainees.