THE WORLD BANK BO* IDA I wom.D SANK GROUP OFFICIAL DOCUMENTS D H. E. Domitien Ndihokubwayo Minister of Finance, Budget and Cooperation for Economic Development Ministry of Finance, Budget and Cooperation for Economic Development Bujumbura Republic of Burundi Re: Republic of Burundi: Advance Agreement for Preparation of Proposed Youth Skills and Employment Project Project Preparation Advance No. \L N Excellency: In response to the request for financial assistance made on behalf of the Republic of Burudni ("Recipient"), I am pleased to inform you that the International Development Association ("World Bank") proposes to extend to the Recipient an advance out of the World Bank's Project Preparation Facility in an amount not to exceed two million Dollars ($ 2,000,000) ("Advance") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in financing the activities described in the Annex ("Activities"). The objective of the Activities is to facilitate the preparation of a proposed project designed develop skills and improve employment outcomes of beneficiary youths ("Project"), for the carrying out of which the Recipient has requested the World Bank's financial assistance. The Recipient represents, by confirming its agreement below, that: (a) it understands that the provision of the Advance does not constitute or imply any commitment on the part of IBRD or IDA to assist in financing the Project; and (b) it is authorized to enter into this Agreement and to carry out the Activities, repay the Advance and perform its other obligations under this Agreement, all in accordance with the provisions of this Agreement. Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date of the countersignature; provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received this countersigned copy within 90 days after the date of signature of this Agreement by the World Bank, unless the World Bank has established a later date for such purpose. The PPF number is assigned by WFA. 1818 H Street NW * Washington. DC 20433 USA Addressee Full Name -2- December 20th 2018 Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By .0 Bella Bird Country Director for Tanzania, Burundi, Malawi and Somalia Africa Region AGREED: REPUBLIC OF BURUNDI By m e5 sentative Name (1 I~L A Lli 5 Title rt Date: 4 Enclosures: Lt (1) "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility", dated July 31, 2010; and (2) Disbursement Letter for the Advance of the same date as this Agreement, together with "World Bank Disbursement Guidelines for Projects", dated May 1, 2006. Addressee Full Name -3- December 20"' 2018 PPANo.1k& ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The "Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility" dated July 31, 2010 ("Standard Conditions"), constitute an integral part of this Agreement. 1.02. Definitions. 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, (a) "Operating Costs" means the incremental operating expenses incurred on account of the implementation of the Activities, management and monitoring including on account of operation and maintenance costs of office and affice equipment; office supplies, additional staff costs, travel and supervision costs, per diem, but excluding the salaries and indemnities of officials and public servants of the Recipient's civil service, (b) "PIU" or "Project Implementation Unit" means the implementation unit of the IDA financed Great Lakes Trade Facilitation Project (PPA Number V I000-Bl), dated July 8, 2017. (c) "Training" means the reasonable costs for training and workshops related to the implementation of the Activities including tuition, travel and subsistence costs for training and workshop participants, costs associated with securing the services of trainers and workshop speakers, rental of training and workshop facilities, preparation and reproduction of training and workshop materials, and other Oosts directly related to training course and workshop preparation and implementation (but excluding goods and consulting services). Article 11 Execution of the Activities 2.01. Description of the Activities. The Activities for which the Advance is provided consist of the following parts: Part A: Carrying out a program to restructuring and upgrade the quality and performance of public training institutions in selected value chains of the priority sectors through, inter alia: (a) undertaking design studies of key Project institutions; and (b) international study tours to sectoral institutions abroad that are specialized in the priority sectors. Part B: Carrying out a program to develop key aspects of apprenticeship and entrepreneurship programs in close collaboration with the private sector through. Addressee Full Name -4- December 20d' 2018 Part C: Carrying out a program of technical assistance for the reform of training frameworks, development of labor market integration services and monitoring and evaluation systems, and institutional capacity building, to include, inter alia: (a) undertaking a study evaluating the legal framework of TVET; and (b) development of Project manuals. 2.02. Execution of the Activities Generally. The Recipient declares its commitment to the objectives of the Activities. To this end, the Recipient shall carry out the Activities through the PIU in accordance with the provisions of: (a) Article 11 of the Standard Conditions; (b) this Article 1; and (c) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 and as of July 1, 2016. 2.03. Institutional and Other Arrangements. Without limitation upon paragraph 2.02 above, the Recipient shall maintain throughout the implementation of the Advance the Project Implementation Unit ("PIU") with terms of reference, composition and resources satisfactory to the World Bank, which shall be responsible for overseeing the day-to-day implementation and fiduciary aspects oftheAdvance. 2.04. Monitoring, Reporting and Evaluation of the Activities. The Recipient shall monitor and evaluate the progress of the Activities in accordance with the provisions of Section 2.08 of the Standard Conditions. 2.05. FinancialManagenent. (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.09 of the Standard Conditions, (b) The Recipient shall ensure that interim un-audited financial reports for the Activities 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. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Sections 2.09 (b) of the Standard Conditions.. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal under the Advance was made. The audited Financial Statements for such period shall be furnished to-the World Bank not later than six months after the end of such period. 2.06. Procurement All goods, non-consulting services and consulting services required for the Activities and to be financed out of the proceeds of the Advance shall be procured in accordance with the requirements set forth or referred to in the "World Bank Procurement Regulations for IPF Borrowers" dated July 2016, revised November 2017 ("Procurement Regulations") and the provisions of the Recipient's procurement plan for the Activities dated October 2018 ("Procurement Plan") provided for under Section IV of the Procurement Regulations, as the same may be updated fiom time to time in agreement with the World Bank. Addressee Full Name -5- December 20"' 2018 Article III Withdrawal of the Advance 3.01. Eligible Expenditure& The Recipient may withdraw the proceeds of the Advance in accordance with the provisions of; (a) Article Ill 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 "Disbursement Guidelines for Investment Project Financing" dated February 2017, 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 following table. The table specifies. each category of Eligible Expenditures that may be financed out of the proceeds of the Advance ("Category"), the amount of the Advance allocated to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Category Amount of the Advance Percentage of Allocated Expenditures to be (expressed in Dollars) Financed (inclusive of Taxes) (1) Goods, non-consulting 2,000,000 100% services, consulting services, Operating Costs and Training under the Activities TOTAL AMOUNT 2,000,000 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of countersignature of this. Agreement by the Recipient. 3.03. Refinancing Date. The Refinancing Date is February 1, 2020. Article IV Terms of the Advance 4.01. Refinancing under the Refinancing Agreement: If, on or before the Refinancing Date, a Refinancing Agreement has been executed by all of its parties, then the full amount of the Withdrawn Advance Balance shall be paid to the World Bank as soon as the Refinancing Agreement becomes effective, by means of a withdrawal by the World Bank of such amount of the Refinancing Proceeds, in accordance with the provisions of the Refinancing Agreement. 4.02. No Repayment in the absence ofa Refinancing Agiement: Notwithstanding any provision to the contrary in the Standard Conditions, if, on or before the Refinancing Date, no Refinancing Agreement has been executed by all of its parties, or if, by such date or at any time thereafter, it has been so executed but terminates without becoming effective, then the Recipient shall not be obligated to repay the Withdrawn Advance Balance. Addressee Full Name -6- December 20'h 2018 Article V Recipient's Representative; Addresses 5.01. Recipient's Representative. The Recipient's Representative referred to in Section *902 of the Standard Conditions is its minister in charge of finance, budget and cooperation for economic development. 5.02, Recipient's Address. The Recipient's Address referred to in Section 9.01 of the Standard Conditions is: Ministry of Finance, Budget and Cooperation for Economic Development P. 0. Box 1830 Bujumbura Burundi Telex: Facsimile: 5135 257-22-22-27-75 MINIFINBDI 5.03. World Bank's Address. The. World Bank's Address referred to in Section 9.01 of the Standard Conditions is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Telex: Facsimile: 248423 (MCI) or (1)-202-477-6391 64145 (MCI)