GRANT NUMBER H814-MM

Financing Agreement

(National Community Driven Development Project)

between

REPUBLIC OF THE UNION OF MYANMAR

and

INTERNATIONAL DEVELOPMENT ASSOCIATION

Dated /Ov4 / ,2012

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FINALNCING AGREEMENT

AGREEMENT dated o e".e* 14 , 2012, entered into betweenREPUBLIC OF THE UNION OF MYANMAR ("Recipient") and INTERNATIONALDEVELOPMENT ASSOCLArioN ("Association"). The Recipient and the Associationhereby 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 thisAgreement have the meanings ascribed to them in the General Conditions or inthe Appendix to this Agreement.

ARTICLE H - FINANCING

2.01. The Association agrecs to extend to the Recipient, on the terms and conditionsset forth or referred to in this Agreement, a grant in an amount equivalent to fiftytwo million six hundred thousand Special Drawing Rights (SDR 52,600,000)("Financing") to assist in financing the project described in Schedule 1 to thisAgreement ("Project";.

2.02. The Recipient may w thdraw the proceeds of the Financing in accordance withSection IV of Schedule 2 to this Agreement.

2.03. The Maximum Cominitm.nt Charge Rate payable by the Recipient on theUnwithdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) perannum.

2.04. The Payment Dates art May I and November 1 in each year.

2.05. The Payment Currency is L nited States Dollar.

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ARTI CLE III - PROJECT

.. 01. The Recipient declare; its commitment to the objective of the Project. To thisend, the Recipient shz 11 carry out the Project through the Department of RuralDevelopment in its Ministry of Border Affairs and in accordance with theprovisions of Article i of :he General Conditions.

3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, andexcept as the Recipiert and the Association shall otherwise agree, the Recipientshall ensure that the Froject is carried out in accordance with the provisions ofSchedule 2 to this Agroement.

ARTICLE IV - EFFECTIVENESS; TERMINATION

4.01. The Effectiveness De,idlin. is the date ninety (90) days after the date of thisAgreement.

4.02. For purposes of Section 8.k5(b) of the General Conditions, the date on which theobligations of the Recipient under this Agreement (other than those providing forpayment obligations) shall terminate is twenty years after the date of thisAgreement.

ARTICLE V - REPRESENTATIVE; ADDRESSES

5.01. The Recipient's Representative is its minister at the time responsible for financeand revenue.

5.02. The Recipient's Address is:

Ministry of Finance and RevenueBuilding No.: 6NaypyitawMyanmar

Facsimile:

95-67-410-190

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5.03. The Association's Address is:

International Development Association1818 H Street, N.W.Washington, D.C. 20433United States of A-nerica

Cable: Telex: Facsimile:

INDEVAS 248423 (MCI) 1-202-477-6391Washington, D.C.

AGREED at Naypyilaw, Republic of Myanmar, as of the day and year firstabove written.

REPt BLIC OF THE UNION OF MYANMAR

By

Au ized Representative

rTitle:pLkly M%%STFLMFt-\CI)

INTERNATIONAL DEVELOPMENT ASSOCIATION

By

Authorized Representative

Name: '

Title: 4u-

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SCHEDULE 1

Project Description

The objective of the Froject is to enable poor rural communities to benefit fromimproved access to and use of basic infrastructure and services through a people-centeredapproach and to enhance the Recipient's capacity to respond promptly and effectively toan Eligible Crisis or Emergency.

The Project consists ofthe following parts:

Part A: Community Block Grants. Financing of block grants for prioritycommunity level infrastructure in selected Townships.

Part B: Facilitation and Capacity Development. Technical assistance,institutional support and training at the union, , and village levels for the purpose ofsupporting the implementation of community driven activities under Part A; financing ofa grievance redress mechanisr.

Part C: Knowledge and Learning. Learning programs for government staffand community and civil scciety representatives on community-based developmentapproaches. Support for development market places to highlight the most promisinginnovations in people-centered development and for the establishment and operation of agender network.

Part D: Implementation Support. Support for Project management at theunion and Township levels including monitoring and evaluation, reporting andcommunications, as well a s administration and logistical support for Projectimplementation; and third parti financial and technical audits.

Part E: Emergency Contingency Response. Providing immediate responseto an Eligible Crisis or Emergency, as needed.

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SCHEDULE 2

Project Execution

Section I. Implementation Arrangements

A. Institutional Arrang ments

1. Steering Committee

(a) The Recipient shall maintain, throughout the implementation of the Project, asteering committee with functions, composition and resources satisfactory to theAssociation.

(b) Without limitation to the )rovisions of sub-paragraph (a) of this Part A. 1, theSteering Committee ;hall meet periodically for the purposes of, inter alia:(i) providing overall strategic and policy guidance on all activities supportedunder the Project; (ii) facilitating the coordination of Project activities among therelevant ministries ar d the effective removal of any obstacles to the timelyimplementation of th,- Project; and (iii) selecting the participating townshipsunder Part A of the Project, in accordance with criteria acceptable to theAssociation.

2. Department of Rural Development

(a) The Department of Rural Development shall, throughout the implementation ofthe Project, be responsible for the coordination, monitoring and evaluation, andreporting of Project activities.

(b) The Recipient shall naintain within the Department of Rural Development,throughout the impk mentation of the Project, a secretariat with functions,composition and resources satisfactory to the Association, which shall beresponsible for, inter ilia: (i) overseeing and guiding the overall administrationof financial management, procurement, environmental and social safeguardsmanagement, and communication of the Project; (ii) carrying out the overallmonitoring and evalt atior of Project activities; (iii) providing technical andcapacity building sup ort to all Project stakeholders; and (iv) consolidating allthe reporting under thc Project.

(c) The Department of Rural Development shall ensure that Part A of the Project isimplemented by vario.is agencies, offices, forums and committees in accordancewith the arrangements described in the Project Operations Manual and inaccordance with this Agreement, the Procurement Guidelines, the ConsultantGuidelines, the Envircnme:ital and Social Screening and Assessment Framework,and the Anti-Corruption Guidelines.

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B. Anti-Corruption

The Recipient shall er sure that the Project is carried out in accordance with theprovisions of the Anti-Corruption Guidelines.

C. Sub-projects

The Recipient shall make available Block Grants to Beneficiaries in accordancewith procedures acccptable to the Association and outlined in the ProjectOperations Manual for the purpose of carrying out Sub-Projects under Part A ofthe Project.

2. The Recipient shall me.ke each Block Grant pursuant to a Block Grant Agreementwith the respective Beneficiary, on terms and conditions approved by theAssociation, and shall obtain rights adequate to protect its interests and those ofthe Association, incluc ing the right to:

(i) suspend or terminate the right of the Beneficiary to use theprocec ds of the Block Grant, or declare to be immediately dueand pE yabl, all or any part of the amount of the Block Grant thenwithdiawn. upon the Beneficiary's failure to perform any of itsobligations under the Block Grant Agreement; and

(ii) requir, each Beneficiary to:

(A) carry out its Sub-project with due diligence andefficiency and in accordance with sound technical,economic, financial, managerial, environmental andsocial standards and practices satisfactory to theAssociation, including in accordance with the applicableprovisions of the Project Operations Manual, theProcurement Guidelines, the Consultant Guidelines, theEnvironmental and Social Screening and AssessmentFrE.mework and those provisions of the Anti-CorruptionGuidelines applicable to the recipients of grant proceedsother than the Recipient;

(B) provide, promptly as needed, the resources required forthe purpose;

(C) procure the goods, works and services to be financed outof the Block Grant in accordance with the provisions ofSection III of Schedule 2 to this Agreement, and utilizesuch goods, works and services exclusively in carrying

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out of its respective activities under Part A of the Projectan 1 for the objectives thereof,

(D) maintain procedures adequate to enable it to monitor andevaluate in accordance with indicators acceptable to theAssociation, the progress of the Sub-project and theachievement of its objectives;

(E) (1;' maintain records and accounts adequate to reflect theex-enditures pertaining to its activities under therespective Sub-project and provide such information tothe Recipient and the Association upon request; and(2' at the Association's or the Recipient's request, havesuch records and accounts audited by independentauditors acceptable to the Association, in accordancewith consistently applied auditing standards acceptableto the Association, and promptly furnish the records andaccounts as so audited to the Recipient and theAssociation;

(F) enable the Recipient and the Association to inspect theSub-project, its operation and any relevant records anddocuments; and

(G) prepare and furnish to the Recipient and the Associationall such information as the Recipient or the Associationshall reasonably request relating to the foregoing.

3. The Recipient shall e2ercise its rights under the Block Grant Agreement in suchmanner as to protect the interests of the Recipient and the Association and toaccomplish the purpcses of the Financing. Except as the Association shallotherwise agree in wfiting, the Recipient shall not assign, amend, abrogate orwaive any Block Gran: Agreement or any of its provisions.

D). Project Operations Manual

The Recipient shall prepare and adopt a Project Operations Manual in form andsubstance satisfactory to the Association, containing detailed arrangements andprocedures for: (a) institutional coordination and day-to-day execution of theProject; (b) disburs,mer.t and financial management; (c) procurement;(d) environmental ar d social safeguards management; (e) monitoring andevaluation, reporting and communication; (f) the selection of Townships and theselection, approval and implementation of respective Sub-projects under Part Aof the Project, including the Positive List and the Negative List; and (g) such

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other administrative, -inancial, technical and organizational arrangements andprocedures as shall be -equired for the Project.

2. The Recipient shall ensure that the Project is carried out in accordance with thearrangements and procedures set out in the Project Operations Manual, and shallnot assign, amend, a)rogate or waive, or permit to be assigned, amended,abrogated or waived, the Project Operations Manual or any of its provisionswithout prior approval in writing by the Association.

1. In the event of any conflict between the provisions of this Agreement and theprovisions of the Proje-ct Operations Manual, the provisions of this Agreementshall prevail.

E. Safeguards

1. The Recipient shall ensure that the Project is carried out in accordance with theEnvironmental and ' ocial Screening and Assessment Framework and theobjectives, policies and procedures thereof.

2. The Recipient shall:

(a) finance exclusively out of its own or other resources, and not out of theproceeds of the Financing, any land that may be acquired by theRecipient in relation to or on account of the Project, and any suchacquisition shall, in any event, comply with the applicable requirementsof the Environmental and Social Screening and Assessment Framework;and

(b) in the case of any resettlement activity under the Project involvingAffected Persons, ensure that no displacement (including restriction ofaccess to legally designated parks and protected areas) shall occur beforenecessary resettlement measures consistent with the Environmental andSocial Screening and Assessment Framework have been executed,including, in tie case of displacement, full payment to Affected Personsof compensati )n and of other assistance required for relocation, prior todisplacement.

3. The Recipient shall not z.ssign, amend, abrogate or waive, or permit to beassigned, amended, ab -ogaled or waived, the ESSAF or any other document to beadopted in accordance witf the provisions of the ESSAF, unless the Associationhas provided its prior ipprcval thereof in writing, and the Recipient has compliedwith the same consu tation and disclosure requirements as applicable to theoriginal adoption of th- said instruments.

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4. In the event of any c nflict between the provisions of this Agreement and theprovisions of the ESSAF, the provisions of this Agreement shall prevail.

Without limitation to the provisions of Section II.A of this Schedule 2, theRecipient shall take all measures necessary on its part to regularly collect,compile, and submit to the Association a written report, in form and substanceacceptable to the Association, containing information on the status of compliancewith the ESSAF and giving details of:

(a) the measures taken in accordance with the ESSAF;

(b) conditions, if any, which interfere or threaten to interfere with theimplementatior of the ESSAF; and

(c) remedial measures taken or required to be taken to address suchconditions.

Section II. Project Moni:oring, Reporting and Evaluation

A. Project Reports; Mid-term Review

The Recipient shall monitor and evaluate the progress of the Project and prepareProject Reports in accordance with the provisions of Section 4.08 of the GeneralConditions and on the basis of indicators acceptable to the Association, as setforth in the Project Operations Manual. Each Project Report shall cover theperiod of one calendar quarter, and shall be furnished to the Association not laterthan forty-five (45) days after the end of the period covered by such report.

2. As part of the Project Report, the Recipient shall furnish to the Association thereport referred to in paragreph I.E.5 of this Schedule II.

1 The Recipient shall, n )t laler than March 31, 2015, carry out a mid-term reviewof progress in implem.nting the Project under terms of reference satisfactory tothe Association, furni. h the results of the review to the Association, and, basedon the Association's recommendations, adopt measures, satisfactory to theAssociation, for the efficient and effective implementation of the Project and theachievement of its objective.

B. Financial Manageme it, Financial Reports and Audits

The Recipient shall maintain or cause to be maintained a financial managementsystem in accordance wiith the provisions of Section 4.09 of the GeneralConditions.

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2. Without limitation on the provisions of Part A of this Section, the Recipient shallprepare and furnish to the Association not later than forty-five (45) days after theend of each calendar quarter, interim unaudited financial reports for the Projectcovering the quarter, in form and substance satisfactory to the Association.

3. The Recipient shall have its Financial Statements audited in accordance with theprovisions of Section 4.09 (b) of the General Conditions. Each audit of theFinancial 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 theAssociation not later than six (6) months after the end of such period.

4. The Recipient shall, not lter than three (3) months after the Effective Date,appoint the independent auditors referred to in Section 4.09 (b) of the GeneralConditions, in accordance with the provisions of Section III of this Schedule,with qualifications, expetience and terms of reference satisfactory to theAssociation.

5. The Recipient shall, not later than six (6) months after the Effective Date, installan accounting and financial management software at the DRD, in form andsubstance satisfactory :o the Association.

Section III. Procurement

A. General

Goods, Works and Non--consulting Services. All goods, works and non-consulting services recuired for the Project and to be financed out of the proceedsof the Financing shall be procured in accordance with the requirements set forthor referred to in Secticn I of the Procurement Guidelines, and with the provisionsof this Section.

2. Consultants' Service.. A I consultants' services required for the Project and tobe financed out of the proceeds of the Financing shall be procured in accordancewith the requirement:; set forth or referred to in Sections I and IV of theConsultant Guidelines, and with the provisions of this Section.

Definitions. The cajitalized terms used below in this Section to describeparticular procurement methods or methods of review by the Association ofparticular contracts, rc fer to the corresponding method described in Sections IIand III of the Procurement Guidelines, or Sections II, III, IV and V of theConsultant Guidelines, as the case may be.

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B. Particular Methods of Procurement of Goods, Works and Non-consultingServices

1. International Compei itive Bidding. Except as otherwise provided in paragraph2 below, goods, works and non-consulting services shall be procured undercontracts awarded on the basis of International Competitive Bidding.

2. Other Methods of "'rocurement of Goods, Works and Non-consultingServices. The following methods, other than International Competitive Bidding,may be used for procirem.nt of goods, works and non-consulting services forthose contracts specified in the Procurement Plan: (a) Shopping; and(b) Community Participation procedures which have been found acceptable to theAssociation and specified ir. the Project Operations Manual.

C. Particular Methods oF Pro-curement of Consultants' Services

1. Quality- and Cost-baied Selection. Except as otherwise provided in paragraph2 below, consultants' !;ervices shall be procured under contracts awarded on thebasis of Quality- and Cost-based Selection.

2. Other Methods of Procurement of Consultants' Services. The followingmethods, other than Quality- and Cost-based Selection, may be used forprocurement of consultants' services for those contracts which are specified inthe Procurement Plan: (a) Quality-based Selection; (b) Selection under a FixedBudget; (c) Least Cost Selection; (d) Selection based on Consultants'Qualifications; (e) Single-source Selection of consulting firms; (f) Procedures setforth in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the Selection ofIndividual Consultants; and (g) Single-source procedures for the Selection ofIndividual Consultants

). Review by the Association of Procurement Decisions

The Procurement Plan shall set forth those contracts which shall be subject to theAssociation's Prior Review. All other contracts shall be subject to Post Reviewby the Association.

Section IV. Withdrawal of the Proceeds of the Financing

A. General

1. The Recipient may withdraw the proceeds of the Financing in accordance with

the provisions of Article II of the General Conditions, this Section, and suchadditional instructions as tFe Association shall specify by notice to the Recipient(including the "World Bank Disbursement Guidelines for Projects" dated May2006, as revised from time to time by the Association and as made applicable to

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this Agreement pursuait to such instructions), to finance Eligible Expenditures asset forth in the table in paragraph 2 below.

2. The following table specifies the categories of Eligible Expenditures that may befinanced out of the prcceeds of the Financing ("Category"), the allocations of theamounts of the Grant to each Category, and the percentage of expenditures to befinanced for Eligible EKpenditures in each Category:

Category Amount of the Percentage of Expenditures toGrant Allocated be Financed

(expressed in SDR) (inclusive of Taxes)

(1) Block Grants under 34,400,000 100% of the amount of the BlockPart A of the Project Grant disbursed

(2) Goods, non- 18,200,000 100%consulting services,consultants' services(including audits),Training and OperatingCosts for the Project,other than Parts A and E

(3) Goods, works, non- 0 100%consulting services,consultants' services andOperating Costs underPart E of the Project

TOTAL AMOUNT 52,600,000

B. Withdrawal Conditions; Withdrawal Period

1 . Notwithstanding the provisions of Part A of this Section, no withdrawal shall bemade:

(a) for payments made prior to the date of this Agreement, except thatwithdrawals t p to an aggregate amount not to exceed $8,000,000equivalent may be made for payments made prior to this date but on orafter October 1, 20 '2, for Eligible Expenditures;

(b) any Eligible Expenditure under Category (1), until and unless theRecipient has prepared and adopted, in form and substance satisfactoryto the Association, the Project Operations Manual; or

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(c) under Category (3), unless and until the Recipient has: (i) publicallydeclared that an Eligible Crisis or Emergency has occurred, and theAssociation has agreed with such determination; (ii) prepared anddisclosed, in form and substance satisfactory to the Association, allsafeguards in.truments required pursuant to the ESSAF for activitiesunder said Part E of the Project, if any, and the Recipient hasimplemented iny actions which are required to be taken under saidinstruments, all in accordance with the provisions of Section I.E ofSchedule 2 to this Agreement; (iii) established adequate implementationarrangements, satisfactory to the Association, including the provision ofstaff and othor resources for the purposes of said activities, whicharrangements ;hall thereafter be maintained by the Recipient throughoutthe remaining implementation of the Project; and (iv) has updated theProject Operalions Manual in accordance with the provisions of SectionI.D of this Schedule 2 so as to be appropriate for the inclusion andimplementation of activities under said Part E of the Project.

2. The Closing Date is January 31, 2019.

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APPENDIX

Definitions

"Affected Persons" means any person who, on account of the execution of theProject, has experienccd or would experience direct economic and social impactscaused by: (a) the involuntary taking of land, resulting in: (i) relocation or loss ofshelter; (ii) loss of assets or access to assets; or (iii) loss of income sources ormeans of livelihood, m hether or not such person must move to another location;or (b) the involuntari restriction or access to legally designated parks andprotected areas, resulting in adverse impacts on the livelihood of such person.

"Anti-Corruption Guidelires" means the "Guidelines on Preventing andCombating Fraud and Corription in Projects Financed by IBRD Loans and IDACredits and Grants", dated October 15, 2006 and revised in January 2011.

"Beneficiary" means a Village Tract forum in selected Townships that satisfiesthe requirements set cut in the Project Operations Manual to carry out a Sub-Project under Part A (Community Block Grants) of the Project and to receive aBlock Grant in accordz nce with a Block Grant Agreement with the Recipient.

"Block Grant" means a grait made or proposed to be made by the Recipient to aBeneficiary out of tho proceeds of the Financing pursuant to a Block GrantAgreement for the pur)ose of financing goods, works and services required for aSub-project in accorda ice with the provisions of Section I.C of Schedule 2 to thisAgreement.

"Block Grant Agreemc nt" means an agreement entered into, or to be entered into,between the Recipient and a Beneficiary, for the purpose of extending a BlockGrant, and referred to in paragraph 2 of Section I.C of Schedule 2 to thisAgreement.

6. "Category" means a ctegory set forth in the table in Section IV of Schedule 2 tothis Agreement.

7. "Consultant Guidelines" means the "Guidelines: Selection and Employment of

Consultants under IBRD Loans and IDA Credits and Grants by World BankBorrowers" dated January 2011.

8. "Department of Rural Development" and the acronym "DRD" mean the

department responsible fo- rural development within the Ministry of BorderAffairs, or any successor thereto.

"Eligible Crisis or Energ.ncy" means one or more events that has or have

caused, or is or are likely to imminently cause, a major adverse economic and/or

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social impact to the Fecipient, associated with a natural or man-made crisis ordisaster.

10. "Environmental and Social Screening and Assessment Framework" and theacronym "ESSAF" m an the Recipient's environmental and social screening andassessment frameworl:, dated October 2012, and agreed with the Association,setting out: (i) mitigation, enhancement, monitoring, and institutional measures,including capacity )uilding through training, to manage any adverseenvironmental and/or social impacts of activities to be implemented under theProject, including mitiga:ion and adaptive measures to offset, reduce toacceptable levels, or eliminate, any adverse environmental or social impactsunder the Project; anc (ii) modalities for the compensation of and resettlementassistance to Affected Persons, acceptable to the Association, together withenvironmental codes cf practice and guidelines for the carrying out of free, priorand informed consultations with potentially affected Indigenous Peoples andprocedures for the pr.paration of participatory social assessments, as well asrequirements for the development of environmental management plans, and alsothe Grievance Redres!; System, the Positive List and the Negative List, as saidframework may be modified from time to time with the prior written agreementof the Association, and sL.ch term includes any schedules or annexes to suchframework.

1 . "General Conditions" means the "International Development AssociationGeneral Conditions for Credits and Grants", dated July 31, 2010.

,2. "Grievance Redress System" means the system described in the ProjectOperations Manual, and the technical system it describes, designed to trackgrievances regarding the use of the proceeds of the Financing allocated from timeto time to Part A (3lock Grants) of the Project and/or the selection andimplementation of Sub-projects, guide resolution of such grievances, trackresolution of such gricvances, and if warranted in accordance with such system,as an interim measurc exclude use of such proceeds in a particular Township,Village Tract or Village, or the participation of responsible individuals or otheractions authorized by ,uch system, as such system may be modified from time totime by written agreentent between the Recipient and the Association.

3. "Indigenous Peoples" means those social groups in the Recipient's territory thathave a distinct, vulnerable, social and cultural identity, and that are susceptible tobeing disadvantaged i:i the development process affected by the Project or anypart tl4ereof, and that possess the following characteristics in varying degrees:(a) self-identification as members of a distinct indigenous cultural group andrecognition of this identity by others; (b) collective attachment to geographicallydistinct habitats or ar cestral territories in the Project area and to the naturalresources in these habitats, and territories; (c) customary cultural, economic,social, or political intitutions that are separate from those of the dominant

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society and culture; a id (d) an indigenous language; (e) having a subsistenceeconomy, (f) using simple taols and technology, (g) having a high dependence onthe environment and local natural resources, and (h) having restricted access tosocial, economic, and politial services.

14. "Ministry of Border Affairs" means the Recipient's ministry responsible forborder areas, national races and development affairs, or any successor thereto.

15. "Negative List" means the list of community level investments which shall beexcluded from financing under any Sub-project and which is described in theProject Operations Manual and the ESSAF, as such list may be modified fromtime to time with the p -ior written agreement of the Association.

16. "Operating Costs" means the reasonable expenditures directly related to theProject incurred by the Re,cipient, based on annual budgets approved by theAssociation, on accou it of the implementation, management, coordination, andmonitoring and evalt ation of the Project, including expenditure on travel,lodging and per diem,, consumable materials, office supplies, communicationsservices (including postage handling, telephone and internet costs), publicationservices, translation services, operations and maintenance of office equipmentand vehicles, but excluding salaries, bonuses, fees and honoraria or equivalentpayments of members of the Recipient's civil service.

17. "Positive List" means the ist of community level infrastructure which shall befinanced under any S ib-project in the first year of the implementation of theProject in a selected T:wnship, and which is described in the Project OperationsManual and the ESSA -7, as such list may be modified from time to time with theprior written agreement of the Association.

1 8. "Procurement Guidelines" means the "Guidelines: Procurement of Goods, Worksand Non-consulting Services under IBRD Loans and IDA Credits and Grants byWorld Bank Borrower ;" dated January 2011.

9. "Procurement Plan" rieans the Recipient's procurement plan for the Project,dated September 27, 2012 and referred to in paragraph 1.18 of the ProcurementGuidelines and paragraph 1.25 of the Consultant Guidelines, as the same shall beupdated from time to t me in accordance with the provisions of said paragraphs.

20. "Project Operations Vlanual" means the Recipient's manual, in form andsubstance satisfactory to the Association, satisfying the requirements referred toin Section I.D of Schedulc 2 to this Agreement, as the same may be amendedfrom time to time wi :h prior written agreement of the Association, including,without limitation, fo- the purposes of paragraph 1(c)(iv) of Section IV.B ofSchedule 2 to this Agreem.nt, and such term includes any annexes or schedulesto such manual.

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21. "Steering Committee" means the committee to be maintained by the Recipient inaccordance with the provisions of paragraph 1 of Section L.A of Schedule 2 tothis Agreement.

22. "Sub-Project" means zn activity qualified for financing by a Block Grant underPart A of the Project in accordance with the terms of this Agreement, the ProjectOperations Manual and the relevant Block Grant Agreement.

23. "Township" means an administrative sub-division of the Recipient's territory atthe third level below tf e union level.

24. "Training" means the reasonable costs of training under the Project, based onannual budgets approved by the Association, and directly attributable toseminars, workshops, anc study tours, along with travel and subsistenceallowances for training participants, course fees, services of trainers, rental oftraining facilities, prcparation, acquisition, distribution and reproduction oftraining materials, and other activities directly related to course preparation andimplementation.

25. "Village" means an administrative sub-division of the Recipient's territory at thefifth level below the urion level.

26. "Village Tract" means an administrative sub-division of the Recipient's territoryat the fourth level below the union level.