Common use of Sub-projects Clause in Contracts

Sub-projects. 1. For the purposes of Parts 2.B (ii) and 3.B (ii) of the Project, the Recipient shall cause the Entities to make Rural Development Grants to Beneficiaries in accordance with eligibility criteria and procedures set forth in the Rural Development Grants Operational Manual, and acceptable to the Association, which shall include the following: sub-project proposals for Rural Development Grants shall be guided by the Agriculture and Rural Development Strategy and shall be selected, appraised, implemented and evaluated in accordance with the principles and procedures set forth in the Operational Manual, the Procurement Guidelines, the Anti-Corruption Guidelines and the EMF. 2. The Recipient shall cause the Entities to make each Rural Development Grant under a Rural Development Grant Agreement with the respective Beneficiary on terms and conditions approved by the Association, which shall include the following: (a) Rural Development Grant Agreements shall be denominated in KM; and (b) the Recipient shall, and shall cause the Entities, to obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Beneficiary to use the proceeds of the Rural Development Grant, or obtain a refund of all or any part of the amount of the Rural Development Grant, upon the Beneficiary’s failure to perform any of its obligations under the Rural Development Grant Agreement; and (ii) require each Beneficiary to: (A) carry out its obligations under the Rural Development Grant Agreement with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient, and the EMF; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works and services to be financed out of the Rural Development Grant Agreement in accordance with the provisions of this Agreement, and the Procurement Guidelines; (D) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub- project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-project, its operation and any relevant records and documents; and (G) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 3. The Recipient shall cause the Entities to exercise their rights under each Rural Development Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall cause the Entities not to assign, amend, abrogate or waive any Rural Development Grant Agreement or any of its provisions.

Sub-projects. 1. For the purposes of Parts 2.B (ii) and 3.B (ii) No Community Development Sub-project shall be eligible for financing out of the Projectproceeds of the Financing unless: (a) the corresponding proposals for the Community Development Sub-project have been prepared and submitted, and the Recipient shall cause review of proposals and award of the Entities to make Rural Community Development Grants to Beneficiaries Sub-grants have been undertaken by a Kum Ban Committee, in accordance with eligibility the guidelines, procedures and selection criteria and procedures set forth in the Rural Development Grants Project Operational Manual, ; and acceptable to (b) each Community Development Sub-grant Agreement for the Association, which shall include carrying out of the following: subrelevant Sub-project proposals for Rural Development Grants shall be guided by the Agriculture and Rural Development Strategy and shall be selected, appraised, implemented and evaluated as made in accordance with the principles and procedures set forth in the Operational Manual, the Procurement Guidelines, the Anti-Corruption Guidelines and the EMF. 2. The Recipient shall cause the Entities to make each Rural Development Grant under a Rural Development Grant Agreement with the respective Beneficiary on terms and conditions approved referred to in this Section I.C and in the Community Development Sub-grant Agreement shall have been entered into between the PRF and the relevant Beneficiary. The Project Implementing Entity shall ensure that a Community Development Sub-project is not used as an incentive or a tool to support or implement involuntary resettlement. No Community Development Sub-grant shall be made to finance expenditures pertaining to or involving: (a) a military or paramilitary purpose; (b) civil works for government administration or religious purposes; (c) the manufacture or use of environmentally hazardous goods (including asbestos, pesticides except for those permitted in the Pest Management Plan and herbicides), arms or drugs; (d) the manufacture or use of dynamite; (e) the salaries, bonuses, fees or honoraria of members of the Recipient’s civil service; (f) labor and working conditions involving harmful, exploitative involuntary or compulsory forms of labor, forced labor or child labor, or significant occupational health and safety issues; (g) the production, processing, handling, storage or sale of tobacco or products containing tobacco; (h) activities within a nature reserve or any other area designated by the AssociationRecipient for the management and/or the protection of biodiversity, which except with the prior written approval of the Recipient’s agency responsible for the management and/or protection of such area; (i) land reclamation covering an area in excess of 50 hectares; (j) alterations to river courses; (k) new irrigation facilities covering an area in excess of 50 hectares; (l) the construction of water retaining or storage structures of a capacity greater than ten thousand (10,000) cubic meters, or having a retaining wall of ten (10) meters or more; or any other purpose that would not be consistent with, or that would not facilitate the realization of the objective of the Project. The amount of each Community Development Sub-grant shall include be determined in accordance with the provisions of the Project Operational Manual. Each Community Development Sub-grant Agreement shall include, inter alia, the following: (a) Rural the amount of the Community Development Grant Agreements shall be Sub-grant denominated in KM▇▇▇; and (b) details of agreed disbursement schedules; the Recipient shall, and shall cause the Entities, to obtain rights adequate to protect its interests and those amount of the Association, including community’s contribution to the right to: (i) implementation of the Community Development Sub-project; provisions to suspend or terminate the right of the Beneficiary to use the proceeds of the Rural Community Development GrantSub-grant, or obtain a refund of all or any part of the amount of the Rural Community Development GrantSub-grant then withdrawn, upon the Beneficiary’s failure to perform any of its obligations under the Rural Community Development Grant Sub-grant Agreement; and (ii) require each Beneficiary requirements to: (Ai) carry out its obligations under the Rural each Community Development Grant Agreement Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of loan Grant and Credit proceeds other than the RecipientRecipient and the following documents: Environmental and Social Management Framework, the Compensation and Resettlement Policy Framework, the Ethnic Group Policy Framework, and the EMFPest management Plan; (Bii) provide, promptly as needed, the resources required for the purposepurpose of the Community Development Sub-project; (Ciii) procure the goods, works and services to be financed out of the Rural Community Development Grant Agreement Sub-grant in accordance with the provisions of Section III of this Agreement, and the Procurement Guidelines; (Div) maintain policies and procedures adequate records to enable it to monitor and evaluate reflect, in accordance with indicators sound accounting practices acceptable to the Association, the progress of the Sub- project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related relating to the Community Development Sub-project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (Fv) enable the Recipient and the Association to inspect the Community Development Sub-project, its operation and any relevant records and documents; and (Gvi) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 3. The Recipient Project Implementing Entity shall cause the Entities to exercise their its rights under each Rural Community Development Grant Sub-grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agreeagree in writing, the Recipient The Project Implementing Entity shall cause the Entities not to assign, amend, abrogate or waive any Rural Community Development Grant Sub-grant Agreement or any of its their provisions.

Sub-projects. 1. For the purposes of Parts 2.B (ii) and 3.B (ii) of the Project, the The Recipient shall cause the Entities to make Rural Development Grants to Beneficiaries to finance Sub-Projects in accordance with the eligibility criteria and procedures acceptable to the Association and those set forth in the Rural Development Grants Operational Manual, and acceptable to the AssociationOM, which shall include the following: sub: (a) eligible Sub-project proposals Projects shall fall within the purposes of Part 2 of Schedule 1 to this Agreement; (b) for Rural Development Sub-Projects including the acquisition of technologies for solid waste and/or waste water, the Beneficiary shall be required to obtain a long term warranty from the suppliers of such technologies satisfactory to the Association, and not later than the date of acquisition of any such technology or such later date as the Association may agree in writing; (c) unless the Association shall otherwise agree in writing, Grants shall not be guided by provided to finance any Sub-Project intended to include the Agriculture acquisition of incinerators or any other burn technology for treating solid waste; (d) Grants shall not be provided to finance any Sub-Project intended to include the acquisition of land or that would result in the involuntary resettlement or displacement of people; and (e) each Sub-Project proposal shall include a Healthcare Waste Management Plan, satisfactory to the Association, and Rural Development Strategy and shall be selected, appraised, implemented and evaluated prepared in accordance with the principles and procedures set forth in provisions of the Operational Manual, the Procurement Environmental Guidelines, the Anti-Corruption Guidelines and the EMF. 2. The Recipient shall cause the Entities to make each Rural Development Grant under a Rural Development Grant Agreement with the respective Beneficiary on terms and conditions approved by the AssociationAssociation and set forth in the OM, which shall include the following: (a) Rural Development the Grant Agreements shall be denominated in KMDollar; and (b) the Recipient shall, and shall cause the Entities, to obtain rights adequate to protect its interests and those of the Association, including the right to: (i) : suspend or terminate the right of the Beneficiary to use the proceeds of the Rural Development GrantGrants, or obtain a refund of all or any part of the amount of the Rural Development GrantGrant then withdrawn, upon the Beneficiary’s failure to perform any of its obligations under the Rural Development Grant Agreement; and (ii) and require each Beneficiary to: : (A) carry out its obligations under the Rural Development Grant Agreement Sub-Project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Environmental Guidelines, the Healthcare Waste Management Plan, and the provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient, and the EMF; ; (B) provide, promptly as needed, the resources required for the purpose; purposes of the Sub-Project; (C) procure the goods, works and services to be financed out of the Rural Development Grant Agreement in accordance with the provisions of Section III of Schedule 2 to this Agreement, and the Procurement Guidelines; ; (D) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub- project Sub-Project and the achievement of its objectives; ; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-projectProject, its operation and any relevant records and documents; and ; (GF) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; and (G) obtain a full or partial refund of the amount of the Grant then withdrawn, upon a final conclusion by an IVA that a Beneficiary has failed to achieve the intended results of the Sub-Project. 3. Without limitation to the provisions of the above paragraph 2 of Section I.C of this Schedule 2, unless the Association shall otherwise agree in writing, Grants’ proceeds shall be disbursed to Beneficiaries in accordance with the following provisions: (a) fifty percent (50%) of the Grant amount will be disbursed upon signing of Grant Agreement between the Recipient and the Beneficiary; (b) forty percent (40%) of the Grant amount will be disbursed upon receipt by the CPMU of a satisfactory progress report; and (c) ten percent (10%) of the Grant amount will be disbursed upon a receipt by the CPMU of a satisfactory report from an IVA on the results produced by the Beneficiary under the relevant Sub-Project. 4. The Recipient shall cause the Entities to exercise their its rights under each Rural Development Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall cause the Entities not to assign, amend, abrogate or waive any Rural Development Grant Agreement or any of its provisions.

Sub-projects. 1. For the purposes of Parts 2.B (ii) and 3.B (ii) of the Project, the Recipient shall cause the Entities to make Rural Development Grants to Beneficiaries in accordance with eligibility criteria and procedures set forth in the Rural Development Grants Operational Manual, and acceptable to the Association, which shall include the following: sub-project proposals for Rural Development Grants shall be guided by the Agriculture and Rural Development Strategy and shall be selected, appraised, implemented and evaluated in accordance with the principles and procedures set forth in the Operational Manual, the Procurement Guidelines, the Anti-Corruption Guidelines and the EMF. 2. The Recipient shall cause the Entities to make each Rural Development Grant under a Rural Development Grant Agreement with the respective Beneficiary on terms and conditions approved by the Association, which shall include the following: (a) Rural Development Grant Agreements shall be denominated in KM; and (b) the Recipient shall, and shall cause the Entities, to obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Beneficiary to use the proceeds of the Rural Development Grant, or obtain a refund of all or any part of the amount of the Rural Development Grant, upon the Beneficiary’s failure to perform any of its obligations under the Rural Development Grant Agreement; and (ii) require each Beneficiary to: (A) carry out its obligations under the Rural Development Grant Agreement with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient, and the EMF; (B) provide, promptly as needed, the resources required for the purpose; (C) procure the goods, works and services to be financed out of the Rural Development Grant Agreement in accordance with the provisions of this Agreement, and the Procurement Guidelines; (D) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub- Sub-project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-project, its operation and any relevant records and documents; and (G) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. 3. The Recipient shall cause the Entities to exercise their rights under each Rural Development Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall cause the Entities not to assign, amend, abrogate or waive any Rural Development Grant Agreement or any of its provisions.