OFFICIAL DOCUMENTS LOAN NUMBER 8890-CN Program Agreement (Guangxi Poverty Reduction Program for Results) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and GUANGXI ZHUANG AUTONOMOUS REGION PROGRAM AGREEMENT AGREEMENT between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("Bank") and GUANGXI ZHUANG AUTONOMOUS REGION ("Program Implementing Entity") ("Program Agreement") in connection with the Loan Agreement ("Loan Agreement") of the Signature Date between PEOPLE'S REPUBLIC OF CHINA ("Borrower") and the Bank, concerning Loan No. 8890-CN. The Bank and the Program Implementing Entity hereby agree as follows: ARTICLE I - GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to the Loan Agreement) apply to and form 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 Loan Agreement or the General Conditions. ARTICLE II - PROGRAM 2.01. The Program Implementing Entity declares its commitment to the objectives of the Program. To this end, the Program Implementing Entity shall carry out the Program in accordance with the provisions of Article V of the General Conditions and the Schedule to this Agreement, and shall provide promptly as needed, the funds, facilities, services and other resources required for the Program. ARTICLE III - REPRESENTATIVE; ADDRESSES 3.01. The Program Implementing Entity's Representative is its Chairman or a Vice- Chairman or such other person as said Chairman or a Vice-Chairman shall designate in writing. 3.02. For purposes of Section 10.01 of the General Conditions: (a) the Bank's address is: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and -2- (b) the Bank's Electronic Address is: Facsimile: 1-202-477-6391 3.03. For purposes of Section 10.01 of the General Conditions: (a) the Program Implementing Entity's address is: Development and Reform Commission of Guangxi Zhuang Autonomous Region Room 1808, 181 Floor, Guangxi Development Plaza Est. Building No. 111-1 Minzu Avenue Nanning, Guangxi China; and (b) the Program Implementing Entity's Electronic Address is: Facsimile: 86-771-2328850 -3- AGREED as of the later of the two dates written below. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Authorized Representative Name: Title: Co Date: ' ? , M' GUANGXI ZHUANG AUTONOMOUS REGION By Authorized Representative Name: 04 Title: Date: e,#-.4 , vlP -4- SCHEDULE Program Execution Section I. Implementation Arranaements A. Program Fiduciary, Environmental and Social Systems Without limitation on the provisions of Article V of the General Conditions, the Program Implementing Entity shall carry out the Program in accordance with financial management, procurement and environmental and social management systems acceptable to the Bank which are designed to ensure that: 1. the Loan proceeds are used for their intended purposes, with due attention to the principles of economy, efficiency, effectiveness, transparency, and accountability; and 2. the actual and potential adverse environmental and social impacts of the Program are identified, avoided, minimized, or mitigated, as the case may be, all through an informed decision-making process. B. Other Program Institutional and Implementation Arrangements Program Institutions 1. Without limitation on the generality of Part A of this Section I and in order to ensure the proper carrying out of the Program, the Program Implementing Entity shall maintain, and cause to be maintained, the following entities with composition, powers, functions, staffing, facilities and other resources acceptable to the Bank: (a) at the regional level: (i) the Regional Leading Group, responsible for providing leadership, policy guidance and coordination in the preparation and implementation of the Program; and , (ii) the Program Coordination Office, responsible for supporting the coordination, management, reporting, and supervision of the Program, including coordination with the line departments and the Targeted Counties on Program implementation. -5- (b) at the county level: (i) a leading group in each Targeted County, responsible for providing overall policy, financial and institutional guidance on Program implementation and facilitating coordination among different implementing agencies within its respective jurisdiction; (ii) a coordination office in each Targeted County, responsible for implementation of the Program at the county level, and coordinating day-to-day activities with the Program Coordination Office and other agencies, monitoring Program implementation within the county concerned; and (iii) an advisory committee in each Targeted County, responsible for providing technical support to the Program activities within the county concerned. Program Action Plan 2. Without limitation on the generality of Part A of this Section I, the Program Implementing Entity shall, and shall cause the Targeted Counties to: (a) undertake the actions set forth in the Program Action Plan; (b) not amend, revise or waive, nor allow to be amended, revised or waived, the provisions of the Program Action Plan, or any provision thereof, without the prior written agreement of the Bank; and (c) maintain policies and procedures adequate to enable it to monitor and evaluate, in accordance with guidelines acceptable to the Bank, the implementation of the Program Action Plan. Section H. Excluded Activities The Program Implementing Entity shall ensure that the Program shall exclude any activities which: A. in the opinion of the Bank are likely to have significant adverse impacts that are sensitive, diverse, or unprecedented on the environment and/or affected people; or B. involve the procurement of: (1) works, estimated to cost $115 million equivalent or more per contract; (2) goods, estimated to cost $75 million equivalent or more per contract; (3) non-consulting services, estimated to -6- cost $75 million equivalent or more per contract; or (4) consulting services, estimated to cost $30 million equivalent or more per contract. Section I. Program Monitoring, Reportin2 and Evaluation 1. The Program Implementing Entity shall monitor and evaluate the progress of the Program and prepare Program Reports in accordance with the provisions of Section 5.08 of the General Conditions. Each Program Report shall cover the period of one calendar semester, and shall be furnished to the Borrower and the Bank not later than sixty (60) days after the end of each calendar semester. 2. The Program Implementing Entity shall provide to the Borrower not later than the Closing Date, for incorporation in the report referred to in Section 5.08 (c) of the General Conditions all such information as the Borrower or the Bank shall reasonably request for the purposes of that Section. 3. The Program Implementing Entity shall, not later than December 31, 2018, hire, and thereafter maintain, throughout the period of Program implementation, verification agents having experience and qualifications in the relevant technical fields, acceptable to the Bank, and under terms of reference, including a time-table and adequate budget for its activities, acceptable to the Bank, to monitor and verify the achievement of the DLRs.