OFFICIAL The World Bank DO CUM g J W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT a i tdn..20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS O () CO , 2017 H. E. Amadou Ba Minister of Economy and Finance Ministry of Economy and Finance Dakar Republic of Senegal Excellency: Re: Credit 5305-SN Republic of Senegal: Casamance Development Pole Project First Amendment to the Financing Agreement We refer to the Financing Agreement (the "Agreement"), dated November 22, 2013, for the above-mentioned Project ("Project") between the Republic of Senegal (the "Recipient") and the International Development Association (the "Association"). We also refer to a letter from the Recipient, dated July 18, 2017, requesting the Association for specific amendments to the Agreement. Please note that capitalized terms used in this letter ("Amendment Letter") and not defined herein have the meaning ascribed to them in the Agreement. We are pleased to inform you that the Association accedes to the Recipient's request and proposes to amend the Agreement as follows: I. Part C of Schedule I to the Agreement is modified to read as follows: "Part C: Strengthening Local Citizen Engagement and Project Supervision 1. Information, facilitation and communication of the Project. Provision of support to communication and access to information about the Project for local citizen through: (a) the carrying out of information campaigns about Project activities; and (b) awareness raising about the local Community Development Plans in selected communes. 2. Citizen engagement pilot. Provision of technical assistance to prepare and revise the Community Development Plans in selected villages in three (3) communes across the three (3) regions through the setting up of pilot engagement mechanisms focused on participatory planning and grievance redress mechanism. 3. Village Micro-projects financing. Carrying out of Micro-projects to support the reconstruction, reconciliation and sustainable development strategy promoted by the Community Development Plans in the selected villages referred to in paragraph (2) above. RCA 248423. 1 WUI 64145 1- FAX (202) 477-6391 -2- 4. Support to Project management, results monitoring and evaluation. Provision of technical assistance to support the Recipient through Project management, results and monitoring and evaluation." 2. A new paragraph 6 is added under Section I.B of Schedule 2 to the Agreement to read as follows: "6. Village Micro-projects (a) The Recipient shall make grants available to Beneficiaries for Micro- projects ("Micro-grants") in accordance with the eligibility criteria and procedures set forth in this paragraph B.5 as further elaborated in the PIM. (b) No proposed Micro-project shall be eligible for financing under Part C.3 of the Project unless the Recipient has determined on the basis of an appraisal carried out in accordance with guidelines acceptable to the Association and elaborated in the PIM, that: (i) The proposed Micro-project: (A) is designed in the context of the citizen engagement pilot; (B) is technically feasible and economically and financially viable; and (C) if pursuant to the ESMF, one or more Safeguards Instruments are required, such Safeguards Instruments have been prepared and approved by the Association in accordance with the provisions of Section LD of this Schedule 2, and all measures required to be taken in accordance with said Section I.D prior to commencement of the activities covered by the Safeguards Instruments have been taken; and (D) does not involve any involuntary resettlement. (ii) The proposed Beneficiary: (A) consists of vulnerable groups in the Recipient's targeted villages; (B) is identified by the Citizen Engagement Committees in accordance with criteria acceptable to the Association as set forth in the PIM; and (C) is capable to carry out the Micro-project. (c) The Recipient shall make each Micro-grant under a Micro-grant Agreement with each Beneficiary on terms and conditions approved by the Association, which shall include the following: (i) The Micro-grant shall be made on a non-reimbursable grant basis. (ii) The maximum amount of a Micro-grant shall not exceed seventy thousand United States Dollars (70 000 USD). (iii) The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (A) suspend or terminate the right of the Beneficiary to use the proceeds of the Micro-grant, or obtain a refund of all or any part of the amount of the Micro-grant then -3- withdrawn, upon the Beneficiary's failure to perform any of its obligations under the Micro-grant Agreement; and (B) require each Beneficiary to: (1) carry out its Micro-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 ESMF (and any Safeguards Instrument required under the Micro-project pursuant to the ESMF) and the Anti-Corruption Guidelines, as applicable; (2) enable the Recipient to monitor and evaluate, in accordance with indicators acceptable to the Association, the progress of the Micro-project and the achievement of its objectives; (3) enable the Recipient and the Association to inspect the Micro-project, its operation and any relevant records and documents; (4) furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing. (d) The Recipient shall exercise its rights and carry out its obligations under each Micro-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 not assign, amend, abrogate or waive any Micro-grant Agreement or any of its provisions. 3. The table set forth under Section IV.2 of Schedule 2 to the Agreement is deleted in its entirety and replaced with the table as shown in the Attachment to this Amendment Letter. 4. The following additional definitions are added to the Definition Section under the Appendix to the Agreement and the existing paragraphs are renumbered accordingly: "10. "Citizen Engagement Committee" means members of the local community and the local authorities grouped under a committee with the aim to implement, coordinate and monitor participatory activities planned to enhance citizens voice and improve accountability . 13. "Community Development Plans" means _concise action plans consisting of activities to be implemented at the local level and identified as development priorities by the local community 20. "Micro-grant" means a grant made or to be made by the Recipient out of the proceeds of the Financing to a Beneficiary for a Micro-project in accordance with criteria set out in Section I.B.6 of Schedule 2 to this Agreement. 21. "Micro-grant Agreement" means an agreement between the Recipient and a Beneficiary providing for a Micro-grant. -4- 22. "Micro-project" means a small-scale community project aimed at generating investment income for vulnerable groups of selected villages in the Recipient's territory. 5. Paragraph 8 of the Definitions Section is modified to read as follows: "8. "Beneficiary" means a cooperative, farmers group, youth group, women's group, or vulnerable groups in targeted communes of the Recipient's territory selected in accordance with the eligibility criteria for Sub-projects or Micro-projects set forth in the PIM, to which a Project Implementing Entity or the Recipient proposes to provide either Agricultural Packages for a Sub- project or Micro-grants for Micro-projects." All the terms and conditions of the Agreement that have not been hereby amended shall remain in full force and effect. Please confirm your agreement with the foregoing amendment by signing and dating the confirmation on the enclosed copy of this Amendment Letter and returning it to us. Upon receipt by the World Bank of the copy of this Amendment Letter countersigned by you, this Amendment Letter shall become effective as of the date of your countersignature. Sincerely, UE Louise J. r Country Director for eg Africa Region NE CON] t REPIB Name: Title: Date: 0 5 0 CT 2011 -5- Attachment REVISED TABLE "Category Amount of the Credit Percentage of Expenditures Allocated (expressed in to be Financed SDR) (inclusive of Taxes) (1) Goods, works, non- 25,400,000 100% consulting services, Operating Costs, Training, and consultants' services for the Project (2) Refund of Preparation 1,100,000 Amount payable pursuant to Advance Section 2.07 of the General Conditions TOTAL AMOUNT 26,500,000"