OFFICIAL DOCUMENTS GRANT NUMBER TF0A6612 Central Asia South Asia Transmission Project (CASA-1000) Multi-Donor Trust Fund Grant Agreement (CASA 1000 Community Support Project) between KYRGYZ REPUBLIC and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator of the CASA-1000 Multi-Donor Trust Fund Dated , 2019 GRANT NUMBER TF0A6612 CENTRAL ASIA SOUTH ASIA TRANSMISSION PROJECT (CASA-1000) MULTI-DONOR TRUST FUND GRANT AGREEMENT AGREEMENT dated as of the Signature Date between KYRGYZ REPUBLIC ("Recipient"); and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and INTERNATIONAL DEVELOPMENT ASSOCIATION (together "the World Bank"), acting as acting as Administrator of the CASA-1000 Multi-Donor Trust Fund. The Recipient and the World Bank hereby agree as follows: Article I Standard Conditions; Definitions 1.01. The "Standard Conditions for Grants Made by the World Bank Out of Various Funds", dated February 15, 2012 ("Standard Conditions"), constitute an integral 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 Standard Conditions or in this Agreement. Article II The Project 2.01. The Recipient declares its commitment to the objective of the project described in Schedule 1 to this Agreement ("Project"). To this end, the Recipient shall cause the Project to be carried out by ARIS ("Project Implementing Entity") in accordance with the provisions of Article II of the Standard Conditions and the agreement dated the same date as this Agreement between the World Bank and the Project Implementing Entity, as such agreement may be amended from time to time ("Project Agreement"). 2.02. Without limitation upon the provisions of Section 2.01 of this Agreement, and except as the Recipient and the World Bank shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 to this Agreement. Article III The Grant 3.01. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount not to exceed one million United States Dollars ($1,000,000) ("Grant") to assist in financing Parts B and C of the Project. 3.02. The Recipient may withdraw the proceeds of the Grant in accordance with Section IV of Schedule 2 to this Agreement. 3.03. The Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions from the donors to the trust fund. In accordance with Section 3.02 of the Standard Conditions, the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. Article IV Additional Remedies 4.01. The Additional Events of Suspension referred to in Section 4.02 (k) of the Standard Conditions consist of the following: (a) the Project Implementing Entity Legislation has been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely, in the opinion of the World Bank, the ability of the Project Implementing Entity to perform any of its obligations under the Project Agreement; (b) the Project Implementing Entity has failed to perform any obligation under this Agreement; (c) the World Bank has declared the Project Implementing Entity ineligible to receive proceeds of any financing made by World Bank, or otherwise to participate in the preparation or implementation of any project financed in whole or in part by World Bank (including as administrator of funds provided by another financier), as a result of: (i) a determination by World Bank that the Project Implementing Entity has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of the proceeds of any financing made by World Bank; and/or (ii) a declaration by another financier that the Project Implementing Entity is ineligible to receive proceeds of financings made by such financier or otherwise to participate in 2 the preparation or implementation of any project financed in whole or in part by such financier as a result of a determination by such financier that the Project Implementing Entity has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of the proceeds of a financing made by such financier. Article V Effectiveness; Termination 5.01. This Agreement shall not become effective until evidence satisfactory to the World Bank has been furnished to the World Bank that the conditions specified below have been satisfied. (a) The execution and delivery of this Agreement on behalf of the Recipient and the Project Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all necessary governmental and corporate action. (b) The Financing Agreement has been executed and delivered and all conditions precedent to its effectiveness (other than the effectiveness of this Agreement) have been fulfilled. (c) the Subsidiary Agreement has been executed on behalf of the Recipient and the Project Implementing Entity. (d) the Project Operational Manual has been prepared and adopted by the Project Implementing Entity satisfactory to the World Bank. (e) the Recipient has established a PCC with terms of reference, composition and resources satisfactory to the World Bank. 5.02. As part of the evidence to be furnished pursuant to Section 5.01 (a), there shall be furnished to the World Bank an opinion or opinions satisfactory to the World Bank or, if the World Bank so requests, a certificate satisfactory to the World Bank of a competent official of the Member Country, showing the following matters: (a) on behalf of the Recipient, that this Agreement has been duly authorized or ratified by, and executed and delivered on its behalf and is legally binding upon it in accordance with its terms; (b) on behalf of the Project Implementing Entity, that the Project Agreement has been duly authorized or ratified by, and executed and delivered on its behalf and is legally binding upon it in accordance with its terms; and 3 (c) the Subsidiary Agreement referred to in Section I.C of Schedule 2 to this Agreement has been duly authorized or ratified by the Recipient and the Project Implementing Entity and is legally binding upon each such party in accordance with its terms. 5.03. Except as the Recipient and the World Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the World Bank dispatches to the Recipient notice of its acceptance of the evidence required pursuant to Section 5.01 ("Effective Date"). If, before the Effective Date, any event has occurred which would have entitled the World Bank to suspend the right of the Recipient to make withdrawals from the Grant Account if this Agreement had been effective, the World Bank may postpone the dispatch of the notice referred to in this Section until such event (or events) has (or have) ceased to exist. 5.04. Termination for Failure to Become Effective. This Agreement and all obligations of the parties under it shall terminate if it has not entered into effect by the date one hundred and eighty (180) days after the date of this Agreement, unless the World Bank, after consideration of the reasons for the delay, establishes a later date for the purpose of this Section. The World Bank shall promptly notify the Recipient of such later date. Article VI Recipient's Representative; Addresses 6.01. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Minister of Finance. 6.02. (a) The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Ministry of Finance 58 Erkindik Blvd. Bishkek City, 720040 Kyrgyz Republic; and (b) the Recipient's Electronic Address is: Telex: Facsimile: 245-156 NUR KH (996-312) 661645 6.03. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: 4 World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Telex: Facsimile: 248423 (MCI) or 1-202-477-6391 64145 (MCI) 5 AGREED at Iik-g, R ? as of the day and year first above written.I KYRGYZ REPUBLIC By Authorized Representative Name: JeexL-r Title: 1'4*4 -'S&e. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION acting as administrator of the CASA-1000 Multi-Donor Trust Fund By Autho?ized Representative Name: Title: 6 SCHEDULE 1 Project Description The objective of the Project is to engage communities in the development of social and economic infrastructure in order to enhance services, livelihoods and inclusion in target villages near the CASA 1000 Transmission Line. The Project consists of the following parts: Part A: Support for Community-led Investments in Social and Economic Infrastructure 1. Provide support for electricity improvements within target villages through the provision of Sub-Grants to selected Beneficiaries for Sub-projects for: (i) village- level electricity improvements; and (ii) alternative energy sources. 2. Provide support for social infrastructure and services in target villages through the provision of Sub-Grants to selected Beneficiaries for Sub-projects for priority social infrastructure and services. 3. Support the construction of livelihood facilities in selected Aiyl Aimaks through the provision of Sub-Grants to selected Beneficiaries. Part B: Support for Community Mobilization, Youth Engagement and Communications 1. Provide support for community mobilization and youth engagement through, inter alia, provision of capacity building, technical assistance and Training to build local institutional capacity and engage communities in needs assessment, planning, implementation, management, monitoring, and operation and maintenance of Sub- projects. 2. Carrying out of Project communication activities and information-sharing activities, including, inter alia: (i) designing and disseminate CASA-1000 communication materials; (ii) ensuring ongoing information sharing and feedback; and (iii) providing Training for communication staff to take part in communication activities. Part C: Project Management, and Monitoring and Evaluation 1. Provide support to: (i) carry out Project management activities including, coordination and supervision of Project implementation, Project audits, financing of Incremental Operating Costs; (ii) organize the PCC's meetings; and (iii) manage a Beneficiary Feedback Mechanism, including a GRM. 2. Provide support to carry out the Project monitoring and evaluation activities. 7 SCHEDULE 2 Project Execution Section I. Institutional and Other Arran2ements A. Institutional Arrangements 1. The Recipient shall establish and thereafter operate and maintain during the Project implementation, a Project Coordination Committee with terms of reference, composition and resources acceptable to the World Bank, including, inter alia, the responsibility of Project coordination with the CASA 1000 Project and other key Project institutional partners. 2. The Recipient shall cause the Project Implementing Entity to maintain throughout the implementation of the Project, adequate staff with experience, qualifications, responsibilities and resources acceptable to the World Bank. B. Project Manuals 1. The Recipient shall cause the Project Implementing Entity to implement the Project with the assistance of the Electricity Companies (in respect of Part A.1 of the Project) in accordance with the Project Manuals. 2. Except as the World Bank shall otherwise agree in writing, the Recipient shall cause the Project Implementing Entity not to amend, waive, suspend or abrogate any provision of the Project Manuals and in case of any inconsistency between any of the provisions of the Project Manuals and those of this Agreement, the provisions of this Agreement shall prevail. C. Subsidiary Agreement 1. To facilitate the carrying out of the Project, the Recipient shall make the proceeds of the Financing available to the Project Implementing Entity under a subsidiary agreement between the Recipient and the Project Implementing Entity, under terms and conditions approved by the World Bank ("Subsidiary Agreement"). 2. The Recipient shall exercise its rights and carry out its obligations under the Subsidiary Agreement in such manner as to protect the interests of the Recipient and the World Bank and to accomplish the purposes of the Financing. Except as the World Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate, waive or fail to enforce the Subsidiary Agreement or any of its provisions. 8 D. Anti-Corruption The Recipient shall ensure that the Project is carried out in accordance with the provisions of 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 ("Anti-Corruption Guidelines"). E. Donor Visibility and Visit 1. The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the Donor's support for the Project. 2. For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank's request, take all measures required on its part to enable the representatives of the Donors to visit any part of the Recipient's territory for purposes related to the Project. F. Safeguards 1. The Recipient shall cause the Project Implementing Entity to carry out the Project in accordance with the Safeguard Documents. 2. Without limitation upon its other reporting obligations under this Agreement, the Recipient shall cause the Project Implementing Entity to regularly collect, compile and submit to the World Bank, in accordance with Section II of this Schedule Agreement, reports on the status of compliance with Safeguard Documents, giving details of: (a) measures taken in furtherance of the Safeguard Documents; (b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the Safeguard Documents; (c) remedial measures taken or required to be taken to address such conditions. 3. The Recipient shall cause Project Implementing Entity not to amend the Safeguard Documents without the prior written approval of the World Bank. 4. In the event of any conflict between the provisions of the Project the Safeguard Documents and this Agreement, the provisions of this Agreement shall prevail. 9 Section II. Project Monitoring, Reporting and Evaluation A. Project Reports; Completion Report 1. The Recipient shall cause Project Implementing Entity to monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than one month after the end of the period covered by such report. 2. The Recipient shall cause Project Implementing Entity to prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six (6) months after the Closing Date. B. Financial Management; Financial Reports; Audits 1. The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. 2. The Recipient shall cause Project Implementing Entity to ensure that interim unaudited financial reports for the Project 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. 3. The Recipient shall cause Project Implementing Entity to have its Financial Statements for the Project audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the World Bank not later than six (6) months after the end of such period. Section I. Procurement All goods, works, non-consulting services and consulting services required for the Project and to be financed out of the proceeds of the Grant 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 Project ("Procurement Plan") dated March 6, 2018 provided for under Section IV of the Procurement Regulations, as the same may be updated from time to time in agreement with the World Bank. 10 Section IV. Withdrawal of Grant Proceeds A. General 1. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III 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 49% of Eligible Expenditures consisting of goods, works, non-consulting services, consulting services, Training and Incremental Operating Costs under Parts B and C of the Project, inclusive of Taxes. B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section no withdrawal shall be made for payments made prior to the date of this Agreement. 2. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is June 30, 2020. 11 APPENDIX Definitions 1. "AiylAimak" or "AA" means an administrative territorial unit within the boundaries of which the local community exercises local self-government, consisting of one or more settlements; "A iyl Aimaks" means the plural thereof. 2. "A iyl Okmotu" or "AO" means an executive local self-government body established and operating pursuant to the Recipient's Law "On Local Self-government" No.101 of July 15, 2011 (as amended); "Aiyl Okmotus" means the plural thereof. 3. "ARIS" means the Community Development and Investment Agency of the Kyrgyz Republic established as a legal entity pursuant to President's Edict of the President of the Kyrgyz Republic # 330 dated October 15, 2003. 4. "Beneficiary" means any selected C-VIA, established as a legal entity, which has met the criteria set forth in the Sub-Grants Manual to receive a Sub-Grant; "Beneficiaries" means the plural thereof. 5. "Beneficiary Feedback Mechanism" or "BMF" means a system for obtaining and responding to comments, questions, and grievances from any Project beneficiary, including any grievances made regarding Resettlements. 6. "Category" means a category set forth in Section IV.A of Schedule 2 to this Agreement. 7. "CASA 1000 Project" means Central Asia South Asia Electricity Transmission and Trade Project set forth in Schedule 1 to the Financing Agreement between the Recipient and the World Bank dated April 24, 2015 (IDA Credit No.5438-KG; IDA Grant No. H942-KG). 8. "CASA 1000 Transmission Line" means, jointly, the electricity transmission lines described under Central Asia South Asia Electricity Transmission and Trade Project. 9. "C-VIA" means a Corridor-Village Investment Association, a local level government legal entity to be established, pursuant to the Recipient's national legislation, in each AA to represent the corridor villages located in the respective AA with, inter alia, the following responsibilities: (i) to represent the villages in the Project implementation process; (ii) to inform ARIS of village priorities and Sub- project(s) selections; (iii) to coordinate with ARIS on the technical designs of the selected investments; (iv) to instruct ARIS to procure contractors or suppliers (or carrying out the procurement function as noted below); (v) to supervise contractors; (vi) to coordinate with ARIS over contract payments or carrying out the payment 12 function where individual payments to contractors are less than the threshold to be defined in the Sub-Grants Manual; and (vii) to propose and implement operation and maintenance plans. 10. "Cooperation Agreement" means any of the agreements referred to in Section I.E of the Schedule to the Project Agreement; "Cooperation Agreements" means the plural thereof. 11. "Displaced Person" means a person who, on account of the execution of the Project, has experienced or would experience direct economic and social impacts caused by: (i) the involuntary taking of land, resulting in; (A) relocation or loss of shelter; (B) loss of assets or access to assets; or (C) loss of income sources or means of livelihood, whether or not such person must move to another location; or (ii) the involuntary restriction to access to legally designated parks and protected areas, resulting in adverse impacts on the livelihood of such person; "Displaced Persons" means, collectively, the plural thereof. 12. "Electricity Company" means any of the following: (i) JalalAbad-Electro; and (ii) Osh-Electro; "Electricity Companies" means, collectively, both these Electricity Companies. 13. "Environmental and Social Management Framework" or "ESMF" means the Recipient's environmental and social management framework for the Project, acceptable to the World Bank and disclosed by the Recipient on November 20, 2017 and on the World Bank website on November 29, 2017 setting forth the mitigating, monitoring and institutional measures to be taken during the implementation and operation of the Project to offset or reduce adverse environmental, natural habitats and cultural property impacts to levels acceptable to the World Bank, and the guidelines for the preparation and implementation of the ESMPs (as hereinafter defined) as such framework may be updated from time to time with the World Bank's prior written concurrence. 14. "Environmental and Social Management Plan" or "ESMP" means any site-specific environmental management plan, acceptable to the World Bank to be prepared during the Project implementation in accordance with the ESMF, approved by the World Bank, describing, inter alia, environmental mitigation, monitoring and institutional measures to offset or eliminate any negative impact or reduce them to acceptable levels, related to any Project activity; and "ESMPs" means the plural thereof. 15. "Financing Agreement" means the financing agreement for the Project between the Recipient and the World Bank, dated the same date as this Agreement, as such financing agreement may be amended from time to time. "Financing Agreement" includes all appendices, schedules and agreements supplemental to the Financing Agreement. 13 16. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated July 14, 2017. 17. "GRM" means Grievance Redress Mechanism as part of the Recipient's BMF. 18. "Incremental Operating Costs" means the incremental operating expenditures incurred by the Project Implementing Entity on account of the Project implementation, management, monitoring and evaluation, including salaries of contractual staff (but excluding salaries of officials of the Recipient's civil service) and the associated Social Charges, office rent, office materials and supplies, utilities, communication costs, transport and vehicle maintenance costs, support for information systems, translation costs, bank charges and travel and per diem costs of the Project Implementing Entity's staff and other reasonable expenditures directly associated with implementation of the Project activities, as well as small administrative budget expenditures incurred by the Beneficiaries in connection with the carrying out of Sub-projects, all based on an annual budget acceptable to the World Bank. 19. "JalalAbad-Electro" means JalalAbad-Electro Open Joint Stock Company, publicly-traded power distribution company established as a legal entity pursuant to the Registration Certificate No. 106011-3300-AO dated June 5, 2001 issued by the Recipient's Ministry of Justice and functioning according to its charter approved by the shareholders' general meeting dated July 1, 2001, or any successor thereto. 20. "Osh-Electro" means Osh-Electro Open Joint Stock Company, publicly-traded power distribution company established as a legal entity pursuant to the Registration Certificate No.3503-3306-AO dated May 28, 2001 issued by the Recipient's Ministry of Justice and functioning according to its charter approved by the shareholders' general meeting dated July 1, 2001, or any successor thereto. 21. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017. 22. "Project Coordination Committee" or "PCC" means the coordination committee to be established pursuant to Section 5.01 (e) of this Agreement, or any successor thereto acceptable to the World Bank. 23. "Project Implementing Entity" means the ARIS, or its legal successor thereto. 24. "Project Implementing Entity's Legislation" means the Decree of the President of the Recipient No. 330, dated October 15, 2003, establishing the Project Implementing Entity including any amendments thereto or any succeeding legislation. 14 25. "Project Manuals" means collectively the Project Operational Manual and the Sub- Grants Manual. 26. "Project Operational Manual" means the manual prepared by the Project Implementing Entity, satisfactory to the World Bank, and adopted pursuant to Section 5.01 (d) of this Agreement, and setting forth rules, methods, guidelines and procedures for the carrying out of the Project, including, inter alia: (a) detailed description of the Project and institutional arrangements for its implementation; (b) monitoring, evaluation, reporting, and governance procedures for the Project; (c) disbursement, financial management, auditing and safeguards procedures for the Project; (d) procurement rules, procedures, and standard bidding documents for the Project; (e) the content of the Project anti-corruption plan; (f) modalities for documentation and information management; and (g) criteria for verification, in form and substance acceptable to the World Bank, as said manual may be amended from time to time with the agreement of the World Bank. 27. "Resettlement" means: (i) the involuntary (i.e., an action that may be taken without a person's informed consent or power of choice) taking of land, including anything growing on or permanently affixed to such land, such as buildings and crops, resulting in: (A) relocation or loss of shelter; (B) loss of assets or access to assets; or (C) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or (ii) the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the affected persons, and encompassing restrictions on the use of resources imposed on people living outside a park or protected area, or on those who continue living inside the park or protected area during and after Project implementation. 28. "Resettlement Action Plan" or "RAP" means any site-specific resettlement action plans to be prepared by the Recipient and containing, inter alia, a program of actions, measures and policies for compensation of Displaced Persons, including budget and cost estimates, and sources of funding, together with adequate institutional, monitoring and reporting arrangements capable of ensuring proper implementation of, and regular feedback in compliance with its terms for each site. 29. "Resettlement Policy Framework" or "RPF" means the Recipient's resettlement policy framework acceptable to the World Bank, and disclosed by the Recipient on December 4, 2017, and on the World Bank website on January 11, 2018 said framework setting out, inter alia, the policies and procedures for the acquisition of land and other assets, compensation, resettlement and rehabilitation, inter alia, of Displaced Persons, as the case may be, and for the preparation of site-specific RAPs as may be required for Project activities, as said framework may be revised from time to time with the prior written concurrence of the World Bank; such term includes all schedules and agreements supplemental to said framework. 15 30. "Safeguard Documents" means collectively or individually the Environmental Management Framework (EMF), the Resettlement Policy Framework (RPF) as well as the Environmental and Social Management Plans (ESMPs) and the Resettlement Action Plans (RAPs) prepared in connection with the Project, as applicable. 31. "Signature Date" means the later of the two dates on which the Recipient and the World Bank signed this Agreement and such definition applies to all references to "the date of the Grant Agreement" in the Standard Conditions. 32. "Social Charges" means any payments or contributions for health benefits, unemployment benefits, disability insurance, workers' compensation benefits, retirement (pension or social security) benefits, and life insurance, or any other benefits according to the Recipient's legislation. 33. "Sub-Grant" means a grant made or to be made (out of the proceeds of the Financing) available to an eligible Beneficiary, in accordance with the criteria set forth in the Sub-Grants Manual to finance the cost of any given Sub-Project; "Sub- Grants" means the plural thereof. 34. "Sub-Grant Agreement" means any of the agreements referred to in Section I.D.1 of the Schedule to the Project Agreement. 35. "Sub-Grants Manual" means the manual prepared by the Project Implementing Entity, satisfactory to the World Bank, setting forth rules, methods, guidelines and procedures for the carrying out the activities under Par A of the Project, including, inter alia, the eligibility criteria, detailed rules and procedures for identification, registration and selection of eligible Beneficiaries to receive Sub-Grants, as said manual may be amended from time to time with the agreement of the World Bank. 36. "Sub-project" means any of the investments and/or activities under Part A of the Project; "Sub-projects" means the plural thereof. 37. "Subsidiary Agreement" means the agreement referred to in Section I.C.1 of Schedule 2 to this Agreement. 38. "Training" means expenditures (other than those for consulting services) incurred by the Project Implementing Entity in connection with study tours, training courses, seminars, workshops and other training activities, not included under goods or service providers' contracts, including costs of training materials, space and equipment rental, travel, per diem costs for trainees and trainers and trainers' fees (as applicable), all based on an annual budget satisfactory to the World Bank. 16